NU Online News Service, MAY 14, 2:49 p.m.EDT

WASHINGTON–Don't create a health care insurance programthat cuts us out of the market, insurance agents' and brokers'trade groups have written congressional leaders.

The letter follows proposals for a public health insurancesystem that would let customers buy products directly online.

In their message to leadership the organizations noted that theycollectively represent more than 500,000 health insurance agents,brokers, advisors, consultants and employee benefit specialists,and that their members play a key role in providing health care toindividuals and employers.

Their letter was sent as Congress debates ways to reform healthcare delivery systems so that costs can be reduced enough toprovide health care to the estimated 43 million uninsuredAmericans.

One of the proposals would create a "public" option that wouldallow Medicare and Medicaid to provide plans that would competewith private insurers as a means of forcing insurers to cut thecosts of their coverage offerings.

And, Monday, trade groups representing six health careproviders, including health insurers, hospitals, doctors andunions, presented a letter to President Obama pledging to work toreduce health care costs by $2 trillion over the next decade as ameans of facilitating health care reform.

The major health insurance agent/broker groups signing theletter to congressional leaders included AHIA-NAIFA Health andEmployee Benefits, the Council of Insurance Agents & Brokers,the Independent Insurance Agents & Brokers of America, theNational Association of Health Underwriters and the NationalAssociation of Insurance and Financial Advisors.

The letter was sent late yesterday to the chairman and rankingminority members of the six committees in the House and Senate thatare dealing with health care reform.

Another proposal, outlined this week in a working paper draftedby the staff of the Senate Finance Committee, providing policyoptions for legislation, would create a health insurance exchangeby allowing individuals to buy health insurance through theInternet.

This option would create a Web portal, or "Health InsuranceExchange" – or multiple exchanges – that would direct consumers toevery health coverage option available in their zip code.

In a meeting earlier this week, representatives of the tradegroups voiced concern over this option because it could possiblyreduce or eliminate the role agents play in providing health careinsurance for those participating in either the group or individualmarkets.

The Web portal, as outlined by the Senate Finance Committee,would standardize the health insurance enrollment application, theformat companies use to present their insurance plans and themarketing rules.

The new Web portal would be publicized and would have a callcenter for customer support, the paper says. It will enable usersto determine if they are eligible for health insurance subsidies orpublic programs, according to the proposal.

"The exchange would also allow consumers without access to theInternet to enroll through the mail or in person in a variety oflocations," the proposal says.

The producers' concerns about public option plans and the HealthInsurance Exchange were voiced in a part of the letter which said,"We would have strong concerns with any legislative proposal thatwould deprive access to the services of professional agents,brokers and consultants.

"There is no way a governmental agency in some far-off locationcould match the service and value agents and brokers bring to theirclients," the letter adds.

"Every day hundreds of thousands of professional healthinsurance agents and brokers help individuals and employerspurchase health insurance coverage that best fit their specificbudget and health care needs," the groups wrote.

"More importantly, agents and brokers help their clients resolveday-to-day issues that may arise after the point of sale," theyadded.

"As benefit specialists, professional health insurance agentsand brokers design benefit plans, resolve claims disputes, conductenrollments/terminations, assist with COBRA [continuation healthinsurance] administration, and solve complex billing issues," theletter explained.