The Olympian

How state's health care debate could affect you

Brokerage concept among the proposals to give more people access to insurance coverage

BY BRAD SHANNON | THE OLYMPIAN • Published February 11, 2007

State lawmakers have started rolling up their sleeves to do surgery on Washington state's health care insurance system.

House Democrats moved one major piece of their health care proposal over its first committee hurdle Thursday. They approved a bill that would set up a way for individuals and small-business employees to buy their

private-company insurance through a brokerage or "connector" set up through the state Health Care Authority - perhaps as soon as 2009.

The concept, taken from an experiment under way in Massachusetts, would let consumers choose among a half-dozen insurance products, including private-sector offerings, through the state "connector" or broker. It would mark a fundamental shift from the traditional linkage of job and insurance, and it would let the consumer pool money for the purchase using personal, employer and even state contributions.

Democrats such as bill sponsor Rep. Eileen Cody of Seattle say the proposed legislation is really about giving more choices to small-business employees, who in the future wouldn't have to go through employers to get insured.

"I think the problem is that the employer-based system we have in this country is failing," Cody, chairwoman of the House Health Care and Wellness Committee, said during committee debate on her proposal last week. "It's eroding. I don't know if employers, if you talk to them, want to stay in the health care provider business. ... They don't necessarily see that as a role of the employer."

But Republicans and several business groups are far from convinced that the proposals under discussion actually open the door enough to the kinds of private-market innovation they want - or soon enough.

Many say private insurers should be allowed to craft policies without the state's more than 45 requirements for specific kinds of care, and they want choices for employers.

Carolyn Logue of the National Federation of Independent Business says many businesses like their existing insurance plans and don't want to lose them, or have to go through a new broker to get them.