June 2006

WCA endorses insurance reform bill

The World Chiropractic Alliance (WCA), along with the International Chiropractors Association (ICA), has endorsed the Small Employers Health Benefits Program Act, S.2510, introduced on April 5, 2006 by Sen. Blanche Lincoln of Arkansas.

The legislation would make important improvements in the small business and small group insurance market, without expanding the reach of the Employee Retirement Income Security Act (ERISA) to exempt such small plans from insurance equality and consumer protection laws enacted by the states.

This new legislation stands as a dramatic and positive counterpoint to the controversial S.1955, which the entire chiropractic profession has united to oppose. S.1955, sponsored by Wyoming Sen. Mike Enzi, would extend the ERISA exemptions to a new class of health insurance plans to the detriment of both provider and consumer.

"This positive legislation will provide the chiropractic profession and the consumer an important option since it provides the means of assisting small businesses in attaining affordable health insurance, without costing the insurance marketplace important state protections," said WCA President Terry A. Rondberg, DC.

According to Sen. Lincoln, the Small Employers Health Benefits Program (SEHBP) is based on the successful Federal Employees Health Benefits Program (FEHBP), which has provided extensive benefit choices at affordable prices to members of Congress and federal employees for decades.

Last year, more than eight million people were brought into the FEHBP purchasing pool and given choices among 10 national health insurance plans and a variety of local insurance plans. A total of 278 private insurance plans offered benefits to, and competed for the business of FEHBP enrollees in 2006.

Sen. Lincoln explained that, by pooling small businesses across America into one risk and purchasing pool like FEHBP, the new SEHBP program will allow employers to reap the benefits of group purchasing power and streamlined administrative costs, as well as access more plan choices. Health plans will bid to offer benefit packages to SEHBP enrollees.

Among the most important key provisions, this legislation would maintain all‑important state‑enacted consumer protections. Sen. Lincoln noted that "SEHBP enrollees will be covered by state consumer protection laws, such as benefit mandates and solvency standards. State insurance commissioners will continue to regulate solvency, grievance processes, internal review and network adequacy laws, among other things."   

This innovative legislation already has 21 US Senators as co‑sponsors and the support of a growing list of health care organizations, now including the WCA and the ICA. "In the face of the negative reaction and opposition created by S.1955, S.2510 provides a clear channel for positive lobbying," stated Dr. Rondberg.