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My Journals (25)

 

AARP Florida State Director Lori Parham issued this statement Thursday, Nov. 5.
 
Today AARP announces it is endorsing the Affordable Health Care for America Act (H.R. 3962) and the accompanying Medicare physician payment fix (H.R. 3961). We are fighting for these bills because they would keep Medicare strong, ensure Medicare beneficiaries have access to their doctors, end insurer discrimination against older Americans, and help make health coverage more affordable for Floridians age 50 to 64.
 
Americans of all generations have debated the health-reform issue heatedly this year, but for AARP, only one thing matters: How health-reform legislation would affect our nearly 3 million members across Florida.
 
And there, our bottom line boils down to this: Older Floridians win with the Affordable Health Care for America Act. They too often lose with today’s broken health system. This legislation would provide peace of mind for millions of older Floridians who are only one serious illness away from crushing health costs, and it would be a huge help to the hundreds of thousands of Floridians 50+ already struggling with health-care issues.
 
Parham cited specific benefits that older Floridians would see. The legislation would:
 
  • Protect and strengthen Medicare for today’s seniors and future generations.
  • Ensure seniors can see the doctor of their choice and receive needed treatment by improving Medicare’s payments to doctors. If Congress does not take action, physicians nationwide will see a 21-percent reduction in Medicare reimbursements in January 2010.
  • Lower sky-high drug costs for seniors by allowing the government to negotiate with drug companies for lower drug prices in Medicare; provide strong, immediate discounts on name-brand prescription drugs for those in the Medicare Part D “doughnut hole,” and close the Medicare Part D “doughnut hole” completely over time.
  • Reduce waste, inefficiency, fraud and abuse in the Medicare program. H.R. 3962 increases federal resources to prosecute Medicare fraudsters and provides new penalties.
  • Provide affordable health insurance options for Floridians age 50-64 who don’t have health coverage. An estimated 600,000 Floridians in this age group lack health coverage, and one in four Floridians age 60 or older is rejected for health coverage if he or she has no health coverage on the job.
  • Require Medicare and insurance companies to provide for important preventive services like screenings for diabetes, cancer and osteoporosis free of charge.
  • Prevent insurers from denying affordable coverage to anyone because of their age or because of “pre-existing conditions.” The legislation allows insurers to charge older Floridians no more than twice as much as younger people for the same coverage. Current law allows insurers to charge seniors seven times as much.
  • Limit how much your health insurance company can make you pay out-of-pocket. Currently, more than half of all bankruptcies in Florida are caused by high health costs.
  • Provide benefits to help seniors and people with disabilities live in their own homes and communities.
 
AARP Florida members, volunteers and staff will be reaching out to members of Congress, asking them to support this important legislation. For more information, please go to www.healthactionnow.org or www.aarp.org/fl .
 
Added: November 5, 2009
Views: 48 | Comments: 5 | Bookmarks: 0

 

AARP Florida State Director Lori Parham issued this statement Thursday, Nov. 5.
 
Today AARP announces it is endorsing the Affordable Health Care for America Act (H.R. 3962) and the accompanying Medicare physician payment fix (H.R. 3961). We are fighting for these bills because they would keep Medicare strong, ensure Medicare beneficiaries have access to their doctors, end insurer discrimination against older Americans, and help make health coverage more affordable for Floridians age 50 to 64.
 
Americans of all generations have debated the health-reform issue heatedly this year, but for AARP, only one thing matters: How health-reform legislation would affect our nearly 3 million members across Florida.
 
And there, our bottom line boils down to this: Older Floridians win with the Affordable Health Care for America Act. They too often lose with today’s broken health system. This legislation would provide peace of mind for millions of older Floridians who are only one serious illness away from crushing health costs, and it would be a huge help to the hundreds of thousands of Floridians 50+ already struggling with health-care issues.
 
