Allow GOP Input On Health Care, Agents Urge Congress

NU Online News Service, April 23, 10:30 a.m. EDT

WASHINGTON–A coalition of five producer trade groups representing the life, property-casualty and health insurance industries wrote key members of Congress yesterday urging them not to push through health care reform using a fast track method that could avoid Republican input.

The letter asked that "budget reconciliation," a quick process for legislation, not be used to speed through a health care program.

Using that rapid procedure could limit opposition to the health care "public option" favored by Democrats. That proposal would utilize the resources of Medicare and Medicaid to serve as competition to products offered by private health insurers, most of whom pay commissions to insurance agents to obtain business.

Democrats in Congress are proposing to include health care reform in budget reconciliation through acceptance of the House version of the budget plan.

Such a step would mean that only 51 votes would be needed to pass a broad, health care reform measure in the Senate, instead of the 60 votes normally required for important bills. Democrats currently occupy 58 Senate seats and Republicans 41 with the Minnesota seat currently vacant.

The Association of Health Insurance Advisers, the health and employee benefits trade group that is part of the National Association of Insurance and Financial Advisers, in another letter sent to Congress last week, said they are concerned that without some Republican input, the "public option" for health care would be pushed through by Democrats.

And AHIA President Robelynn H. Abadie has written Congress, that "AHIA is especially concerned with the public plan as a major step down the road toward a single-payer, government-run health care system."

She wrote that, AHIA as an organization "believes the private health insurance system is best equipped to provide options for families and businesses."

Ms. Abadie's letter said, "Promoters of the government-run plan option always state or imply that a government-run plan that eliminates the role of the agent will lower administrative costs.

"But administrative costs are not reduced simply by switching administrators–a government plan will not be less expensive unless services are reduced in some as yet ill-defined way," she said.

In the latest letter, the trade groups said, "We, the undersigned organizations, representing health insurance advisors, agents, brokers, consultants and employee benefit specialists, are writing to strongly urge you to exclude health care reform from the budget reconciliation instructions," the letter said.

"An issue of this magnitude deserves its due consideration under regular order," the letter explained.

It was signed by representatives of AHIA; the Council of Insurance Agents & Brokers; the Independent Insurance Agents & Brokers of America; the National Association of Health Underwriters; and NAIFA itself.

"We applaud Congress and the administration for making health care reform a top priority this year and agree that this legislation must be a bipartisan product with consultation and cooperation from the American public as well as stakeholders representing all sides," the coalition letter said.

"However, we fear the spirit of bipartisan cooperation will be lost if regular order is put aside and the reconciliation process is utilized to fast track health care reform legislation," the letter said.

"The future of the nation's health care system deserves nothing less than an open, bipartisan and transparent debate by Congress," the letter added.