Attorneys General Protest Benefits Bill

WASHINGTON -- A group of 39 state attorneys general told federal lawmakers Tuesday that they oppose legislation soon to be considered in the Senate that would let small businesses buy insurance policies that bypass state coverage requirements.

Under a proposal that senators will debate next week, businesses belonging to a particular professional or trade association could band together across state lines to negotiate less expensive insurance policies.

Supporters say the small business health plans would make health insurance more affordable, providing employees with at least some coverage. The supporters include such organizations as the National Federation of Independent Businesses.

But opponents say the bill would let insurers ignore state requirements, such as insurance coverage for mammograms or diabetes equipment. Opponents include groups such as the AARP.

The AG's said they don't want to eliminate strong state protections in exchange for weak federal oversight.

"Allowing health insurers to abandon mandated benefits ... will result in an increasingly ill population and higher health care costs as the health care system treats a growing number of consumers in crisis," the attorneys general wrote.