Posts Tagged ‘insurance exchanges’

“Show me” gender equity!

Wednesday, June 30th, 2010

Missouri is trying to remain true to its slogan, the “Show Me State,” by helping lead the charge in anti-health reform legislation prohibiting abortion services for health insurance obtained through the exchange – (the term used for the health care insurance marketplace instituted by national health reform).  Yet it certainly leaves one wondering…show me what?

Now sitting on Governor’s desk is a bill that strips the state exchange of offering any kind of abortion coverage to consumers– even through an optional rider.  Similar to the flurry of anti-reform constitutional amendments being adopted across many states, this legislation is based on a model developed by the Americans United for Life (AUL), a non-profit law and policy group.  The model, entitled “The Federal Abortion-Mandate Opt-Out Act,” is in the pipeline in almost 30 states, according to AUL.  Thus far, Mississippi, Arizona, Tennessee and Louisiana have passed the prohibition measure – the measure was vetoed in Oklahoma and Florida.

Claiming to be founded upon a pro-family platform, AUL aspires to stall the progress of health care reform by barring consumers from some patient services.  Yet eliminating family planning services from exchanges does not promote a family friendly policy environment – but supporting gender equity does.  According to the National Law Center for Women, 17 percent of Missouri women forgo needed care due to their higher cost of health care – these include a broad range of services.  Women in Missouri are, on average, poorer than men and tend to work for small businesses that do not offer health coverage.  This is not only a strain on women and their health but also their families.

Advocates can challenge these flawed attempts to dismantle health reform and propose a broader pro-family agenda by driving home the message of gender equity.   A pro-family message is one that encompasses supporting all women at all times in their lives – daughters, sisters, wives, mothers, and grandmothers alike.  Other states have stepped up to rid their health care systems of inequitable gender rating that charge women as much as 4-48 percent more than men for the same health care policy.

However, these positive steps are not without their critics.  Before Colorado passed its ban on gender rating in the individual market this past spring (in the week following health reform passage), an insurance underwriter commented to the legislature that perhaps “we should ‘blame God’ because men’s parts were on the outside and women’s parts were on the inside.”  State Senator Morgan Carroll responded to his comment by suggesting “perhaps his brain is on the outside.”  Further, Rep. Jim Kerr suggested that women enjoyed shopping and perhaps they should do a better job shopping for health insurance.

The absurdity of the discussion makes you laugh and grimace simultaneously – but the issue remains in play in many states.  Women are often the center of their families, before and after they procreate – a real pro-family policy would be for all to acknowledge their right to a healthy and long life.  So, show me gender equity!

–Eva Marie Stahl, policy consultant

Insider Baseball: The Curse of the Bambino?

Monday, January 25th, 2010

In Massachusetts, baseball and politics are both blood sports. On Tuesday, as the election results came in on who would fill the seat of the late Senator Kennedy, Red Sox fans who are also health reformers got that old unpleasant feeling they had back to 1986 when the ball went through the legs of Sox first baseman Bill Buckner to give the New York Mets a victory in Game 6 and, ultimately, the World Series.

The latest twist in the health reform saga is so improbable that if you submitted the plotline of to-date as a work of fiction, it would be dismissed as too unbelievable.

After the passage of groundbreaking health care reform legislation in Massachusetts helps spark a renewed drive for national reform, the Senator who championed the cause of health care for all throughout is career is struck with terminal cancer. He is temporarily replaced by a friend and former staffer, who gives the Senate Democrats a crucial 60th vote to advance reform, while a longer-term replacement is selected in a special election –a process pursuant to a law that was passed in 2004 to prevent a then-Republican governor from appointing a Republican to replace the other Senator from Massachusetts, who was then running for President.  Starting to sound familiar? But, then, a virtually unknown Republican state senator (who voted for Massachusetts reform) triumphs in the special election process created to safeguard the seat for Democrats, giving Republicans a 41st vote in the Senate and potentially undermining passage of the very reform his predecessor fought for.

Really, you can’t make stuff like this up.

The question now is whether the upset victory of State Senator Scott Brown over Massachusetts Attorney General Martha Coakley (whose name has become, in some quarters, as unpronounceable as Lord Voldemort) will cause health reform to go the way of the 1986 Red Sox, or the 2004 team, with reformers playing the band of rag-tag Sox that saw an 0-3 record as just four wins short of the Pennant. (And were right.)

