As Panel Meets, AHIP Makes Guaranteed Issue Offer

That kind of combination would “enable insurers to offer coverage to everyone regardless of their health status–without the unintended consequence of premium increases,” Scott Serota, the president of the association, says in a statement. “With everyone covered through an effective individual mandate, insurance can function as intended and spread the risk over a broad and representative population, and thereby avoid the risk of only those who need insurance purchasing coverage.”

As AHIP was announcing its plan, witnesses were testifying at the Senate Finance Committee hearing that the Obama administration should continue to make health finance reform a top priority, despite the troubles facing the economy.

“We recognize the significant challenges in addressing the economic problems of our country,” said Andrew Stern, international president of the Service Employees International Union, Washington. “But we also believe we have a once in a lifetime chance to address the economic insecurity of too many Americans by responding to the urgent need to address our nation’s health care crisis.”

Supporting health care reform may seem imprudent at a time when Congress has added $700 billion to the federal budget deficit, but some reforms could improve the quality of health care while reducing federal spending on health care, according to Amitabh Chandra, an economist from Harvard University.

Sen. Max Baucus, D-Mont., chairman of the Senate Finance Committee, also emphasized the role of health care costs in driving up government spending.

When it comes to grappling with health finance issues and general economic issues, the government needs to “walk and chew gum at the same time,” Baucus said.