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Archive for January, 2010

Healthcare Reform: Thoughts from Both Sides

Saturday, January 30th, 2010

us capitol buildingJust one week removed from Republican Scott Brown’s lopsided win in the Massachusetts Senate race, healthcare reform is more confusing than ever.  The administration has vowed to press ahead with healthcare legislation, while opponents of the bill are urging President Obama to simply start over.

According to the LA Times, White House senior advisor David Axelrod said that the “president will not walk away from the American people, will not hand them over to the tender mercies of health insurance companies who take advantage of them.”  Equally strong words were issued by Senate Minority Leader Mitch McConnell of Kentucky, who counters that “what we need to do is start over and get it right.”

Both Republicans and Democrats continued to dispute the message and effect of Scott Brown’s win last week. The loss has shaken Democrats, who lost a Senate seat entrenched in the Democratic Party for nearly 50 years, but don’t see the loss as public disapproval of the health care bill, as Republicans do.  Senator Jim DeMint, a South Carolina Republican and a vocal opponent of the healthcare plan, said that “Massachusetts was a rejection of the president’s massive policies of spending and debt.”

Obama’s 2008 campaign manager, David Plouffe, wrote in a Washington Post op-ed that Democrats must “pass a meaningful health insurance reform package without delay.”  But according to McConnell, “Republicans want to start over on a bipartisan basis with legislation that would reduce malpractice lawsuits and allow individuals to deduct the cost of their coverage from their taxes the way corporations can.”  So the existing legislation, “with its huge price tag, is a nonstarter,” he said.

Bipartisan Health Care Reform is Still an Option

Wednesday, January 27th, 2010

health care reformFollowing Scott Brown’s victory in the Massachusetts’ Senate race, there has been much speculation on whether health care reform is dead.  General consensus is that reform is not dead, but that the brand of reform being championed by Democrats is too partisan and flawed to be enacted, especially now, as Scott Brown gives the Republicans another needed vote in the Senate.

For health care reform to be achieved, our government needs to be bold and offer new ideas, rather than simply rehash old ones.  According to Robert E. Moffit, director of the Center for Health Policy Studies at the Heritage Foundation, “very little in the Obama health plan is new or original.  Many of its policy initiatives are recycled from the ill-fated Clinton health plan of 1993 and the Kerry health plan of 2004 and strongly resemble a detailed proposal by the Commonwealth Fund, a prominent liberal think tank.”

Elizabeth MacDonald of Fox Business News outlines some ideas for health care reform that didn’t make the cut in President Obama’s plan:

Tort Reform – In last year’s meeting with the American Medical Association (AMA), President Obama stated, much to the chagrin of his audience, that he does not advocate “caps on malpractice awards.”  The AMA estimates that medical malpractice costs and defensive medicine (ordering extra, unnecessary tests for fear of being otherwise sued for negligence) costs upwards of $200 billion each year.  Certain states, including Texas, have taken it upon themselves to curb these costs.  From the Fox Business article:

Texas voters approved a constitutional amendment in 2003 capping damage awards in medical malpractice lawsuits. In turn, doctors are swarming to Texas, swelling the ranks of specialists at Texas hospitals and bringing professional health care to some long-underserved rural areas, reports the New York Times.  All but 15 states have adopted some limits on medical damage awards, according to the National Conference of State Legislatures. But Texas went further than many states. Malpractice insurance premiums dropped an average of 21.3% annually since reform.

Less costly insurance premiums for doctors can lead to cheaper Texas health insurance premiums for consumers.

Interstate Competition – An interstate market in health insurance would deliver more competition than a public option.  If the insurer’s monopoly were broken and people were allowed to buy insurance across state lines, as they are with auto insurance and life insurance, costs would decrease as competition increases.

State-Based Reform – Because states face varying degrees of health care costs and uninsured citizen rates, health reform won’t work as a federal, one-size-fits-all solution.  A federal-state partnership would allow states to devise a health reform plan that works for them.”

As Elizabeth MacDonald states, “health reform is not dead. There are bipartisan ideas out there to fix it. And that means to enact reform, the only route out is the bipartisan way.”  It’s time for elected officials to stop pursuing an agenda so extreme and flawed that it takes a supermajority of one party to pass it.

