Washington – The health-insurance industry on Monday unveiled a proposal to extend coverage to nearly 47 million uninsured people – one of the first in an expected series of plans to tackle a problem that politicians have shied away from for more than a decade.
Ever since former President Clinton’s attempt at reform went down to defeat, the issue has been locked in a stalemate. But the turnover in Congress, coupled with growing pressure from business and labor leaders feeling the pain of rising costs, could open the way for at least some progress.
Monday’s proposal, by America’s Health Insurance Plans, combined elements favored by Democrats with some that Republicans have backed.
It calls for providing coverage within three years to all uninsured children, currently numbering about 8 million, and within 10 years to virtually all adults.
The proposal was missing certain specifics, such as how to control costs over the long run and how to pay its estimated 10- year price tag of $300 billion. It also lacked a requirement that employers or individuals buy health insurance, a mandate that many see as essential to reaching the goal of coverage for all. And it failed to deal with the creation of purchasing pools to bargain down the cost of coverage or with reforms to curtail industry practices that exclude people in poor health.
Nonetheless, it was seen as a marker for reopening debate.
“The floor is now open for other people to put down their plans,” said John Rother, policy director for AARP, the seniors’ lobby.
Labor unions are among those who are expected to come forward. Rep. Pete Stark, D-Calif., incoming chairman of the Ways and Means health subcommittee, already has introduced a plan that would create a national health-care system by essentially expanding Medicare to all.
“We can solve one of the biggest problems we’re ashamed of in this country … and it’s within our reach,” said Jay Gellert, chief executive of Health Net, a major managed-care insurer based in Los Angeles and chairman of the industry trade group’s policy committee.
Aware of the issue’s political sensitivity, senior Democratic aides sought to play down expectations. While there is a good chance the new Congress will pass some coverage expansions – particularly for children of low- to middle-income working parents – a comprehensive health-reform initiative is not likely until after the 2008 presidential election, they said.
“Democrats are not united around a single solution, but health reform is a cyclical topic, and we are definitely on the upside of that conversation,” said one aide, who asked not to be identified because party leaders are not yet prepared to call for sweeping changes.
