SIIA Legislative Update – Healthcare Reform 07/23/09
SIIA, www.siia.org
Senate Health Bill Delayed Until Fall
Although a priority for President Obama, Senate Majority Leader Harry Reid (D-NV), this afternoon officially announced that the Senate would not take up healthcare reform in the full Senate body until after the August Summer Recess. The delay is caused in part to Democrat Leadership’s inability thus far to garner the 60 votes needed to pass their reform that includes government-run healthcare. They have also been waiting for Senate Finance Committee Chairman Max Baucus (D-MT), who has admirably been working on a bi-partisan deal that would keep the employer-system and would limit government involvement, to release his Committee’s formal proposal.
House Timeline Also Slipping
The House, which only last week was poised to pass their healthcare reform package, has been significantly delayed due to a lack of consensus within a majority of the Democrat caucus. A coalition of moderate Democrats, known as the Blue Dog Coalition, has voiced numerous concerns with the current version of the Democrat bill. Behind closed doors, meetings continue between House leadership and officers of the Blue Dogs to try in an effort to reach a consensus. This process will like make Democrat leaderships’ goal of passage before the summer recess likely unachievable.
House Moderates Release Their Reform Concerns/Priorities
The House Blue Dog Coalition (referenced above) officially released their negotiating list that they would need to be able to support the House’s healthcare reform bill. They include:
• Specific provisions to provide for cost-containment of healthcare costs.
• Realign incentives to reward high quality, efficient health care; include value-based purchasing, value index, innovation center for Medicare and Medicaid, and other delivery system reforms.
• Increase small business exemption and adjust for inflation.
• Address end-of-life care.
• Adjust the value and cost of subsidy levels
• Provide affordability credits on a sliding scale from 100-300 percent FPL (bill currently provides subsidies up to 400% of FPL – $88,000).
• Government-run option must negotiate rates with providers, provide greater clarity on opt out, compete on a level playing field, and be available as a fallback.
• Establish consumer-driven, state-based co-ops.
• Create state-based exchanges with a federal fallback.
• Maintain current state-federal partnership with Medicaid, while implementing reforms that increase its value and effectiveness
Medicare Council Proposed as Reform Cost Saver
In an attempt to win over House and Senate moderates concerned about the cost of reform, a proposal has been discussed for inclusion that would create an Independent Medicare Advisory Council (IMAC). The Council would include a Presidentially appointed Board that would recommend cost-saving proposals. The Board would be empowered with setting provider reimbursement rates for various procedures. Potentially, this could result in the Federal government refusing to reimburse doctors and hospitals for providing certain treatments they believe are too costly.
SIIA Adds Detailed List of Employer Burdens Included In House Bill to Grassroots Toolkit
The current House healthcare reform bill proposes numerous burdens for employers that collectively would likely lead to the demise of the Employer-Based Healthcare System. SIIA’s Government Relations Staff has developed a list of these provisions and has posted them in the Grassroots Toolkit for members to use when corresponding with their elected-officials.
SIIA Urges the Self-Insurance Industry to Make our Message Heard
SIIA urges all those in the self-insurance industry interested in preserving the way we do business and the benefits we provide to 75 million Americans covered by self-insured plans, to use the resources provided in SIIA’s Grassroots Toolkit and contact their Members of Congress to voice our message.
The threat to the self-insurance industry and the employer-based system under which we operate in has never been more significant. Now is the time to voice our powerful and unified voice to politicians in Washington that we will not stand for any proposals that would cause significant damage to our industry and to those lives we cover.
SIIA’s Grassroots Toolkit can be found at www.siia.org/grassroots. If you have any questions, or would like any further information, please contact SIIA’s Government Relations office.
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