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- December 21,
2001
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- Dear Fellow
Insurance Professional:
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- In the Fall of
2001 our State Legislature passed, and then Governor Ridge signed into
law, the “Health Insurance Investment Act”, a bill that created a new
health insurance program for low-income Pennsylvanians.
This program, funded by the Tobacco Settlement, has a goal of
insuring 60,000 state residents who do not currently have health
insurance.
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- As insurance
agents and responsible citizens
of the Commonwealth of Pennsylvania we should be concerned about this
program. On Friday January
11, 2002 the Pittsburgh Chapter of the National Association of Health
Underwriters will be hosting a meeting with State Representative Mike
Turzai (R-McCandless). Representative
Turzai will be speaking about the new program as well as other current
state legislative issues affecting insurance professionals.
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- The “Health
Investment Insurance Act” is flawed for the following reasons:
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- 1.
As
with the Children’s Health Insurance Program (CHIP) this plan will be
administered by a local managed care company.
It also will be marketed by the state and sold to uninsured
Pennsylvanians by social workers and other non-licensed individuals.
Agents will not be included in the distribution process.
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- 2.
The
plan is available to anyone aged 19-64 who has resided in Pennsylvania for
at least 90 days, who has been without health insurance for at least 90
days, and who meets the income guidelines (currently 200% of the federal
poverty level.) The
cost is $30 a month for outstanding coverage with no deductible, low
copays, and no pre-existing condition limitations.
Coverage this good at this price may encourage
employers to either drop or decide not to offer health benefits to
lower income workers who would qualify for this plan.
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- 3.
The
money used to fund this program is from the Tobacco Settlement.
This money will eventually run out.
When it does the taxpayers of Pennsylvania will be left with the
bill. Similar programs in
Tennessee, Rhode Island, and New Jersey have experienced significant cost
overruns resulting in enrollment freezes and reductions in reimbursements
to providers.
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- As insurance
professionals we have an obligation to educate our elected officials and
to speak out against programs that, while well intentioned, will not
effectively address the problem of the uninsured. Alternatives, such as tax credits to be used in the
existing employer-based system, need to be advanced.
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- Please join us an January 11th.
A registration form is included with this letter.
If you have any questions please call Doug Moore at (412) 734-4900.
Print
Registration Form in a word.doc format
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