Changes in Health Care: State and Federal Consider the Options

Republicans are shifting their focus to health care since other major legislation, including President Bush’s Social Security reform, has slowed to a halt. With corporations cutting back on health care for retirees and higher copays for employees, health care will likely be a big issue in the 2006 elections. Legislators would like to go home in August with several wins in that area.

Proposed health care changes

Congress is considering numerous health care proposals. Here are some that have a chance:

HR 525 - Small Business Health Fairness Act

House legislators are considering a measure that would allow small businesses to band together to buy health insurance, creating association health plans (AHPs).

The bill would exempt AHPs from state laws that require certain medical procedures and tests to be covered. Small businesses claim that it’s difficult to meet states’ complex requirements, so it’s hard for them to join together and negotiate better prices for health insurance. But Democrats worry that throwing out state laws will mean poor health care for those covered by AHPs.

The bill is expected to be debated the week of July 25.

HR 1872 - Health Coverage for the Uninsured Act

The House Ways and Means Committee is looking at a bill that would provide greater tax relief to those who pay for individual health insurance plans. In addition, the measure would give businesses with 100 employees or less a refundable tax credit for contributions to health savings accounts for employees.

S 1262 - Health TEQ Act

The unlikely duo of Bill Frist (R- Tennessee) and Hillary Clinton (D- New York) has proposed a nationwide health information system that would give health care providers electronic access to medical records.

The purpose of electronic medical records would be to reduce healthcare costs and improve the efficiency and quality of care.

A floor debate on the measure is likely to focus on the tradeoffs among privacy, cost, and security.

Where big changes could happen - the states

Some say that it’s not Congress, but states that will make major changes to the health care system.

At least 18 state legislatures are considering health care plans in which the government would collect extra payroll taxes and then provide health care to everyone. This form of health care - called universal healthcare - is attractive to states because it would probably save them millions of dollars.

Those who oppose universal health care say that it could stifle innovation and new medical technology. And in a recession, states would have lower funding levels, which could lead to longer wait times and inferior care.

On the flip side, states could negotiate prices of prescription drugs and health care services, and hospitals and doctors would no longer have to spend time and money working with multiple insurers.

The number of uninsured Americans is rising from 45 million, and employers’ health insurance premiums rose an average of 11.2 percent in 2004. Many believe that universal health care is the only solution.

Should there be a basic health plan for every American, no matter where they live? What would you like to see your state or Congress do to improve health care? Legislators running for reelection in 2006 are especially receptive to your ideas. Do you and your family have access to the care that you need?

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Posted on: 7/15/2005