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Press Release May 28, 1998 |
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WASHINGTON – An open letter to Congress signed by fifty seven national organizations slams the GOP "HealthMarts" proposal as flawed and urges it to be dropped from consideration.
"We support efforts to make health care more affordable while maintaining quality and access to care," the organizations, led by Consumers Union, write. "However there are serious problems with the new draft proposal that undermine those goals (and) hold the potential to turn the clock back."
At issue is a "HealthMarts" idea generated by a health care reform task force led by Rep. Dennis Hastert, R-Ill, in the House of Representatives. While Consumers Union and others expressed support for the task force’s mission, they are roundly disappointed at the "HealthMarts" idea that has been spawned by this group. Moreover, some are concerned this proposal could sidetrack efforts to enact managed care reforms before Congress adjourns.
The letter says that "HealthMarts" fails on four counts. It splits the sick from the healthy, it busts state reforms, conflict of interest issues are pervasive and the individual market is left out. What’s missing from this proposal, they say, is a decent benefit package. The bill does nothing to target subsidies to the working poor and those most in need of help. Nor are individuals covered.
Splitting the sick from the healthy is called a "timebomb" that is ticking on an already beleaugered health care financing system. With choices ranging from skimpy to comprehensive, sick consumers will have two bad choices: either get comprehensive plans and wind up paying very high prices or opt for skimpy coverage and be left exposed to the risk of massive medical bills.
The groups signing the letter also fear that "HealthMarts" could wipe out valuable state protected benefits, including maternity coverage, cancer screening, mental health services and birth defect coverage. State Alliances could also falter if "HealthMarts" are introduced because if a flood of healthy enrollees leave, these laudable reform experiments could be forced to shutdown.
The conflict of interest charge arises from the part of the proposal that calls for insurance industry representatives, HMO agents and providers getting seats on the board of directors. This structure would leave consumer interests badly outnumbered on these governing bodies.
Among those signing onto the letter to Congress are the American Nurses Association, United Cerebral Palsy Association, the National Education Association, Children’s Defense Fund, the Gray Panthers and the American Federation of State, City and Municipal Employees.
