Date: November 5, 2009
Subject: The Voice of the Agent Must be Heard

Schedule meetings with your Lawmakers during the Work Period November 11-13 and bring other members of your local association and business clients to the meeting.

Urge your friends and colleagues to have their voices heard.

Engage the Media Members and their constituents pay close attention to their local media. Make the voice of agent heard by sharing your comments with the media. The NAIFA Communications Corner has information available to guide NAIFA members in working with the media. 

Visit Health Chat to find links to videos, radio spots, interviews and much more. Submit comments of your own as well.

Background

Late Tuesday evening November 4, House Democrats released a manager's amendment to the Democratic House Health Bill starting a 72-hour review period before the lawmakers can bring the bill to a floor vote (view the October 29 GovWatch for a summary of what's included in the merged bill). The House Leadership is currently planning a vote on Saturday, November 7. Some of the items of interest in the manager's amendment include:

• A "rate review" process - to monitor health insurance premium increases--the process would require health insurers to justify any increases prior to the implementation of an increase...plus, the rate increase info must be posted on insurers' websites and HHS must make them public
• New McCarran-Ferguson/antitrust language - "Nothing in the act" to interfere w/the operation of antitrust law on health reform bill's requirements on health/medical malpractice insurance
• Public-private partnerships - authority to establish at State level in states w/out a high-risk pool program

Earlier on Tuesday, Douglas Elmendorf, the director of the Congressional Budget Office (CBO), met with the 52 fiscally conservative Blue Dog Democrats. What many Blue Dogs gathered from the meeting was a reaffirmation that the House bill fails to rein in federal health care spending over the long run.  Some Blue Dogs, while concerned with the House bill, plan to vote for it and have their concerns addressed once the bill is reconciled with the Senate version. Others are opposed. Whether the magic 218 votes exist to pass the House bill may be known as soon as Saturday, November 7.  House leaders have indicated they do not intend to alter the bill beyond potential changes to language pertaining to abortion and illegal aliens.

The House bill in its current form does contain a government plan option and navigator-like language. But it does specifically authorize a role for agents, and does not tax employer-provided health insurance - a plus for NAIFA members.

The House Republicans will be allowed to offer one floor amendment. They released a final version of their substitute amendment to the bill, which does away with most of the provisions of H.R. 3962. Instead the amendment would make market reforms, allow the purchase of insurance across state lines and small business pooling arrangements, institute medical liability reforms, and create high-risk pools. It is unlikely the GOP substitute amendment will pass. The House bill will have no opportunity for other amendments. 

Knowing that there will be no opportunity to further shape the House bill, we will focus our attention on the Senate. NAIFA will continue to firmly state our reform goals to achieve affordable coverage for all Americans - what we support and what we oppose. We support health reform, but oppose a government plan option and taxes on employees on their employer-provided health insurance. We also insist on a meaningful role for licensed professional agents in any reformed health system.  

As Senate Leadership waits for a score from the Congressional Budget Office on its bill, the Senate Committee on Health, Education, Labor and Pensions continues to seek information on how to best achieve affordable reform for small businesses. Kansas Insurance Commissioner Sandy Praeger, testifying before the Committee on November 3, noted rates will continue to rise, and unless spending is brought under control, all state and federal reforms will shift the financial burden from one group to another without solving the underlying problem. Praeger offered subsidies, reinsurance, funding for high-risk pools and reducing cost-shifting from federal programs and the uninsured as a few things that could be considered to significantly reduce premiums in the coming years.

The Senate bill is expected to be more to our liking in achieving affordable coverage for all Americans and will allow for amendments. All indications are that it, too, will have specific authorization for agents to participate in the reformed health system. While there will be a tax on "luxury" health insurance, that tax will be imposed on insurers, not directly on workers. Currently, it contemplates including a government plan with a state opt-out, but indications are that that provision will drop out during Senate floor debate. The Senate debate will include many amendments and we expect to have a number of our concerns addressed there including strengthening the balance between penalty and purchase of insurance.

Our current strategy is to support health reform that includes a meaningful, fairly compensated role for agents, no tax on workers based on their employer-provided health insurance, meaningful coverage requirements and no public plan.

RESOURCES

• Talking Points
• Senators on the Fence Regarding a New Government-Run Public Plan
• Where to Find What in the House Health Bill
• Find Additional Resources at HealthChat