Parham cited specific benefits that older Floridians would see. The legislation would:
 
  • Protect and strengthen Medicare for today’s seniors and future generations.
  • Ensure seniors can see the doctor of their choice and receive needed treatment by improving Medicare’s payments to doctors. If Congress does not take action, physicians nationwide will see a 21-percent reduction in Medicare reimbursements in January 2010.
  • Lower sky-high drug costs for seniors by allowing the government to negotiate with drug companies for lower drug prices in Medicare; provide strong, immediate discounts on name-brand prescription drugs for those in the Medicare Part D “doughnut hole,” and close the Medicare Part D “doughnut hole” completely over time.
  • Reduce waste, inefficiency, fraud and abuse in the Medicare program. H.R. 3962 increases federal resources to prosecute Medicare fraudsters and provides new penalties.
  • Provide affordable health insurance options for Floridians age 50-64 who don’t have health coverage. An estimated 600,000 Floridians in this age group lack health coverage, and one in four Floridians age 60 or older is rejected for health coverage if he or she has no health coverage on the job.
  • Require Medicare and insurance companies to provide for important preventive services like screenings for diabetes, cancer and osteoporosis free of charge.
  • Prevent insurers from denying affordable coverage to anyone because of their age or because of “pre-existing conditions.” The legislation allows insurers to charge older Floridians no more than twice as much as younger people for the same coverage. Current law allows insurers to charge seniors seven times as much.
  • Limit how much your health insurance company can make you pay out-of-pocket. Currently, more than half of all bankruptcies in Florida are caused by high health costs.
  • Provide benefits to help seniors and people with disabilities live in their own homes and communities.
 
AARP Florida members, volunteers and staff will be reaching out to members of Congress, asking them to support this important legislation. For more information, please go to www.healthactionnow.org or www.aarp.org/fl .
 
Added: November 5, 2009
Views: 10 | Comments: 1 | Bookmarks: 0

 

AARP Disappointed by Senate’s Vote to Block Protection of Access to Medicare Doctors
S. 1776 would have preserved access by replacing flawed payment system
 
SUMMARY: Today the U.S. Senate blocked critical legislation to protect access to doctors for the 44 million Americans who rely on Medicare. The Medicare Physician Fairness Act (S. 1776) would have replaced today’s broken doctor payment system, which calls for a 21.5 percent cut in physician pay in January. The bill failed to pass a key procedural vote in the Senate today.
 

Florida
VOTED YES TO MOVE DOCTOR ACCESS BILL TO DEBATE AND VOTE
VOTED TO BLOCK DEBATE ON DOCTOR ACCESS BILL
Nelson, Bill
 
LeMieux, George
 

** How a legislator votes on issues is only one factor in evaluating his or her legislative performance, which should also include such things as constituency services and committee work.
 
“We are disappointed that Senators Nelson and LeMieux voted to block this important Medicare bill from open debate and an up-or-down vote on the Senate floor,” said Lori Parham, AARP’s Florida state director. “This bill would permanently replace the broken Medicare physician payment system so people in the program could continue to see their doctor.”
 
AARP strongly supports the Medicare Physician Fairness Act, introduced by Sen. Debbie Stabenow (D-MI). This legislation permanently repeals Medicare’s flawed Sustainable Growth Rate (SGR) physician payment formula, which has required repeated Congressional action to prevent unwarranted cuts that could harm access to doctors for people in Medicare. Repealing the SGR will stop an unprecedented 21.5 percent pay cut that otherwise will occur in January 2010, and additional cuts in future years.
 
AARP notified the 111th Congress that it was tracking roll call votes on key legislation important to its 40 million members and reporting the outcomes of these votes back to its members. “We believe people make the right choices when they understand the issues and position taken by their elected officials. AARP intends to ensure that its members get that information,” Parham concluded.
 

 

Added: October 22, 2009
Views: 53 | Comments: 0 | Bookmarks: 0

Millions on Social Security to Receive No Increase for First Time Since 1975

TALLAHASSEE, FL – AARP Florida State Director Lori Parham offered the following statement in reaction to the Social Security Administration’s announcement this morning that 41 million older Americans, including 3.5 million older Floridians, will not receive a Social Security cost of living adjustment (COLA) in 2010. Since automatic Social Security adjustments went into effect in 1975, there has never been a year without a COLA.

