LANSING – House Democrats today unveiled a major health care reform package that would guarantee health care access to all Michigan citizens, prohibit insurance companies from rejecting or jacking up rates on the sick, and expand coverage for Michigan children. The plan would also rein in the skyrocketing cost of health care by creating a catastrophic health care fund to protect the sickest individuals.
"Our plan requires all insurance companies to guarantee health care coverage to Michigan citizens, and ends the outrageous practice of insurance companies refusing to cover the sick or elderly," said House Speaker Andy Dillon (D-Redford Township). "Health care reform is too important to wait for Washington to act – we need to take action here in Michigan to guarantee access to protect each and every Michigan citizen."
The House Democrats' plan to guarantee access to health care takes aim at a key element of Michigan's health care crisis. As more and more workers lose their jobs and employer-based health care coverage, many find themselves being rejected by insurance companies because they have an existing medical condition, adding to the state's more than 1.1 million uninsured residents. Michigan leads the nation in unemployment – 12.6 percent in March according to the U.S. Bureau of Labor Statistics.
The House Democrats' plan will:
- Guarantee access to health care by requiring insurance companies to cover people who have pre-existing conditions, such as diabetes or cancer.
- Prohibit insurers from raising rates on individuals who become sick.
- Ban unfair market practices like cherry picking the healthiest individuals to cover, which drive up insurance rates and prevent some of the most vulnerable residents from obtaining care.
- Expand the state's MIChild program to help cover every child in Michigan.
- Create the Michigan Catastrophic Protection Plan (MICAPP) Fund to rein in the soaring cost of health care and protect the sickest individuals.
"Too many of our friends and neighbors have become victims of a broken health care system that allows insurance companies to deny coverage for people who are sick at the very time they need coverage the most," said State Representative Marc Corriveau (D-Northville), a sponsor of the reform package and Chair of the House Health Policy Committee. "Our plan guarantees health care access for anyone who needs it and bans the shameful practice of rejecting the sick and cherry picking the healthy."
The House Democrats' health care reform package also takes aim at reining in the skyrocketing cost of health insurance by creating the MICAPP fund for individuals. The statewide fund would pay for the coverage of people with the most expensive medical conditions in an effort to rein in skyrocketing health care costs for everyone.
According to a 2008 study by the nonpartisan Kaiser Family Foundation, employment-based health insurance premiums have increased 120 percent since 1999. In 2007 alone, premiums for employer-based coverage rose by nearly 7 percent, with some of the largest increases inflicted upon small businesses with fewer than 24 workers.
"Michigan must take action to rein in soaring health care costs and protect Michigan families," said State Representative Mark Meadows (D-East Lansing). "Our plan will crack down on bad industry practices and make health care more affordable, accessible and accountable to Michigan residents."
In the coming weeks, House Democrats will be introducing other cost effective measures to further control the skyrocketing cost of health care, including the bulk purchasing of prescription drugs, electronic prescribing, tackling fraud and waste, and wellness and prevention programs.
"No person should have to live in fear of losing their health insurance or having their rates increased simply because they got sick and need help," said State Representative Fred Durhal Jr. (D-Detroit). "Michigan residents deserve guaranteed access to health care, and I urge people in both parties, as well as consumer groups, insurance companies and citizens to embrace this important reform package."