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The House is scheduled to consider a proposal from its Health Care Committee (H.861) that spent eight weeks crafting a bill after considering proposals from the administration and other interested parties and policy recommendations from an outside academic consultant. The bill would assign responsibility to the state to oversee chronic disease management and create a new state-run health plan for uninsured residents. The tax-writing Ways and Means Committee will recommend that the estimated $66.2 million in state general fund monies necessary to pay for H.861 over a four year period should come from a 60 cent additional tax on cigarettes, and from future tobacco settlement funds that Governor James Douglas has earmarked for higher education scholarships. The total cost for the program over four years is projected to be $132.2 million, with the remaining $66 million coming from federal Medicaid funds. The full House debate will likely focus on the “richness” of the benefit plan, the impact on Medicaid and private sector health insurance coverage, and the potential impact on employer health plans. Proponents of the plan will argue that this plan is a significant step forward because it makes substantive changes to the delivery system that will help “bend the curve” of health care inflation and provide subsidies for uninsured residents who choose the enroll in the new Catamount Health plan. Critics of the proposal will likely argue that the Catamount benefit plan is too rich (it is pegged to a generous state employee POS plan) and provides better benefits than the average Vermonter receives, thereby creating equity issues. This will encourage employees of businesses who offer coverage to jump to the state plan, according to opponents, driving up the cost of the new program. Governor James Douglas last week moderated his strong opposition to any new taxes to fund a health care reform bill, clarifying that he would draw the line at a payroll tax as a funding source. This comment seemingly leaves the door open for a compromise on funding as the bill continues its way through the legislative process. While most attention has focused on House activity around H.861, the Senate continued work on a companion reform bill, S.310, a so-called “consensus” bill. Approved by the Senate Health and Welfare Committee, the proposal is sitting in the Appropriations Committee and is also scheduled for Senate floor debate this week. This bill would allow healthy lifestyle insurance premium discounts and proposes a variety of administrative simplification and consumer information initiatives. S.310 is not controversial and should receive significant support across party lines. For more information on legislative proposals, visit the Blue Cross and Blue Shield of Vermont website at www.bcbsvt.com or call Leigh Tofferi at (802) 223-6131 or Kathy Parry at (802) 371-3205. If you wish to discontinue receiving these updates or know of anyone else who would like to receive it, please call Kathy Parry or send an e-mail to webmail@bcbsvt.com |
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