“Health-care costs and drug costs are rising and many older Floridians are still reeling from losses due to recent market turmoil.  While expected, today’s news is a blow for millions of older Floridians.  For decades, older Floridians have counted on these annual increases to help make ends meet.”

“AARP applauds the President’s call Oct. 14 for a $250 payment to Social Security beneficiaries, as well as efforts by elected leaders of both parties to provide similar relief.  As AARP Chief Operating Officer Tom Nelson noted today, older Americans are paying heavily out of pocket for medical care, have experienced a real decline in their retirement accounts and in housing values, face longer periods of unemployment for those who need to work, and are seeing low returns on interest-bearing accounts.

“Already, some older Americans are having to choose between daily expenses for food and housing or being able to afford the costly prescription drugs they need to remain healthy.  One in five Floridians age 65+ relies on Social Security alone for their income.”

“On behalf of AARP members across
Florida , we join AARP leaders across the nation in calling on Congress to act quickly and pass legislation to provide needed a $250 payment to older Americans whose benefits will be frozen next year.”


Added: October 15, 2009
Views: 79 | Comments: 0 | Bookmarks: 0

Port Richey, Fla. – Health reform remains a hot topic in conversation these days, and Pasco County residents want to know what is being proposed. To help inform area residents, AARP held a “community conversation” Wednesday in Port Richey featuring Jeff Johnson, AARP Florida's manager of state operations. Johnson provided residents with the latest developments on health-reform legislation in Washington and also outlined what AARP believes should be important elements in any final health-reform bill.

 
“Fixing our broken health-care system is an important issue to our members and all Americans.  There is a lot of misinformation about what is and isn't being discussed, and people have questions and concerns.  Our goal with these forums is to share what we know about the bills currently being considered, answer all the questions we can, and take feedback from participants back to our national office so we can ensure that their voices are heard.”
At the forum, Johnson outlined the six specific elements that AARP believes must be part of health reform, including closing the Medicare Part D prescription-drug benefit “doughnut hole” or coverage gap, and ensuring that older Americans have access to affordable, quality health coverage. AARP supports improving the nation’s broken health system but has not yet endorsed specific legislation.
 
The health-reform community conversation was held from 10 a.m. to noon Wednesday at the Jewish Community Center, 9841 Scenic Drive, Port Richey, Fla. A similar AARP event originally scheduled for early August was rescheduled to Wednesday after a location selected for a previously planned event proved to be inadequate to handle anticipated crowds. 
 
Johnson said that AARP is working to ensure that Medicare beneficiaries will receive the health coverage they have earned, and that ensure future generations have the health coverage they need when they retire. “We’re also fighting to ensure that no one -- not insurance companies or the government – tells older Floridians which doctors or what treatments they can receive,” Johnson said. “Insurance companies shouldn’t be allowed to discriminate against you because of your age or health status.”
 
AARP also is reaching out to its members in Florida and across the nation to help them learn more about health reform proposals. Here are some examples of how AARP is educating its members:
 
 
AARP offers a wealth of Florida-specific information to benefit Floridians 50+ at www.aarp.org/fl

 

Added: October 2, 2009
Views: 108 | Comments: 0 | Bookmarks: 0

 

Tallahassee, Fla – AARP Florida State Director Lori Parham issued the following statement Thursday on the appointment of David Klement and Benjamin “Steve” Stevens to the Florida Public Service Commission by Gov. Charlie Crist:   
 
“On behalf of almost 3 million Florida AARP members, we welcome the appointments of Mr. Klement and Mr. Stevens to this important regulatory body. With the power to decide utilities cases that can – and have – cost Florida consumers billions of dollars in times of economic distress, it is very important that consumers’ interests be given fair consideration by the Commission.”
 

“AARP Florida looks forward to working with these new commissioners to serve Floridians of all generations.” 

Added: October 1, 2009
Views: 48 | Comments: 0 | Bookmarks: 0

Check here for the lastest AARP Florida press releases and other information.

