Recently in the Healthcare Category

Dear Mr. Leonhardt,
 
I often read your column and find it worthwhile and informative. But today's column repeated and reinforced major misconceptions about so called Cadillac health plans. My hope is that you will do more research and correct the information provided. 
 
I have provided background information for other reporters including writers at the LA Times and your own paper (Reed Abelson). I would be very pleased to provide you with detailed and accurate information on all matters related to health insurance.
 
Here's the issue: 

Congress has chosen to define Cadillac health plans as those which cost over a certain amount per person or family.

An employee's definition of a Cadillac health plan is the benefits it provides, how much it costs the employee to access medical services, the maximum cost to the user for a serious health event or treatment of a chronic condition and, of course, the network of health care providers.

The cost of the very same health plan varies based on the claims experience of the group of people insured.  

I question your statement that one study after another has shown that workers with Cadillac plans are no healthier than workers with merely good insurance. I would fully expect that studies would show that the health of people in Cadillac plans, as defined by premium cost, is significantly worse than people in other plans! It costs more to pay the claims of people with health issues. High claims result in higher premiums.

I own an insurance brokerage in California. We specialize in providing benefits plans to small businesses.  California is in the forefront of small business health reform yet the pricing variation between businesses with the most favorable pricing and the highest pricing is 22% (10% plus or minus standard). The average variation in states which have implemented reforms is over 50% (25% plus or minus standard)! 

If we see a 40% excise tax required on "Cadillac" plans, we will force employers with high medical costs to degrade their benefits plans to bring the cost under the number Congress finally establishes.  Other companies, with healthier employees, will be able to continue to offer the very same benefits to their people.

Of course, age of employees, location of company, health care costs in the region, etc, etc, contribute to huge disparities and setting one premium amount for the whole country is absurd.

Again, I would be pleased to provide accurate information for you on health insurance issues.  I also invite you to read my blog - http://shargel.com/healthcarereformblog/

Sincerely,

Susan Shargel CLU CH

Shargel & Co Insurance Services
703 Market Street, Suite 901
San Francisco, CA 94103
415.543.8949 phone
415.543.9406 fax
www.shargel.com

Today WIPP had the opportunity to talk directly with the President on the healthcare issue.  Six of us had 20 minutes with the President on behalf of the businesses we represent to discuss our concerns about healthcare reform and the need for reform.  We focused our comments in a simple manner - we want better choices and lower prices.  If those two goals are accomplished, we know our members will provide insurance and it doesn't need to be forced on them. 

The President knows this stuff cold.  He didn't need any note cards or staff prompting.  He knows exactly why small businesses need reform of the insurance system and our concerns that the final product will help us not hurt our bottom line.  He told us that the big winners will be small businesses who are already offering insurance because of the assistance tax credits will provide.  And he wants us involved in the shape of the final product.  It was also very clear to me that the SBA Administrator, Karen Mills, has the President's ear.  She was involved in the discussion as well.

Now about our economic force - we told the President that if women business owners had their own country, they would have the 5th highest GDP in the world - ahead of France, Italy and the U.K. 

If you are a member of WIPP, know that your views have been communicated directly to the President.  If you are not a member, join and let your voice be heard.

On September 13, WIPP distributed to its members a survey regarding healthcare. The results of the 5 question Micro Survey helps WIPP understand the views of our members and to craft our message. We sincerely appreciate your participation - below are the results. 
 
In keeping with WIPP's Statement on Healthcare Reform, 71.1 percent of respondents do not support an employer mandate for healthcare.

84.9 percent of respondents are in favor of stricter federal regulation to prohibit insurance companies from imposing higher premiums or denying coverage to individuals with pre-existing conditions.

With respect to increased funding for establishing an interconnected, nationwide health technology system, 64.6 percent of respondents are in favor. The Economic Blueprint calls for the establishment of such a system. Visit www.WIPP.org to read the complete Economic Blueprint.
  
In addition, 65.1 percent of respondents would support the overall healthcare reform effort if a public option plan is included in the legislation.    

Finally, 66.7 percent of respondents support the expansion of Medicaid to cover low-income working adults that currently don't qualify for benefits. 

Bay Area Women Business Owners Participate in National Summit on Health Care Reform
NWBC Summit Adds Women's Business Perspective to National Dialogue on Health Care and Business Growth

Washington, DC - Ann Blackburn, owner of Lafayette-based Blackburn Advisory Services; Barbara Kasoff, co-founder of San Francisco-based GrassRoots Impact, Inc.; and Cecelia McCloy, president & CEO of Walnut Creek-based Integrated Science Solutions, Inc., all members of the National Women's Business Council (NWBC), participated in the 2009 Women's Business Summit: Health Care and Business Growth in Washington, DC this week. The Summit, which was hosted by NWBC, in conjunction with Pfizer, Inc., encouraged dialogue among policymakers, health care experts, and the women's business community on the challenges and realities of health care reform and women business owners' role in driving the economic recovery. In addition to members of the NWBC, participants included representatives of top women's business organizations, health care professionals, and White House, SBA, and congressional staff.

During the event, participants shared their insights on current policies affecting small business owners struggling to find access to affordable health care options and grow their businesses. Summit attendees agreed upon the following set of shared principles to contribute to the national dialogue on health care reform:

• Accessibility: a menu of customized programs for individual choice
• Affordability: Transparent, per capita pricing, parity for service across state lines. Tort reform and electronic medical records are essential.
• Portability: Individually-owned, and goes with an employee 
• Wellness: Wellness education for the entire community. Individuals must take responsibility for lifestyle choices like smoking, obesity, alcohol/drug use. Employers should provide healthy options and incentives.

"The Council is pleased to have a role in this important debate," said NWBC Executive Director Margaret Barton.  "We look forward to advancing the common principles established by the Summit participants." The Council will formulate a letter to policymakers outlining the key recommendations and outcomes from the event.
"Small business employers care about the health of their employees but too often cannot afford to pay the health insurance premiums," said McCloy. "This summit focused on the issues important to women business owners and provides solutions that will be considered in the health care debate taking place in Washington D.C."  
Kasoff adds, "Healthcare reform is top of mind to business owners. When surveyed, 40% are unable to provide health insurance to their employees. From a small business perspective, access to nationwide pools would address the issues of affordability and access." Blackburn asserts that the healthcare system reform is much more than health insurance reform and must include provisions for portability and cost containment."

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The National Women's Business Council is a bi-partisan Federal government council created to serve as an independent source of advice and counsel to the President, Congress, and the U.S. Small Business Administration on economic issues of importance to women business owners. Members of the Council are prominent women business owners and leaders of women's business organizations. As the nation's advocate for the more than 10.4 million women-owned businesses in the U.S., the National Women's Business Council works to promote increased access to affordable health care, access to capital, access to federal contracts and international markets, and access to the information and expertise women business owners most need to succeed. The Council conducts research on issues of importance to women business owners and their organizations and connects the women's business community to policy makers in order to expand and improve opportunities for women business owners and their enterprises.

WIPP Members:

Please take 30 seconds to complete the following Health Care "Micro Survey" - the results will help WIPP deliver our message as Congress returns to Washington:

http://www.surveymonkey.com/s.aspx?sm=mcpx4kpNYfOntPP7RW2qEw_3d_3d

Thank you for your time.