Code Blue: Senate Finance Committee Releases America’s Healthy Future Act of 2009

Dear NAHU Members,

This morning Senate Finance Committee Chairman Max Baucus (D-MT) released the details of an $774 billion health care reform proposal that would expand Medicaid coverage and establish consumer-owned insurance cooperatives in lieu of a government-run public insurance plan.

The text of the conceptual language of America’s Healthy Future Act of 2009 can be accessed here

In addition, a preliminary revenue analysis by the Joint Committee on Taxation can be accessed here, and a cost estimate by the Congressional Budget Office can be accessed here.

None of the three Republicans involved in the bipartisan negotiations have signed onto the bill, saying there are outstanding issues that need to be resolved; however, they said they would continue talking with Baucus and the other two Democrats in the so-called Gang of Six. Committee Ranking Member Chuck Grassley (R-IA) made the following statement.

The lack of Republican support — at the outset, at least — suggests Democrats will need to make more concessions if they hope to produce a bipartisan bill.

The Committee is tentatively scheduled to mark up the legislation on September 22.

The proposal mirrors much of what we have reported in the past week. Of particular importance and interest to our members are the provisions found on pp. 10-11, where the draft legislation proposes the continued role of state insurance commissioners. It calls for state insurance commissioners to continue providing oversight of health insurance plans with regard to consumer protections (e.g., grievance procedures, external review, agent practices and training, market conduct), rate reviews, solvency, reserve requirements, premium taxes, and the new requirements proposed in the Mark.

The National Association of Insurance Commissioners (NAIC) would be instructed to devise an NAIC Model Regulation within 12 months of enactment that is consistent with the new federal law with regards to federal health insurance rating, issuance and marketing requirements. This model would become the new federal minimum standard without any further congressional action. The new model should be developed by NAIC with input from all NAIC members, health insurance issuers, consumer groups and other qualified individuals. Representatives shall be selected in a manner so as to assure balanced representation among the interested parties.

NAHU would insist that its members be part of the development of any such NAIC model regulations. As many of you are aware, NAHU has a very good long-standing working relationship with the NAIC, and have worked with them on the development of many model laws and regulations in the past.

We will continue to keep you apprised and informed of events as they develop.