In the 13-page letter, Ms. Ignani applauded the bill for combining “insurance market reforms with the responsibility of individuals to obtain coverage and financial assistance for low- and moderate-income families and individuals,” but voiced concerns about a few provisions, including the following:
- Health insurance cooperatives. Although cooperatives would not be government-run plans, which AHIP opposes, they still represent a “slower march toward a government-run plan,” Ms. Ignagni wrote. The federal government would finance the start-up and continue to act as a “player and referee” for cooperatives.
- 35 percent tax on high-end insurance coverage. Because the tax is indexed to general inflation rather than healthcare costs, Ms. Ignagni warned that some Americans could be priced out of the market for these expensive policies with rich benefits.
- Benefits requirements for coverage. Proposed national benefit standards and other limits would impair health insurers’ ability to fashion policies to appeal to healthier enrollees, she wrote.
- Elimination of federal subsidies for Medicare Advantage plans. AHIP is opposed to eliminating a 13 percent overpayment for Medicare Advantage managed care program, paid to private insurers operating them.
Read the letter to Sen. Baucus from AHIP President Karen Ignani.
