| Press Release |
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| April 20, 2006 |
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Governor opposes bill that weakens protection
Enzi bill would preempt state in keeping group premiums affordable
Salem, OR—Governor Ted Kulongoski has told Oregon’s US senators that proposed federal legislation would weaken state consumer protection laws for Oregonians who have group health insurance. In a letter to Senators Ron Wyden and Gordon Smith, the Governor urged the lawmakers to oppose the bill unless they can amend it to address his concerns.
The measure (S. 1955), sponsored by Senator Michael Enzi of Wyoming, passed out of the Senate Health, Education, Labor and Pensions Committee last month.
The Governor acknowledged that S. 1955 is a compromise measure, and that it's an improvement over competing proposals that would allow national associations to operate self-insured health plans completely outside state regulation. He said he could not support S. 1955 in its current form, however.
"The bill goes too far in preempting important consumer protection laws that ensure reasonable access to affordable benefit plans for small businesses in Oregon," the Governor said. "I encourage you to oppose this bill unless it is amended to preserve vital consumer protections."
The Governor said the committee-approved version of S. 1955 would hurt Oregonians in the following ways:
The bill would preempt state rating laws that help keep premiums affordable for small employer groups with older and less healthy workers.
The bill would undermine state health care mandates, including the mental health parity bill that was passed by the 2005 Oregon Legislature.
It would require states to adopt "harmonized" regulatory procedures or lose their enforcement authority.
"Oregon has taken the important step of requiring health insurers to cover mental health conditions in the same way they cover other conditions, and this bill would jeopardize our state’s authority to stand by this requirement," the Governor said.
The Governor concluded his letter by recognizing that "we are not going to solve our health care challenges without new federal-state partnerships, and I pledge to continue working with you and your colleagues in the Senate to find workable solutions to this and other health care issues."
To read the letter that went to Senators Smith and Wyden, go to: http://governor.oregon.gov/Gov/docs/Wyden_04_19_06.pdf
Media Contacts:
Lonn Hoklin (503.378.6169)
Anna Richter Taylor (503.378.6496)
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