AARP Florida:  Rep. Grayson's comments "anything but productive"

http://assets.aarp.org/www.aarp.org_/cs/misc/statement_on_grayson.doc

Applauds New Bill to Help Seniors Struggling in Tough Economy
http://www.aarp.org/aarp/presscenter/pressrelease/articles/Medicare_Premium_Fairness_Act_Statement.htmlAARP

AARP Bulletin - Health Care Reform: The Assault on Truth
http://infonet/SocialImpact/SocialMediaBlitz.htm

Multimillion-Dollar AARP Campaign Busts the Myths of the Health-Care Debate
http://www.aarp.org/community/AARPFL/journals/AARP_Campaign_Busts_the_M/1896242?cn=STREAM_AARPFL_journals_large_PAGE1

AARP: Debunking Health-Care Reform Myths
http://aarp.convio.net/site/PageNavigator/Myths_vs_Facts

AARP to Congress: Don’t Make Medicare More Expensive
http://www.aarp.org/aarp/presscenter/pressrelease/articles/rand_medicare_statement.html release July 30

AARP Responds to Health Reform Scare Tactics
http://www.aarp.org/aarp/presscenter/pressrelease/articles/mccaughey_statement.html released July 24 

AARP Reacts to Senate Decision to Put Off Health Care Reform Vote 
 www.aarp.org/aarp/presscenter/pressrelease/articles/senate_delay_statement.html 
released July 23 

Why Health Care Reform is Important in Florida
assets.aarp.org/www.aarp.org_/cs/misc/florida_health_care_brief_2009.pdf

AARP: Affordable RX Solutions "Not Mutually Exclusive"
www.aarp.org/aarp/presscenter/pressrelease/articles/affordable_rx_solutions.html released July 16

 

 

September 26
Investor Protection Workshop
http://www.aarp.org/states/state_events_calendar.detail.8962.FL/

September 27
Investor Protection Workshop
http://www.aarp.org/states/state_events_calendar.detail.8963.FL/

September 29
Health Care Reform Legislative Forum
http://www.aarp.org/states/state_events_calendar.detail.8966.FL/

September 30
AARP Florida Health Action Now Town Hall Meeting
http://www.aarp.org/states/state_events_calendar.detail.9003.FL/

October 5
Free Investor Education Forum
http://www.aarp.org/states/state_events_calendar.detail.8991.FL/

October 7
Free Investor Education Forum
http://www.aarp.org/states/state_events_calendar.detail.8992.FL/

October 14
Voters Hot Topic Luncheon
http://www.aarp.org/states/state_events_calendar.detail.9066.FL/
 

 

 

Also included are links to our research reports on health issues as well as a link to AARP’s Health Action Now website.

Part D:
www.aarp.org/research/legis-polit/medicarereform/fs_medicare_gap.html

Transitional Care:
www.aarp.org/research/legis-polit/medicarereform/fs_trans_care.html

HCBS:
www.aarp.org/research/housing-mobility/homecare/fs_hcbs_hcr.html

50-64:
www.aarp.org/research/health/carefinancing/i24_hcr.html

Biologics:
www.aarp.org/research/health/drugs/fs155_biologics.html

Health Action Now:
www.healthactionnow.org/

Health Action Now Florida:
www.aarp.org/community/groups/HealthActionNowFlorida

 

 

Added: September 25, 2009
Views: 170 | Comments: 0 | Bookmarks: 0

AARP Florida State Director Lori Parham sent the letter below to U.S. Rep. Ginny Brown-Waite, R-Brooksville, on Thursday:

September 17, 2009
 
 
 
The Honorable Ginny Brown-Waite
Member, United States House of Representatives
16224 Spring Hill Drive
Brooksville, FL 34604
 
Dear Congresswoman Brown-Waite:
 
We have received a mailed copy of your letter of September 9th dealing with health-care reform, and let me thank you for your detailed response. I hope to be able to provide you with a few points of information that you may find useful.
 
First, a minor correction: Our national president’s name is Jennie Chin Hansen. Your letter refers to her as “Ms. Chin,” a simple error that some may misinterpret as demeaning. Also, you mentioned AARP’s name. AARP changed its name from the American Association of Retired Persons to AARP because more than half of our members are still in the workforce. Retaining the word “retired” in our name did not accurately convey the experience of those members who go to work every day.
 
