Subject: Task Force Salutes Signing of Healthcare Coverage Act
From: [email-masked]
Date: Thu, 22 Aug 1996 13:31:20 -0400

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National Gay and Lesbian Task Force
PRESS RELEASE
contact:   Robert Bray       rbray @ngltf.org   415-552-6448
              Tracey Conaty    [email-masked]  202-332-6483
               pager 800/757-6476  
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TASK FORCE SALUTES SIGNING OF HEALTH CARE COVERAGE ACT;

DESPITE SHORTCOMINGS, BILL IS HISTORIC FIRST FOR 
PEOPLE WITH AIDS AND OTHERS WHO NEED INSURANCE

Washington, D.C., August 21, 1996...In a victory for advocates who have
fought long and hard for health care reform, President Clinton today signed
into law the Health Care Coverage Availability and Affordability Act of 1996.
 The act marks the first time any legislation has been adopted to protect
people with preexisting medical conditions -- including HIV -- from total
exclusion from health insurance coverage.  Activists said the bill is an
important step in protecting the health of all Americans, including people
with AIDS.

 "This new law breaks some major ground in the movement toward making health
care insurance accessible to more Americans, including those living with HIV
and AIDS," said Melinda Paras, executive director of the National Gay and
Lesbian Task Force (NGLTF), who attended the White House Rose Garden signing
ceremony.  "Many of the provisions in the bill will call for major changes in
the current practice of some insurance companies, and make it more difficult
for them to redline people with AIDS."

 The new law, H.R. 3103,  will no longer allow insurance companies to lock
out from coverage people with preexisting medical conditions who move from
one job to another.  If a person moves from one job to another, he or she
cannot be denied medical coverage in the new job for a preexisting condition,
except for a one-time, 12-month exclusion for any such condition that was
diagnosed or treated in the preceding six months.  After the 12-month period,
the condition would be covered. The 12-month exclusion is a lifetime limit so
long as an individual maintains continuous coverage.

 The law also blocks insurers from denying coverage or charging higher
premiums to individuals in group plans who are in poor health.  It also
prohibits insurance companies from refusing to sell policies to small
-- more --
Health Coverage, Page 2

 employers (those with two to 50 employees).  In addition, the law provides a
tax break for people with terminal illnesses who cash in their life insurance
policies, as many people with AIDS have done.

 At the same time NGLTF praised portions of the bill, it also pointed out its
shortcomings.

 "While the Kassebaum-Kennedy legislation is an important first step, it
falls significantly short of addressing the critical issue of making health
insurance both accessible and affordable for all Americans," said NGLTF's
Paras.  For example, the legislation sets no limit on the cost of health
coverage nor does it address the fact that millions of Americans have no
health coverage at all.

 At least two other provisions in the bill caused concern for activists.  One
is the creation of a Medical Savings Accounts (MSAs) demonstration project,
and the other regards patient confidentiality.

 Under the MSAs project, specified individuals can purchase high-deductible
health insurance plans while setting aside pre-tax dollars to pay for medical
expenses.  Activists say the problem with MSAs is that they are most likely
to appeal to those who are in good health and who have the money to afford
such savings accounts.  And the more people who opt for MSAs, the fewer
premium dollars are available in the insurance pool to pay doctor and
hospital bills, which would result in higher premiums for the sick and poor
who are left behind.

 Although the bill requires steps to be taken toward the immediate electronic
transfer of health information, it does not put into place protections to
ensure patient privacy until 1998.

  "Despite the positive aspects of the bill, there are still serious concerns
regarding affordable health care for all Americans," said Paras.
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