Were we there yet?
To understand what the Brown election does and doesn’t mean for the chances of passing health reform, it is useful to pause to assess where the political process stood on the eve of Tuesday’s election.

Last week, House and Senate leaders and the Obama administration had nearly concluded negotiations over merging the two chambers’ bills. Although not all the details of that agreement are available, most observers believe that in addition to a publicly reported compromise on the tax-treatment of health benefits, the proposal would also close the Medicare Part D prescription drug “doughnut hole,” improve premium and cost-sharing subsidies for low- and moderate-income people, provide stricter federal oversight of insurance Exchanges, and alter the special Medicaid deal given to the state of Nebraska.

The content of this deal had not yet been presented to members of either chamber and one issue that remained problematic was the language prohibiting federal funding from being used to pay for abortions. Anywhere from 3 to 15 House members who had voted yes on the original House bill were expected to vote no on the House-Senate merger because they did not accept the Senate language on segregating federal funds. This meant that the House leadership needed to turn as many as a dozen votes that had been no the first time into yes on the final bill.

What the election meant (and didn’t mean)
Many pundits and politicians are spinning the Massachusetts election as a referendum on national health care reform, but that greatly oversimplifies what is a complex and not-at-all clear correlation. While it is true that Scott Brown won and that a majority of Massachusetts voters have a negative view of national reform, it does not follow that Brown won because of health care reform.

First, health care reform closely in line with the federal bills is already up and running in Massachusetts, so the benefits of passing federal reform were less clear to Massachusetts voters. Indeed, Sen. Brown voted for health reform in Massachusetts in 2006 and did not repudiate his support during the election. Why would he?: Mass health reform enjoys public approval of more than 70 percent.

Instead, he attacked the taxes and health spending cuts that finance federal reform, asking why Massachusetts voters should pay more taxes to finance the cost of covering health insurance for people in other states. Brown ignored, and Coakley failed to make the case,  that national reform would actually help Massachusetts (a case I made to Jon Cohn at The Treatment last week.)

To listen to the talking heads, you’d think voters picked Brown as an anti-health-reform message. But, in fact, the opposite is true: Polls show that the majority of Massachusetts voters who care about health care cast their ballot for Attorney General Coakley.

Obstacle course
Although the legislative path must be altered, the Brown victory does not prevent Congress from concluding its work along the lines that were negotiated by leadership just prior to election.  Instead of the House amending the Senate bill and sending it back for concurrence, the House can simply pass the Senate bill as is and then send over a package of amendments that can be incorporated via budget reconciliation, a process that requires only a simple majority in the Senate, rather than 60 votes.

That being the case, why have so many—including some prominent House progressives—suggested that the Brown election heralds the death of comprehensive health reform?

The short answer is: the elections’ psychological impact. The Democrats, having recently lost two governorships and with a number of prominent lawmakers facing uncertain electoral prospects in 2010 and now losing what was expected to be an easy race for them, are spooked. To get over the finish line, House leaders must reassure nervous members of their caucus, hold defections to a minimum and still move as many as a dozen members from the No to the Yes column. At the same time, the House and Senate need to finalize agreement on a package of reforms that can meet the technical requirements of a budget reconciliation bill.

Reversing the Curse
While all of this is difficult, it is by no means impossible. And failing to pass major reform legislation (as Five Thirty-Eight and The Treatment have pointed out) is unlikely to improve the electoral prospects of Democrats. Failure also means the continuation of the status quo in health care, with rising premiums forcing more people to go without care or lose coverage entirely, higher rates of medical debt and personal bankruptcy, unchecked increases in federal health spending and an eroding base of paying customers for doctors, hospitals and drug makers (not to mention health insurers who nonetheless continue to oppose reform).

In fact, the only way to blunt political attacks on health care is to actually pass and implement the best possible reform so that voters can see for themselves that the attacks on the bill are baseless and begin to recognize the benefits.

In addition, the alternatives that have been floated—passing an entire bill through budget reconciliation or starting over in negotiation with Republicans—are, as ideas go, also rans for two reasons: Both are time-consuming propositions at a moment when most members are anxious to move on to other issues, and they offer no certainty of either substantive or political success.  With this in mind, a strong grassroots movement to shore up support for reform has helped to stem the initial post-election panic that seemed to first take hold.

While it’s too early to say for certain that the House and Senate will be able to conclude their negotiations with a package that will win the support of 218 House members, it is far too early to count reform out.  Remember, “the curse” was ultimately reversed.

