NU Online News Service, July 15, 3:30 p.m. EDT
WASHINGTON–The Senate Health, Education and Labor Committee has approved legislation to reform the nation's health care delivery system.
The action came after the panel approved an amendment that restores a key role to health agents in providing advice and selling health insurance to the public.
Officials of insurance industry agent groups from all sectors, participating in a "fly-in" which drew more than 1,000 agents to the capital, cautioned, however, that much work remains to be done if legislation that preserves the current industry role in delivering health care insurance is finally enacted.
Of critical concern for the organizations are provisions in the HELP Committee version of the legislation as well as in legislation unveiled by House Democrats yesterday that would create a "public" option for health coverage. This would be administered by the federal Department of Health and Human Services.
"Health insurance agents and brokers strongly oppose a government-run public plan that would unfairly compete with the private health insurance market, divide risk pools and pile on significant unnecessary costs to health care reform compared to sensible improvements to private insurance markets," the five trade groups said in a statement.
Agents on hand for the Washington fly-in took copies of that message with them for their visits with lawmakers on Capitol Hill.
Before they headed out to meet with their legislators and lobby them on the importance of the role agents play in securing proper health care coverage for consumers, agents attended a breakfast briefing.
Charles Symington, senior vice president for government affairs for the Independent Insurance Agents and Brokers of America, said at the briefing that the trade groups were surprised so many agents had decided to participate in the "fly-in."
He said they had initially predicted that only 400 would attend.
The HELP panel passed its version of the legislation by a partisan vote of 13-10 after a month-long drafting process.
It contains an amendment passed last night that revises a so-called "Navigators" program universally criticized by the agents industry because it would have created a system that would have barred agents from participation.
Specifically, the program would award grants to public and private entities to "conduct public education; distribute fair and impartial information regarding health plans; [and] assist with enrollment and provide information."
In passing the amendment offered by Sen. Orrin Hatch, R-Utah, the provision specifically adds "other licensed insurance agents and brokers" to those authorized to provide such information. The amendment also mandates that any information given to consumers who access the system is provided by "qualified, and licensed, if appropriate," personnel.
According to the system being developed by Congress, the "Navigators" would help consumers decipher the information provided through Internet "gateways" or "exchanges."
The program is based on the system developed to provide universal health care in Massachusetts by helping consumers pick out the best options for their health care needs.
These "gateways" would provide access to all health care options, qualified health benefit plans as well as a "public" system.
The HELP Committee bill would extend health insurance coverage to an estimated 21 million uninsured people over 10 years. It is estimated by the Congressional Budget Office to cost $611.4 billion.
The HELP bill would require all individuals to obtain health insurance and mandate that most employers either provide health benefits or pay a fee to help pay for government subsidies for their workers to get health care insurance.
Janet Trautwein, executive vice president and chief executive officer of the National Association of Health Underwriters, called the Navigators' amendment a "breakthrough" addition to the legislation, adding that it will allow agents "to support this system."
Ms. Trautwein said much work remains to be done. She was joined in issuing that caution by Mr. Symington of the IIABA; Joel Wood, Council of Insurance Agents and Brokers senior vice president of government affairs; and Diane Boyle, executive vice president of the Association of Health Insurance Advisors unit of the National Association of Insurance and Financial Advisors.
Now that the HELP Committee has finished work on its version of the legislation, the Senate Finance Committee said it would start to draft its version of the legislation tomorrow.
It is unclear whether the Finance panel version will explicitly call for creation of a public option.
After the two Senate committees complete work on their bill, the committees will mesh their two bills in hopes of completing floor action before the Senate leaves for its summer recess in early August.
The hope is that staff work on reconciling the competing bills will take place in early August, setting the stage for negotiating final legislation by October.
Work on the House bill unveiled yesterday will begin tomorrow, when the House Ways and Means Committee takes up a bill drafted primarily by Democrats.
The 1,018-page House bill is divided into three divisions: affordable health care choices, Medicare and Medicaid improvements, and public workforce and health care development.
The House Education and Labor Committee and the House Energy and Commerce Committee will then take turns marking up the bill.
They are working intensely because the House Democratic leadership wants the bill passed by the full House before it starts its month-long summer recess July 31.
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