Republicans offer poison pill: will the medical savings bill kill health insurance reform?Initially lauded as a way to provide small businesses with more affordable access to health insurance, the Health Coverage Availability and Affordability Act of 1996, the Kassebaum/Kennedy bill, now stands to be rejected by the President. Thwarting its enactment are House Republicans who seek the passage of a medical savings account  This article or section is in need of attention from an expert on the subject.Please help recruit one or [ improve this article] yourself. See the talk page for details. provision, which would allow small businesses to band together to form health insurance purchasing pools without state regulation. Many House Democrats have charged that the bill with the new provision, under the guise of good medicine, would open up a Pandora's box Pandora’s box contained all evils; opened up, evils escape to afflict world. [Rom. Myth.: Brewer Dictionary, 799] See : Evil of distressing consequences. Instead of more affordable access, they argue that small business owners would be forced to pay enormously high deductibles and out-of-pocket expenses out-of-pocket expenses n. moneys paid directly for necessary items by a contractor, trustee, executor, administrator or any person responsible to cover expenses not detailed by agreement. , but receive little, if any, tax breaks. President Clinton also expressed his opposition to any bill that would allow a no-holds-barred medical savings account. If the bill is passed, however, it's likely that medical savings accounts would be launched as pilot projects in a few states. Still, the need for guidelines exists. Skeptics charge that insurance companies would have a feeding frenzy feed·ing frenzy n. 1. A period of intense or excited feeding, as by sharks. 2. Excited activity by a group, especially around a focal point: in an unregulated market. They also wonder who will enforce the program and settle claims. Medical savings accounts are not the only provisions under scrutiny from small business interest groups. Rudy Lewis, president of the National Association of Home-Based Businesses, says the bill has no mandatory requirement for health coverage and is not comprehensive enough to benefit small businesses. "They're calling it insurance reform, but the government really has no control of it. Insurers control the industry by assigning risk factors. And insurance companies do not want a diverse group in their insurance pool," Lewis charges. Some proposed Senate revisions to the health care reform package, including increasing the deductions for premiums from 30% to 80%, will prove beneficial to small businesses. However, a proposed mandated mental health benefit amendment would send premiums skyrocketing. Bennie Thayer, president of the National Association for the Self-Employed, sees nothing wrong with the provision as long as it is part of what he calls a "broad health care package" and governed by a "unified and equitable law." Citing deductibility as his primary concern, Thayer says he would like to see the amendment, but not at the expense of the total bill. "It's not all accessibility; it's also affordability. Small employers who wanted to offer insurance couldn't do it," he says. Thayer asserts that medical savings accounts can exist as an attractive add-on option. Likening lik·en tr.v. lik·ened, lik·en·ing, lik·ens To see, mention, or show as similar; compare. [Middle English liknen, from like, similar; see like2 them to IRAs, he says they can serve as another means of amassing funds and, at the end of a specified time, be used for other purposes. "If you look at it, there is nothing there. It's catastrophic insurance masquerading 1. (networking) masquerading - "NAT" (Linux kernel name). 2. (messaging) masquerading - Hiding the names of internal e-mail client and gateway machines from the outside world by rewriting the "From" address and other headers as the message leaves the as regular insurance," Lewis counters. "Even visits to the doctor will have deductibles. And if you're in the hospital for three days, you better believe you'll pay for the third day." Which is precisely the reason why this Republican smokescreen of less costly, tax-free medical insurance may very well jeopardize jeop·ard·ize tr.v. jeop·ard·ized, jeop·ard·iz·ing, jeop·ard·izes To expose to loss or injury; imperil. See Synonyms at endanger. the health of the bill. Medical Savings Accounts Q What are they? A Tax-free accounts used to pay medical bills (concept is similar to an IRA Ira, in the Bible Ira (ī`rə), in the Bible. 1 Chief officer of David. 2, 3 Two of David's guard. IRA, abbreviation IRA. ). Q Why are they important? A They would allow small businesses to band together to purchase health insurance at reduced rates. Q What effect will they have? A Purchasing groups would be exempt from state regulation. States could not enforce consumer protection laws consumer protection laws n. almost all states and the federal government have enacted laws and set up agencies to protect the consumer (the retail purchasers of goods and services) from inferior, adulterated, hazardous and deceptively advertised products, and nor could they guarantee payment of claims. Q Who are the supporters? A House and Senate Republicans who proposed the amendment and insurance companies. Q Who are the opponents? A President Clinton, House and Senate Democrats, state legislatures A state legislature may refer to a legislative branch or body of a political subdivision in a federal system. The following legislatures exist in the following political subdivisions: Q What are the defects? A The system is an easy target for corruption. There is little or no tax benefit for businesses with few employees, high premiums for comprehensive coverage, high out-of-pocket costs out-of-pocket costs Managed care Health care costs that a covered person must pay out of pocket–eg, coinsurance, deductibles, etc. See Copayment. and high deductibles. Source: Black Enterprise, 1996 |
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