Cutting the Junk and Building Better Health Care
AHIA supports "common-sense medical liability reform" to cut health care costs
For Immediate Release
Contact: Caitlin Kubler 703/770-8251, Ckubler@naifa.org
January 6, 2005
FALLS CHURCH, VA-The Association of Health Insurance Advisors (AHIA) praises President Bush's health agenda which includes broader litigation reform as a necessity to protect small business owners and consumers from excessive litigation expenses that are passed on in health care costs.
"In order to expand access and affordability, the escalating cost of health care must be reined in. President Bush's call for "common-sense medical liability reforms" is among the many reforms that must be enacted to improve our health care system, " said Fred Bean, AHIA President.
AHIA has a long-standing record advocating the need to address the many factors impacting the cost of medical care in the United States including medical liability. "Junk lawsuits," as President Bush referred to them, along with state mandated benefits, improvements in medical technology, escalating prescription drug costs, increased charges by health care providers, government-induced cost shifting, and low deductibles have caused health insurance premiums to skyrocket.
In order to increase access and affordability of health insurance, AHIA supports the following in addition to liability reform:
- Affordable "bare-bones" health insurance, "including the repeal of (state insurance) mandates that currently require a variety of nonessential benefits and providers of other services,"
- Refundable tax credits,
- Allowing individuals to take an "above-the-line" deduction for high deductible insurance premiums, and
- Allowing employees to roll over $500 from their flexible spending accounts each year into HSAs.
"Reforms that help individuals keep more of their own resources and have the ability to make choices as to what providers and services are best for them are what Americans are looking for in health care reform," said Bean. "As agents, we advocate reforms that increase the availability of affordable coverage and putting control of health care decisions in the hands of our clients and their doctors; not the government or trial lawyers."
The Congressional Budget Office estimated that malpractice costs account for about two percent of health care spending, equaling about $28 billion per year. According to the White House, in 2002 malpractice costs equaled $225 per household in America - almost half of what the average household spends on prescription drugs.
To learn more about AHIA, visit www.ahia.net .
The Association of Health Insurance Advisors' (AHIA) mission is to provide leadership in sustaining and improving the business environment for NAIFA Federation members marketing a broad range of health related products and services. AHIA takes a lead advocacy role on issues, which impact members involved in the sale of group and individual health related products including major medical, disability, long-term care, critical illness and Medicare supplement insurance.
Founded in 1890 as the National Association of Life Underwriters, the National Association of Insurance and Financial Advisors' (NAIFA) umbrella of organizations includes the Association for Advanced Life Underwriting (AALU), the Association of Health Insurance Advisors (AHIA) and GAMA International. AHIA is the health insurance division of NAIFA.
