<nobr>Jan 24, 2008</nobr>

States Rolling Out Patchwork Quilt on Health "Reforms"

Greater Local Vigilance Needed

State governments are increasingly looking to enact State-based health reforms, contending that the federal government has been unable to do so. They are under increasing pressure from local medical interests such as the AMA, which has conducted a stealth lobbying operation in Ohio. ERIC members are faced with new statutes in Massachusetts and San Francisco, and legislation working its way toward enactment in California that requires a funding referendum. The Ohio House of Representatives passed legislation that was sent to the Senate that would effectively control the contracting between providers and insurers, thus limiting the ability of plan sponsors to maintain nationally consistent plans in that State.

New Jersey is contemplating legislation and is being backed up by New Jersey's Rob Andrews (D-NJ), Chairman of the U.S. House of Representatives Subcommittee on Health, Employment, Labor & Pensions (Education and Labor Committee). Andrews is expected to push in this session of Congress for a State preemption waiver on behalf of New Jersey. Representatives from other States contemplating reforms are likely to join him.

While ERIC has been lobbying well and effectively in the Congress, and, where we can, providing resources to State business advocates, we and other Washington employer and business groups are not getting information about State initiatives quickly enough. We, therefore, are asking that you instruct your local State lobbyists to add State health reforms to their regular "watch list" and let us know as quickly as possible about the introduction or consideration of State health reforms that would impinge on preemption and national uniformity.

To that end, ERIC has established on our web site, ERIC OnLine, a "Preemption Watch" that includes information about the importance of Federal ERISA preemption and national uniformity. More importantly, for State business lobbyists who understandably are not familiar with the issues, we have included a series of talking points and other information for their use to quickly engage and fight back State efforts "on the ground."

ERIC's Preemption Watch is located at the upper right hand corner on the web site or click here.

The protection of federal preemption under ERISA is and has been for 30 years a leadership issue for ERIC. Our "New Benefits Platform for Life Security" for example, unlike some other similar proposals, clearly calls for a nationally uniform system for both health and retirement security.

ACTION NEEDED

We need your help. We are not in a position to lobby 50 States and myriad municipalities -- something local business interests are better equipped to do. We can, however, provide the resources to help local business interests fight bad legislation.

• Become familiar with ERIC's Preemption Watch.



• Advise your lobbying team to be on the alert for State health legislation that affects ERISA preemption and national uniformity.



• Let ERIC staff know early about State initiatives so we can get the right materials in the right hands before the wrong legislation gets moving.



• Tell your lobbying team and others about ERIC's Preemption Watch so they know what to look for in advance.



• Be Alert -- the Plan You Save May Be Your Own!

Stopping bad legislation in the States is easier, more cost effective, and more likely to succeed if we can catch it and stop it before it moves forward.

ERIC's staff that should be advised of State legislation moving forward includes:

Edwina Rogers, Vice President Health Policy
erogers@eric.org

Joe Grundy, Professional Staff
jgrundy@eric.org

Rohan Beesla, Professional Staff
rbeesla@eric.org

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