BY BARBARA A. ZIEGLER

To: All Region I Legislative chairs

Re: Our teleconference 12/28/2001

Again, thank you for your participation.  It has been quite a year, and a busy season so I do appreciate your efforts. 

The following are reports from State Legislative Representatives.

Candy-Maine stated that there was not too much new with the Coalition for Better Healthcare or the coalition for Quality Healthcare.  With the two coalitions and the carriers and larger employers all trying for the same result.  The single payor plan is being fought.  Hospital costs are higher than any other state.  In 1999 Maine was 34th for hospital costs, now they are 1st.  Hospitals have been building rampantly.  Agents need to educate employers and clients.  Tuffs left the market last year.  A small % of clients are not renewing.  Renewals are running 50-60%, however rates were low.  Old statistics are showing a 13-14% uninsured population.  For Capitol Conference Maine currently has no one registered.  Candy expressed interest in going.

Dave-Maryland reported that 150 members attended the debate held by "Healthcare for All", the single payor program.  The Maryland Coalition will be doing a news briefing next month.  Their rates are in line with mainstream guaranteed issue modified community rated plans.   Some underwriting is being considered.  Maryland has 3 or 4 major carriers.  Maryland has 15-20 attending the Capitol Conference.

Ross-PA It has been quiet, however they are gearing up for the March 19th.  Their goal is to strengthen the legislative committee and focus on long term care regs.  Privacy and mental health parity are issues but there is a great deal of interest in Long Term Care.  The tobacco settlement money is less than expected.  It looks like there will be 4 carriers Blue Cross related.  The monthly rate is higher than the State expected.  There are no limits and no RX but it is pretty comprehensive.  A waiting list is being created.  Ross said that the Long Term Care breakout session at Cap. Conference will have 3 dynamic speakers.  Ross is estimating that there will be 10-12 from PA going to DC.

Joe-VA told us that there are approximately 15% uninsured.  They are concerned about the direction.  Rate increases have been 15%+.  The Legislature has a short session 6-10 weeks, probably 9-10 weeks this year.  They begin the first week of January and end mid March.  Legislators were invited to a forum last week.  None attended from Southwest Virginia.  Affordability of health insurance is the depth of the problem.  Renewals are higher 20-30% and 70% is not unheard of.  The media coverage did not mention that this was an NAHU function.  The association is looking to join with Chamber of Commerce to help employers to get a handle on the situation.  FAMIS still is carrying flaws.  The waiting period of 6 months without insurance and the reimbursement of the employee after the fact are the most serious flaws. 

Barbara-NJ reported that there was a meeting scheduled with the Assistant Director of the Small Employer program.  The meeting was interesting but not much is happening in the program.  On the Individual side, new plans with higher deductibles are now allowed to be offered.  It will be interesting to see if they will be affordable.  Waivers for KidCare and FamilyCare are not included in pending legislation but are expected to be added as an amendment.  The rest of the legislation offers legitimate waivers for Medicare and "Other" group insurance.  We have virtually no Medicare Supplements to sell in NJ.  We are trying to promote the free market and have carriers reenter.  They have not be able to get rate increases, even though their increases would be less than the current Horizon rates . NJ is probably sending 14 or more to the conference.

I am wishing everyone a Happy, Healthy New Year.  Our next teleconference is scheduled for the 29th of January at 9:30 am.  I am looking forward to hearing from all of you then. 

Barbara A. Ziegler, Region I Legislative Chair