NAHU (National Association of Health Underwriters) is asking members — and one would assume all health insurance agents — to take action to encourage legislators to pass a version of the national economic stimulus package that is more favorable to the health insurance industry.

Here, in part, is text from an email that was sent to the group’s membership:

The Senate just passed its version of economic stimulus legislation and so leaders in the House and Senate will soon begin reconciling the Senate measure with the bill passed by the House earlier this year.  NAHU knows that many of our members and many Americans generally have concerns over the size, scope and structure of this spending bill, and NAHU has not taken a position on the bill as a whole.  However, this legislation is going to conference committee now, and there are provisions in both the House bill and the Senate bill that would dramatically impact private health insurance coverage.  NAHU strongly prefers the health insurance provisions in the Senate Bill instead of the House Bill, and we need all NAHU members to contact their representatives and explain why the Senate provisions should be retained in any conference report. 
 
Even if you and/or your member of Congress opposes the economic recovery legislation generally, it is still very important that the health provisions in the bill are as private-market friendly as possible.  So please send an email urging the Congress to retain the health provisions in the Senate version of the bill in the upcoming conference committee.
 
Here is a quick overview as to why, relatively speaking, NAHU likes the Senate provisions much more than the House bill:
 
House Bill: Extends COBRA coverage for older and tenured workers beyond the 18 months provided under current law.  Specifically, workers 55 and older, and workers who have worked for an employer for 10 or more years will be able to retain their COBRA coverage until they become Medicare eligible or secure coverage through a subsequent employer. 
 
Senate Bill:  Does not extend COBRA eligibility beyond the terms of the current law.
 
House Bill:  Contains a subsidy administered through the employer for the first 12 months of COBRA coverage for eligible persons who have lost their jobs on or after September 1, 2008 at a 65% rate.
 
Senate Bill:  Contains an identically administered subsidy, but for 50% of the premium rate.
 
House Bill:  Only allows the subsidy to be used to purchase COBRA coverage.
 
Senate Bill:  Also allows the subsidy to be used for state continuation coverage, allows workers the ability specially elect a less expensive coverage option if available and allows employers 30 days to begin subsidy administration.
 
House Bill:  Expands Medicaid coverage to individuals (and their dependents) that are receiving unemployment benefits or have exhausted those benefits and have no health insurance coverage.  Optional coverage groups would be individuals (and their dependents) who are involuntarily unemployed and uninsured and whose family income does not exceed 200% of poverty, and unemployed uninsured individuals who are receiving food stamps.  The Congressional Budget Office estimates that these changes will cause 1.2 million people to drop private health insurance coverage!
 
Senate Bill: Does not expand Medicaid to unemployed individuals. 
 
 We would like to encourage all NAHU members to contact their Senators today to urge your Members of Congress to retain the Senate’s health provisions in the final legislation when these two versions of the economic recovery act go to conference this week.