Texas Health Insurance for Small Businesses

Monday, January 25th, 2010

texas health insurance for small businessesWith small businesses employing the majority of the Texas workforce, the health benefits they offer is vitally important to thousands of Texas residents.  So when evaluating which Texas health insurance plan is best for your employees, make sure you shop around.  The large variety of plans and coverage options available can be difficult to navigate, but these choices mean that small businesses can tailor plans to best fit the needs of their employees.

When considering a Texas health insurance plan for your small business, it’s important to note that rates are not governed solely by the benefits and coverage options of the plan itself.  Instead, carriers calculate rates according to the following case characteristics:

Age of employees – Older employees can reasonably be expected to have more expensive and more frequent health-related claims; generally, the older your employees, the more your plan will cost.

Gender – Females typically incur higher medical costs than males at younger ages, while males incur higher costs in their later years.  If your small business has a young, female workforce, or one that is older and predominately male, expect to pay higher premiums.

Number of plan participants – As the amount of plan participants increases, the administrative cost per person decreases.

Industry – Certain factors, including hazardous working conditions, subject small businesses to higher costs.  And even high employee turnover can result in a pricier plan due to higher administrative costs for the carrier.

Geographic area – Health care costs vary by region due to differences in cost of living, medical practices and the amount of medical competition in the area.

With the above factors affecting health insurance rates, premiums, deductibles and copayments will vary significantly from plan to plan.  To ensure that you get the best plan at the best price for your small business, it’s smart to do extensive research when shopping for a Texas health insurance quote.  The following factors should be helpful when considering coverage options:

Extent of coverage – Be sure you understand the full extent of each plan’s coverage options when comparing plans and rates so there’s no confusion as to the benefits your employees will and will not receive.

Premiums – Plans with higher deductibles and copayments will generally have lower premiums, but that means more out of pocket expenses for employees.

Financial Rating – When trusting your employees’ health to an insurance company, make sure it can fulfill the financial obligations required under the plan.  You can learn a company’s financial rating and the frequency of consumer complaints filed against a company by calling the Texas Department of Insurance Consumer Help Line.

Cooperatives – Look into joining a cooperative.  Cooperatives are groups of employers with similar health care needs who join together to negotiate discounted rates for shared plans.

For even more information on providing health coverage for your small business, visit the Texas Department of Insurance.

Mr. Brown (and His Truck) Goes to Washington

Wednesday, January 20th, 2010

(Elise Amendola/Associated Press)

Though President Obama ridiculed Scott Brown’s pickup truck, a fixture of Brown’s television advertisements and campaign rallies, that truck is about to log many more miles as it’s heading to Washington.  Last night Scott Brown won a special election in Massachusetts to fill an open Senate seat, becoming the first Republican to be elected to the Massachusetts Senate since 1972.

Initially assumed to be an easy win for Democrats, the race with health care reform implications proved to be a major upset, but one indicative of the shifting public tide.  Brown’s victory breaks the Democrats’ 60-vote, filibuster-proof majority in Washington, which greatly lessens the chances of health care reform legislation being passed.  In campaign speeches Brown promised to vote against the health care bill, and voters responded to his message, giving Brown a 52-47 percent win in a state where registered Democrats outnumber registered Republicans 3-1.

While there is speculation that Democrats will attempt to force through the health care bill before Brown officially takes his place in the Senate, Brown’s victory is a chance for the Senate to review the bill from a bipartisan standpoint and to create inclusive legislation that mirrors the goals of both sides of the aisle and, most importantly, the American public.

Tennessee Senator Bob Corker voiced his opinion that “Perhaps it’s not too late…And we can still have true health care reform that actually lowers costs, rewards quality and innovation, and improves access to care for millions of Americans who lack coverage.  I hope the president will take advantage of this opportunity to pursue a bipartisan bill that will stand the test of time.”

Senator John Cornyn of Texas added that “Even in the bluest of blue states, Scott Brown’s message resonated with families, seniors, and small business owners who have rejected President Obama’s massive health care takeover and the Democrats’ out-of-control spending agenda in Washington.”

While Scott Brown’s victory will likely delay health care reform, the delay forces the administration to take a step back and harness the will of the American public, rather than the will of just the Democratic party.  While many pundits claim that it’s better to pass a flawed bill than no bill at all, here’s hoping that both sides can work together to pragmatically reform an ailing health care system without increasing burdens on the American taxpayer and subjecting our trillion dollar health care system to government control.

