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Health Insurance Agents’ Role in Minnesota Health Care Reform for 2010

Health Insurance Agents’ Role in Minnesota Health Care Reform for 2010. Greg Dattilo, CFP, CEBS Dave Racer, MLitt www.freemarketheatlhcare.com. Today’s Agenda. Where we are today Federal reforms Going on the offense in Minnesota. We the People.

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Health Insurance Agents’ Role in Minnesota Health Care Reform for 2010

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  1. Health Insurance Agents’ Role in Minnesota Health Care Reform for 2010 Greg Dattilo, CFP, CEBS Dave Racer, MLitt www.freemarketheatlhcare.com

  2. Today’s Agenda • Where we are today • Federal reforms • Going on the offense in Minnesota (c) 2009: freemarkethealthcare.com

  3. We the People • “For as much as government can do and must do, it is ultimately the faith and determination of the American people upon which this nation relies…” President Obama-2009 Inaugural Health Reform #1 Domestic Agenda Item (c) 2009: freemarkethealthcare.com

  4. Health Care Reform: 2009 “In general, however, substantial reductions in administrative costs would probably require the role of insurance agents and brokers in marketing and selling policies to be sharply curtailed and the services they provide to be rendered unnecessary.” Congressional Budget Office – 12/2008ß • Why reform it? • What needs reform? • When does it need to happen? • Who will do it? (c) 2009: freemarkethealthcare.com

  5. What is this crisis? • Quality of care • Access to health care • Uninsured • Spending • Cost of care (c) 2009: freemarkethealthcare.com

  6. How people bought health care pre-1966 Decided what to buy and from whom – Options for low-income Paid the first dollars for their own health care Patients as consumers: Insured and “uninsured” Doctors & hospitals Provided care 48% Out of Pocket Payers Paid catastrophic claims: They were insurance companies (c) 2009: freemarkethealthcare.com

  7. How people have bought health care since-1966 Foreign health care model U.S. Health Care Model 2009 Subsidies for "poor" Decide coverages Payers Managing physicians & their practice Providers 12% Out of Pocket But they will spend, spend, spend May or may not comply Patients (c) 2009: freemarkethealthcare.com

  8. Where we are • Patients do not know the cost • They do not pay the bills • Health care considered a right We adopted the entitlement mentality (c) 2009: freemarkethealthcare.com

  9. Politicizing health care • President Lynden Johnson (Democrat): 1965 • President Richard Nixon (Republican): 1973 • President William Clinton (Democrat): 1993 • President George Bush (Republican): 2003 • President Barack Obama: (Democrat): 2009 • Every state legislature and governor (c) 2009: freemarkethealthcare.com

  10. Everyone wants to know what will happen • Total federal government takeover? • No federal action at all? • Sending it back to the states to do real reform with or without federal mandates? • What do Minnesota agents do now? (c) 2009: freemarkethealthcare.com

  11. The world of the health insurance agent Health Insurance & Health Care Financing Insurance Companies Health Care Providers Health Care Banking Government Popular Perception Uninsured Employers Employees Uninsurable Low-Income Individuals Seniors Answering Questions & Meeting Needs (c) 2009: freemarkethealthcare.com

  12. Private insurance will spend… • $879 billion in 2009 * Centers for Medicare/Medicaid 2009 (c) 2009: freemarkethealthcare.com

  13. Voluntary vs. Involuntary • 170 Million Americans are covered under private health plans, almost all voluntarily purchased • Auto liability insurance – 14.6% non-compliance • Income taxes – 14.7% non-compliance • Health insurance – 15.4% uninsured (c) 2009: freemarkethealthcare.com

  14. Coverage, by category* US Population- 9:00 am-9/30/09:307,585,235 } • Medicare, aged 65 and over • Medicare, under age 65 • Medicaid, CHIP, Military, VHA, and other government programs • 2009 CHIP Added • Total Covered - Gov • 34 million • 7 million • 58 million • 4 million • 103 million Cost Shift $89 Billion * Congressional Budget Office-12/2008 (c) 2009: freemarkethealthcare.com

