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Health Insurance Lobbies To Merge
AP Online, Wednesday, November 29, 2000 at
17:51
By LAURA MECKLER Associated Press Writer
WASHINGTON (AP) - Two powerful health insurance
associations are merging, forming a giant lobby that will
speak with one voice as it fights against a patients' bill of
rights and other government regulations.
The Health Insurance Association of America, which
represents traditional health insurance companies, and the
American Association of Health Plans, which represents managed
care companies, will announce on Thursday their intent to
merge, said two people familiar with the plans who spoke on
condition of anonymity.
The merger represents the changing face of health
insurance in America, where there was once a clear distinction
between traditional insurance plans and health maintenance
organizations.
Today, most health insurance companies offer both
traditional plans, where patients can go to any doctor or
hospital, and less costly managed care plans, where they must
choose a doctor from a list. Most also offer preferred
provider organizations, or PPOs, in which patients may choose
from a list of doctors or go elsewhere if they are willing to
pay extra.
``The lines have all blurred, big-time,'' said Bill
Pierce, spokesman for the Blue Cross Blue Shield Association,
which will continue to represent health plans that are part of
that company.
The merging organizations have many of the same members
and are typically on the same side of the issues in
Washington. Both have vigorously fought efforts to impose a
patients' bill of rights, which would require health plans to
include certain treatments in their benefit packages. It would
also allow patients to take complaints to independent panels
and - most controversially - allow them to file lawsuits if
they are denied care.
HIAA may be best known for fighting First Lady Hillary
Clinton's 1994 plan for provide health insurance for all
Americans. It spent $17 million on a series of commercials
featuring Harry and Louise, a fictional middle-aged couple who
warned Americans that government bureaucrats would take over
their health coverage.
For its part, AAHP has fought hard for increased Medicare
payments for HMOs.
Together, the organizations hope they will carry more
clout than either does on its own, but outsiders aren't
sure.
``It will probably make them a more cost-effective
lobby,'' said Paul Ginsburg, president of the Center for
Studying Health System Change. ``They'll be able to spend
their resources better and won't have to spend time
coordinating.''
``They've gone from two voices to one,'' said Judy Waxman
of Families USA, a consumer group that is often at odds with
the insurance industry. ``Obviously it's a bigger voice, but
if you had two strong voices that's sometimes better than one
if you're trying to get a point across.''
AAHP represents about 1,000 health insurance plans, while
HIAA represents nearly 300. HIAA also represents companies
that offer long-term care and disability insurance, whereas
AAHP is strictly health insurance.
Last updated 8:41 PM EST
11/29/2000
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