Frist Patients’ Rights Bill Would Raise Premiums 2.9%, Compared to 4.2% for McCain Bill CBO Finds

The patients' rights proposal (S. 889) sponsored by Sens. Bill Frist (R-Tenn.), James Jeffords (I-Vt.) and John Breaux (D-La.) and endorsed by President Bush would raise the "median annual insurance premium" by 2.9%, according to a new report from the Congressional Budget Office, the AP/Wichita Eagle reports. In April, the CBO projected that a competing patients rights measure (S. 283) sponsored by Sens. John McCain (R-Ariz.), Edward Kennedy (D-Mass.) and John Edwards (D-N.C.) would raise premiums by 4.2% (McQueen, AP/Wichita Eagle, 6/8). The McCain bill would allow patients to sue HMOs in state court for denial of benefits or quality of care issues and in federal court for non-quality of care issues, with damages awarded in federal court capped at $5 million, while state courts could award as much money in damages as the state allows (Kaiser Daily Health Policy Report, 2/7). The Frist-Breaux-Jeffords bill would allow patients to sue their health plans only after exhausting an appeals process by an outside review panel and only in federal court, with awards capped at $500,000 (Kaiser Daily Health Policy Report, 5/16). Reacting to the new CBO report, Frist said that it "illustrates what we've said all along, that our bill represents a true compromise" about patients' rights.

Back-Room Dealing
Meanwhile, CongressDaily reports that "behind-the-scenes discussions are picking up" in the Senate on patients' rights, which the chamber is expected to take up as soon as the education bill is completed. Yesterday, HHS Secretary Tommy Thompson met separately with Democratic and Republican Senate leaders to discuss a "potential compromise." With Democrats expected to bring to the floor the McCain-Kennedy-Edwards bill, Thompson said, "We hope we're able to reach an agreement," but "if the president feels strongly that [this] bill doesn't reach his principles, he will" veto it. CongressDaily reports that Senate opponents of the McCain-Kennedy-Edwards bill "fear they lack the votes to defeat or even substantially change the measure," but are "confident" that they will be able to add a "package of tax-related health insurance 'access' provisions" to the bill, including a "broad expansion" of medical savings accounts (Rovner/Fulton, CongressDaily, 6/7).