State House Dome: Rocky road for low-cost NH insurance
By TOM FAHEY
State House Bureau Chief
Monday, Feb. 8, 2010 Share on Facebook
It turns out the program Gov. John Lynch launched in October is not so low-cost after all.
The program for small business was meant to be priced at 10 percent of the state median wage, roughly $330 a month per person. The Department of Insurance Web site says the cost is about $311 a month. But when other factors -- such as age, occupation and group size -- started getting added in, the price went up into the mid-$400 range per person.
Now legislation is moving ahead to require a basic wellness plan to be part of HealthFirst. That change and several other modifications could bring the cost down into its target range, according to Leslie Ludtke, health-care policy analyst at Insurance.
The plan's co-pay requirement could be replaced with a co-insurance piece, which means a client pays a percentage of a medical bill, not a pre-set co-payment.
Most importantly, the wellness product has to be priced "comparable to or below the lowest cost major medical health insurance" offered in the state for small employers.
HealthFirst, which right now is offered almost exclusively by Anthem Blue Cross Blue Shield, carries an out-of-pocket cost of $2,500 before coverage kicks in. If a member takes part in a wellness program, the second year's deductible falls to $1,500.
So far the plan covers 450 people, who work for roughly 50 employers, Ludtke told the House Commerce Committee last week.
►And the 'Dome' makes three (1)
Bills adding the basic wellness requirement are pending in both the House and Senate.
With health-care costs expected to continue spiraling upward, lawmakers will be watching what else needs to be done to make the HealthFirst plan more attractive and affordable.
Health-care spending took up 18 percent of state gross domestic product in 2008, at close to $11 billion, and is expected to hit $20 billion, or 25 percent of state GDP in 2018.
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The House voted to repeal the state's blue laws last week. Driving through Nashua, Manchester or Salem, some might be surprised to learn blue laws still exist.
Actually they've had so many holes poked in them over the years, you can drive a delivery truck through them.
Early on, they barred secular labor, as well as "any play, game or sport" on Sunday. No retail sales, no dancing, no racing horses or dogs. Acts of "mercy or necessity" were still OK.
Then came a list of exceptions, the biggest being that local ordinances could override the state law that kept Sunday as a true day of rest. That was pretty much the end of the days when almost everybody had Sunday off.
Blue law violations, by the way, carry a $1,000 fine.
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A resolution calling for England to return the sculptures to Greece was defeated 177-108 after lengthy debate late Wednesday. Rep. Susan Almy, D-Lebanon, asked a day later to have the vote reconsidered. Rep. Tom Katsiontonis, D-Manchester, said Greeks in his city were "very disappointed with last week's vote." He said it wasn't just the vote, but the tone of the debate that had him upset.
He sponsored the measure with Rep. Ben Baroody and Rep. Theodoros Rokas, both from Manchester.
Those who argued against the resolution said the Legislature should not be taking up time with foreign affairs, wading into a dispute between two other countries. In the past, though, the House has voted to bar investments in the Sudan and sided with Pakistan in its foreign affairs.
Katsiantonis said this is about more than a fight over a few statues.
"This is a big symbol for us. When the Old Man of the Mountains fell, we were all upset. It was a valuable symbol to the people of New Hampshire. Well, this is a big symbol for (people of Greek descent)."
He said he was insulted at jokes that were being cracked during debate. "It's not funny to the Greeks of Manchester and New Hampshire," he said. "Those people are getting votes from Greek-Americans. In a way, they were laughing at their Greek constituents."
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If the House passes the repeal, which ends the surcharge in 2011 instead of 2012, the hit on state highway finances will be roughly $50 million. That includes $15 million that goes for road upkeep in towns and cities.
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House Finance Committee chair Rep. Marjorie Smith, D-Durham warned the House of the consequences of making cuts blindly.
"What are you thinking?" she asked. "Are you thinking that somewhere in New Hampshire there is a free lunch? There is no free lunch; you have cut $5 million without thinking about where the money is going to come from."
Her argument was enough to stop passage of another $25 million cut, but there's that $5 million hole on the House side now.
"Mea culpa," Smith said after the House session. In the Democratic caucus Wednesday, party leaders went over a list of complicated bills for which they wanted to line up the vote.
"I thought these were so obvious that there was no reason to waste anyone's time," she said.
The $5 million budget change now heads to the Senate.
Sen. Lou D'Allesandro, D-Manchester, chair of the Finance Committee, was shocked to hear of the House vote. Most expect the cut to die in the Senate.
D'Allesandro said the bill lowers revenue without proposing offsetting cuts. "Is that good public policy?" he asked.
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Now the agency has a reserve fund of $5.8 million. That had Fiscal Committee members licking their chops last week, to the point where it looked like another JUA raid might break out.
Not so fast, said Glenn Normandeau, F&G executive director, after boasting that his tight-fisted policies built up the surplus. If the state starts using that money for general expenses, the federal government will cut off its funding, he said. The way the economy is behaving he added, the balance is sure to head downward.
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House Bill 1654 went down on a 300-35 vote. It would have made it a class B felony punishable by a prison term to carry a firearm or other deadly weapon into the State House or Legislative Office Building.
Still pending is HB 1635, which puts a similar ban on deadly weapons in all public buildings.
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Newly-elected state Rep. Ken Weyler, of Kingston, will be moderator for the forum. Members have drawn up a list of 24 questions.