Despite the fax confirmation receipt that we have on file, you apparently received neither a faxed copy of our September 1, 2009 letter nor the mailed copy that was sent to your office in Brooksville. A copy of that letter is enclosed, as is a copy of our July 28 letter to you, which we mailed to you. We still await your response to that letter. Perhaps it would be advisable to review your office procedures on receipt of faxes and mail.
 
Our goal in sharing our feedback with you has been the same throughout our correspondence: To encourage careful attention to the facts when debating the health-care reform issue. Let us agree to disagree when we encounter differences in approach or priorities. But let us all strive for accuracy, responsibility and fairness in all of our communication. As observers from all points on the political spectrum agree, our current health system is unsustainable. If the current reform initiative fails, it may fall to you and
your Republican colleagues to lead another charge for a sustainable health system in just a few years. 
 
Those elected officials who are the targets of misleading and bitter attacks today may choose to respond in kind tomorrow. None of us wants a deeply divided America that fails to resolve what must be resolved. With the greatest respect, regardless of who wins and who loses politically, America must heal its broken health system. AARP is committed to preserve what is right and fix what is wrong with our health-care and health-insurance systems. 
 
It is with this commitment in mind that I am compelled to respond to numerous statements made in your September 9 letter. First, let me respond to your inquiries about why AARP favors health-care reform.
 
AARP was founded in response to the fact that seniors had no voice on matters of health and financial security, at a time when an overwhelming number were forced in to poverty in their retirement years. The truth is that we are fighting for reform because our members tell us that they want us to. Our unpaid, all-volunteer Board of Directors also has directed that we advocate strongly for reforming the health system. We fought for
Medicare in the 1960s, and have fought to protect it ever since. We fought alongside Republicans in 2003 to create the Medicare Part D prescription-drug benefit. We plan to keep fighting for better health care for all generations. It’s in our DNA.
 
In your September 9 letter, you repeatedly ask for details of AARP’s finances and “profits.” We are a non-profit entity. Our Annual Report, with the relevant financial details, is available at http://www.aarp.org/aarp/About_AARP/annual_reports/ . We would note that some of our AARP-licensed products – products we have never “resold”, by the way – are offered by companies that are vigorously pursuing their own interests in the health-reform debate. We are fighting for reform because our members’ interests always come before business interests at AARP.  In fact, there is nothing we would like more than to be put out of business thanks to a system that ensures the health and financial security of older Americans.
 
Now let me turn to some of the other statements you make in your letter. At the bottom of Page 1, you refer to $30 billion in Medicare savings achieved by requiring drug manufacturers to accept the same discounts for drugs provided to dually eligible Medicare/Medicaid beneficiaries that are now provided to Medicaid recipients. 
 
You suggest that this is not a savings but a “cut” to beneficiaries, noting a passage from an August 28 Congressional Budget Office analysis citing increases in beneficiaries’ premiums. If you would continue reading in the CBO analysis to the next sentence, you would see this statement: “However, beneficiaries’ spending on prescription drugs apart from those premiums would fall, as would their overall prescription drug spending (including both premiums and cost sharing).”   
 
In regard to your concern that H.R. 3200 would empower the Secretary of the Department of Health and Human Services to negotiate drug prices provided under a public-option health plan, AARP has long supported secretarial negotiating authority for prescription drug prices. This is not specific to the public option, but for Medicare Part D as well.
 
We would note that your Florida Republican colleagues Representatives Jeff Miller of Ft. Walton Beach and Vern Buchanan of Sarasota have also supported this common-sense measure, as do the vast majority of older Americans. This authority is already granted to the Secretary of the Veterans Administration. 
 
In regard to health-care rationing, you suggest that language in Section 121 of H.R. 3200 prohibits health plans in the proposed Health Exchange from establishing plan restrictions unrelated to clinical appropriateness. 
 
