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Health insurers ask gov't to police their industry

By RICARDO ALONSO-ZALDIVAR

The Associated Press

Wednesday, May 6, 2009 3:07 AM

WASHINGTON -- Health insurance companies are offering new concessions, including

lower rates for millions of women, as they try to persuade Congress not to set

up a government health plan to compete against them.

On Tuesday the industry offered to do away with an insurance surcharge that

affects 5.7 million women, many of them self-employed and needing to buy their

own coverage. Insurers also offered to accept new consumer protections.

Insurers want to prevent the creation of a government health plan that would

enroll middle-class workers and their families. President Barack Obama and many

Democrats favor such a plan, but the companies say it would drive them out of

business. Employer groups are also leery, fearing a public plan would entice

young, healthy workers by offering lower premiums.

" We are not asking people to trust us, we are asking people to trust

government, " Ignagni, president of America's Health Insurance Plans, told

a Senate panel that is crafting sweeping legislation to overhaul the nation's

$2.5 trillion health care system.

Although the bill won't be written for weeks, insurers and other interest groups

are trying to shape it now.

Instead of a government plan as a check on their industry, insurers are offering

to accept stricter government rules they contend would add up to a fairer

marketplace and cut into the ranks of the 50 million uninsured.

" We are comfortable with that, " Ignagni told the Senate Finance Committee at a

session on how to cover the uninsured. She was part of a large panel including

representatives from business, labor unions, insurers, consumer groups and

public policy centers.

Finance Committee leaders want to bring a bill to the Senate floor this summer.

The broad outlines will follow Obama's campaign proposal, which builds on the

current system of shared responsibility among employers, government and

individuals.

Most Americans _ men and women _ are covered through employer plans, which are

prohibited from charging higher premiums because of gender, poor health or other

similar factors. Only about 9 percent purchase their own health insurance.

It's in this group that women face higher rates. That's health care costs for

women tend to go up during childbearing years. Some policies don't cover

maternity care.

Sen. Kerry, D-Mass., suggested such practices amount to discrimination.

" The disparity between women and men in the individual marketplace is just plain

wrong and it has to change, " said Kerry.

Ignagni readily conceded. " We don't believe gender should be a subject of

rating, " she said.

Lowering premiums for women may not necessarily mean that men will have to pay

more. Many factors go into setting insurance rates. Age, for example, carries

much greater weight than gender.

Insurers have already offered to stop denying coverage to sick people, and to

end the practice of charging higher premiums to those with a history of health

problems. In exchange, the industry wants Congress to require all Americans to

carry health insurance, either through an employer plan, on their own, or a

current government program like Medicaid.

What insurers want to avoid is a new government plan that would be open to

middle-class workers and their families. Obama says such a plan would help keep

private industry honest.

http://www.washingtonpost.com/wp-dyn/content/article/2009/05/06/AR2009050600227.\

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