NAHU Washington Update - 06/16/2008 (Plain Text Version)

Janet Trautwein to Speak Before Senate Health Reform Summit

NAHU Executive Vice President and CEO Janet Trautwein has been invited to testify before the Senate Finance Committee’s Health Reform Summit today in Washington, DC. This national forum is part of the Finance Committee’s yearlong series of hearings, roundtables and events to prepare for congressional action on systemic health reform in 2009.

Janet’s invitation is a tremendous testimony to the health care expertise, counsel and insight that NAHU provided to policymakers over many years, and it is welcome exposure for NAHU as an organization.

The specific panel for which Janet has been asked to speak is on “Insurance Market Reform.” A copy of Janet’s written statement for the summit can be seen here.

Janet’s panel will be taking place 11 a.m. to noon (EST). Her oral testimony and ensuing discussions and the entire summit, including all concurrent sessions, will be webcast live by the Senate Finance Committee. To view all webcasts, visit this web page.

Senate to Legislate on Medicare Advantage/Agent Marketing and Sales

The Senate is nearing consideration of Medicare legislation aimed at reversing a 10.6% cut in physician payments under Medicare that is scheduled to take effect July 1. Doctors say the cut is unaffordable, and they might refuse new Medicare patients if it takes effect, making the issue of high importance to Congress.

But Democrats and Republicans have been unable to agree on how to “pay for” halting the cut, and the partisan rankling came to a head on June 12 when the Democratic majority sought but failed to move a bill without sign-off from key Republicans in the Finance Committee. This past Thursday the majority moved to invoke cloture (ending an effective filibuster) to begin debate on their bill. But the procedural vote failed by a vote 54-39, shy of the 60 votes needed, despite the support of nine Republicans. Had five absent Democrats attended the vote, the cloture motion likely would have succeeded.

Democratic leaders have now conceded they will have to go back and further negotiate on a compromise with Senate Republicans and the Bush administration.

The bill (S. 3101) proposed by Senate Finance Chairman Max Baucus (D-MT) contains numerous Medicare provider payment provisions and beneficiary enhancements in addition to the doctor fix. It also contains significant funding reductions to Medicare Advantage plans, and seeks to legislate new rules on agent and broker marketing and sales communications with Medicare beneficiaries.

Feeling shut out of the process, Republicans offered their own legislation (S. 3118), which also would avert the physicians’ pay cut. The Republican budgetary offsets would not reduce Medicare Advantage funding as much, and would make a couple of small changes to Medicaid. The Republican bill also contains language restricting agent and broker marketing and sales activities.

A compromise likely would not have major Medicare Advantage reductions, and would probably be more limited in scope than Baucus’ bill, which also includes some expansions of Medicare benefits.

Of particular importance to NAHU and its members, we share concerns about reported abuses by unscrupulous actors in our industry, and are supportive of improving oversight and accountability in Medicare private insurance sales and marketing.

However, we strongly believe the proper venue for considering such policy changes is through the public comment rule-making process already underway through CMS’s proposed regulations. NAHU is in the process of finalizing comments for submission by July 15.

If you have not already done so, please participate in our Operation Shout on this very important issue. Please impress upon your Senators that:

• CMS’s rule-making process with full and open public comment should be allowed to move forward.
• Legislation is unlikely to fully consider the broad range of dynamics and many nuances involved in selling and servicing products to America’s seniors.
• Proposed statutory changes in this area may complicate and be inconsistent with ongoing rule-making.
[return to top]

NAHU Dialogues with Presidential Campaigns

In our ongoing efforts to make sure the voices of America’s benefit specialists are being heard, NAHU CEO Janet Trautwein recently met with Douglas Holtz-Eakin, senior policy advisor to Senator John McCain’s presidential campaign.

Janet was pleased to share with the campaign our views and policy priorities as they relate to Senator McCain’s health care positions, especially in the area of possible changes to the federal Tax Code and the role of employer-sponsored insurance.

NAHU is also reaching out to advisers in the Obama camp, and looks forward to building and maintaining these helpful dialogues as the presidential campaigns move forward. [return to top]