Battle Over Healthcare Bill Continues Apace

McCarty’s comments also address agents’ concerns over a new web portal unveiled on July 1 by the Department of Health and Human Services. The portal, which enables consumers to compare coverage options and buy health insurance at the lowest possible price, is scheduled to be in place by Oct. 1. It is a precursor of a larger web exchange slated to launch on Jan 1, 2014.

For many health insurance agents, the web portal concept is seen as an occupational threat, much like how online airline and hotel booking services marginalized travel agents. In response, 25 members of the House have asked in a letter to federal health regulators to ensure a role for agents in the web portal.

“We strongly encourage you to include the ability for consumers to contact certified, state-licensed independent health insurance agents and brokers for assistance when comparing coverage options,” the letter said.

“It is important the consumer’s options to contact independent and state-licensed health insurance agents and brokers be included no later than Oct. 1,” the letter said.

John Green, NAHU vice president of congressional affairs, said health insurance agents should certainly play a key role in counseling people about their health insurance options going forward.

“Providing consumers with the option to choose a local agent at the zip code level to assist them in choosing the right coverage for the individual or family makes sense,” he said. You wouldn’t want to call Washington to find out your home or car insurance options; you want someone you can look in the eye and call in the middle of night.”

The CLASS Act

Meanwhile, on July 26, Rep. Charles Boustany (R-La.) introduced H.R. 5853, the Fiscal Responsibility and Retirement Security Act, which if enacted would effectively repeal the Community Living Assistance Services and Supports (CLASS) Act, a new long-term care entitlement program created as part of the larger healthcare reform package but not likely to be implemented until 2013.

The Boustany bill would impose a host of hurdles before the CLASS Act could be implemented, and an immediate shutdown any time it becomes actuarially unsound, with premiums to be refunded and/or to allow beneficiaries to use the funds that remain in their accounts for other purposes.

It would also require the secretary of the Department of Health and Human Services to report to Congress on the final CLASS plan designated by the Department.