By Kent Hoover Washington Business Journal
Business lobbyists gave President Barack Obama credit for delivering a powerful speech to Congress Wednesday night but many doubt it will lead to solutions that curb rising health care costs. Many business groups oppose a public plan fearing it like Medicare would pay providers less for their services than private insurers do. This would lead providers to charge private insurers even higher rates for their services they fear.
The time for bickering is over" Obama said. The time for games has passed. Now is the season for action."
The president said he supports reforms that would bring security and stability to those have insurance" provide insurance to those who dont and slow the growth of health care costs for our families our businesses and our government."
He reiterated his support for including a government-run option in an insurance exchange that would be open to individuals and small businesses. This would pressure private insurers to keep their premiums down and treat their customers better he said. But the public plan is only a means to that end" Obama said and we should remain open to other ideas that accomplish our ultimate goal."
These costs will dramatically alter current plans and the coverage manufacturers already have" said Jay Timmons executive vice president of the
National Association of Manufacturers.
Karen Ignani president of the
Americas Health Insurance Plans said health insurers agree the status quo is not sustainable" and support reforms such as eliminating exclusions based on pre-existing conditions and prohibiting insurers from basing premiums on a persons health status or gender. To make this coverage affordable however everyone needs to be required to have insurance Ignani said.
These reforms would solve the health insurance crisis without creating a new government-run plan that will disrupt the quality coverage that millions of Americans rely on today" Ignani said.
Sen. Chuck Grassley R-Iowa said the president passed up a big opportunity" by leaving the decision on whether to include a public plan up to Congress.
The speech could have been pivotal for bipartisanship if it had been clear-cut in ruling out the prospect of a new government-run plan" said Grassley the ranking Republican on the Senate Finance Committee.
The president did address medical malpractice lawsuits which doctors businesses and Republicans contend are a major factor in rising health care costs and need to be addressed in health care reform legislation. He announced plans to authorize demonstration projects in individual states to test ways to reform the medical liability system.
I dont believe malpractice reform is a silver bullet but I have talked to enough doctors to know that defensive medicine may be contributing to
unnecessary costs" Obama said.
The
American Medical Association which urged Congress to pass comprehensive health care reform this year was pleased that Obama included malpractice reform in his remarks.
We cannot ignore this problem if health system reform is going to address the growing cost of care" said Dr. J. James Rohack president of the AMA.
The American Association for Justice which represents trial lawyers said it wants to see more detail about the pilot programs proposed by Obama.
"The focus must be on reducing medical errors and improving patient safety" said AAJ President Anthony Tarricone. Over 98000 people are killed every year by preventable medical errors. Reducing accountability wont improve health care."
Neil Trautwein vice president of the
National Retail Federation said Obamas half nod" to malpractice reform was positive but probably wont win many Republican votes. It also doesnt come close to making up for provisions in the plan that he said would hurt many retailers
such as the requirement for employers to provide insurance or pay fees to the federal government he said.
That mandate will kill the retail industry" he said because retailers are heavily dependent on part-time and entry-level workers.
Trautwein said Obama has shown very little willingness to reach out to groups like ours that have not been part of the photo ops at the White House."
We are still a pro-reform organization but if the choice is their way or no way it appears to us -- that at least as the plans currently stand -- no way does less harm" Trautwein said.
Scott Hauge president of Small Business California also was disappointed in Obamas remarks about an employer mandate even though he thought the speech was terrific" overall.
An employer mandate is needed Obama said because even if affordable insurance options are available there may still be companies that refuse to do right by their workers. The problem is such irresponsible behavior costs all the rest of us money."
I dont believe business owners who dont provide health insurance are irresponsible" Hauge said. Some just cant afford it. Having said that I do support shared responsibility with strong cost containment and quality control measures."
Unfortunately Hauge said Obama did not offer many specifics on how he would contain costs.
John Arensmeyer CEO of Small Business Majority was in the House gallery for the speech as a guest of House Speaker Nancy Pelosi. He noted that Obama proposed exempting 95 percent of small businesses from the employer mandate. He thought the president made a strong case that the status quo in health care is unacceptable.
Its important that he drive that home" Arensmeyer said.
