Schumer: 6.2 Million New Yorkers Could Lose Critical Health Service Under Senate Proposal

SCHUMER: 6.2 MILLION NEW YORKERS COULD LOSE CRITICAL HEALTH SERVICES UNDER SENATE PROPOSAL

Schumer Reveals New Yorkers Could Lose Access to Emergency Services, Mammograms, Hospice Care, Diabetes Supplies, and Other Life-Saving Services

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Millions of New Yorkers could lose access to dozens of life-saving services, U.S. Senator Charles E. Schumer revealed today if a bill being debated on the Senate floor today passes. Schumer announced that if the legislation currently on the floor of the Senate is passed, more than 6.2 million New Yorkers will lose the guarantee of coverage for important protections, benefits, and services that are now included in their health insurance.

"At a time when we're having a health care crisis in the country, this bill is a giant step in the wrong direction," Schumer said. "Mammograms for women and immunizations for children are required under New York law. Those would be washed away by this proposal. New York State has some of the strongest safeguards throughout the country, but they'd be eliminated with the flick of a pen. We should be focusing on lowering the cost of prescription drugs, figuring out the Medicare Part D mess, and pursuing the promise of stem cell research. Let's start solving problems instead of creating new ones."

The Senate right now is considering Senate Bill 1955, the Health Insurance Marketplace Modernization and Affordability Act which invalidates important New York laws that regulate insurance plans. The legislation would allow insurers to offer plans without the benefits and services New York lawmakers have deemed critical. These changes would apply to the small group, large group, and individual health insurance markets.

If this bill is passed and signed into law, New Yorkers with health insurance will lose their guaranteed access to:

• alcoholism treatment
• ambulance transportation
• ambulatory cancer treatment
• ambulatory surgery
• bone density screening for osteoporosis
• cervical cancer screening
• childhood immunizations
• contraceptives
• diabetic supplies and education
• drug abuse treatment
• emergency services
• home health care
• hospice care
• infertility treatment
• mammography screening
• maternity care
• mental health services
• metabolic disorders treatment
• minimum hospital stay following a mastectomy
• off-label drug use for cancer treatment
• prostate cancer screening
• second opinion on surgical procedures
• well-child care

Families USA, a nonpartisan national organization for health care consumers, estimates that 6,214,000 New Yorkers would lose guaranteed coverage of these services, which makes New York the second-most affected state of all fifty. Coverage for roughly 142,000 small businesses (firms of less than 50 workers) will be affected, as will about 38,450 firms that employ more than 50 workers.

In addition to eliminating important state mandates for minimum health insurance coverage, this bill would also eliminate consumer protections that prohibit insurance companies from discriminating against older and sicker people. In states like New York, insurance recipients are pooled together into a common pool, so that everyone pays the same premium and shares the cost of health care. Under S. 1955, people insured in the small group market would suddenly be subject to higher fees, paying a drastically higher premium if they happen to be older or sicker. These people could see a 67 percent variation in premiums from their neighbors. For example, using age as a factor, insurance companies could charge older people 500% higher premiums than younger people.

In response, Senator Schumer has joined Senators Richard Durbin (IL) and Blanche Lincoln (AK), in promoting the Small Employers Health Benefits Program (SEHBP) Act of 2005 (S. 2382), which would enable small businesses across America to pool their risk and purchasing power together to expand access to affordable private health insurance options for their employees, while still preserving each states' health insurance coverage requirements. Employers would also receive an annual tax credit to defray part of the employer contribution for low-income workers and a bonus tax credit for paying a higher percentage of the premium. Every small business and self-employed American, rural or urban, would have access to a choice of plans.

Senator Schumer is a member of the Senate Finance Committee that oversees Medicare, and is the co-author with Senator John McCain (R-AZ) of the Greater Access to Affordable Pharmaceuticals Act , which became law in 2003. The Act enabled generic drugs to be brought to market sooner, and lowered the cost of prescriptions for millions of American seniors.

http://schumer.senate.gov/SchumerWebsite/pressroom/press_releases/2006/PR152.Enzi%20Bill.051006.html