Letter: Pending law on health insurance seriously flawed

Tuesday, Oct. 12, 2004 | 9:15 a.m.

The U.S. House of Representatives passed legislation (H.R. 660) to establish Association Health Plans (AHPs). I am writing on behalf of the Clark County Association of Health Underwriters to express our strong opposition to legislation that will allow national groups to sell health insurance exempt from state oversight.

Nevada policy-makers have worked hard to maintain a healthy private insurance market by enacting responsible legislation and regulation. Nevada requires fair marketing practices and reasonable rating practices and has taken steps to ensure consumers are protected by enacting solvency requirements.

AHPs will benefit a small segment of the population to the detriment of the majority. For example, AHPs will disrupt the insurance market by skimming off the "cream" -- the young and healthy members.

This is how AHPs try to save money: They will attempt to cover only the healthy people. The older and sicker people will remain in the state-regulated insurance market, where their rates will go up as they get even older and sicker. This increases the cost of health insurance statewide and is against current state policy-makers initiatives.

Also, AHPs will be exempt from state protections and mandates Nevada has determined are important for consumers.

While we appreciate the efforts of Congress to find solutions to our nation's health-care problems, AHPs are not the solution. The employer and individual tax credit initiatives are a much safer approach to offering affordable, accessible and quality health insurance.

LARRY HURST Editor's note: Larry Hurst is president of the Clark County Association of Health Underwriters, a 130-member, nonprofit, nonpartisan group of independent health-insurance agents.