Obama Speaks

Although some House members say they will vote for a bill only if it includes a public option, some of those are open to voting for a bill that would create a government-run health plan only if private carriers fail to provide acceptable coverage at affordable prices, the analysts write.

THE INDUSTRY REACTS

The National Association of Health Underwriters, Arlington, Va. — “NAHU agrees with many of the reform ideas that President Obama presented last night to the joint session of Congress,” NAHU Chief Executive Janet Trautwein says. “Reigning in health care costs so that more Americans can afford health insurance needs to be the key driver of any comprehensive health care reform package.

“NAHU strongly supports President Obama’s proposal to eliminate pre-existing condition exclusions and provide tax subsidies for low-income individuals and small business owners who cannot afford to offer health insurance to their employees. These market-driven sensible reforms will go a long way in controlling costs and improving access to the health care system.

“NAHU is also encouraged by President Obama’s remarks on the need for meaningful medical malpractice reform. The Department of Human Services estimated that medical liability and defensive medicine reforms alone could save the health care system up to $500 billion dollars.

“While we continue to disagree about the need for a government-run public plan, NAHU was very heartened by the president’s clear willingness to compromise on this issue. A public option may seem like a clever way to expand insurance coverage and lower costs, but our existing public options prove that another government-run health plan will only raise the cost of private insurance and crowd out private alternatives. The pattern of systematically underpaying doctors and hospitals through the Medicare and Medicaid programs have raised the average family’s premiums by $1,800 a year and a public option will only exacerbate this problem — and make health insurance more expensive.

“Americans want our elected officials to work in a bipartisan fashion to forge real solutions to reduce costs, improve quality and expand access and choice. Most Americans like their private health insurance coverage and want health reform to strengthen and build upon what is working, and address those areas where there are shortcomings.

“We look forward to our continued work with the administration, members of Congress and stakeholders to bring the real-world consumer perspective to this debate and share our experience to help enact sensible, bipartition health care reform because insuring America is in everyone’s best interest.”

America’s Health Insurance Plans, Washington — AHIP President Karen Ignagni, president of America’s Health Insurance Plans, says the health insurance industry continues to oppose any public option proposal

“New health insurance reforms and consumer protections will solve the problem without creating a new government-run plan that will disrupt the quality coverage that millions of Americans rely on today,” Ignagni says.

“Health plans will continue to work with policymakers and stakeholders to advance comprehensive, bipartisan health care reform,” Ignagni says. “The nation cannot afford to let this historic opportunity pass us by.”

Council of Insurance Agents and Brokers, Washington — The president’s “openness to health insurance cooperatives as an alternative to a government insurance program is promising,” Joel Kopperud, CIAB legislative affairs director, says.

“Chairman Baucus’ framework includes state-based cooperatives that we hope would be designed in a way that excludes government involvement and subjects the entities to the same regulatory requirements faced by all private insurers,” Kopperud says.

The CIAB also “appreciates that the President recognizes that medical malpractice needs to be addressed to lower costs,” Kopperud says. “The state-based experiments that the President mentioned is encouraging and we hope leads to broader reforms that will result in increased focus on cost-effective patient care rather than continued practices that only continue to drive up costs – yielding little benefit.”

The National Association of Insurance and Financial Advisors, Falls Church, Va., and AHIA – NAIFA Health and Employee Benefits, Falls Church – “AHIA and NAIFA support the president’s 3 basic principles,” the groups say.

“As a matter of fact, we support the 8 principles he outlined in his budget earlier this year,” the groups add. “Achieving these principles can be accomplished with bipartisan solutions including insurance market reforms to guarantee coverage, medical malpractice reforms, health and wellness incentives, requirement for people who can afford insurance to get insurance and tax credits to help people who can’t. A new government option remains a major concern. NAIFA looks forward to working with the president and Congress to ensure that access to choice, affordability, quality, competition, and professional service through agents and brokers are included in any health care reform legislation.”