NAHU Washington Update - 06/07/2006 (Plain Text Version)

Medicare Hospital Payment Information

The Department of Health and Human Services recently announced that the Centers for Medicaid and Medicare Services will post payment information for 30 common elective procedures under Medicare. This move is a step in the right direction towards transparency in health care costs to assist patients with making appropriate and more informed health care decisions. New information can be found on this website.

Information on quality measures is also being reported and information is available at www.HospitalCompare.hhs.gov. This information is timely as Congress continues discussing cost transparency legislation and additional changes to Health Savings Accounts.

Anti-Money Laundering

The Treasury Department Financial Crimes Enforcement Network released its final rule and information on its anti-money-laundering program. The program was established to protect the country’s financial system and ensure that the provisions of both the Bank Secrecy Act and the Patriot Act are applied appropriately. The final rule does not require agents and brokers to have separate anti-money-laundering programs, however insurance agents and brokers play an integral role due to their contact with customers. Each insurance company that issues and underwrites covered products must develop and implement a written anti-money-laundering program.

According to the rule, covered products are defined as a permanent life insurance policy other than a group life insurance policy, an annuity contract other than a group annuity contract, and any other insurance product with case value or investment features. Insurance agents and brokers are not required to have separate anti-money-laundering programs.

For more information, visit www.fincen.gov/insurance_companies_faq.html. [return to top]

Health Savings Accounts

Last month Congressman Eric Cantor (R-VA) introduced H.R. 5262, the Tax-Free Health Savings Act. The bill would increase contribution limits to HSAs, make premiums for HSA-compatible insurance tax-deductible, provide a tax credit for low-income individuals to purchase a high-deductible health plan, allow employers to make greater contributions to employees with chronic health conditions and allow early retirees to use HSA funds to pay for insurance coverage premiums. NAHU supports Cantor’s bill and believes that it will help make health insurance coverage more affordable for low-income individuals and small businesses. [return to top]

Market Reforms and S. 1955

Last month the Senate failed to garner enough votes to move S. 1955, Senator Enzi’s Health Insurance Marketplace Modernization and Affordability Act, forward for a full vote. It is unlikely that the legislation will be brought up again this year.

Campaign season for the November elections is underway and Congress will adjourn its 109th session in December. The House-passed AHP legislation, H.R. 525, remains pending though it is unclear whether the Senate will take up discussion on the bill or its Senate companion, S. 406. [return to top]

House Action

The U.S. House of Representatives is planning a Health Week some time in June or early July. It may include items that are health-related but not health insurance-related, but the agenda is not clear at this point. More likely, pending HSA legislation will be the subject of a hearing in July, followed by a possible float on the floor. We will keep you informed as the plans for action in the House are finalized. [return to top]

Pension Bill

As we have previously advised you, the House and Senate have established a conference to work out a compromise on the bills based by each chamber. In addition to pension items, the bill includes FSA rollover provisions and may include a provision that allows long-term care to be sold in Section 125 cafeteria plans. The conference has been delayed numerous times, but the new estimated completion date is immediately before the July 4th recess, with a possible floor vote the second week in July. [return to top]