Health reform is here to stay, government official declares

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July 28, 2010

Bernie Hornick bhornick@tribdem.com The Tribune-Democrat Wed Jul 28, 2010, 11:23 PM EDT

SOMERSET — Health-care reform is not going anywhere, a regional director of the U.S. Department of Health and Human Services told a lunchtime business meeting Wednesday.

Ron Aldom, Somerset County Chamber executive director, asked Regional Director Joanne Grossi whether a change in Washington to Republican rule would cause the law to be overturned, starved of funds or otherwise pruned.

“That hasn’t been a conversation we’ve been having,” Grossi answered.

“It’s here, it’s in place and that’s it.”

Grossi acknowledged up front her challenges in addressing an audience of Chamber of Commerce members about the 2010 health-care law.

“I know the official position of the U.S. Chamber of Commerce is not to support it,” Grossi said in opening remarks.

“(But) I really want feedback, that’s why I’m doing events.”

Grossi took onlookers through a Power-Point presentation and ticked off aspects of the law, including:

• The gradual closing of the Medicare “doughnut hole” that causes recipients to pay 100 percent of drug costs for a period. Recipients must pay all prescription costs after $2,830 until total out-of-pocket reaches $4,550, a total of $1,720.

Rebate checks of $250 are going out now to seniors who hit that hole.

• The federal government is sending out millions to the states to set up offices to monitor insurance companies’ requests when they want to raise costs.

Insurers will have to justify any cost increases.

• No lifetime caps on insurance benefits, and making free many preventive care procedures.

• Relief to small businesses of fewer than 25 full-time workers and which cover at least half of the cost of health-care coverage to some of their workers.

About 4 million small businesses have received information from the IRS about an available tax credit.

The credit is worth up to 35 percent of a small business’ premium costs this year, rising to 50 percent in 2014.

But what about larger employers? Won’t they drop health insurance for their workers?

“That’s something we’re going to find out,” Grossi said. A fraction of larger firms have dropped coverage in Massachusetts, she said, referring to the plan that became the model for the federal law.

“There are some that make a mathematical calculation that it’s more economical to drop,” Grossi said, while noting those employers will have to pay into the national plan.

She said the law will bring savings by reducing premiums and out-of-pocket expenses and encouraging competition in the insurance marketplace. The nonpartisan Congressional Budget Office also foresees savings as the years pass.

And some things you just can’t put a price on.

“I think there are moral imperatives to health-care reform,” said Grossi, who is in charge of HHS for Pennsylvania and four other states.

She said the reform law will derail the rising number of uninsured Americans.

Without the bill, the number of uninsured would rise from 46 million now to 58 million in 2020, according to the Urban Institute.

About 45 people attended the lunch at the Somerset Country Club, which was sponsored by the Delta Development Group.

“It was very insightful,” said Kurt Kissinger, principal of Delta Development of Mechanicsburg, which works with health-care providers, businesses and governments on a range of issues.

“This has a big impact on our clients, so we thought that it was important that we be part of this discussion.”

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