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State Representative Bill Hinkle - 13th Legislative District

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News from Washington House Republicans.
 

 
FOR IMMEDIATE RELEASE

Feb. 8, 2007

 


Hinkle proposes private sector-driven health insurance exchange
Comprehensive approach would lead to
more health insurance options for consumers

The top ranking Republican on the House Health Care and Wellness Committee proposed an amendment to House Bill 1569 today that would include private sector options, offer more health insurance choices for consumers, and make the state’s health care system less reliant on public tax dollars. Rep. Bill Hinkle, R-Cle Elum, says the measure needs to be changed because it puts the whole state health care system at risk and does not promise any affordable options for consumers.

House Bill 1569 would require all individuals, small employers (2 to 50 employees) and associations to purchase their health insurance through a connector program designed and administered by the state. Hinkle believes it should be called the “constrictor” instead of “connector” because folks back home would have fewer options for health insurance.

“The connector concept has potential, but how it is structured is the key. The connector being proposed in this bill is untested, too reliant on state resources, and would limit health insurance options,” said Hinkle, a member of the Blue Ribbon Commission on Health Care Costs and Access. “I am proposing a voluntary, private sector-driven health insurance exchange. This approach would improve access, cut down on state costs, and create more portability of health insurance for consumers.”

Hinkle’s amendment would:

  • Provide reforms in the small group market that would make health insurance more affordable by allowing companies to design a benefit plan for small employers that does not include all currently mandated benefits. This would also allow more flexibility with regard to rating requirements for small group plans so that premiums would more accurately reflect the group’s risk and utilization.

  • Direct the Health Care Authority to issue a request for proposal to create a private health insurance exchange to make it easier for consumers to find and purchase coverage in Washington.

  • Direct the Insurance Commissioner to contract for a study of health insurance mandates, rating requirements, and other areas that add to the overall costs of health insurance. This study would also determine the benefits of eliminating these mandates and requirements.

  • Provide a business and occupation tax exemption for small employers that offer health insurance for their employees.

The connector concept stems from Massachusetts’s new health care reform. The connector being proposed in House Bill 1569 would be administered by the state Health Care Authority and governed by a public/private board. The board would design four to five standard benefit packages, with three cost-sharing options for each package. The Legislature and Insurance Commissioner would set regulations for plans offered.

Hinkle says the connector concept was a good idea that unfortunately devolved into a state takeover of the health insurance market in Washington. He believes it is the foundation for a socialized – or Canadian government-run – health care system.

“It would be unwise to limit health insurance choices to only four or five benefit packages – especially when the state is solely responsible for what they offer. What eventually will happen is all the plans will look alike, costs will continue to escalate, and people will have fewer choices,” said Hinkle. “This is why the private sector needs to be a part of the solution and my amendment offers this.”

Hinkle can be contacted at (360) 786-7808 or hinkle.bill@leg.wa.gov.

For more information on Hinkle visit: http://www.houserepublicans.wa.gov/Hinkle/
 

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House Republican Communications - (360) 786-7031 * 408 John L. O'Brien Bldg. * Olympia, WA 98504-0600