The NASE guards member benefits as states seek reform

By Ginny Beauchamp, NASE Vice President

Because endorsed health insurance products are the number one utilized benefit of NASE Members, the NASE legislative staff keeps a watchful eye on state-level legislation that could adversely affect our Members' insurance options.

In early 1997, the NASE will closely monitor 32 states that are not currently in compliance with the Health Insurance Portability and Accountability Act of 1996, also known as the Kennedy/Kassebaum legislation, that passed in September 1996. States are charged with implementing the portability requirements of the legislation, which would allow you to take your insurance with you when you change jobs. The states have the flexibility to adopt the federal approach or submit an alternative. Any alternative must achieve the same goals as those spelled out in the yet-to-be determined federal regulations that establish health insurance standards.

Here is a summary of the NASE's state activity on our Members' behalf:

• Massachusetts --
  In June 1996, major legislation was passed that limits the options self-employed and small-business owners will have when purchasing non-group health insurance. The legislation will limit available insurance options to three standardized plans -- one indemnity plan, one HMO and one PPO, with benefits to be established by the Department of Insurance. The NASE's endorsed carrier will not be able to market non-standard plans in Massachusetts. Your NASE will continue to work with coalition groups to allow other association-endorsed policies to again be marketed in Massachusetts.
• New Jersey --
  Efforts will continue to reform the 1992 Individual and Small Employer Insurance Legislation. This legislation forced all individuals into one of five standardized plans or an HMO -- all designed by the government. As of 1995, everyone in the state pays the same for health coverage regardless of age and other measurable differences. As a result, young people may be forced to bear the expense of health insurance plans that provide more coverage than they actually need. Those same young people may subsequently drop coverage, leaving only higher-cost customers in the insurance pool. The flat community rating that is currently in effect in New Jersey has doubled and even tripled premium rates in the state. The NASE is working with other small-business groups to pass legislation that will make health insurance more affordable and that will give self-employed business owners the advantages large New Jersey corporations currently enjoy -- the flexibility to purchase the type of coverage they desire instead of the current limited options.
• Michigan --
  In September 1996, the Michigan House passed a series of bills entitled "Patient Bill of Rights." Although basically good bills for Michigan small-business Members, the NASE has worked in concert with other small-business associations to encourage the Michigan Senate to amend the House legislation. This effort proved successful on December 12 when the House and Senate agreed on language more favorable to small business interests.

The legislative staff of the NASE expects to stay quite busy during the first few months of 1997 as we vigilantly advocate your viewpoints in selected states. We'll keep you updated on the progress.