Baucus Unveils Health Care Reform Proposal
After many months of efforts to craft a health care reform bill that would garner at least some bipartisan support, Sen. Max Baucus unveiled today, September 16, 2009, proposed legislation that has no Republican support as of yet, even from the three Republicans who were part of his efforts to craft a bipartisan bill.After many months of efforts to craft a health care reform bill that would garner at least some bipartisan support, Sen. Max Baucus unveiled today, September 16, 2009, proposed legislation that has no Republican support as of yet, even from the three Republicans who were part of his efforts to craft a bipartisan bill.
As chairman of the Senate Finance Committee, Baucus has been charged with the unenviable task of trying to come up with a proposal that can pass not only in that committee but also in the full Senate. His efforts to do so have resulted in a middle-ground proposal that is unlikely to please Democrats — many of whom favor a more liberal approach that includes a public option — or Republicans, who are concerned about the costs of any proposed legislation as well as social issues such as whether coverage would be provided for abortions and illegal immigrants.
Rather than including the controversial public health insurance option called for by most Democrats, Baucus’ proposed legislation supports the establishment of nonprofit health insurance cooperatives as a means of providing competition for the existing insurance industry and, theoretically at least, driving down costs.
Impact on Employers
Notably, the proposal does not require employers to provide health insurance to employees, which has been proposed in the House. However, it would:
* Establish new Web-based insurance exchanges to allow consumers to shop for and compare insurance plans;
* Require employers with 200 or more employees to automatically enroll employees into health insurance plans offered by the employer (but allow employees to opt out with proof of other coverage);
* Require all individuals to purchase health insurance, but provide tax subsidies to assist low-income families in doing so;
* Require employers with more than 50 employees that do not offer coverage to pay a fee for each employee who receives a tax credit for health insurance through a state exchange.
* Provide a tax credit for certain smaller employers for the cost of purchasing health insurance for their employees; and
* Bar insurance companies from discriminating against people based on their health status or denying coverage because of preexisting conditions.
The task of hammering out the details of the proposed legislation now goes to the Senate Finance Committee. If they are successful in doing so, it is possible that the legislation could be officially introduced in the Senate as early as next week.
While employers await the overhaul of our nation’s health care system, there are immediate concerns to be addressed: new HIPAA rules, COBRA changes, Genetic Information Nondiscrimination Act (GINA)Advanced Employers Issues Symposium, Thursday, September 17, in Nashville. For more information, call (800) 274-6774.
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