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State's Largest Health Insurance Agent Association Unveils Ambitious Health Care Reform Plan

Posted on: Tuesday, 24 April 2007, 12:00 CDT

Every Californian would have access to basic health care coverage under a proposal released by the California Association of Health Underwriters (CAHU), the state's largest association representing insurance agents. "As insurance professionals, we occupy a unique place in the health care coverage system, educating consumers on their health care coverage choices, helping them select the most appropriate plans for their specific needs and serving as their advocate if problems arise," said David Benson, CAHU President. "Our members see firsthand what's working and what's not. The result is our Healthy Solutions plan."

Healthy Solutions calls for universal access to health care coverage through a mix of public and private initiatives. CAHU's first aim is to enroll the one million Californians eligible for, but not currently participating in, existing health care public programs. Those lacking coverage, but whose incomes are too high to qualify for government programs, would be eligible for state subsidies to help cover the cost of health insurance. CAHU calls for gradually expanding eligibility for subsidies as the state demonstrates it can fund the premium support.

Like other health care reform proposals currently being considered by lawmakers, Healthy Solutions requires all Californians to secure health insurance by either public or private means. Once 90 percent of the population is covered, Healthy Solutions compels insurers to issue coverage to all consumers, regardless of their health conditions. Until that time, the state's existing program for the uninsured, the Major Risk Medical Insurance Plan (MRMIP), would be expanded to serve as "insurer of last resort." Without a participation threshold, responsible consumers who buy coverage would pay a heavy subsidy to those who wait until after a serious accident or illness to participate in the system.

Recognizing that premium subsidies and expansion of government programs will increase state spending, CAHU finances its reforms through several sources, including:

-- New health plan fees based on a carrier's overall market share in the state -- New taxes on hospital operating revenues and physician gross revenues, or some other mechanism for capturing support from self-insured plans -- New taxes on products known to increase health care costs such as: -- tobacco products -- alcoholic beverages -- handguns and ammunition -- food products that contribute inordinately to obesity through high fat and/or sugar content and fast-food restaurant meals

At the same time, CAHU seeks to constrain the underlying cost of medical care through the creation of healthy living and wellness programs, adoption of new technologies by the medical community and adherence to evidence-based medical procedures. As California's population grows older and requires more frequent medical services, the issue of cost containment will only grow in prominence.

"All Californians deserve a health care system that delivers both world-class care and financial security," Benson said. "Californians deserve a system that is accessible, affordable and fair. Californians deserve a system that boosts the state's economy, attracts new businesses and strengthens existing enterprises. Californians also deserve a system that is realistic. We can only do so much as a single state; but what we can do, we should do. CAHU's Healthy Solutions plan is a responsible, realistic roadmap to real reform."

CAHU's members include more than 2,600 health industry professionals, serving more than one million people throughout California. CAHU is a lead sponsor of the California Uninsured Help Line, providing bilingual information about free and low-cost health coverage for individuals, families and small businesses. The Help Line number is (800) 234-1317.

For more information, to arrange an interview with CAHU industry experts, or obtain a copy of CAHU's Healthy Solutions, please contact Forrest Beanum, Jeff Lustgarten or Ben Gibson at (323) 466-3445.

Source: Business Wire

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