Health Care Reform Effort Switches Gears to Targeted Bills

February 03, 2010 at 07:00 PM
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Although the health care reform debate may be quieter now that Scott Brown has been elected, causing Democrats to lose their majority, it's definitely not over. Before Brown's election, Democrats wanted one sweeping reform bill that would encompass everything they hoped to achieve. And though negotiations continue between House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid to try to create such a bill, it seems more and more likely that any reform will be passed through a series of small, targeted bills.

To start, voting will soon take place to repeal the antitrust exemption that health insurance carriers currently enjoy. The repeal – which was included in the House-passed health care overhaul bill but not the Senate's version – has been a top priority for some House Democrats. Health insurers are currently exempt from federal antitrust laws, which are designed to protect consumers from price fixing and other anti-competitive acts. The insurance industry has said that the exemption is warranted because health insurers are regulated by individual states. But a number of lawmakers and consumer groups support a repeal of the exemption, arguing that states often lack the resources to effectively regulate the insurance industry. If repealed, the law would most likely not be earth-shattering for insurers, since most of them are already subject to state laws. It would simply redefine who has control over the companies.

The National Association of Insurance Commissioners sees it a little differently, claiming that "the most likely result of this repeal would … not be increased competition, but a series of lawsuits testing the limits of the state action doctrine, with associated litigation costs being passed along to consumers in the form of higher premiums."

The antitrust repeal is, for now, the only item on the agenda that is related to the health bill. The Obama administration has openly admitted that it plans to take a break from health care, at least for awhile, while it focuses on other issues such as the unemployment rate and an effort to increase hiring.

Meanwhile, the states are taking their own stance on health reform. Some are speaking publically against the legislation, while others are passing mandates. Lawmakers in 35 states have proposed legislation rejecting health insurance mandates, according to the American Legislative Exchange Council. Many of the proposals are targeted for the November 2010 ballot, which helps ensure that health care remains a hot topic as hundreds of federal and state lawmakers face re-election. Supporters of the state measures portray them as a way of defending individual rights and state sovereignty, asserting that the federal government has no authority to tell states and their citizens that they must buy health insurance.

At the same time, Oregon is working on legislation that would force insurance companies to rein in double-digit price increases and make more of an investment in public health. And California recently passed a bill (SB 810) that lays the foundation for a state-run, single-payer health care system.

For now, Pelosi admits that she's not sure what the next step will be on health reform. Until the Democrats figure out their next move, the focus will be on the states and on smaller, targeted efforts to fix the problems in the health care system.

Heather Trese is the associate editor of the Agent's Sales Journal. She can be reached at [email protected] or 800-933-9449 ext. 225.

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