Why the Massachusetts Senate Race Affects Health Care Reform

Tuesday, January 19th, 2010

massachusetts senate raceToday Massachusetts voters head to the polls for a special election to vote for their new Senator, either Democrat Martha Coakley or Republican Scott Brown.  Few people expected Brown to put up much of a fight, as Democrats have enjoyed a firm hold on the state’s Senate seats for decades, but it’s become a very close race.  And the result holds political significance outside of just Massachusetts.

If Brown wins, Democrats will lose their 60 seat majority in the Senate, which would deny them the 60 votes they need to push health-care reform through the Senate without support from Republicans.  The health care bill has remained a very partisan bill, so it’s unlikely that Republicans would vote in favor of the bill, effectively putting an end to the legislation in its current form, and possibly ending health care overhaul in general.

At a time in which the centerpiece of the administration’s agenda is pending this special election in Massachusetts, the election has become a barometer for public opinion; essentially, if Massachusetts’ voters don’t like the health care bill, electing Scott Brown is their way to keep it from passing through the Senate.

What to Expect in the Final Health Care Reform Bill

Monday, January 18th, 2010

health care reform billWhile we’ve been inundated with reports on health care reform and the bill currently making its way through the Senate, there has been much confusion on which items will stay in the bill and which will be scrapped.  And since C-SPAN was never allowed to film negotiations, despite the administration’s promise to keep deliberations open to public scrutiny, reform proceedings have remained veiled.  But The Associated Press has pulled together details that have begun to filter out of the final negotiations.

Items likely included in the final bill:

-Private insurance plans sponsored by the same federal agency that oversees government employee benefits.

-A tax on high-cost health insurance plans.

-Increased federal aid to help all states expand their Medicaid programs.

-New health insurance supermarkets, called exchanges, for small businesses and individuals purchasing their own coverage.  The federal government sets the rules, but states share responsibility.

-Subsidies to help middle-class households purchase coverage through the exchanges.

-Taxes on upper-income earners; penalties for employers who don’t provide coverage.

-Consumer protections that prevent insurers from denying coverage to   people with medical problems.

Items likely excluded from the final bill:

-A government-operated health insurance plan to compete with private carriers.

-Counting the value of dental and vision benefits in figuring the insurance tax,

-Letting states have sole control over insurance exchanges.

-Steep penalties for people who ignore a new federal requirement to carry health insurance.

-Stiff payroll taxes on companies that do not provide health insurance to their workers.

-Cuts in guaranteed benefits under traditional Medicare.

Of particular note is the exclusion of a government-operated plan, the so-called “public option” that President Obama and his administration lobbied for.  But its exclusion is mitigated by the possible inclusion of private insurance plans sponsored by the federal government, as well as the establishment of health insurance “exchanges,” which would be regulated in part by the federal government.  Regardless of which items make the final cut, get ready for the government to play an unprecedented role in our health coverage.

Democratic Push for Mandatory Health Insurance is Unconstitutional

Thursday, January 14th, 2010

Mandatory Health Insurance is UnconstitutionalAs health care legislation continues to evolve and be debated in the government, one key issue is the administration’s desire to force health coverage on Americans.  The administration assumes that compulsory coverage is fair game, and would put our country one step closer to universal healthcare, but it faces one major impediment – the United States Constitution.

As George Will notes in his Washington Post Op-Ed, the idea of mandatory coverage is no different than compulsory exercise, and one could wager that forced exercise would face a severe backlash from weary Americans.  Supporters of the mandate argue that Congress can impose such legislation under its power to regulate interstate commerce, in which Congress can regulate activities deemed to have economic consequences when it believes it is “necessary and proper.”

This is a very slippery slope because, as Will states, “if any activity, or inactivity, can be declared to have economic consequences, then anything can be regulated – or required.”  As a result, the Constitution is largely nullified by Congress’s estimates of what is “necessary and proper” for the regulation of commerce, and while Congress is still subject to the oversight of the Supreme Court, the Court tends to uphold what Congress declares necessary.

