Kennedy Health Care Bill: Potential Health Reform Implications
The Facts
This week Senator Edward Kennedy (D-MA), chairman of one of two Senate Committees with responsibility for advancing a health care reform proposal, released the first comprehensive draft of health care reform legislation, the Affordable Health Choices Act. Note that final decisions on such critical issues as a public plan and an employer coverage mandate are described in the bill merely as “policy under discussion.” Below are selected highlights of the draft:
- Creates state-based insurance exchanges called “American Health Benefit Gateways”
- Requires insurers to report expenditures to the government, which could trigger mandatory rebates to plan members
- Stipulates that insurance premiums may only vary based on family structure, community rating, the actuarial value of the benefit and age
- Prohibits pre-existing conditions exclusions
- Requires guaranteed availability and renewability of coverage
- Prohibits lifetime or annual limits on coverage
- Mandates individual coverage, with certain exceptions
- Significantly expands Medicaid
What’s at Stake
Senator Kennedy’s decision to table inclusion of a public plan and employer mandate reflects his effort to leave ground for forging a compromise with Republicans. However, Senate Republicans continue to vociferously object to the public plan, and many other elements of the Kennedy proposal. President Obama, sensing the rocky debut of the first health reform bill, summoned Senate leaders June 10, 2009, to the White House, where he reiterated his insistence that a bipartisan bill be achieved this year and made clear his flexibility on all aspects of the legislation.
Steps to Consider
Evaluate how reform proposals may require changes in the operations of your organization, and consider working with policy makers and key stakeholders to shape the ultimate outcome of health reform.