  15. Where Congress is leading us Which of these will reduce health care cost and the uninsured? • Community rating • Guarantee issue insurance • Mandated coverage • Government option health plan/Co-ops • Health Insurance Exchange • Squeezing money from Medicare & Medicare Advantage • Federal Health Board But agents must do more than just say “No.” (c) 2009: freemarkethealthcare.com

  16. Going on the offense in MinnesotaAgents Agenda -2010 • Three primary goals • 1) Reduce the current and future number of Minnesota residents who lack health insurance. • 2) Protect Minnesota government from the immense fiscal burden it faces if more individuals, currently covered by private insurance, move to government health plans. • 3) Stabilize today’s health insurance premium, and create premium price predictability for tomorrow. (c) 2009: freemarkethealthcare.com

  17. Going on the offense in MinnesotaAgents Agenda -2010 • 1. Enrolling low-income individuals in private health insurance plans • (a) Continuous coverage, guarantee issue health plan for individuals being displaced from MinnesotaCare or other government-subsidized health plan. • (b) To assist individuals who are being displaced by budget cutbacks, create a referral system so that they are able to access a licensed professional health agent for assistance. • (c) Increasing affordability by making health insurance premiums tax deductible for individuals. (c) 2009: freemarkethealthcare.com

  18. Going on the offense in MinnesotaAgents Agenda -2010 • 2. Changes to 2-50 small group definition • To solve problems of predictability and pricing stabilization, and increase the number of insured among employer groups. • Increase small groups, 2-50, to a larger number - group pooling as compared to experience rating, and/or other methodologies. (c) 2009: freemarkethealthcare.com

  19. Going on the offense in MinnesotaAgents Agenda -2010 • 3. Protecting local school districts • Local school board control of their health benefits • Separately, or to pool their plans • A single statewide bureaucracy will ultimately reduce choice and increase cost to teachers and school districts (c) 2009: freemarkethealthcare.com

  20. Going on the offense in MinnesotaAgents Agenda -2010 • 4. Full disclosure on MinnesotaCare limits • The application form for MinnesotaCare currently does not reveal the $10,000 hospital maximum • Licensed enrollers should explain affordable options from the private insurance market that offer comparable or greater benefits (c) 2009: freemarkethealthcare.com

  21. Going on the offense in MinnesotaAgents Agenda -2010 • 5. Portability - Immediate conversion • About 50 percent of uninsured are between jobs • Allow immediate access to lower cost insurance plans as an alternative to an unaffordable COBRA/Minnesota Continuation plan (c) 2009: freemarkethealthcare.com

  22. Going on the offense in MinnesotaAgents Agenda -2010 • 6. Create carrier choice for MCHA • Guarantee a right to choose a health plan without risk of being denied coverage through MCHA • Improved system for individuals as a reinsurance mechanism – allowing individuals to purchase a MCHA benefit set directly from the health plan of their choice (c) 2009: freemarkethealthcare.com

  23. Going on the offense in MinnesotaAgents Agenda -2010 • 7. Create fairness in MCHA funding • Fully-insured Minnesotans pay 100 percent of the MCHA assessment • ERISA laws preclude large employers from paying their fair share of MCHA assessments • Fund MCHA with revenue from the Minnesota Health Care Access Fund (c) 2009: freemarkethealthcare.com

  24. Going on the offense in MinnesotaAgents Agenda -2010 • 8. Encourage the use of HSAs and HDHPs • Necessary for consumerism to flourish • We support a program to offer HDHPs with HSAs for government employees at the state, county, and local levels, as well as public education system employees (c) 2009: freemarkethealthcare.com

  25. Going on the offense in MinnesotaAgents Agenda -2010How to win for Minnesotans • Agents must be united, speaking with one voice and show strong resolve to move good legislation ahead in 2010 • State legislators need to take the lead • There is much to be done – Let’s do it (c) 2009: freemarkethealthcare.com

  26. Be involved “For as much as government can do and must do, it is ultimately the faith and determination of the American people upon which this nation relies…” President Obama 2009 Inaugural (c) 2009: freemarkethealthcare.com

  27. Be Involved Four branches of government Legislative Executive Judicial We the people (c) 2009: freemarkethealthcare.com

  28. Health Insurance Agents’ Role in Minnesota Health Care Reform for 2010 Greg Dattilo, CFP, CEBS Dave Racer, MLitt www.freemarketheatlhcare.com

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