On this point, your logic is unclear to us. Directing health plans to abandon coverage decisions based primarily on cost – all too common today – and requiring coverage decisions to be based on clinical appropriateness seems to be the opposite of cost-based rationing.   
 
You also refer to Page 33, Section 123, suggesting that a Health Benefits Advisory Committee would “clearly” be rationing care if it approved minimum standards for health-benefit plans. We don’t understand the logic. Why would establishing minimum standards for coverage under qualified plans prohibit those plans from providing coverage in excess of the minimum?  The language would protect consumers from insufficient policy coverage and would ensure access to preventative and primary care services among many others. Again, this seems to be the opposite of limiting care. 
 
This same point applies to your reference to Section 203. Again, establishing a minimum standard for coverage doesn’t prohibit a plan from covering more than the minimum. Failure to provide a minimum standard for coverage definitely would permit insurers to deny coverage – surely that is rationing.
 
You are critical of multiple sections dealing with insurance reform that provide multiple consumer protections for those who are currently underinsured or uninsurable in the private market. These include Section 112, providing for guarantee issue of health policies to consumers; Section 113, prohibiting insurer discrimination on the basis of age; Section 116, requiring insurers to pay consumers a rebate if they fail to spend at least 85 percent of premium dollars on patient care; Section 121, setting standards for insurers inside and outside of a health exchange; and Section 122, limiting cost-sharing (co-payments), prohibiting annual or lifetime caps on benefits, and prohibiting cost-sharing for preventive care. You also mention Sections 123 and 124, establishing an advisory committee controlled by physicians and patients, not government bureaucrats or insurance-company officials.
 
If you are alleging that AARP supports broad-ranging private health insurance reform that will provide affordable access to middle class families, again, you are quite correct. So do the vast majority of Americans. 
 
In your reference to Section 1122, AARP policy analysts read this section as allowing doctors to be paid more on the basis of their skill and qualifications. We see this section as positive not only for our members but for physicians.
 
In your reference to Section 1401, regarding a “Comparative Effectiveness Research Committee,” you suggest that this section empowers government employees to decide what treatments are most effective. This commission would have 17 members. Two are required to be government employees, and a controlling majority, nine members, must be doctors, other health providers or patients. The Comparative Effective Research Commission is prohibited from mandating coverage, reimbursement, or other policies to any public health program or private insurer. AARP sees knowledge as power. If doctors and patients have better information on which treatments work best, they will surely make appropriate choices.
 
In regard to Medicare Advantage plans, perhaps the best course is to agree to disagree. Your Town Hall handouts suggest that Medicare Advantage plans would be destroyed if they could no longer be paid 14 percent more than government pays to care for patients in traditional Medicare. AARP believes Medicare Advantage plans are receiving subsidies that would be better spent on caring for beneficiaries, not increasing insurance-company profits or executive salaries. We also favor provisions that reward Medicare Advantage plans for providing higher-quality care than patients in traditional Medicare receive, as well as provisions that establish new consumer protections for Medicare Advantage patients, such as allowing patients to switch plans outside of the open enrollment period if their Medicare Advantage plan changes drug formularies or increases out of pocket costs in mid-year.   
 
On Page Three of your letter, you suggest that AARP favors providing insurance coverage to illegal aliens. AARP’s position has been, and remains, that health reform should provide better access to care for those lawfully in the United States.
 
Far from turning its back on our members, as you suggest, AARP is fighting for our members. Over the past two years, I have traveled throughout Florida meeting with
 
members who have pleaded with me to support health reform. One is Oscar Atwell, 60, of Pensacola, who lost his computer programming job in the bad real-estate market soon after learning he had bladder cancer. His COBRA coverage is costing him $1,800 per month – and it’s running out. Without health reform, Mr. Atwell would be uninsurable in the private market. Under health-reform proposals now before Congress, Mr. Atwell would be able to get affordable, quality coverage despite his pre-existing condition.
 
