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. 221-223-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. 221-223-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. 313- 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//:www.youtube.com- 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 www.NAHU.org

• Go to the “Operation Shout” section of the NAHU site and send an email 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:

• www.uschamber,com

• www.gwinnettchamber.com