NU Online News Service, Oct. 2, 3:25 p.m.EDT

The Senate Finance Committee completed work on health carereform legislation early today without action on the "24 houramendment," which would have merged medical components of workers'compensation and auto insurance with health insurance.

Officials of the American Insurance Association cautioned,however, that while heartened at the panel's decision, the issuecould resurface when the bill hits the Senate floor.

The amendment would have merged the health care components ofworkers' compensation insurance with health care delivery reformlegislation the Senate Finance panel has been considering for twoweeks.

The panel ended consideration of the bill at 2:15 a.m., saidBlain Rethmeier, a spokesman for the AIA. He said, however, thatthe final vote to report the bill to the Senate floor will notoccur until next week, after the panel receives a preliminaryestimate of its cost from the nonpartisan Congressional BudgetOffice.

The bill was proposed by Sen. Jay Rockefeller, D-W.Va., 10 daysago as one of 564 amendments that members of the Finance panelwanted added to the health care reform legislation, but was notoffered during the committee markup, Mr. Rethmeier said.

As soon as the amendment–known by the industry as "24-hourhealth coverage"–was filed, all industry trade groups sent a letterto the committee. They contended that "the amendment would upendthe systems now in place to protect injured workers, drivers andpassengers."

The insurers added that the 24-hour coverage concept "woulddestroy the healthy and competitive auto insurancemarketplace."

In response to the committee decision today, Jimi Grande, seniorvice president of federal affairs for the National Association ofMutual Insurance Companies, said, "So-called '24 hour' is amisguided concept that would distort the market and limit consumerchoice."

He added, "It has failed everywhere it's been tried becausecompetition has kept the total costs of the different pieces lowerthan that of a complex '24 hour' policy.

"We are pleased that the committee members responded to ourconcerns and decided not to take up this problematic amendment,"Mr. Grande concluded.

In a statement, Mr. Rethmeier said, "We won the battle incommittee but there's still a chance this could come up when thebill is considered by the full Senate."

He added, "The entire industry is continuing our efforts instrong opposition to the amendment, and we have to remain vigilantuntil the very end."

"You don't need this," he noted, pointing out that oppositionwas voiced in a letter signed by the American InsuranceAssociation; the Council of Insurance Agents and Brokers; theIndependent Insurance Agents and Brokers of America; the NationalAssociation of Health Underwriters; the National Association ofMutual Insurance Companies; and the Property Casualty InsurersAssociation of America.

In its letter, the property and casualty industry argued thathealth insurance reform is already a "major legislativeundertaking," and integration of the medical components of workers'comp and auto insurance is a very complex issue in its ownright.

Moreover, the letter said, the matter has not been the subjectof hearings in the Finance Committee or any congressionalcommittee.

"In light of the serious damage it would do to our nation'sworkers' compensation and auto insurance systems, we respectfullyurge the Finance Committee not to add the Rockefeller Amendment tothe pending bill," the letter added.

The concept of "24-hour coverage," the letter said, was lookedat in the 1970s and again in the early 1990s and not pursued.

"Among other factors, implementation would be extremelydifficult," the letter said, adding that, in addition, severalstates experimented with pilot projects (California, Kentucky andOregon) that were not successful.