While Democrats and Republicans gear up for a showdown on health care reform legislation, a national association representing insurers says the proposed solution raises prices and stalls necessary treatment.

America’s Health Insurance Plans (AHIP), which represents nearly 1,300 insurers that provide coverage to more than 200 million Americans, voiced its skepticism over the $940 billion plan being proposed by House Democrats in Washington, D.C.

The bill would cover 32 million currently uninsured Americans, impose an individual mandate to secure health insurance and eliminate insurers from denying coverage to those with medical problems or charging them more, among many other measures.

House Democrats plan to approve the Senate’s bill with an accompanying package of amendments to eliminate parts they object to, then pass the reconciliation bill onto the Senate for a vote some time next week.

Karen Ignagni

The reconciliation bill, scheduled for a vote March 21, does not go far enough, according to AHIP president and CEO, Karen Ignagni.

“For health care reform to work, everyone needs to be covered and the growth in health care costs must be brought under control,” she said in a statement. “Health care reform legislation that does not address underlying medical costs cannot be sustained.  Unfortunately, this legislation will drive up health care costs by adding billions in new health care taxes and encouraging people to wait until they are sick before getting insurance.”

Among AHIP’s areas of concern with the proposed legislation is a lack of cost containment, including the lack of a system-wide approach to bend the cost curve of medical care downward and medical malpractice reform.

The association also said the proposed $70 billion premium tax that the Congressional Budget Office says will be passed on to patients will raise the cost of coverage for individuals, families and employers.

AHIP also said that through “weak coverage” requirements, the bill will encourage people to wait to purchase coverage until they are sick, “which unfairly penalizes those who currently have coverage.”

The bill also proposed $130 billion in cuts to Medicare Advantage, which the association said “will cause massive disruption for the more than 10 million seniors enrolled in the program.

“If these cuts are enacted, millions of seniors in Medicare Advantage will lose their coverage, and millions more will face higher premiums and reduced benefits,” AHIP said in a statement.