Health costs shoved to forefront

Gary Swan acknowledges the issue of increasing health insurance costs used to be on the periphery of the Pennsylvania Farm Bureau's agenda.

That changed Jan. 1, the renewal date for the group health insurance plan that the bureau offers to its members. Many members saw their rates soar, some

"That new development forced us to step back and take a look at the issue," said Swan, spokesman for the Camp Hill-based bureau.

The jump also spurred the bureau to action. It is one of seven statewide organizations that have formed an alliance, which has yet to be named, to seek solutions to the health insurance problem. The organizations represent a wide variety of employers and industries, including agriculture, construction and retail.

"There's one common denominator among our organizations," said Kevin Shivers, director of the state chapter of the National Federation of Independent Business, one of the groups in the alliance. "Our members are all screaming about rising health care costs."

The other groups are the PennAg Industries Association, the Pennsylvania Builders Association, the Pennsylvania State Grange, SMC Business Councils and the Pennsylvania Retailers' Association. The seven organizations together represent 100,000 employers with more than 500,000 employees in Pennsylvania.

The alliance has two major objectives. One is to make health insurance reform a priority for state lawmakers and Gov. Ed Rendell. The alliance also is asking state lawmakers to form a Health Insurance Affordability Commission.

The commission - comprising consumers, legislators, regulators, insurers and health care providers - would examine the issue of health care costs and recommend remedies. Late last year, the governor formed a task force designed to address rising medical-malpractice costs. Swan said the alliance's task force would be different because it would examine the variety of factors that are affecting health insurance costs, including malpractice costs, prescription costs and increased use of medical services.

Zimmer Grove Homes Inc. will see its health insurance premiums increase 23 percent May 1, said Roger Zimmer, owner of the Harrisburg-based home building business. The affordability commission is needed so that the state can examine all the factors that are driving up costs, Zimmer added.

"If you put all the players at the table, that's the only way you're going to find out what the real problems are," he said.

The Pennsylvania Builders Association in Lemoyne decided to join the alliance because many of its members are facing the same rate increases as Zimmer, said Debbi Tingley, the association's director of public relations and public affairs. Many members have expressed both concerns about what effect the rising costs are having on employees and frustration because the situation isn't getting better, Tingley said. "These are employers who are trying to provide benefits to their employees and finding that it's almost impossible," she said.

Swan said he hoped the cooperation would make the groups a more powerful force in the health insurance issue than they would be separately. "We think this issue is going to become a very prominent issue," he said. "We believe that the more people talk about this, the more lawmakers will listen."

The variety of organizations involved also gives the alliance a better view of the issue, Swan said. For example, farmers might raise concerns about the financial impact of increasing health insurance costs, while people in other industries might be more concerned about how increasing costs restrict access to health care.

The alliance wants the proposed commission to make recommendations by 2004. In the meantime, the group is asking legislators to examine whether the Pennsylvania Department of Insurance has adequate oversight over insurance rates and whether the department gives the public enough opportunity to comment on proposed rate increases. The alliance also wants more members, Swan said. "This is a huge problem in Pennsylvania," he said. "It crosses all economic boundaries."