Candidate answers will be limited to two minutes each.
Health care, earmarks, energy, homeland security and congressional gridlock are among the topics.
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Tom Fahey is State House bureau chief of the New Hampshire Union Leader and Sunday News. His e-mail address is tfahey@unionleader.com.
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How about non-profit health insurance for anyone who wants it? In NH, almost everybody is on Anthem Blue Cross, which is a for-profit national corporation.
We could cut health-insurance costs by 20%-30% if we all had a choice to buy into a non-profit plan.
- James R., Hampstead, NH
I paid more than twice the $400 dollar amount for catastrophic medical that didn't kick in until $10,000 and that was 20 years ago. The $400 a month sounds pretty good. Insurance is a gamble anyway, so if you are a younger person maybe that policy is OK. I think a co-pay beginning at a smaller dollar ceiling would be better. Mazybe $500 and lower the ceilling to say $1,500 or $1,800, including dental. Most people who complain abouyt healthcare want it for free.
- Michael King, Epping
Fortin, by reading your post its obvious that you haven't a clue as to what is heppening. Chandlers move was to repeal the legislation however, HB 1654 FAILED on a roll all vote of 300 to 35.
This bill would have funded the metal detectors, security, and related maintenance. The cost made no sense in the current budget state.
However, the house rule, I believe is still in tact...but leave it to you to confuse the two.
But all you do is complain. I suspect that on the day you give up the ghost, you will be back here complaining that the soil is too cold.
- Rick Olson, Manchester
Last month I gave up my vanity plates and went back to number plates because I did not want to pay the $30 surcharge. I wonder if the state has seen a noticable drop in vanity plate renewals.
- David R, Manchester
I just signed up for NH Healthfirst insurance from Cigna and will soon be paying $862.63 a month for one person which is an increase of over 10% from last year. It sounds like the same insurance thats offered from Anthem Blue Cross for half the amount. Why the big difference?
Having such high health care costs is bad for the economy as people like myself spend all our disposable income on health insurance and nothing else.
- Hank, Bedford
Mr Fortin, my read of the article is that HB 1654, a bill that proposed to prohibit the carrying of firearms or other deadly weapons into the state house or legislative office building, was killed. So I would say that common sense did prevail. And the committee's recommendation (15-0) was inexpedient to legislate. So, whose influence is nil?
http://www.gencourt.state.nh.us/bill_status/Bill_docket.aspx?lsr=2678&sy=2010&sortoption=&txtsessionyear=2010&txtbillnumber=HB1654&q=1
- Chris L, Manchester
Anything less than $450 a month is a deal.
- Bob, Salem
- Richard L. Fortin, Manchester,
The bills that failed were BANS, not Gene Chandler's attempt to undo the subversion of the legislative process.
Sorry, he appears to still carry weight. His bill to undo the committee's subversion of the legislative process is still active.
- Jay, Manchester
It was just three short years ago Fish & Game was warning that things were so bad they would have to layoff 25% of their employees. Their management must have gone from horribly inept to simply magnificent. They are the Little Boy who crys wolf department and they are never to be trusted with their financial reporting!
- Alan, Newmarket
The story on low-cost insurance demonstrates the deliberate misunderstanding that has paralyzed Washington for a full year. Politicians view insurance not as a way to share risks, by which we protect ourselves against catastrophic expenses, but as a way to get things for free, paid for by the evil insurance companies. Politicians often don't care if nothing good happens, provided bad things happen to the insurance companies. "Universal coverage" is a hook for government bureaucrats to mandate private behavior such as "wellness," on the perennial assumption that they know better than we do, and that better national statistics are preferable to individual liberty.
Now, having explicitly directed the creation of low-cost, high-deductible insurance, politicians are proceeding to break it (and render it broke) with new mandates for free care. This is not legislative stupidity (like the notion that new requirements will "bring the cost down")--this is nanny-state vandalism.
- Spike, Brentwood NH
So you're telling us is without taxpayer subsidy, this program doesn't work as intended. Beautiful.
Another hypocrite democrat forcing costs onto taxpayers to buy a few votes. If Lynch wants to bring healthcare to the masses, why not just make the same plan he and his cronies have access to public?
Small business owners aren't stupid. This is the same democrat regime that is trying to put in place the first ever INCOME TAX in an illegal manner. Perhaps democrats thought that small business owners were too busy trying to keep their heads afloat to have time to fight the income tax.
- Chuck, Chester
Gene Chandler's publicity stunt goes down in flames 15 to zip. Common sense prevailed, and this nuissance legislation is headed for the round file. There will be no weapons carried in State buildings on other than sworn peace officers. This just shows that former Speaker Chandler's influence is next to nil, let's keep it that way. That means that the free state whackladoodles will have to keep their pea shooters at home or in the car when visiting the state house and other associated buildings This is about the only action that this session has made that I agree with.
- Richard L. Fortin, Manchester
Just think........."life".........its all about the budget.
- John, Candia
Does any person know what the rooms and meals tax rate was in the 1960s and 1970s in Manchester, Nashua, Salem, and some other cities?
Does state government have a written agreement with city governments that says that state government has to give X percent of rooms and meals tax revenues to city governments?
Does state government have a written agreement with city governments that says that state government has to give X percent of business profits tax revenues to city governments?
I know New Hampshire used to collect rooms and meals tax differently than it does now. I do not know when the change took place.
- Ken Stremsky, Manchester, NH