Posted: 02/28/10 21:01, Edited: 03/01/10 14:54
by Dave Mindeman
I was doing some research on John Kline's take on health care at the health care summit last week. I was wading through some of the nuances of AHP's and Exchanges. As I was going through it, I got a link to MN Central's post on the same subject. It's perfect and I encourage you to read the entire summation:
Does John Kline Relate to John Q. Public ?
That post captures everything I read about in exactly the right context. Since I am not going to try to improve upon it, I just want to highlight a couple of things.....like this:
Actually, the Urban Institute (which is a source that Mr. Kline has cited before) presents a strong case for the Democrat proposal that John Q. Public should like :
-- New insurance market regulations would prohibit preexisting condition exclusion periods.
-- All those enrolling in insurance coverage through the proposed national or state health insurance exchange would have the option of remaining in the exchange, even if they change employers or leave the workforce.
-- Some financial assistance to the low income to cover some of the cost sharing associated with health insurance.
Kline wants small business associations...allowing smaller companies to join together to make larger groups. He also wants them to have the ERISA exemptions that have been granted to large corporations. These special regulations allow the large companies to be exempt from local state regulations and mandates. The idea being that since these large corporations have employees scattered across the country, it would be a nightmare to comply with each different state requirement.
Except, the large corporations by the nature of their size also have a large enough risk pool to absorb everybody.
Smaller companies tend to self-insure with a catastrophic cap. That generally means that they cover their own health care costs via an administrator (like United Health Care or Blue Cross handling the administration); and if cost exceed a maximum, a regular insurance policy kicks in.
Since small companies have by nature a much smaller group of employees -- they can get hurt by a small number of employees having particularly expensive health problems.
If they were allowed ERISA exemptions, which Kline pointed out specifically in his part of the health care summit, they can free themselves of state regulations -- even if all of their employees reside in just the one state.
This might even lead to changing their health policy to exclude patients with a particularly unusual health condition...or at least setting up a pre-existing exclusion for this problem in the future.
Republicans are for getting rid of pre-existing conditions in the general sense except when they are not in the specific sense.
That is why we are having the "risk pool" (Republican preference) vs "exchanges" (Democratic preference) debate.
Exchanges would require companies who participate in the exchange to meet the minimum Federal requirements and that would most assuredly preclude the pre-existing condition rejection from ever occurring.
Maybe the exchanges wouldn't meet all of Minnesota's care guidelines, but they would prevent Kline's AHP's from manipulating the systme themselves.
In addition, the exchanges would be able to give employees health insurance options. They could remain in the exchange if they choose to retire early or change jobs. That kind of flexibility would not be available in the GOP methodology. Unless you leave and join a company in the same AHP insurance pool, you start over.
I hope I have characterized all of this correctly...it can be a complicated subject and I defer to MNCentral's more in depth research on the matter for any corrections.
One thing I am sure of -- if Kline likes something, it is most assuredly good for business at the expense of the employee.
Another great post on this topic from MNCentral:
MN-02 : Should Kline Blame Bush, Coleman or himself for AHP Failure?
MNDEM sends Kline a letter:
Congressman John Kline, there is no freedom, no pursuit of happiness, no American Dream, if we are slaves to health coverage.
Holly Cairns joins in as well:
John Kline: Best Health Care in the World



