Rehberg stumps for health insurance bill bill

Congressman Denny Rehberg, R-Mont., made his case in Kalispell on Wednesday for the Small Business Health Fairness Act of 2005.

Speaking at the Kalispell Chamber of Commerce luncheon, Rehberg called the legislation he co-sponsored a small piece of a larger puzzle of health insurance and health-care problems in this country.

"We're trying to create a market-based insurance program," Rehberg said.

He said the legislation gives small businesses the same competitive advantage enjoyed by large businesses and labor unions in providing health insurance to their employees.

The bill would allow small businesses to form association health plans which cross state lines to increase their buying power with insurance providers. It lowers costs by exempting the associations from state-mandated coverages.

"Why don't we give the same opportunity to small business?" Rehberg asked.

He said that each state has a different set of mandates. Some states such as Alaska have as few as six mandates while others require up to 48.

In Montana, mandated coverages include alcohol and drug treatment, mental health coverage, dependent coverage, mammography, home health care, inpatient care for breast surgery, mastectomy reconstruction, metabolic disorders and open choice of pharmacy.

Rehberg said association health plans offer a way to extend health-insurance coverage to the 20 percent of Montana residents who have no insurance.

Rehberg was joined on a panel Wednesday by Renee Sinclair of the U.S. Chamber of Commerce. She said the legislation addresses only two points in the morass of health-care issues: cost and access.

"It took many years and a number of convoluted systems to get in the mess we find ourselves in today," she said.

Sinclair said businesses with 20 or fewer employees would benefit the most from the Small Business Health Fairness Act. If Congress enacts the bill, small businesses are expected to save 15 to 30 percent on premiums.

She said small businesses would get immediate relief and see premium rates stabilize after years of double-digit increases.

Dr. Tom Coughlin, representing the Flathead Business and Industry Association, also was on the panel. He cited the success of the association's health insurance plan over the last eight or nine years.

He said the association supports the health legislation.

"We feel this is a good way to level the playing field," he said.

Another panelist, Stacy Jenkins of the National Federation of Independent Business, said Montana's senators need to hear from small businesses. While the House has previously

passed the legislation, the Senate has not.

"You, the small business owners, have a huge voice," Jenkins said.

She urged chamber members to fax, telephone or e-mail their senators to urge action and support of the legislation this session. Jenkins, Sinclair and Rehberg agreed the bill faces stiff opposition.

Rehberg said that groups such as the national associations of governors and attorney generals oppose association health plans.

State Auditor John Morrison is a vocal opponent of this legislation. He recently testified against the bill before the Senate Committee on Small Business and Entrepreneurship.

"First, the AHPs will siphon off the healthiest groups and cause premiums to go up for most of our small businesses," Morrison said. "That's the last thing we need."

Morrison, a Democrat who has announced plans to run against Sen. Conrad Burns, called the associations a breeding ground for fraud. He said these plans pose as federally regulated plans to fool consumers.

He also said the association health plans pose a risk of insolvency because of their exemption from state oversight. Morrison said state officials couldn't help consumers when their claims are denied.

In a telephone interview Wednesday, Morrison said experts in small business health insurance across the nation oppose association health plans.

At the Chamber meeting, Rehberg answered Morrison's criticisms by saying that federal antidiscrimination laws as well as oversight by the U.S. Department of Labor provide the same protections offered by state regulators.

However, Morrison said his office receives calls daily from consumers who get no action when calling the Department of Labor to resolve their claim denials.

"There's a big difference in calling your friends in Helena and calling the federal bureaucracy," he said.

According to Morrison, state-mandated coverage adds little to the cost of health insurance. He said Blue Cross/Blue Shield estimates all the mandates add just $12.50 a month to a premium.

"We already have a pilot plan that allows companies to offer small businesses stripped-down plans," he said.

Morrison said New West offered such a plan but enrolled just 50 customers. He said consumers want the coverages mandated by law.

He said the plan he proposed and the Montana Legislature passed gives small business owners tax credits to help them afford coverage. Uninsured businesses may now join a purchasing pool and receive a premium credit for each employee.

"Getting this plan up and running is my number one priority this year," he said.

Reporter Candace Chase may be reached at 758-4436 or by e-mail at cchase@dailyinterlake.com.