As a new administration prepares to tackle health care reform, the health insurance industry is offering a few suggestions.
America's Health Insurance Plans (AHIP), representing about 1,300 companies covering more than 200 million Americans, says its members would be willing to guarantee coverage for individuals with preexisting medical conditions in exchange for a government mandate that all individuals purchase health insurance.
AHIP's board of directors issued the proposal after conducting a nationwide “listening tour” on health care during which many Americans raised concerns about the lack of coverage for preexisting conditions in the individual insurance market.
But to make guaranteed coverage a reality, the federal government will need to require that individuals purchase coverage and use mechanisms such as an insurance coverage verification system, an automatic enrollment process, and some type of enforcement, the group said.
When coverage is guaranteed and there is no mandate to have insurance, individuals tend not to purchase insurance until they get sick, which drives up costs, said Robert Zirkelbach, a spokesman for AHIP. For example, a study conducted on behalf of AHIP by Milliman Inc. found that in many states that implemented guarantee issue or community rating policies in the 1990s, insurance premiums had gone up and individual insurance enrollment had gone down. In addition, some health plans had left the individual insurance marketplace.
The AHIP proposal also aims to increase the affordability of health insurance plans on the individual market. The group suggests lowering costs for consumers through refundable tax credits. In addition, it proposes tackling the overall cost of medical services by expanding the use of preventive services, conducting comparative effectiveness trials for medications and devices, and reforming the medical liability system.
The AHIP proposal also supports expanding eligibility for Medicaid and the Children's Health Insurance Program.
“No one should fall through the cracks of our health care system,” Karen Ignagni, AHIP president and CEO, said in a statement. “Universal coverage is within reach and can be achieved by building on the current system.”
Affordability will be critical to the success of any proposal, said Ron Pollack, executive director and vice president of Families USA, a nonprofit, nonpartisan organization focused on health care affordability. “How can you require someone to do something they simply can't achieve?”
Families USA supports the idea of a mandate for health insurance coverage, Mr. Pollack said, but only if it includes adequate subsidies and help for those who can't afford to purchase coverage.
The AHIP proposal is a “helpful step,” but some work is still needed in determining what steps can be taken to guarantee coverage if a mandate for coverage is not politically feasible, he said.
Ed Howard, executive vice president and CEO for the Alliance for Health Reform, agreed that the cost of health care will be the top priority of policy makers as they consider health care reform. Without a cost containment plan, a mandate would be hard to enforce, he said.
But he said he is somewhat optimistic that substantial health reform can be enacted, even if it is implemented in stages. “Clearly, things are getting worse,” he said, referring to the growing number of uninsured and underinsured Americans.
Although there is not a crisis pushing health care on the agenda, the economic climate gives the issue some urgency, Mr. Howard said. Add to that a new administration and senior members of Congress with an interest in health reform, and there is a possibility for action, he said.