Legislative Gazette
Albany
Simon Garron-Caine
Legislation gets a thumbs-down from American Cancer Society
Creation of a state health insurance exchange — a marketplace where consumers and small businesses can shop for policies — inched forward with last Thursday’s introduction of a bill in the Senate aimed at setting up such a system in New York.
Under the federal Affordable Care Act, each state must have a fully operational exchange in place by 2014. Although good government and health care advocates have urged lawmakers to pass legislation this session so the state can take advantage of additional federal funding, Blair Horner of the American Cancer Society of New York and New Jersey said the bill is flawed.
“Our view it that it falls far short of what New York needs. It included some very troubling provisions,” said Horner.
The bill would establish the “New York Health Benefit Exchange” as a new public authority with an 11-member board of directors, create regional advisory committees and require the exchange to submit a report on a variety of issues related to the system to the Legislature by the end of 2011.
It would also ensure no General Fund dollars be used to finance the exchange and ensure the exchange’s authority does not override that of the health commissioner or superintendent of the Department of Finance.
Senate Insurance Committee Chairman James Seward, R-Oneonta, sponsors the one-house bill (S.5652), which currently sits in the Rules Committee.
“The bill establishes a solid foundation, adhering to all of the necessary requirements to receive federal funding, as we continue to craft the final details of a state exchange,” said Seward in a statement.
The New York Health Plan Association, a coalition of health insurers in the state, encouraged moving forward with the legislation and expressed support for three particular parts of the bill: the regional advisory committees, the report to the Legislature and the lack of a new regulatory authority — citing current health and insurance department oversight.
“Our message to lawmakers as these negotiations continue is that it is better for New York to lay the foundation this year and, once we have answers to the many unanswered questions, build on it in the future,” said HPA President and CEO Paul Macielak.
Horner did give the Senate credit for moving on the issue in the interest of getting the federal funds but said the proposal fails to give the exchange property authority.
“Their proposal basically hamstrings the exchange. It says the exchange can’t do anything after it’s set up without additional legislation,” he said.
Horner also expressed doubt that the board of directors, if it were to include special interests who have a financial stake in the exchange, would operate in the best interest of New Yorkers.
“We think that’s a recipe for gridlock,” said the advocate. “Our view is the exchange should not include interest groups or anyone who can make money off the exchange.”
Karen Scharff, executive director of good government group Citizen Action, also worried of the consequences of industry participation on the exchange’s governing board.
“The Senate’s bill seems to not only let the fox guard the hen house, but lets the fox in the hen house,” said Scharff, who also echoed Horner on the lack of authority given to the exchange and criticized the bill’s efforts to segment policy-seekers into public, private and small business silos.
No legislation regarding health insurance exchanges has been introduced in the Assembly as of yet.
