June 12, 2009

Lawmakers Unveil Draft Legislation For Health Reform
The Senate Health, Education, Labor and Pensions Committee released an unfinished health care reform bill yesterday that would require U.S. residents to have health coverage and would create a public health plan to compete with private plans. The bill also would provide subsidies to help individuals purchase coverage and prohibit insurers from denying coverage or charging more for people with pre-existing conditions. The committee has scheduled a hearing Thursday on the new proposal.  

Democratic leaders in the House also are circulating an outline draft of their health reform legislation that contains many elements of the Senate plan, including the creation of a federally regulated health insurance exchange and subsidies for low-income residents.

Proposed Tax On Health Benefits Could Undermine Employer-Based System
The Employee Retirement Income Security Act Industry Committee sent a letter to five congressional committees expressing their concerns about taxing health benefits. The committee wrote that “some reform proposals could compromise the successful employer-based system that currently provides health care to 170 million Americans.” The group said taxing employees’ health care benefits would cause “young, healthy employees” to avoid employer plans in search of less expensive coverage, leaving “a plan that once had a favorable and balanced risk pool ... with an older, sicker, more costly population whose premiums would eventually become unsustainable.”

[top of page]