I-895 proposes fewer uninsured people, lower premiums, though some are not so sure

A health-related initiative is making people either soundly happy or worried sick in Washington state.

Initiative 895, a proposal to permit health insurance companies to market policies without having to respond to state coverage guidelines, continues to gather signatures, and while some applaud the efforts, some cringe in fear of higher premiums and reduced coverage options.

Opponents of the initiative, such as Citizens Against I-895, and the Washington Association of Naturopathic Physicians say the proposal, which needs to gather close to 200,000 signatures by July 2 in order to get on the November ballot, could mean the end of several health services for those employed by small businesses.

Those against it insist that passing I-895 would keep consumers from choosing the type of health care they believe will be best for them, as well as allow insurers to "ignore" certain benefit requirements, such as maternity services, diabetes coverage, coverage for adopted children, as well as emergency room visits.

Several guidelines set by the state currently require these medical conditions to be covered. I-895 would let insurance companies pick and choose what to cover.

Opponents to I-895 say that without state oversight, insurance companies would be allowed to raise premiums 8 percent each year, as well as allow the companies to charge additional premiums, based on the chosen coverage.

Supporters of the initiative such as the Small Business for Affordable Health Care group refute that, insisting that the reforms put in place by I-895 would make sure the premiums for each insurance plan are determined accordingly with what the plan itself costs.

Proponents insist that by giving insurers almost total discretion in picking and choosing what providers and which health benefits are included in a plan, it would be easier for small businesses to acquire affordable health care.

The endorsements of the proposal by several business associations, supporters say, show that passing I-895 could be a good idea for small business owners.

A press release posted at the organization's Web site, www.sbahc.com, states that among those backing I-895 are the Building Industry Association of Washington, the Washington State Medical Association, and the Washington Association of Accountants.

The Association of Washington Businesses, the state's largest group of its kind, is still mum on an endorsement, though.

Kristen Sawin, the AWB's political director said that the group was in the process of making a decision, although they were not all the way through yet.

Given that there are not many opportunities for small businesses to find health insurance, she said, it would be very surprising for the AWB not to endorse the initiative.

"This, in the end, is pretty consistent with our health policy position," she said.

Among the reasons for the possible endorsement, Sawin said that the AWB had a long story of supporting the insurance packages offered by businesses, which are less rich in benefits than what the state requires.

Sawin said that some members of the AWB were not in favor of the initiative, among them health care and insurance providers that are small business owners, as well, hence the need to discuss the topic more before issuing an official endorsement.

Others which have endorsed I-895 include the chambers of commerce in Enumclaw and in the Yakima Valley. Alan Heroux, president of the Moses Lake chamber said that though the initiative has been and will be discussed during meetings, no action has been taken on it.

Heroux said that the chamber's interest on the topic was still on its preliminary stages, "to see what it is about."