Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Bad news insurance bill
Old 05-06-2006, 08:14 AM   #1
Moderator Emeritus
Martha's Avatar
 
Join Date: Feb 2004
Location: minnesota
Posts: 13,212
Bad news insurance bill

Many people, myself included, were aware that there is pending a bill before the US Senate that would allow small businesses to pool together and buy insurance. Without this bill there are antitrust problems with the pooling. This is a good idea. But.

What many do not know is that the bill will remove in large part the ability of states to regulate insurance. This was the topic of the NOW television program on PBS.

From the PBS webite:

A number of consumer advocates, insurance regulators and state officials have voiced concern about the legislation. These groups believe that it will reduce benefits for all Americans and undermine critical consumer protections.

They fear that the pre-emption of state regulations could prevent consumers from receiving critical treatment such as cancer screening, alcoholism treatment and emergency services.

Several groups representing people with specific diseases oppose the bill. "In one stroke, this bill would erase all that state legislatures have done to prevent and more effectively treat cancer," Daniel E. Smith, a vice president of the American Cancer Society, said.

Forty one state Attorneys General have also stated their opposition to the bill, which they say "would erode state oversight of health insurance plans, eliminate consumer protections in the areas of mandated benefits and internal grievance procedures."

In a letter to the Senate last month, the group pointed out that, if passed, the law would pre-empt state laws regulating all health insurance plans, not just small business health plans.

Kofman also believes that the proposed law would hurt consumers. "The bill will allow insurance companies to discriminate in ways they can't now. Many small businesses will see their premiums sky-rocket, especially businesses with older workers and with employees who need medical care. The bill will result in a loss of rights for consumers everywhere," she said.

Kofman and other critics say the legislation could result in health insurance coverage that does not cover much at all.

"The threat here is that these bare bones plans become ubiquitous in the market and draw people to them because folks are so desperate for affordable healthcare," Jerry Flanagan, a consumer advocate at The Foundation for Taxpayer and Consumer Rights, told NOW.

Like many opponents, Flanagan fears that people will no longer be able to sue their insurers for damages if Congress passes the legislation. "If you remove that legal threat, then insurers can deny coverage, deny treatments with impunity because there's no threat whatsoever-- if they do," he said

The insurance superintendent of New York, Howard Mills, said in a letter to Senator Hillary Rodham Clinton that the legislation could create severe problems because it would pre-empt a state law requiring insurers to set rates for small businesses and individuals without regard to age, sex, health status or occupation.


http://www.pbs.org/now/politics/050506_primer.html

I am writing Minnesota senators to oppose the bill.

On the surface it sound great, but as you look more, it is very problematic. One potential problem is that the yound and healthy will flee to the cheap plans with limited coverage, leaving the older and the sicker with plans that become more and more expensive.

People also will be easily mislead as to what is covered and by how much. These plans don't have break points, where you become covered in full. There may be daily limits on coverage. One example is a daily limit of $1000 for chemotherapy where chemotherapy often costs up to $15,000 to $20,000 in a day. Most people are not aware of that.


Here is a link to the full bill: http://www.govtrack.us/congress/bill.xpd?bill=s109-1955

Here is a link to other links discussing problems with the bill:
http://www.familiesusa.org/issues/pr...nsurance/enzi/
__________________

__________________
.


No more lawyer stuff, no more political stuff, so no more CYA

Martha is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Bad news insurance bill
Old 05-08-2006, 07:38 AM   #2
Thinks s/he gets paid by the post
Bimmerbill's Avatar
 
Join Date: Jan 2006
Posts: 1,631
Re: Bad news insurance bill

New Hampshire just tried this I think. But, I don't remember if they instituted it, and then cancelled it. Or the other way around.

It was a big to do a while back. I didn't pay much attention to it because I don't own a small business.
__________________

__________________
Bimmerbill is offline   Reply With Quote
Re: Bad news insurance bill
Old 05-08-2006, 09:21 AM   #3
Recycles dryer sheets
 
Join Date: Apr 2006
Posts: 80
Re: Bad news insurance bill

Martha - do you have a link to the MN Senators so I can join you in protesting?? Thanks for bringing this to our attention! Katie
__________________
SolidA is offline   Reply With Quote
Re: Bad news insurance bill
Old 05-08-2006, 09:53 AM   #4
Moderator Emeritus
Martha's Avatar
 
Join Date: Feb 2004
Location: minnesota
Posts: 13,212
Re: Bad news insurance bill

Quote:
Originally Posted by SolidA
Martha - do you have a link to the MN Senators so I can join you in protesting??* Thanks for bringing this to our attention!* Katie
www.coleman.senate.gov
www.dayton.senate.gov

Each have links on their sites where you can either email or send them a letter.
__________________
.


No more lawyer stuff, no more political stuff, so no more CYA

Martha is offline   Reply With Quote
Re: Bad news insurance bill
Old 05-08-2006, 10:05 AM   #5
Recycles dryer sheets
 
Join Date: Apr 2006
Posts: 80
Re: Bad news insurance bill

I appreciate the links - I'll write today!
__________________
SolidA is offline   Reply With Quote
Re: Bad news insurance bill
Old 05-08-2006, 10:07 AM   #6
Moderator Emeritus
Martha's Avatar
 
Join Date: Feb 2004
Location: minnesota
Posts: 13,212
Re: Bad news insurance bill

Quote:
Originally Posted by Bimmerbill
New Hampshire just tried this I think.* But, I don't remember if they instituted it, and then cancelled it.* Or the other way around.*

It was a big to do a while back.* I didn't pay much attention to it because I don't own a small business.
I was only paying casual attention to this bill because I was thinking it pertained to small businesses only.* Instead, the reach is far more broad, signficantly impairing the ability of states to regulate rates and coverage.

New Hampshire tried something similar and repealed the law because it made the prices go up, not down.
__________________
.


No more lawyer stuff, no more political stuff, so no more CYA

Martha is offline   Reply With Quote
Re: Bad news insurance bill
Old 05-08-2006, 10:37 AM   #7
Thinks s/he gets paid by the post
Bimmerbill's Avatar
 
Join Date: Jan 2006
Posts: 1,631
Re: Bad news insurance bill

And it drove many insurance providers out of the state.
__________________

__________________
Bimmerbill is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Individual Health Insurance in Florida - A Case Study tomz Health and Early Retirement 3 01-13-2007 07:11 AM
very sad news tangomonster Hi, I am... 1 05-18-2006 09:11 AM
The book, The New Health Insurance Solution Martha FIRE and Money 20 05-15-2006 11:16 AM
critical-illness insurance ret101 FIRE and Money 2 03-06-2006 07:52 PM
LTC Insurance - Pooled Benefits REWahoo FIRE and Money 1 03-02-2006 06:55 AM

 

 
All times are GMT -6. The time now is 08:05 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.