To the People of the United States:

I have reviewed HR3200 Title II. I do not support the concept of a Massachusetts-style Insurance Exchange. The functionality is a duplication of the role licensed agents and brokers already serve in the marketplace, along with regulatory bodies present in each state. If an Exchange is to be established, then those selected to run the Exchange should be subject to the same rigorous licensing and continuing-education requirements that licensed agents and brokers are required to abide by. Any Exchange should have standardized information and administrative functions only, and should act as a clearing house for plans developed in the free-market, not just plans approved and created by the commissioner. Those functions should be well-defined in the proposed law. The function of the Exchange is NOT well-defined.

Agents and brokers add an extremely valuable service and expertise to individuals and employers seeking health insurance coverage. Regardless of the degree to which insurance is “simplified”, it will remain a fairly complex transaction to the typical American. Agents generally provide personal service, timely objective information, guidance and accountability that is impossible to replicate in an Exchange environment. It is important that they have integrity and customer service to match the expertise. It is doubtful you will receive the same courtesy from a government employee. Agents and brokers are not merely an unnecessary administrative expense for health insurance that can easily be cut out and replaced and discarded in the process of “eliminating profit”. Those in the Individual and Small Group markets need an agent to help them with a variety of coverage issues.

I will write more regarding the specifics of Title II, and why it will not serve the American People in the next post on this subject.

Publius Alter