CAHI Praises Conferees for Outstanding Trade Bill: Bill Passes House, Increases Access to Affordable Health Insurance; Senate to Vote Soon

7/29/2002

From: Tom Gardner of the Council for Affordable Health Insurance, 703-836-6200, ext. 386; Web site: http://www.cahi.org

ALEXANDRIA, Va., July 29 -- During an early Saturday morning session the U.S. House of Representatives passed the conference report accompanying H.R. 3009, the Omnibus Trade Act, by a vote of 215 to 212. On Friday, the Council for Affordable Health Insurance (CAHI) learned that the House-Senate Conference Committee had dropped the guaranteed issue provision from the Omnibus Trade Bill while retaining significant funding for high risk pools. Guaranteed issue allows people to purchase health insurance regardless of their health condition.

"We are pleased that the President's trade bill is moving forward," said CAHI Director Dr. Merrill Matthews. "By removing the guaranteed issue provision and including significant funding for state high-risk pools to provide coverage for people who are uninsurable, the conferees drafted a bill that is good for the economy and increases access to affordable health insurance for many Americans. CAHI applauds the administration, the conferees and the House for an outstanding job." Matthews continued, "We hope the Senate will follow the House's example and pass the trade bill soon."

The legislation includes a 65 percent health tax credit for Trade Adjustment Assistance (TAA), Alternative TAA workers and certain pension benefit guarantee corporations (PBGC) beneficiaries. Workers who receive the tax credit could use it to continue payments on existing health insurance premiums, COBRA, continuation policies and state high-risk pools.

The bill includes $100 million for state high-risk pools, with $20 million available so that states without a high-risk pool can establish one, and $80 million that can be used to help fund existing high-risk pools. Thirty states currently have high-risk pools.

CAHI is a research and advocacy association of insurance carriers active in the individual, small group, MSA and senior markets. CAHI's membership includes insurance companies, small businesses, physicians, actuaries, and insurance brokers. Since 1992, CAHI has been an advocate for market-oriented solutions such as MSAs to the problems in America's health care system.