Industry representatives declined to speculate on when Congress would return to some of the industry-related issues that remain unresolved, such as a patients bill of rights and insurance regulation. However, they agree, these issues are now on the back burner.

“The focus of Congress, the Administration and the American people will be with issues directly related to the tragedy,” according to David Farmer, senior vice president of federal affairs with the Alliance of American Insurers in Downers Grove, Ill. “I dont think any public policy issues other than those dealing with security will be considered by Congress for the next few weeks.”

Maria Berthoud, vice president of federal affairs for the Independent Insurance Agents of America in Alexandria, Va., agrees.

“The regular agenda has been dramatically altered by these acts of terrorism,” she said. “I cant imagine any legislation other than that involving security to be considered in the coming weeks.”

Another industry observer, who asked not to be identified, adds that eventually, Congress will have to return to business as usual.

But in the meantime, he said, Congress will want to make a public show of unity and put off consideration of controversial issues, such as a patients bill of rights, as well as budget and tax concerns.

The life insurance industry is wary that life insurance products could come under attack in the search for revenues with a shrinking budget surplus, he noted.

Non-essential issues, he said, such as insurance regulation, which was widely expected to be the subject of further hearings, likely will not be considered for the foreseeable future.

In the aftermath of the tragedy, some insurance-related events were postponed indefinitely.

For example, Families USA, the Washington-based health care interest group, cancelled a press briefing called to oppose proposals to provide an individual tax credit for the purchase of health insurance.

A tax credit, which is endorsed by President Bush as a means to reduce the number of uninsured Americans, is insufficient to expand health insurance coverage, Families USA contends.

Similarly, the American Council of Life Insurance in Washington postponed a press briefing on long-term care insurance and ways to increase coverage.

ACLI supports proposals to provide individuals with an above-the-line tax deduction for the purchase of long-term care insurance. (“Above-the-line” means that the deduction would be available to all taxpayers, whether or not they itemize.)

In activities prior to the tragedy, health insurance companies and agents blasted legislation they say would increase the cost of health care in light of a report from the Kaiser Family Foundation in Menlo Park, Calif., estimating that health care costs could increase some 11 percent next year.

Karen Ignagni, president of the American Association of Health Plans, said Americans are feeling less confident about their economic well-being and are citing rising healthcare costs as their number one concern regarding the health system.

“Congress faces an important responsibility to reject policies that would make this problem worse,” Ms. Ignagni said.

She added that the Senate patients bill of rights legislation, S. 1052, takes an “alarmingly careless” approach by allowing new causes of action against health plans and employers for unlimited damages.

“That remedy is as inappropriate a treatment for the problems facing our healthcare system as gasoline for a forest fire,” Ms. Ignagni said. “It will send healthcare costs even higher and price more Americans out of the healthcare system.”

Janet Trautwein, director of federal policy analysis for the National Association of Health Underwriters in Arlington, Va., added that instead of holding health plans and employers liable for millions of dollars, Congress should focus on independent external review as the primary means of determining health plan liability.

“It provides for accountability without dragging healthcare decisions into the court room, which causes the cost of healthcare to go up and benefits only trial lawyers,” according to Ms. Trautwein.

Many businessowners might stop offering insurance coverage if exposed to million-dollar liability suits, she adds.

The more reasonable external review process, she said, will keep the employer-based health insurance system intact.

An employers group, the National Association of Manufacturers, based in Washington, added that the Kaiser Family Foundation study should serve as a “yellow caution flag” to House-Senate conferees on patient protection laws.

“With the economy continuing to struggle and job losses mounting, this is the worst possible time to pass patients rights and mandate legislation that will increase the healthcare cost burden for workers,” according to Neil Trautwein, NAMs healthcare lobbyist.

Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, September 21, 2001. Copyright 2001 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.

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