LANSING, Mich., April 20 /PRNewswire/ -- Meeting the health care needs of Michigan’s uninsured citizens is a central issue for our state’s health care system. Those who do have health care are in danger of being priced entirely out of the health care market due to rising health care costs. Other businesses and employees are already going without coverage because they cannot afford even the most basic insurance package. To meet this crisis, Michigan’s health plans have encouraged the introduction of a bill (S.B. 1150) into the Michigan Legislature: A-CHOICE (Affordable Consumer Health Options & Insurance Coverage Expansion Act), sponsored by Sen. Bill Hardiman, (R), Kentwood. “Michigan businesses have expressed to me on a number of occasions that rising health care costs is their number one concern in terms of employee expenses. This legislation will create options and flexibility for businesses to provide an affordable health care package to their employees and reduce their overhead expenses. This is another step in helping to create an economic environment that will attract and retain Michigan’s job providers. This bill could make the difference between people either of low income or just starting the work force having insurance or no insurance,” said Bill Hardiman, Senator in the Michigan legislature.
A-CHOICE enables Michigan health plans to provide options and thereby, expand access to health care coverage. “Opening up competition and allowing HMOs to offer the products and packages that purchasers want will yield benefits to employers, since a greater range of products from the health plan sector of Michigan’s insurance industry will become available,” noted Francine Parker, President/CEO of Health Alliance Plan and President of the Michigan Association of Health Plans. It would no longer be an “all or nothing” market as both competition and choice provide a greater number of affordable options not only for purchasers but consumers as well.
Kim Horn, President/CEO of Priority Health stated, “HMOs in Michigan are required by state law to provide a set of basic health benefits. No other health insurance carrier has the same requirement. A-CHOICE enhances the competitive environment and enables health plans to provide a variety of excellent yet affordable health benefits.”
Michigan’s health plans can help reduce the number of uninsured. Currently, many businesses and their employees are in danger of being priced entirely out of the health care market. And other businesses and employees are already going without coverage because they cannot afford even the most basic insurance package. “A-CHOICE would give Michigan health plans the flexibility necessary to offer options that meet the needs of people who are or who might soon become uninsured as a result of the continuing national trend toward higher health care costs. Michigan needs to encourage flexible plan options to ensure access for as many Michigan citizens as possible,” noted David Crosby, Interim CEO, HealthPlus of Michigan.
A-CHOICE creates this flexibility by amending the Insurance Code to:
* Strengthen the definition of preventive services provided by HMOs and assuring that ALL HMO contracts provide this service;
* Eliminate the requirement that every HMO contract must include “basic health services” as defined in the Insurance Code; however
* Require that HMOs must still offer as an option a comprehensive contract that includes “basic health services” to all employers.
All other requirements, including reporting, regulatory oversight and financial standards remain the same.
Rick Murdock, Executive Director, Michigan Association of Health Plans observed that “the definition of ‘basic health services’ is out-of-date. The 1974 legislation to create Michigan HMOs was modeled on federal legislation and the concepts of HMOs evolving at that time. Under that statute Michigan health plans are bound to a definition of ‘basic health services’ that is too restrictive in today’s health care environment. As a result, Michigan health plans are increasingly unable to offer businesses or their employees the kind of coverage they desire at prices they can afford.”
A-CHOICE fixes this by introducing flexibility for health plans to meet the demands of the health care market, while still remaining true to the philosophy of managed care -- a partnership with the consumer focusing on preventive health services and encouraging a healthy lifestyle. A-CHOICE creates competition to provide affordable health care options, making health care coverage more affordable and ensuring broader access for Michigan’s citizens.
Michigan Association of Health Plans
CONTACT: Rick Murdock, Executive Director of Michigan Association ofHealth Plans, +1-517-371-3181
Web site: http://mahp.org/
