In 2003, steeped in controversy, Senate Bill 110 changed the state's health insurance law. Since then the debate has not gone away. During the gubernatorial race, for example, the issue was a political football. After his electionn, John Lynch promised to repeal the bill. But as the debate smolders, NHPR's Kerry Grens reports, many health insurers are leery of such a radical approach.
Health insurance agents, brokers, and a few legislators met earlier this week to discuss the state's health insurance law, commonly known as SB110.
Some in attendance favored the state's previous law, SB711.
Under it, insurance companies couldn't charge employers more based on a person's health.
And it also allowed businesses to spread risk over a larger pool.
But most people at the forum, like Lisa Guertin from Anthem, feel SB110 has some kinks to work out, but that repealing it could be dangerous.
Guertin: Because the risk of course is if you go all the way to the other extreme... we went from one extreme, community rating, to something very different, something very far on the other end of the spectrum... there's a risk that if you went all the way back too fast, you would have just as many upset people, they would just be different people.
Right now, those most upset are small business owners who employ fewer than ten workers.
Thanks to SB110, those employers have said that if one person is sick their insurance premiums skyrocket.
Guertin says that one way to soften those jumps is to repeal insurers' ability to set rates based on employees health.
Guertin: Health status. We would advocate that it be eliminated or at least modified in its use. The reason for that is it's driving some of that volatility for small groups.
Despite the numerous complaints over SB110, a large number of insurers and brokers endorsed the new law, including health status rating.
Broker Ray White said that screening clients is an elemental part of insurance.
White: Insurance principles must apply to the health insurance market just like they do to the commercial market, to the worker's comp market, the life insurance market, etc. And that there has to be rating variables.
White also called for patience.
He points out that it's way too early to make a fair assessment of SB110.
White: We had ten years, not just one year like we have with senate bill 110, but ten years of experience to prove beyond any controversy in my mind that 711 did not work. We saw carriers flee the state, we saw rates go out of control, and that we had to do something.
Many health insurers then and now agree the old law was ineffective.
But while SB110 is far from perfect, some industry members are concerned about the potential fallout from making drastic changes.
Beth Roberts is vice president of Harvard Pilgrim Health Plans.
Roberts: I think we have to be very careful about flip flopping those very folks who ended up on one side of the spectrum versus the other side and make certain that we do that carefully so we're not seen as a state who makes constant, rapid very significant health care change year over year over year, which makes it a very difficult environment to operate in.
Many in the industry seem interested in tinkering with the law rather than an outright repeal.
In the coming months lawmakers are planning to introduce a number of bills to do just that.
For NHPR News, this is Kerry Grens.
