Insurance Trade Group Submits Health Care Reform Proposal

American Health Insurance Plans (AHIP) submitted a self-styled "comprehensive health care reform proposal" to lawmakers on Wednesday. After some digging, I found a copy of the plan here. Pages seven and eight briefly outline the plans benefits for small businesses. Most importantly, for business owners, the plan does not include an employer mandate that employers purchase insurance.

Instead the plan suggests the creation of an "Essential Benefits Plan" that is transportable and purchased by the employee. Such a transportable health insurance policy would assist small businesses by providing a basic level of health care to employees. Small businesses would also benefit from targeted tax credits and market savings on health care costs.

For larger employers the plan proposes that a "do no harm" approach is best. The plan suggests that 90% of employers providing benefits state that doing so was critical to retaining and recruiting employees. Thus, the plan calls for "retaining" the large group market.

Of course, the AHIP is an insurance trade group. "Retaining" the large group market would be in the group's interest. Members include Aetna, for example.

The proposal is one of several now in front of lawmakers including Senator Max Baucus' plan. Senators Kennedy and Baucus have pledged to work on comprehensive health care reform quickly in 2009 and publicly welcomed the plan.