NEWS RELEASE
March 9, 2010
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Congress must consider critical health care reform implementation issues
Lawmakers urged to extend effective dates for sweeping new requirements
WASHINGTON, DC — In a letter sent to Senate Majority Leader Harry Reid (D-NV) and Speaker of the House of Representatives Nancy Pelosi (D-CA), 11 employer and insurer organizations urged the lawmakers to extend the current effective dates for numerous changes in the pending health care reform legislation. A revised implementation schedule would "help minimize disruption and ensure a smooth transition for employees, plan participants and customers," the letter says.
"Many provisions in both the House and Senate bills would make unprecedented and sweeping changes to group and individual health plans. For new plans, these provisions are either effective immediately or in the very near future and will require significant action by employers and health plans to achieve compliance. … Many changes will also require government regulations, state law changes, state insurance department approval and/or guidance from the Department of Health and Human Services," the letter reads.
"At an absolute minimum, the effective dates should be no sooner than plan years beginning 12 months after enactment of the legislation with a safe harbor for plan sponsors and health plans that have acted in good faith compliance with the new law. A similar compliance approach has been used with implementation of other major federal health legislation, including for example, HIPAA privacy and mental health parity requirements," the letter says.
Along with the letter, the organizations provided two background documents that illustrate the challenges of the current implementation schedule and the need for a more gradual approach: a list of implementation issues and recommendations and an example implementation timeline for compliance with many of the bill's most drastic changes.
As Congress moves closer to possible enactment of monumental health care reform legislation, the nation's employers and health care plans urge policymakers to consider the many implementation challenges that lie ahead. A workable transition period will help extend new benefits to millions of Americans while limiting disruption of coverage and care.
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