Democratic bill seeks health insurance market

State Sen. Kathleen Vinehout is touting a bill she released Wednesday as giving "big-group buying power" to small-business owners, farmers and others who buy their own health insurance.

The rural Alma Democrat's bill creates health insurance exchanges, or markets, where people can shop by comparison.

"My bill provides a robust approach to lower health costs, brings consumers a choice of plans and gives small business, farmers and individuals the same buying clout as large companies," she said in a news release.

But state Sen. Terry Moulton first wants to see the U.S. Supreme Court rule on the constitutionality of the 2009 federal health care law, which requires such alternatives for those without employer-sponsored or public insurance.

The federal law requires states to show by 2013 that they will have insurance exchanges operating the following year.

"Wisconsin must make progress developing exchanges by the end of next year or risk federal government intervention," Vinehout said in the release.

But referring to the pending U.S. Supreme Court decision, "I think we'd be wise to wait," said Moulton, a Republican who lives in the Eau Claire County town of Seymour, by phone.

Although the senators differ on how to do so, both agree on the need to contain insurance costs and have price transparency.

Insurance exchanges provide information not now available to small businesses and individuals so "they can clearly make an apples-to-apples comparison of plans," Vinehout said in the release.

She proposes putting information about insurance plan benefits, quality and potential price in one place -- a website.

In a memo to legislative colleagues, Vinehout said her bill would not create mandates for employers.

Small employers with 100 employees or fewer may elect to participate in the Small Business Health Options Program. If they do participate, they would be able to choose any level of benefits for their employees, according to Vinehout.

A website would be good, Moulton said. "We have to allow the consumer to compare some of the things when they're shopping for health care."

But the bill has "some serious flaws," he said, including that it requires insurance companies to offer plan coverage to individuals or small businesses only through exchanges.

"I actually don't think in the long run that it will help small businesses. Right now we have a pretty robust health insurance marketplace in Wisconsin and one of the lowest uninsured rates (in the nation)."

It ultimately would narrow business choices and increase costs through extra paperwork, Moulton said.

"To me, this is the type of thing ... that leads us down the road to a single-payer system, which I think is a failed system," he said.

Moulton is the author of the Healthy Jobs Act, a bill that would give a tax credit to Wisconsin businesses with 50 or fewer employees for implementing wellness programs.

Bob McCoy, president of the Eau Claire Area Chamber of Commerce, said because Vinehout just released the bill, he doesn't yet know how it will impact small businesses.

"We appreciate her looking at this as an option for small businesses, as obviously (health insurance costs) is a concern for small businesses, but there also are a lot of unanswered questions," McCoy said.

"I think we have to look at how (exchanges) could operate and what the cost of that is going to be."

Wachter can be reached at 715-830-5828, 800-236-7077 or blythe.wachter@ecpc.com.

Bill Highlights

A bill introduced to the state Legislature by Sen. Kathleen Vinehout, D-Alma, would create an online health insurance exchange for people who buy their own health insurance.

- The exchange would cover outpatient and emergency services, hospitalization, maternity and newborn care, laboratory services, preventive and wellness services, prescription drugs, mental health care, pediatric care, and rehabilitation services.

- The exchange would increase the choice of health plans and help people learn if they are eligible for tax credits or other program like BadgerCare, a state-run health insurance plan.

- Participants would buy coverage from existing health insurance agents and brokers.

- The bill does not authorize the spending of state dollars.

Source: State Sen. Kathleen Vinehout

(c)2011 the Leader-Telegram (Eau Claire, Wis.)

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