PI Action alerts & updates ... 2006

Opposition to the Health Insurance Marketplace Modernization and Affordability Act of 2005, S. 1955

May 5, 2006

United States Senate
Washington, DC
Sent via facsimile 20510

Dear Senator:
We are writing in opposition to the Health Insurance Marketplace Modernization and Affordability Act of 2005, S. 1955. This legislation will do nothing to ensure that health insurance companies will provide individuals who work in small businesses the coverage they need to maintain good health at a price they can afford. Persons living with HIV/AIDS and other chronic conditions would continue to be presented with policies offering limited benefits at unaffordable rates by a private health insurance industry with little commitment to providing coverage to those who need health care services the most. S. 1955 would eliminate current state protections that require insurers to offer policies that provide comprehensive benefits with reasonable premiums. On behalf of persons living with HIV/AIDS and their providers, we urge you to vote “no” when S.1955 is considered on the Senate floor.

S. 1955 would take away the states’ power to regulate health insurance. The bill preempts the benefit, service and provider laws that states have enacted to ensure that all consumers have adequate health care insurance. Coverage for key medical services such as cervical cancer screening, mental health care, colorectal screening, emergency services, alcohol and drug abuse treatment could be lost under this bill. These are medical services that all consumers need as part of comprehensive insurance coverage and can make the difference between life and death for people with HIV/AIDS and other challenging disease conditions. Access to medical providers including dentists, nurse practitioners, psychologists, social workers, and others could be lost in 20 states.

The bill would set aside state laws that protect consumers in the small group market from discriminatory pricing practices. It would allow insurers to charge small businesses as much as 50 percent more for premiums if some of their workers are in less-than-perfect health. It would also allow unlimited premium increases based on the sex or age of workers or other demographic factors. Many small businesses would continue to be priced out of the insurance market, leaving their employees without necessary insurance coverage. Other employers may opt to replace more comprehensive policies for bare bones coverage that offer little if any coverage for the medical conditions their employees face. For people with HIV/AIDS, among the most vulnerable to premium increases and benefit reductions, the loss of coverage could result in dramatically diminished health outcomes and even death. Many would be forced to rely on the state or other public payers, thereby shifting costs to public systems.

S. 1955 would force consumers to choose between accepting barebones insurance policies or paying much higher rates for adequate coverage. People who need health care the most, including those with HIV/AIDS, will be faced with skyrocketing premiums. Instead of improving health care access, S. 1955 will do little to expand meaningful coverage and will threaten the coverage of those who now have access to an affordable plan that meets their health care needs. We urge your opposition to this legislation.

Sincerely.
HIV Medicaid/Medicare Working Group Steering Committee

AIDS Action, Washington, DC
AIDS Alliance, Washington, DC
AIDS Foundation of Chicago, Chicago
The AIDS Institute, Washington, DC
American Academy of HIV Medicine, Washington, DC
Community HIV/AIDS Mobilization Project (CHAMP), New York, NY
Gay Men’s Health Crisis, New York, NY
HIV Medicine Association, Alexandria, VA
Housing Works, New York, NY
Human Rights Campaign, Washington, DC
National Alliance of State and Territorial AIDS Directors, Washington, DC
National Association of People with AIDS, Silver Spring, MD
National Health Law Program, Los Angeles, CA
Project Inform, San Francisco
San Francisco AIDS Foundation, San Francisco
Title II Community AIDS National Network, Washington, DC
Treatment Access Expansion Project, Boston