Debate Over Health Care

When viewed as a first step, the health insurance reforms contemplated by the Bush Administration (“Bush to Urge Easing Health Insurance for Small Firms,” Jan. 15) have a great deal of merit. Sole proprietors and unincorporated business should have the same tax benefits for purchasing health coverage as large companies.

The Administration proposal to help small enterprises join together to purchase coverage in government-sponsored cooperatives, however, is far more complicated--and potentially far more costly--than is necessary. Such cooperatives already exist in the form of Multiple Employer Trusts (METs).

What is needed is to change the way METs and others in the small group market currently do business. They should be required to accept groups regardless of their existing health conditions or the nature of their business. The surcharge they apply to groups with known health conditions should be greatly limited. These reforms are being debated in Sacramento and even the most conservative carriers admit they are needed.

That the Administration wants to take the first step toward comprehensive reform is good. By building on what already exists instead of creating an unnecessary new program, the Administration can deliver the benefits of that first step to consumers who will gain the benefits of that first step more quickly, more fairly and more efficiently.

ALAN KATZ, President-Elect

California Assn. of Health Underwriters

Woodland Hills