We are fighting for health reform for Mr. Atwell, and the other 600,000 Floridians age 50-64 who are currently uninsured. We also are fighting for the 300,000 Floridians who fall
into the Medicare Part D “doughnut hole” every year, but who would get help under health reform proposals; the tens of thousands of Medicare beneficiaries who must be re-hospitalized within 30 days of release because of inadequately coordinated follow-up care, but who would get better care under health reform; and the millions of Floridians of all generations who believe, wrongly, that their flawed health coverage will shield them when they become seriously ill. We see no mention of these people in your letter, your Town Hall handouts, or any other documents we’ve seen from you.
 
Finally, in the postscript to your letter, you suggest that Social Security Administration has announced that the program will become insolvent in 2010. The last 5 Trustees Reports have suggested that Social Security's trust funds would become exhausted between 2037 and 2041. Repeating this untruth could terrify the numerous Floridians who rely on Social Security for all or part of their fixed retiree incomes. 
 
We are writing you this letter, as we did the previous two, because we seek to encourage an accurate, mutually respectful, and above all productive debate on health reform. For the sake of those we both serve, Representative Brown-Waite, there couldn’t be a more critical time to stick to the facts. 
 
Sincerely,
 
 
Lori K. Parham
State Director
AARP Florida
 
Added: September 18, 2009
Views: 142 | Comments: 0 | Bookmarks: 0

 

Here are three questions we're hearing from members about health reform:
 
Question: I hear a lot of talk about a “Health Exchange” and a “public option.” How would these things affect my health care – and our country’s future?
 
The Health Exchange (also called a Health Benefit Gateway in some Senate versions) is part of the health-care proposals now before Congress. Some observers think it’s the most important element of health-reform proposals.
 
The concept is to use the power of a competitive marketplace to help you find more affordable coverage and to control the spiraling costs of health care.
 
The Health Exchange would be a central clearinghouse where people who currently can’t find insurance – because their employer doesn’t offer health benefits, because they are uninsurable because of pre-existing conditions, or because it just costs too much – could get access to good-quality, affordable health coverage. 
 
Some six out of 10 U.S. workers get coverage through their employers. Under both House and Senate proposals, you could buy insurance through the Health Exchange (whether public or private insurance) only if you don’t get insurance through your employer, Medicare, Medicaid, TriCare or through a federal workers’ health benefits plan.
 
But what about the rest of us? Some 73 percent of people who shop for private health coverage say the plans they find are too expensive for them to afford.   
 
Both House and Senate versions of health-reform legislation try to address this problem through a Health Exchange or similar mechanism. People without workplace health benefits could seek health coverage through standardized health-coverage plans offered through a Health Exchange. Coverage and prices would be clearly spelled out, encouraging insurers to compete on price and quality of service.  
 
Under current House and Senate proposals, insurers would have to meet tough quality standards as well. Insurers wouldn’t be able to deny you coverage if you had a pre-existing condition, or drop you if your care became expensive, or refuse to renew your policy. In fact, these same rules would apply to all health insurance, not just Health Exchange policies – which eliminates one reason why insurers shun these customers today and try to “cherry-pick” people with the lowest risk. 
 
The idea is that insurers would have to compete more effectively on price, service and coverage.
 
There is broad bipartisan agreement that any health-care reform package has to cover more of the uninsured, and there has been broad bipartisan agreement that a Health Exchange may help encourage competition.  Massachusetts already has a similar program, signed into law by former Gov. and former GOP presidential candidate Mitt Romney.  
 
Everyone is affected by the rising number of uninsured. Experts say the high number of uninsured people in America – much higher than in any other developed nation, even though America spends twice as much on health care per capita than the average developed nation – is a symptom of a sick health coverage system. 
 
As more and more people find health coverage unaffordable, more or and more costs are shifted to those who still have insurance. This drives up our health premiums – the average family pays about $1,100 per year in health costs to subsidize the care of the uninsured – which drives more and more people to do without coverage, which drives up families’ costs even more. It’s been called a “death spiral.” Except for a period in the mid-1990s, health costs have risen faster than overall inflation for the last 40 years. More than any other factor, this fact is what makes our current health system unsustainable. 
 
Question: OK, what would a “public option” do? And why is it so controversial?
 
First, it’s important to note that debate on this issue is still unfolding in Congress. 
 
