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TheHonorableNancyPelosiSpeakerUnitedStatesHouseofRepresentatives235CannonHouseOfficeBuildingWashington,DC20515DearSenatorByrdandSpeakerPelosi:Wearewritingtoexpressourconcernwithrecentfederalhealthreformefforts-particularly,theMedicare-modeled"publicplan"andanationalhealthinsuranceexchange-whichwebelievewouldtramplestates'rightsandleadAmericansdowntheroadtosingle-payerhealthcare.TheAmericanLegislativeExchangeCouncil(ALEC)representsmorethan1,800statelegislativemembers.ALECisthenation'slargestnonpartisan,individualmembershipassociationofstatelegislators.Approximatelyone-thirdofallstatelegislatorsbelongtoALEC,inadditionto78ALEC"alumni"inCongressandmorethan300private-sectorcompanies,nationaltradeassociations,andnon-profitorganizations.ALEC'slawmakersrecentlyapprovedthe
ResolutiononPreservingStates'RightsRegardingFederalHealthInsuranceExchangesandaPublicPlan,
whichdeemsthepublicplananti-competitiveandinvokestheTenthAmendmenttotheU.S.Constitutionincallingthenationalhealthinsuranceexchangea"federaltakeover"ofthestates'roleinregulatinghealthinsurance.Asarepresentativetosuchabroadcoalitionofstateinterests,ALECquestionsthewisdomandpracticalityofthepublicplanandthenationalhealthinsuranceexchange.Ourconcernsinclude:
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Thepublicplanwillnotbecompetitive.
It'sanunlevelplayingfieldwhenthepublicplancanshiftcoststoourstates'privateinsurersbecauseoflowdoctorandhospitalreimbursementrates,andthenraidthefederaltreasuryforunlimitedsubsidies.Governmentwillonlycompetewhenitcanchangetherulestowin.Tohavegovernmentservesimultaneouslyasaregulatorandacompetitordefiescommonsense.
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Thenationalhealthinsuranceexchangerepresentsafederaltakeoverofthestates'roleinregulatinghealthinsurance.
Statesaretheprimaryregulatorsofthehealthinsurancemarkettoday.Theyprovideaggressiveoversightofallaspectsofthemarketandensurealocal,responsivepresenceforconsumers.Anationalhealthinsuranceexchangewouldunderminestates'oversightroleinhealthinsuranceandshiftdecision-makingfromstatestoWashington.
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Thenationalhealthinsuranceexchangewouldleadtoa"RobinHoodinreverse"fundingschemeinwhichstateswithlowerhealthcarecostssubsidizestateswithhighercosts.
Healthcarecostsvaryconsiderablyamongstates.Ifthenationalhealthinsuranceexchangeleadstocreatingaregionalornationalpool,low-coststateswouldsubsidizehigh-coststates.Whilethismaybeagooddealforahigh-coststate,low-coststateswouldenduppayingmoreforhealthinsurancepremiums.
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Thepublicplanandnationalhealthinsuranceexchangewillleadtosingle-payerhealthcare.
Politicalpressuretokeeppublicplanpremiumslowandbenefitshighwillresultinthe"crowdingout"ofprivatesectorinsurancealternatives.TheLewinGroupestimatesthatasmanyas119millionAmericanswilldropprivatecoverageandenrollinthegovernmentplan.Thisrepresentsa60percentreductioninthenumberofAmericanswithprivatehealthinsurance-nottomentionasignificantdropinmuch-neededstatepremiumtaxrevenue.Weallsharethegoalthatpatientsdeservetochoosetheirownquality,affordable,privatehealthcoverage.Buthealthreformshouldn'tjustbethejobofthefederalgovernment.Thesegoalsarebeingadvanced-andachieved-bystatelegislatorsnationwide.ALECisanationalleaderinpromotingmanypatient-centeredhealthreformsatthestatelevel,including:
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The
Freedomo(ChoiceinHealthCareAct,
introducedbysevenstatesthissession,whichpreservespatientrightstomakehealthcoveragedecisionsinthestateconstitution.
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The
HealthCareChoiceAct
for
Siates,
introducedby10statesthissession,whichallowspatientstopurchase
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