Two Trade Groups Blast Health Care Bill Language

NU Online News Service, Dec. 16, 3:5 p.m. EST

Two insurance trade groups are telling the Senate leadership that the current draft of health care reform legislation ignores the interests and needs of the current employer-based insurance system.

Officials of the National Association of Health Underwriters and the American Benefits Council made their comments before the Senate attempted to vote on the measure in advance of their scheduled holiday recess.

In general, said John Greene, vice president of congressional affairs for the National Association of Health Underwriters, "employers feel that their issues with respect to the employer mandates and taxes are being lost" as senators debate a government public insurance option and whether to provide coverage for abortions.

At stake, however, are jobs, he said.

"Unfortunately, if the bill passes in its present form, jobs will be lost or not offered, particularly in the lower income levels, and the overall effect will be to slow down the recovery as employers sort out what impact the final bill has on their plans to expand next year," Mr. Greene said.

In a letter to all members of the Senate, James Klein, president of the American Benefits Council, also voiced concerned.

"In particular, legislation must not destabilize employer-sponsored coverage by making it more costly or burdensome."

He added, "The vast majority of employers want to continue providing health coverage for their employees but might no longer be able to do so when faced with unrealistic new requirements or financial commitments."

Without significant improvements, he said, "we will have no alternative but to oppose the legislation as it is considered further by the Senate."

His specific concerns included provisions designed to raise revenue to cover the cost of insuring another 33 million Americans, as the Democrats who are pushing the legislation say it will do.

These include eliminating the tax on retiree drug subsidies as currently called for in the bill, as well as deleting a provision imposing annual taxes on insurers, self-insured plans and other health care providers and suppliers.

Mr. Klein asked that the tax on so-called "Cadillac plans" be made fairer and "less disruptive." He also said employers oppose limits on employer flexibility to determine benefits and contributions and believe "meaningful" tort reform is a must.

"No version of health care reform, including the Senate bill, has yet met the test of achieving the kind of real reform that is urgently needed in our medical liability system," Mr. Klein said.

He noted that the Congressional Budget Office has recently confirmed that there would be substantial savings to the federal government if meaningful liability reform were included as part of health reform legislation, and that the savings in the private marketplace would be even greater than those for the federal government.

"Responsible health reform legislation simply must not ignore this pressing issue," he said.

He also criticized the CLASS, or Community Living Assistance Supports and Services Act, which establishes a new entitlement, long-term-care program.