–Michael Miller, director of strategic policy


All eyes on Massachusetts

Tuesday, January 19th, 2010

1107806152_4182248e16_mIn what could be a strange and cruel irony, today’s special election to fill the late Senator Kennedy’s seat may deal a damaging blow to the prospects of passing a the bill that would culminate Kennedy’s life’s work in the Senate.  A surging Republican State Senator Scott Brown has pulled even (or in some polls slightly ahead) of state Attorney General Martha Coakley.  Brown would provide the 41st vote against reform and prevent an amended bill from being taken up in the Senate.

Procedurally, a Brown victory gives Congressional leaders several options to get across the finish line: Pass the Senate bill without amendment in the House, get a compromise done before Brown is seated, or go back and do a new bill via budget reconciliation.  Each of these paths is possible, but has some pitfalls.

In the first scenario: It’s unclear that the House can drum up 218 votes for the Senate bill, with possible defections coming from both the right and left of the Democratic caucus. (more on House vote count below). A  variation on this theme that could be more palatable to House members would be to pass both the Senate bill and a reconciliation package amending that bill at almost the same time.  The reconciliation package would reflect many of the agreements currently being negotiated between the House and the Senate (though some could potentially be beyond the scope of what is permissible through the reconciliation process).

Assuming they can conclude a deal and get a CBO score in time, passing a House-Senate compromise would be possible, but rushing the bill through ahead of Brown’s seating could be politically controversial.  Will Senators such as Nelson, Lieberman and Lincoln, who have been hardest to win over to supporting reform, remain supportive if Brown wins?  A variation on this theme might termed the ‘Franken scenario.’ If the race ends in a photo finish, a recount and possible subsequent legal action could take weeks or even months, giving Congress more than enough time to complete its work.

The least likely scenario appears to be starting over with reconciliation. This would require a substantial rewrite of the bill, taking time that Congress is eager to devote to other issues.

Counting noses in the House

With all roads to victory requiring another vote in the House, securing 218 votes in that chamber has become a critical task for House leadership and the White House, and should be the number one priority for grassroots supporters of reform.

When the House passed its version of reform in August, the victory margin was a mere three votes. Now, with one vacant Democratic seat and one Republican who is unlikely to provide the margin of victory, passage in the House requires persuading all of the anti-abortion Democrats to vote yes on a bill that contains the Nelson rather than the Stupak language on abortion, or persuading some members who voted no the first time to vote yes. This task could be made more difficult if a Brown upset in Massachusetts scares off more conservative members of the caucus—even perhaps some who voted yes the first time.

Progress on getting to Yes

Against an uncertain political backdrop, House and Senate negotiators appear to be making major progress on reaching agreement on a final bill.  They struck a deal early Friday morning on the tax treatment of health benefits that would raise the threshold at which the tax kicks in, make adjustments for plans that are high cost for reasons other than the scope of benefits, and provide additional temporary protection for plans negotiated through collective bargaining.

The revised provision is projected to bring in $60 billion less revenue, a hole that negotiators are trying to fill, in part, by taking a tougher line on cost containment from health industry groups. This tactic is yielding mixed results – the biotech industry in Massachusetts, for instance, is threatening to endorse Brown for Senate if protections for it in the bill are watered down.  While making adjustments to the health insurance tax was a key priority for House negotiators as well as unions and other progressives, the lost revenue will complicate efforts to make progress on another key issue—improving the affordability provisions in the Senate bill.

Although details haven’t emerged yet, the debate over whether Exchanges should be run from Washington with a state option or from the states, with a national fallback appears to be resolving productively. Reports indicate that the bill may still give states the right of first refusal over whether to run an Exchange, but establish more clear and uniform requirements for those that do.

Still to come: How to finance the elimination of the Part D doughnut hole, and a significant dispute over the extent to which immigrants will be discriminated against in reform.  There, the two issues in play are whether states would receive federal funding for covering legal immigrants under Medicaid, and whether undocumented immigrants would be barred from the Exchange even if they pay entirely with their own money.

Most of the other big issues—such as what employers would required to contribute, and how the abortion language will be structured—are expected to more closely track the Senate bill.  Whether the individual mandate will track the stricter House version or the more porous model included in the Senate bill, should depend on whether real affordability improvements are made in the bill.  A worst-of-both-worlds resolution would be a tough mandate and significant penalties coupled with inadequate affordability protections.

