NU Online News Service, June 12, 2:30 p.m. EDT
WASHINGTON–Officials of the Independent Insurance Agents and Brokers of America are voicing strong opposition to provisions of a Senate healthcare reform bill that would create a public plan in competition with private insurers.
IIABA officials also said they would oppose provisions in the draft legislation that would create a "pay or play" employer mandate and develop a "Navigators" grant program.
This new program would award grants to public and private entities to conduct public education, distribute information, and assist with health insurance enrollment, IIABA officials said.
"The legislation specifically states that health insurance issuers, including agents, would be prohibited from participating in the grant program," said Charles Symington, IIABA senior vice president of government affairs.
The proposed legislation, "the Affordable Health Choices Act," was unveiled for public comment late Wednesday by Sen. Edward M. Kennedy, D-Mass., chairman of the Senate Committee on Health, Education, Labor & Pensions.
The committee hopes to start work on the bill in the coming week.
Robert Rusbuldt, president and chief executive officer of the IIABA, said that while the trade group's members support efforts to provide universal health care coverage and to lower health insurance costs across the board, "the current form of this bill is not the solution."
He said that although proposals are not yet detailed in the draft of the legislation released by the HELP Committee–for including a Medicare-like public plan in the legislation–they will be opposed by the IIABA.
"Within years, private insurers could be driven out of business and a 'single payer system' will evolve," he warned. "Moreover, an improperly constructed employer mandate could have a devastating impact on main street businesses that would be saddled with a significant economic burden."
Regading the "Navigators' program," Mr. Symington said it "would mistakenly entrust organizations with no prior health insurance background with the authority to advise individuals on their insurance decisions and would cut experienced and educated agents out of the process of boosting health insurance enrollment."
He explained that individuals seeking information on a health insurance plan should be able to count on sound advice from a licensed health insurance agent, broker or consultant.
"It is simply reckless to hand this trusted role over to random community organizations with no relevant health care background," Mr. Symington said.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.