Reforming the American Health Care System

Basic Facts 83% of people are satisfied with their own health care (CNN/Opinion Research July 31–August 3) 74% satisfied with their personal health insurance (CNN/Opinion Research July 31–August 3) The rising cost of health care is a concern for all Americans

Points of Agreement The American Health Care system needs to be reformed The uninsured need access to insurance The uninsurable need access to coverage at a reasonable cost

Reform Concerns Reform must be Thoughtful, Meaningful and Sustainable Universal access to coverage Maintain a Private system without a Gov’t Run Public option (Public Health Insurance Option)

Reform Concerns Loss of State regulatory authority. Federal laws and rules should be implemented at the State level Future cost and tax liability as projected by the CBO (Congressional Budget Office)

Concerns with the proposed legislation HR 3200 Loss of State Premium Tax - premiums paid to purchase coverage in the Public Health Insurance Option will not include State Premium Tax. Georgia could lose $300 + Million dollars in tax revenue. Sec. 102-Employer may keep current private insurance, but will not be able to buy similar insurance after 1 year.

Concerns with the proposed legislation HR 3200 Sec. 123(a)-Health Benefits Advisory Committee-This committee will decide the type of policies and coverage that will be deemed allowable. It will be made up of- 27 members + Surgeon General, 18 appointed by the President, 9 appointed by controller

Concerns with the proposed legislation HR 3200 Sec Public Health Insurance Option-The Gov’t will create a government funded insurance company in direct competition with private industry. $2 Billion in initial funding and unlimited exposure for taxpayers

Concerns with the proposed legislation HR 3200 Sec Reimbursements in the Government Run Health Plan are set at Medicare Reimbursement levels. The Government determined funding level. Sec. 311-Mandatory coverage for employers. Pay or Play-Plan must meet Qualified Health Benefits Rules

Concerns with the proposed legislation HR 3200 Sec. 312 (b)-Employers will be required to pay 72.5% of the premium for fulltime employees and 65% of the family premium in the lowest cost plan offered by the employer. Employers will be required to pay a lesser amount for coverage on “Other than full time employees.”

Concerns with the proposed legislation HR 3200 Sec. 312 (b) (4)-Employer contributions to “salary reduction” programs like HSA (Health Savings Accounts), HRA (Health Reimbursement Arrangements), FSA ( Flexible Spending Accounts) will not count towards mandated contributions.

Concerns with the proposed legislation HR 3200 Sec Small employers with a payroll of less than $400,000 and who do not provide insurance coverage for their employees will pay up to an additional 6% of payroll to the Gov’t for insurance coverage. Employers with payrolls greater than $400,000 will pay an 8% tax

Concerns with the proposed legislation HR 3200 CBO (Congressional Budget Office) Director Elmendorf testifies that HR 3200 will increase federal spending significantly. http//: The video title is “ Dir. Elmendorf tells W & M the Dems' Bill Will Expand Federal Health Care Spending Significantly”

What Will Work Guarantee Issue Individual Insurance (w/ Pre Ex clause or financial back stop) HIPAA Creditable coverage rules for pre existing conditions Enforceable Mandated coverage for individuals

What Will Work Use of wellness factors in premium pricing (i.e. smoking, alcohol abuse, obesity) Continue to offer Medicare Advantage, HR 3200 eliminates this program. 12 million seniors currently choose Medicare Advantage. Tax subsidies for low income individuals and small businesses

What Will Work High Risk Pool, Assignment or Reinsurance Pool for the uninsurable; There are working examples operating in other states.

What can you do? Call and fax your Senators and Representatives Call and fax Blue Dog Democrats Participate peacefully in Town Hall meetings Write editorials Include your friends

National Association of Health Underwriters Visit the NAHU website Go to the “Operation Shout” section of the NAHU site and send an to your Senator, Representative and the White House Participate in the “Get Health Care Right” campaign on the NAHU website

Important sites Below are important sites you can visit for additional information: