• Small Businesses Win Major Points in House Version of Patient Bill of Rights

Small Businesses Win Major Points in House Version
of Patient Bill of Rights

Thanks to the diligent work of the National Association for the Self-Employed, the plight of small business has not gone unnoticed by lawmakers as they debate patients’ rights on Capitol Hill. Last week the House passed HR 2563, which includes three key provisions that provide small businesses with increased access to affordable health care:

Small Employer Incentive
The House bill would provide incentives for small businesses with 20-50 employees that had not previously offered health coverage. The bill would provide a tax credit equal to 20 percent of the costs of providing coverage. The tax credit would be available the first 48 months that the employer purchased insurance.

Medical Savings Account
The House bill would also remove the limits on the number of people who could set up tax-sheltered medical savings accounts. The Ways and Means Committee added this important amendment and the House adopted it by a vote of 236-194.

Association Health Plans
The House bill would also allow small businesses to join association health plans (AHP) that could purchase insurance under federal not state regulation. By purchasing insurance coverage through AHPs, small businesses will be able to take advantage of lower premiums because of the group purchasing power.

In addition to these three very important provisions, the House Patients’ Bill of Rights would also:

• Give state courts jurisdiction in disputes involving a review of medical evidence and federal courts jurisdiction in cases merely involving benefits.

• Prevent lawsuits against health plans until patients had exhausted administrative appeals. Non-economic damages for pain and suffering would be capped at $1.5 million. Punitive damages would be limited to $1.5 million and would be available only if a health plan ignored the recommendations of an independent medical review panel. States with pre-existing laws capping damages at lower amounts would be allowed to keep their own limits.

• Offer all employees a choice of doctor, with the employee responsible for paying any higher costs associated with his or her choice. A patient would be granted access to a specialist if necessary. If an appropriate specialist were not available under the plan, the plan would be responsible for providing one at no additional cost.

• Women would be able to see an obstetrician-gynecologist without a referral. Those undergoing procedures associated with breast cancer could be hospitalized for as long as their physician suggested.

• Patients needing emergency care could be treated at the nearest emergency room at no out-of-pocket cost.

• The measure would bar insurers from operating negative incentive plans, which reward providers for reducing services to patients.

• Finally, the measure would authorize $500 million in grants over five years for state health insurance coverage expansion.

Although the House bill was favorably amended, in its original form, HR 2563 was very similar to the Senate version of the patients’ bill of rights passed on June 29. After the August recess, the Senate and House will go into conference to work out the differences between the two bills.

The NASE will closely monitor the progress of the patients’ bill of rights to ensure the interests of small business are heard.

For more information, please contact Kristie Darien, NASE Director of Government Affairs.

Look for your next Washington Watch newsletter when the legislators return from their August recess. See you in September!