Mike Farrell, WAHU Legislative Chair

June 3, 2010

MANY SUCCESSES AND A FEW FAILURES

The WI legislative session for 2009-2010 was a long battle.  Your legislative committee and lobbying staff spent many hours and countless meetings working with elected officials throughout the state.  We also spent a great deal of time working with the Insurance Commissioner and his staff.  

In my opinion, our most significant victory was preventing the so called “benefit counselors” bill from being passed.  This bill would have created an entity that could have the potential of replacing licensed and trained brokers with staff at a non profit agency directed by the Department of Health Services.  This agency would have been responsible for advising the general public on state provided Medicaid, HIRSP, and Badger Care plans as well as private insurance plans; thereby diminishing the role of the independent agent or broker.  But, please don’t rest easy on this issue because there is strong likelihood that this proposal will return down the road.  

There were a few other victories for WAHU.  We worked with other organizations to prevent the OCI from gaining regulatory authority over self funded municipalities and school district plans.  We also lobbied against a bill that would have required assignment of benefits to non-network medical providers.  Minor victories included the defeat of a couple mandates related to smoking cessation and oral contraceptives.  Last on our list of important victories included the defeat of the OCI technical corrections bill that would have given the Commissioner significant new authority to implement programs that would not be favorable to our industry.  

Unfortunately, there were a couple bills that we were not successful in defeating.  The expansion of Badger Care Plus Basic was probably the most significant.  Even though WAHU offered a better, lower cost, private market solution, the Democratic majority elected to implement a state run, self funded insurance company that will provide benefits to up to 40,000 people on the Badger Care waiting list and compete directly with the private market.  We also worked very hard to warn the state about implementing language allowing coverage for dependents up to age 27 that was inconsistent with the IRS definition of dependent.  This issue will be re-visited in the next legislative session.

What looms next on our horizon?  One word – EXCHANGES.  I’ve said it too many times to count – if you are not politically active about issues like this, we need you to re-think your position!  As we begin what will be a heated election cycle over the next six months, there will be many times when we will need a “call to action”.  My apologies if you are sick of hearing this broken record.  But, our Governor has said that he wants the reform of the health care delivery system to be his “legacy”.  Wisconsin has indicated interest in implementing the health insurance exchanges before the federal law requires us to, which isn’t supposed to be until 2014.  In fact, Governor Doyle would like to get the exchange operational as soon as January 1, 2011.  WAHU members will need to do everything in our power to prevent exchanges from becoming a reality.

Here is what we need from WAHU members in 2010 and beyond.  Please take action when we ask.  Please promote membership growth in our association.  Please support candidates that support you and your industry.  Please participate in campaign events for these candidates.  The investment of your time and your money is worth it to preserve your ability to earn a living in this industry.  

Let me close by offering my sincere personal thanks to every one of you who have been involved in our efforts over the last year.

Mike Farrell

2010 Legislative Chair & Vice President