W.Va. Officials, Cline, McGraw Oppose Federal Insurance Proposal

May 5, 2006

Two state officials in Charleston, W.Va. say state insurance requirements would be undermined by federal legislation that would give small businesses greater flexibility in offering health insurance to employees.

The legislation would allow small companies to join together, based on their membership in a particular trade association, to purchase health insurance exempt from state coverage requirements. It was introduced by U.S. Sens. Michael B. Enzi, R-Wyo., and Ben Nelson, D-Neb.

West Virginia Insurance Commissioner Jane Cline and Attorney General Darrell McGraw Jr. say the proposal would eliminate state-mandated coverage of mammograms and other preventive health screenings.

Cline wrote a letter on April 28 to Sens. Robert C. Byrd and Jay Rockefeller, both D-W.Va., expressing concerns about the legislation. She wrote that the bill would “undermine our current regulatory structure, lead to higher and unaffordable rate increases, and increase the cost-shifting that now threatens … our health-care delivery system.”

McGraw and 40 other state attorneys general sent an April 25 letter to all 100 senators voicing opposition to the legislation. They said they feared the bill would pre-empt state insurance laws in areas such as required benefits and prompt payment of claims.

Byrd also has concerns about the legislation. He said he plans to offer amendments to protect access to mammograms, diabetes care and other health screenings.

Topics Legislation Virginia

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