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Ericksen: Culture of failure prevents
meaningful
health insurance solutions from moving forward
Regence Blue
Shield's price increase highlights need for private market reforms
Regence Blue Shield’s
recent 19 percent average price increase for nearly 134,000 individual
health insurance customers underscores the need for private market
reforms at the state level says the Deputy Republican Leader in the
Washington State House of Representatives.
Rep. Doug Ericksen,
R-Ferndale, believes a culture of failure continues to prevent
meaningful health insurance solutions from moving forward while the
state’s crisis deepens.
“The people of Washington, especially the one hundred thirty-four
thousand Regence Blue Shield customers, should be irate that Democrats
in Olympia have continually blocked common sense solutions that would
reduce their costs of health insurance,” said Ericksen. “There is a
culture of failure in Olympia and people need to demand more
accountability from those lawmakers who are responsible.”
Ericksen points out that while Regence Blue Shield’s average cost
increase is 19 percent, around 16,000 customers will see as much as a 40
percent increase. He also believes Regence is reacting to a depleted
marketplace.
“Onerous state regulations ran health insurance companies out of the
state in the 1990s and they’ve not come back. As a result, existing
health insurance companies can raise premiums without significant
customer defection because there are too few alternatives for people,”
said Ericksen. “Until we have a more inviting business climate, this
problem is only going to get worse. True competition will drive costs
down while offering more access to health insurance – it’s a matter of
simple economics.”
The bipartisan Blue Ribbon Commission on Health Care Costs and Access
presented recommendations to the Legislature earlier this year. Its
recommendation #8 is to “give individuals and families more choice in
selecting private insurance plans that work for them” – a concept
Ericksen and House Republicans believe was ignored.
Senate Bill 5930, touted as the commission’s hallmark legislation, does
nothing to lower the cost of health insurance, offers no reforms to the
state’s private health insurance market, and sends more people into
government-run health care. Ericksen believes this is neither a
sustainable nor comprehensive approach.
“Senate Bill 5930 has important-sounding titles with very little
substance – similar to the so-called medical malpractice reform. The
legislation makes changes to state-purchased health care programs, much
of which could be done without legislation, and requires further study
of reinsurance, the connector concept, and health care administrative
costs,” said Ericksen. “It’s time to quit studying our problems and
start acting on proven reforms.”
Ericksen joined House Republicans and the Senate this year in
supporting: allowing small businesses to offer health insurance to their
employees that is flexible, low-cost and mandate-free; changing
community rating laws; and allowing any small group plan to qualify for
the Small Employer Health Insurance Partnership program. These reforms
would have allowed small businesses to play a substantial role in
helping to insure their employees. House Democrats stripped the reforms
out of Senate Bill 5930 after they passed the Senate unanimously.
“These are proven, clear solutions that are not being acted on,” said
Ericksen. “As this inaction continues, health care costs continue to go
up.”
Ericksen also believes other fundamental reforms needed are:
-
Allowing a business
and occupation tax deduction for small employers that provide health
care services for their employees.
-
educing state mandates on health insurance policies that all
consumers must pay for whether they need coverage or not.
-
Offering health savings accounts (HSAs) to all individual, small
group and large group plans so people can stretch their health care
dollars.
-
Comprehensive medical malpractice changes.
# # #
For more information, contact:
John
Handy, Assistant Director: (360) 786-5758
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