–Michael Miller, director of strategic policy

photo courtesy of croatry at flickr creative commons

Ex-ch-ch-ch-ch-changes

Thursday, January 14th, 2010

Exchanges are getting major play on the Hill and in the blogs this week, where the fight seems to be: Federal (as the House and White House propose), or State (as the Senate bill does)? While that’s certainly a question, we argue that perhaps that’s not the question on Exchanges.

Here’s why. As we pointed out last week, a national Exchange isn’t likely to be the savings boon some claim, since many of the factors that influence an insurance market are local. And while folks like Igor Volsky at Wonk Room and Jon Cohn at The Treatment worry that some states are bound to execute insurance regulation more poorly than others, a future federal administration hostile to health reform could undermine the whole thing (see Bush administration for examples).

So it seems, with all these variables floating around, that those of us concerned about the availability of quality insurance that consumers can afford should, instead of hitching our Exchange wagon to a state or federal horse, make a list of criteria that add up to a strong Exchange – at the state or federal level. We went ahead and did that. Here’s our top ten.

1. Authority to negotiate and contract with health plans. The House bill provides the Exchange stronger authority to choose insurers based on their plans’ benefits, provider networks and value. Experience from Massachusetts’s Exchange (the Connector) has shown that offering selective plans provides clear insurance choices and can help hold down cost.

2. Create one insurance pool. Insurers will be insurers, and if they are able to create separate risk pools inside and outside of the Exchange, (and, say, attract healthier people outside the Exchange) they will. The House addresses this problem by requiring all individual market plans to be sold only through the Exchange. The Senate bill requires insurers to pool risk both inside and outside of the Exchange, but it’s unclear that this will do the trick.

3. Maximize market authority. An Exchange can only hold down insurer costs if it has market authority—and to have this, the Exchange needs to cover a significant share of people. It’s important to broaden, not carve up, insurance markets to provide Exchanges with enough covered lives to be able to negotiate good prices and coverage with insurers. The Senate does the opposite, proposing to split up the individual and small-group insurance markets into two separate Exchanges.  Instead, both markets should be included in one Exchange.

4. Require qualified benefit plans inside and outside the Exchange. In the Senate bill, “qualified plans”—plans that must offer an essential benefit package—are required only inside of the Exchange. Without rules about benefits and cost-sharing outside of the Exchange, insurers may attempt to design benefits in a way that reduces their risk (and costs). An essential benefit package should be required in and outside of an Exchange.

5. Public oversight and involvement. Another important lesson from Massachusetts’s Exchange/Connector is that it works best when all debate and decisions are subject to open meeting laws and consumers are represented in decision-making. This should be strengthened whether the Exchange is at the federal or state level.

6. Ensure clear, transparent information. One of the main reasons for an Exchange is to provide easy-to-understand information about health plans that helps people make informed choices about their coverage. The Senate bill has stronger requirements on providing this information—and includes things like in-depth descriptions of coverage and cost-sharing scenarios for common medical services, like pregnancy or chronic illness. The Senate Exchanges also use Navigators, run by trade organizations or community-based non-profits, to provide information and one-on-one assistance with enrollment in health plans.

7. Prohibit conflicts of interest. The Exchange is a marketplace for choosing insurance options, and should be neutral.  There should be strong standards to ensure that insurers, insurance agents, providers, and others who would profit from enrollment cannot govern the Exchange.

8. Offer plans with similar benefits and cost-sharing to help people make meaningful comparisons. Both House and Senate bills define the levels of coverage through “tiers” based on actuarial values (or the share of medical expenses the health plan pays for a standard member) to facilitate comparisons by consumers. However, using actuarial values as a way to standardize plans still allows for major differences in benefit limits and cost-sharing (even among plans in the same tier) and makes comparisons difficult for normal people.

To increase the comparability of plans, the merged bill should create tighter benefits and cost-sharing restrictions among plan tiers.

9. Regulate insurers. An Exchange should regulate insurers, including oversight of premium increases, marketing and profits. To monitor the impact of these requirements, Exchanges should collect data on compliance, and make this information available to the public.

10. Create fair insurance rules. An Exchange is only as strong as its insurance regulations. The House bill has stronger limits on the amount that premiums may vary (for instance, the House allows premiums to vary based on age, constrained to a 2:1 ratio; the Senate allows a 3:1 ratio).

–Christine Barber, senior policy analyst