But here is what the current discussions focus on: 
 
As currently proposed, a public option would compete for customers, side by side with private insurers in the Health Exchange.  Consumers would be able to decide which option they wanted to buy. 
 
Some advocates of health reform insist that the only way to make insurers compete on price is to create a public organization that would sell insurance through the Exchange. Since this entity wouldn’t have to make a profit, it could offer lower costs on health coverage. 
 
Many critics of this option say that private insurers wouldn’t be able to compete with a public option, and would eventually be driven out of the insurance market. 
 
However, the non-partisan Congressional Budget Office disagrees. The CBO says that after 10 years of reform, the number of people covered by private employer-sponsored coverage would actually grow(See Page 1 of the attached table on this report.) 
 
Question: Would health reform really help reduce the number of uninsured?   
 
Most observers think it would. You could choose not to buy any coverage through the Exchange – but those with no qualified coverage, either through their employer or through the Exchange, would pay extra taxes to help cover their costs when they become ill. The concept is to stop the uninsured from driving up everyone else’s costs.  The Congressional Budget Office projects that current health-reform plans would cut the number of uninsured drastically. The CBO says at least 94 percent of Americans would have health coverage by 2019, up from 81 percent today.
 
AARP has not taken a position on the public option. AARP’s all-volunteer, unpaid Board of Directors set policy for the Association. The Board has said that it could support a health-reform bill with a public option if it encouraged market competition, held costs down and ensured choice. Equally, AARP could support a health-reform plan with no public option if the overall plan met these tests.   
 
AARP’s bottom line is clear: We will fight for our members and their families to ensure that seniors get the Medicare benefits they have earned, and that Medicare will be strong for those who need it when they grow older. 
 
No American, regardless of health or medical history, should be denied health care based on their age or pre-existing conditions. 
 
Protecting your health care should not take a back seat to insurance-company profits. 
 
And no one – not the insurance companies and not the government – should get between you and your doctor. 
 
AARP is urging Democrats and Republicans to work together to fix what’s broken and preserve what’s right about our health-care system this year. 
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Added: September 10, 2009
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September 10, 2009

AARP Reacts to Presidential Address 

WASHINGTON—AARP CEO Barry Rand released this statement following President Barack Obama’s address to Congress: 

“Over the last several weeks, the health care debate shifted from a conversation to a shouting match, and legitimate concerns about how we fix our health care system were drowned out by myths and mischaracterizations. It’s time to get back to the goal of fixing our system so everyone has quality, dependable health care they can afford. We are optimistic that tonight’s address will help move us toward an agreement on these important issues. 

“At AARP, we’re fighting for reforms that protect and expand benefits for people in Medicare, prevent discrimination based on age or health, and ensure no one—not an insurance company or a government bureaucrat—can come between you and your doctor. We need to close the dreaded gap in Medicare drug coverage that forces many to stop taking the medicines that keep them healthy. And we need to ensure that older Americans can buy and keep affordable health coverage. 

“AARP will fight on behalf of our 40 million members to ensure health care reform works for them by making coverage available and affordable and by improving the quality of care they receive. 

“We applaud the president’s effort to keep health care reform moving forward. Tonight, he laid out thoughtful goals for health care reform. We share many of those goals and we will continue to work for our members and their families to ensure health care reform meets their needs.” 

AARP is a nonprofit, nonpartisan membership organization that helps people 50+ have independence, choice and control in ways that are beneficial and affordable to them and society as a whole. AARP does not endorse candidates for public office or make contributions to either political campaigns or candidates. We produce AARP The Magazine, the definitive voice for 50+ Americans and the world’s largest-circulation magazine with over 35.5 million readers; AARP Bulletin, the go-to news source for AARP’s 40 million members and Americans 50+; AARP Segunda Juventud, the only bilingual U.S. publication dedicated exclusively to the 50+ Hispanic community; and our website, AARP.org. AARP Foundation is an affiliated charity that provides security, protection, and empowerment to older persons in need with support from thousands of volunteers, donors, and sponsors. We have staffed offices in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. 

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Added: September 10, 2009
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