Health Care Reform to Be a Top Priority of Congress
Pinning down the financial markets bailout bill consumed Congress in the waning days of its session this year. To nail down its final approval, the bailout was connected to a measure requiring equality between mental health and other medical benefits in health care plans that offer both.
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October 21, 2008
Health Care Reform to Be a Top Priority of Congress
Pinning down the financial markets bailout bill consumed Congress in the waning
days of its session this year.
To nail down its final approval, the $700
billion bailout had to be strapped onto a measure that requires equality between
mental health and other medical benefits in health care plans that offer
both.
When Congress returns to Washington in January, legislators likely will
make the faltering economy the top priority, but health care reform will remain
in the mix.
Perhaps the first piece of the puzzle was put on the table
October 7 by a bipartisan group of prominent senators in health care policy,
including Sens. Max Baucus, D-Montana; Charles Grassley, R-Iowa; Mike Enzi,
R-Wyoming; and Ron Wyden, D-Oregon.
They introduced a “discussion draft” of
legislation that would require companies to disclose on employees’ W-2 tax forms
the amount of money they spend annually on health insurance. The idea emanated
from a set of hearings designed to prepare Congress to legislate next year on
health care.
The bill is designed to enlighten workers regarding how much
money their employers spend on health care and its effect on wages. The senators
are collecting public comment until December 31.
The initial reaction from
the business community is mixed. Diann Howland, vice president for legislative
affairs at the American Benefits Council in Washington, says that most members
of the organization, which includes more than 200 large employers, already
provide annual benefits statements to employees.
She’s concerned that the
bill would foist an administrative burden on companies and subject them to
liability regarding the tax form. She adds that employers want to increase
benefits transparency.
“We share a lot of the same goals,” Howland says of
the bill. “It’s a matter of how you get there.”
Kathleen Lester, a partner at
the law firm Patton Boggs in Washington, says few of her clients have reacted to
the bill. But the senators have the right motivation.
“It’s important for
consumers to know what things cost and how it drives treatment options and
quality [of care],” Lester says.
Seeking wide input on the part of Capitol
Hill was a hallmark of the parity bill. Businesses, insurers and mental health
advocates hammered out a compromise over three years that resulted in strong
bipartisan backing.
The bill does not mandate mental health coverage. But if
it is offered, it must be equal to other medical and surgical benefits in
deductibles, co-payments, out-of-pocket expenses, coinsurance, covered hospital
days and covered outpatient visits.
The parity negotiation process is a model
for larger reforms, Howland says.
“Although it’s painful, it’s a better way
to proceed,” she says. “In the end, you’ll get a product that people say, ‘We
can support this.’ ”
Among the candidates for the first health measures of
2009 are a bill to establish nationwide standards for the adoption of health
information technology, which stalled this year because of privacy concerns and
the cost transparency measure.
“We will probably see folks take small steps
like that,” Lester says.
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