WASHINGTON UPDATE FROM NAHU

 

Update on SCHIP

Yesterday evening (September 25) the House of Representatives passed the compromise bipartisan agreement on the State Children’s Health Insurance Program (SCHIP) reauthorization, H.R. 976, by a vote of 265 in favor, 159 against.  This legislation was very similar to the original Senate-passed SCHIP measure, and it contained all of the NAHU-supported premium assistance provisions.  The compromise measure also did not contain any cuts to the Medicare Advantage program, but instead funded the measure completely through an increase in the federal tobacco tax.  There were 45 Republicans voting in favor, and 8 Democrats voting against, but the margin was obviously short of the 290 YEA votes needed to override a promised veto from President Bush. 

 

As a result, the political drama concerning the future of SCHIP and premium assistance will continue  for the time being.  The next step is that the Senate will take up and pass the bill.  Because the House and Senate will have voted on identical language there will be no need for a conference to work out the differences.  Following the Senate vote, H.R. 976, as amended, will be enrolled and sent to the President. 

 

The President will veto the bill, and the House is expected to sustain the veto.  Assuming the House sustains the veto, language extending the current SCHIP program is expected be wrapped into the continuing resolution that Congress will take up and pass by this Friday.  Failing that, the extension of SCHIP could be advanced as a free-standing bill. The funding for SCHIP will expire on  September 30, so this issue must be resolved quickly.  Although the vast majority of states have indicated that they do have enough funds left in their coffers to keep the programs operating for at least the short-term, the political ramifications of SCHIP funding expiring would be huge. 

 

Once short-term funding relief is passed, the House and Senate will have to go back to the drawing board and craft a measure that will both pass both Houses and that the President is willing to sign.  The time-frame for this process will be determined largely by the duration of the funding extension measure.  NAHU will continue to advocate for  premium assistance provisions and responsible funding for SCHIP that does not in any way impact health care coverage options for seniors. 

 

Mental Health Parity and TAA

Congress has also been busy on other matters of importance to NAHU, like mental health parity and the reauthorization of the Trade Adjustment Assistance Act (TAA).  The Senate passed its mental health parity bill, S. 558, on September 18 by voice vote.  This legislation is bipartisan in nature and represents a reasonable compromise on this issue.  It was crafted with the input of a coalition of interested parties, including NAHU.  The House bill, H.R. 1424 is an extreme measure opposed by NAHU and our coalition partners.  It would do things like make coverage of “disorders” like caffeine addiction and jet lag on par with not only serious mental health conditions like manic depression, but also other serious health conditions like heart disease.  Only one of three House committees of jurisdiction (Education and Labor) has passed this measure, although the Ways and Means Health Subcommittee passed H.R. 1424 up to its full committee last week.  The House Energy and Commerce Committee has yet to act on H.R. 1424 and the full House is not currently scheduled to take up the measure.  Unlike SCHIP, President Bush has always expressed extreme willingness to sign mental health parity legislation.  NAHU will continue to encourage the House to take up the Senate-passed bill to avoid the need for a conference.  However, a more likely scenario is that the House will pass H.R. 1424, as is, which would then require a conference to resolve the two very different bills. 

 

Funding for TAA, including the NAHU-supported federal Health Care Tax Credit for displaced workers and Pension Benefit Guarantee Corporation recipients, will also expire on September 30.  Continuing funding for this program was passed by the House yesterday.  NAHU’s lobbying efforts relative to the TAA reauthorization have been focused on getting Congress to revise the purchasing options to allow eligible individuals to purchase coverage available and approved in their state, without requiring a special state election. Also, we would like to see Congress make the TAA guarantee issue requirements mirror HIPAA group-to-individual portability requirements in terms of timeframe AND purchasing option requirements.

 

NAHU’s Testimony at Recent Hearings

NAHU’s Executive Vice President and CEO Janet Trautwein gave testimony at two key hearings in recent weeks.  On the morning on September 11, she addressed the Senate Budget Committee on the subject of universal coverage.  At the request of the committee her testimony focused on the options of individual and employer mandates and extending Medicare coverage to all.  You can view the proceedings online at the committee’s web site.

 

Later that same day, Janet presented testimony to the National Association of Insurance Commissioners’ public hearing on the regulation of private Medicare plans.  This hearing was called by the state insurance commissioners’ Medicare Working Group as they consider options for greater state-based regulatory control of such products, particularly in the area of marketing practices. 

