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Oregon Health Insurance Bill Clears Senate Committee

April 29, 2011 by Brian in News, U.S. with 0 Comments

The Oregon state Senate is preparing to vote on a bill to create an insurance exchange. The bill has been in the planning stages for years and is designed to lower health care costs for individuals and small businesses.

The heavily negotiated bill has left consumer advocates disappointed. The bill passed a Senate committee last week unanimously and has support from the insurance industry. The bill would prohibit the exchange from negotiating for lower rates and would allow health industry executives to serve on the governing board.

“I think consumers and small businesses, who have been paying the prices for years and years, deserve better,” said Laura Etherton, a lobbyist for Oregon State Public Interest Research Group. The compromise is also opposed by unions, AARP, the Oregon Nurses Association and other groups.

But, the legislation has many supporters. Proponents of the compromise feel the bill is a large leap to provide health care to consumers who have difficulty accessing affordable healthcare. “This legislation will give more than 350,000 Oregonians access to quality, affordable health care and give Oregon small businesses the ability to provide coverage for their workers,” Gov. John Kitzhaber said after a state Senate committee approved the measure earlier this month.

The full Senate is scheduled to vote on the bill early this week. Supporters and opponents both say they expect SB 99 to pass and move on to the House, where lawmakers could attempt to change it to address critics’ concerns.

The legislation would create an online shopping center for health insurance where people could compare plans and see whether they qualify for subsidies under the federal health care law signed last year by President Barack Obama. A nine-member governing board would set standards for health plans, including minimum benefits and minimum satisfaction ratings from consumers, doctors and hospitals.

“I think the exchange is good policy. I think it will be a great asset for consumers,” said Sen. Frank Morse, R-Albany, who supported the measure in the Senate health committee. “It just is not going to be a vehicle to reduce costs. It’ll be a great facilitator and service.”

Consumer groups are disappointed with a provision that would prohibit the exchange from negotiating with insurance companies to provide lower rates. Proponents maintain that there will be plenty of competition to provide low rates because companies will compete to win the business of insurance buyers shopping through the exchange. “I don’t see the role of the exchange as one of negotiating,” said Sen. Alan Bates, D-Ashland, a physician who supported the bill on the health committee. “It should be one setting up a very transparent system so small businesses and individuals can buy into a group market in a way that’s transparent.”