Health insurers offer Cover For Everyone.

One condition: All must buy a policy

WASHINGTON - The health insurance industry has proposed guaranteeing coverage for every American, regardless of medical condition, in return for an enforceable requirement that everyone have a policy.

Republican Charles Grassley of Iowa says that mandating healthcare coverage won't 'come cheap' and will swell the deficit.

A SENATOR'S WARNING

The proposal also calls for the government to subsidize premiums for moderate-income people, according to the trade group America's Health Insurance Plans. AHIP speaks for 1,300 companies that provide public or privately funded benefits.

The insurers' plan is similar to ideas offered by President-elect Barack Obama, except Obama hasn't supported making insurance mandatory for everyone. He has proposed expanding government health programs, giving subsidies to low-income families, and requiring insurers to cover all applicants.

"No one should fall through the cracks of our healthcare system," said Karen Ignagni, the industry group's chief executive. "Universal coverage is within reach and can be achieved by building on the current system."

Senator Charles Grassley of Iowa, the Finance Committee's senior Republican, yesterday said that mandating coverage won't "come cheap." He warned that the federal budget deficit - already $400 billion, excluding the $700 billion financial rescue package and costs from the recession - would swell.

"Increasing the record-breaking deficit is not a legitimate option," Grassley said. "Ignoring the burden of inefficient spending that healthcare places on our economy is also not an option."
The Finance Committee, headed by Senator Max Baucus, and the Health, Education, Labor and Pensions Committee, led by Senator Edward M. Kennedy, have begun working on separate legislative proposals to overhaul the health system. Democrats Baucus of Montana and Kennedy of Massachusetts yesterday held a closed-door meeting to discuss strategy for healthcare legislation. Among Republican senators participating were Grassley and Orrin Hatch of Utah.
The AHIP plan would promise insurance for all as long as a government-enforced enrollment process ensures everyone has a policy. The group didn't say what penalty should be imposed for those who fail to get coverage.

The trade group proposed refundable tax credits for working families and said families buying coverage on their own should get the same tax break as those who obtain insurance through their employers. The value of employer-provided benefits isn't taxed.

The health insurers also said premiums should be kept stable through a "broadly funded reimbursement mechanism that spreads costs for the highest-risk individuals."
The Blue Cross Blue Shield Association, representing 39 companies, issued a similar call for mandatory coverage.

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