 

New NAHU Analyses of Congressional & Presidential Candidate Health Reform Proposals

To help our membership keep up-to-date with the various health care reform proposals being debated at the federal level, we have developed two charts that we regularly update for your use.  The first chart analyzes the various broad-scale reform ideas being presented by the presidential administration and leading members of Congress.  A number of new proposals were released over the course of the summer, and you will notice that not only  are there many ideas being circulated that would drastically change our private market health system and not necessarily guarantee a role for licensed producers, but also that these ideas come from both sides of the aisle. 

 

The second chart compares what the various presidential candidates have had to say so far about health care, including the new Hilary Care 2.0 proposal.  While many of these ideas would also drastically change our current private delivery system, please keep in mind that these are just initial proposals.  The election is more than a year away, and any President will need to work and compromise with Congress before any reform plan is enacted.   But both of these charts do make one thing very clear—we have a tough road ahead in 2008 and beyond!  Now more than ever is the time to stay involved and focused on legislative issues through NAHU! 

 

Grassroots Update

NAHU has some new and exciting grassroots tools in the works for both individual members and state and local chapters that will be unveiled later this fall.  In the meantime, though, please make sure that NAHU has your correct home contact information. ..  An easy way to do this is to access and make updates to your member record online today.  

 

Agent Licensing

On August 30, Janet Trautwein and Jennifer Hillert represented NAHU at the NAIC/Industry Producer Licensing Coalition meeting in Chicago. Regulators have committed to do the following for producers:

  1. Simplify the Business Entity Licensing process by eliminating the requirement to register with the Secretary of State.
  2. Create greater uniformity in CE course approval and delivery.
  3. Complete an assessment of state compliance with uniform licensing standards. During this assessment, regulators will also want to meet with producers to hear their take on the DOI’s compliance.

 

As always, the NAIC would like examples of instances where states are not compliant with uniform procedures. If you have experienced anything out of the ordinary or overly burdensome with your DOI, please contact Jennifer Hillert.

 

Resource Materials from a Coalition Partner

America’s Health Insurance Plans (AHIP), a national trade association representing nearly 1,300 health insurance companies,  has put together some resource materials that may be useful to you and your chapter. 

· AHIP is offering NAHU's members the on-line publication of the 2008 edition of our Medicare Prescription Drug Plan Guide: How to Choose Your 2008 Plan.  This book, which was used last year by thousands of Medicare beneficiaries and their families, as well as brokers/agents, counselors, trainers, pharmacies, and health plans, is an interactive on-line tool designed to help individuals evaluate their Medicare prescription drug plan choices for 2008.  It includes updates to reflect how things will work in the coming year. The guide is color coded for ease of use, and includes quick reference guides. Brokers, agents, and beneficiaries may print some parts of the guide, or the entire guide, from the website for personal use.

Visit http://www.healthdecisions.org/guide to access the Medicare Prescription Drug Plan Guide: How to Choose Your 2008 Plan.

· AHIP is also organizing a national agents/brokers coalition to join their 1,300 members to speak with one voice.  This coalition would supplement any NAHU grassroots efforts, both at the national and chapter levels, and through Operation Shout.  Participation in the new AGENTS ACTION NETWORK is free and your response to this invitation, or any other request of the Coalition in the future, is strictly voluntary. The Coalition does not conflict or replace any advocacy program you might currently participate in, but is designed to strengthen the grassroots power of our combined industries.  If you would like to join, simply click the link below to register.  Your contact information will not be shared or used for any purpose other than the activities of the coalition. WWW.AGENTSACTIONNETWORK.ORG

 

· As states consider proposals to expand access to health care coverage, a new study assesses the impact of prior efforts in states across the country.  Over the past decade, numerous states have launched “insurance reforms” with significant unintended consequences.  A number of these initiatives were repealed or significantly changed within a few years of implementation.  The study by Milliman, Inc. on behalf of AHIP examined what happened.   Specifically, the report examined eight states that enacted various forms of “guarantee issue” and “community rating” in the 1990’s, including Kentucky, Maine, Massachusetts, New Hampshire, New Jersey, New York, Vermont, and Washington.  The report found that these initiatives can have unexpectedly negative consequences for consumers, and can limit access to coverage.