SIIA Health Care Blueprint Addresses Uninsured and Health System Efficiency
WASHINGTON, DC (January 15, 2008) “As health care reform is expected to be a leading domestic issue this year and during next year’s new administration and Congress, we offer this blueprint as a nonpartisan, private sector-based approach to improving health care in America,” said SIIA President Dick Goff.Goff observed that the majority of Americans are covered by employee health plans that are enabled by the federal ERISA law of 1974. “These plans have served an increasing number of Americans during the last 34 years and now cover more than two-thirds of the U.S. workforce,” Goff said. “Even so, SIIA is proposing improvements in health care and plan availability that we believe will result in even broader and more affordable coverage.” SIIA’s plan includes detailed initiatives in five major areas of the current health care environment:
· Cost containment. Nationwide, health care costs are increasing faster than inflation or wages. SIIA recommends better efficiency through increased competition, controlling duplicative services and a simplified, transparent pricing system. Proactive measures include improving health information technology and widespread adoption of preventative health care and wellness programs.
· Protection of the employer-based health system.
Employment-based group health plans provide coverage to more than 160 Americans, with roughly 70 million covered by self-insured plans. The broad preemption provision of ERISA enables employers to offer health benefits that are consistent among employee groups anywhere in the U.S. rather than being subjected to conflicting and inconsistent state and local regulations. SIIA called on Congress to preserve ERISA as the most effective basis of employee health care.
· Small business pooling arrangements.
Federal legislation is needed to permit small businesses to work together and take advantage of economics of scale to obtain affordable health coverage for their employees. Over 60 percent of the working uninsured work for, or depend on, small employers who lack the financial ability to provide health coverage on their own. SIIA recommends that qualifying small business pooling arrangements be regulated by the Department of Labor.
· Tax Incentives.
Small employers and self-employers should be added to the system of incentifying health care plans through the income tax system. The current tax code treats big business’ employee health care costs as a deductible business expense, but for certain small businesses, health care costs are treated as a form of taxable compensation. Tax incentives to these groups would significantly increase the number of adequately insured Americans.
· Consumer-driven health care. Expansion and improvements in the system of tax-advantaged plans such as health savings accounts (HSA) and flexible savings accounts (FSA) would result in health care cost containment and improved quality. Specific recommendations include allowing HSA participants to claim tax deductions for the premiums for high-deductible health insurance policies and to increase contribution limits to HSAs with special attention to early retirees aged 55-64. The “Blueprint for Sensible Health Care Reform” will comprise the basis of SIIA’s health care-related political advocacy activities in 2008 and beyond. The plan will be discussed in detail at the association’s annual Legislative/Regulatory Conference, which is scheduled for March 5-7, 2008 in Washington, DC.
To view “Blueprint for Sensible Health Care Reform”, see http://www.siia.org/files/public/HealthReforWhitePaper-Final.pdf. SIIA is a national trade association that represents companies involved in the self-insurance/alternative risk transfer marketplace.Additional information about the association can be accessed online at www.siia.org or by calling 800-851-7789
· Cost containment. Nationwide, health care costs are increasing faster than inflation or wages. SIIA recommends better efficiency through increased competition, controlling duplicative services and a simplified, transparent pricing system. Proactive measures include improving health information technology and widespread adoption of preventative health care and wellness programs.
· Protection of the employer-based health system.
Employment-based group health plans provide coverage to more than 160 Americans, with roughly 70 million covered by self-insured plans. The broad preemption provision of ERISA enables employers to offer health benefits that are consistent among employee groups anywhere in the U.S. rather than being subjected to conflicting and inconsistent state and local regulations. SIIA called on Congress to preserve ERISA as the most effective basis of employee health care.
· Small business pooling arrangements.
Federal legislation is needed to permit small businesses to work together and take advantage of economics of scale to obtain affordable health coverage for their employees. Over 60 percent of the working uninsured work for, or depend on, small employers who lack the financial ability to provide health coverage on their own. SIIA recommends that qualifying small business pooling arrangements be regulated by the Department of Labor.
· Tax Incentives.
Small employers and self-employers should be added to the system of incentifying health care plans through the income tax system. The current tax code treats big business’ employee health care costs as a deductible business expense, but for certain small businesses, health care costs are treated as a form of taxable compensation. Tax incentives to these groups would significantly increase the number of adequately insured Americans.
· Consumer-driven health care. Expansion and improvements in the system of tax-advantaged plans such as health savings accounts (HSA) and flexible savings accounts (FSA) would result in health care cost containment and improved quality. Specific recommendations include allowing HSA participants to claim tax deductions for the premiums for high-deductible health insurance policies and to increase contribution limits to HSAs with special attention to early retirees aged 55-64. The “Blueprint for Sensible Health Care Reform” will comprise the basis of SIIA’s health care-related political advocacy activities in 2008 and beyond. The plan will be discussed in detail at the association’s annual Legislative/Regulatory Conference, which is scheduled for March 5-7, 2008 in Washington, DC.
To view “Blueprint for Sensible Health Care Reform”, see http://www.siia.org/files/public/HealthReforWhitePaper-Final.pdf. SIIA is a national trade association that represents companies involved in the self-insurance/alternative risk transfer marketplace.Additional information about the association can be accessed online at www.siia.org or by calling 800-851-7789