Opponents to the mandate argue that Congress, under the Constitution, is not authorized to forbid someone from not making a commercial transaction, in this case, health insurance.  According to Senator Orrin Hatch, “Congress can regulate commercial activities in which people choose to engage, but cannot require that they engage in those commercial activities.”  He also notes that if Congress can force people to make particular purchases to help the economy, then there was no need for the government program Cash for Clunkers.  Instead, Congress could have just ordered people to buy cars.

While no one argues against the importance of Americans having health coverage, forcing people to buy it—and taxing them if they don’t—is a gross misuse of legislative powers and a frightening example of the government pursuing a goal without regard to personal liberties.

SMU Mandates Student Health Insurance for Enrollment

Friday, January 8th, 2010

As of November 2, 2009, SMU has mandated all students (domestic and international) to maintain Texas health insurance coverage as a requirement for enrollment. Decided by the President’s Executive Council (PEC) in February of 2008, this mandate has now taken affect and has caused many SMU students scrambling to find quality and affordable student health insurance in order to enroll for the Spring 2010 term.

If students do not provide documentation of insurance coverage and submit an Insurance Waiver Form, they will automatically be enrolled into the SMU Student Health Insurance Plan (SHIP) and charged a $669.00 per semester premium charge. This premium charge is to be paid in addition to the health fee students pay each semester.  Even though the health fee allows access to some medical services, SMU is still requiring all students to acquire comprehensive medical insurance in order to “make sure they have the necessary medical care needed in case of [serious medical or surgical care requiring hospitalization].”

In addition, all international or embassy plans will not be accepted as valid health insurance. Any other individual health insurance plan considered as valid SMU student health insurance must have at least a $200,000 maximum lifetime benefit per accident or sickness, comprehensive in and out patient hospital care, physician coverage payments, pharmacy benefits and outpatient diagnostic coverage.

SMU Students will benefit if they obtain an individual health insurance quote or a short term health plan plan for SMU students through Custom Health Plans – specializing in Texas health insurance for students for more affordable, personalized health care coverage.  Custom Health Plans has local, knowledgeable health insurance agents who will educate and guide students to the right health plan for both their medical and educational needs!

Who knew that maintaining student health insurance would be a qualifier for earning a college degree?

Before you add your spouse to your company’s Texas health insurance plan, think again!

Tuesday, January 5th, 2010

texas health insuranceIn a day of economic crisis and health care reform, many people are reconsidering the traditional approach to obtaining health insurance. If you are one of the fortunate employed persons among the sea of jobless Texans, you most likely have your spouse and children covered under the same group plan through which your employer offers health benefits to you. Traditionally, adding your spouse and children to your company’s Texas health insurance plan was the most convenient and inexpensive option. However, is it really the most affordable option?

First things, first…let’s define the difference between an individual health insurance plan and a group health insurance plan. Individual health insurance is a health care plan offered to individuals and their families (not just to individuals) through private insurance companies. Group health insurance is a health care plan sold to employers by these same private insurance companies at a discounted rate, depending on the size of the company (and the number of people covered).

What is not common knowledge is that individual health insurance plans are almost always CHEAPER than the cost of similar benefits with the same insurance company offered through a group health insurance plan!

So why would anyone get group health insurance through their company?

The primary benefits of group health insurance are received by the employee, not the spouse or dependents of the employee. If the employer is paying all of most of the premiums for the employee, then, essentially, the employee is receiving free money toward health insurance coverage. Also, group health insurance must cover every employee regardless of pre-existing conditions; therefore, the employee can save money through a group health insurance plan, if he/she has existing conditions that could deter them from being eligible from obtaining individual health insurance or that could increase the premiums of an individual health insurance plan. Finally, the primary benefit of group health insurance is the addition of maternity coverage. Most individual health insurance plans do not include coverage of maternity costs, though this option is available to be added by most private insurance companies. However, not everyone needs maternity options and why should everyone’s premiums be increased to cover those employees with pre-existing conditions, if you or your family don’t have any pre-existing conditions?

Because private health insurance companies can pick and choose who they cover under individual insurance plans, these plans are usually very affordable and far more customizable to the personal needs of the individual and their immediate family members. If your family is healthy and maternity coverage is not an issue, an individual insurance plan for your spouse and dependents most likely will be the most affordable and most beneficial option for your Texas health insurance needs.

In a time where the cost and quality of health insurance coverage is more important than convenience; Texans must look at other options, even non-traditional ones, in order to protect themselves and their families.