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SALT LAKE CITY (AP) -- Utah Attorney General Mark Shurtleff and the state's insurance commissioner have unsuccessfully lobbied Utah Republican Sens. Orrin Hatch and Bob Bennett against legislation that would allow businesses to seek health insurance in other states, with different insurance regulations.
The measure, backed by the Bush administration, would let small businesses join together to buy health insurance out of state for their workers.
Senate Republicans argue that would provide less-expensive care.
Democrats, 41 state attorneys general, several insurance commissioners and a number of nonprofit groups say the bill would let businesses use out-of-state regulations covering the health plans.
In Utah, that could mean businesses could offer health plans that don't include treatment for alcoholism and drug abuse, mental health disorders, metabolic disorders and supplies and education on diabetes, according to Families USA, a group that promotes broader health coverage.
Shurtleff joined in a letter by the National Association of Attorneys General that argues the legislation, by Sen. Mike Enzi, R-Wyo., would supersede state law and that past experience has shown that "exempting plans like this from state law harms consumers."
The letter concludes that, "Consumers rightfully expect their state government to require a minimum of health benefit protections and to protect them from abuse by health care insurers. Elimination of strong state protections in exchange for weak federal oversight fails consumers."
Utah Insurance Commissioner D. Kent Michie said in a letter to Hatch and Bennett that he tried to understand the bill and those who support it, but cannot recommend voting for the measure, The Salt Lake Tribune reported Thursday.
"I have yet to find one single commissioner of insurance from any state who is in favor of the bill on its merits," Michie wrote.
Hatch disputed criticism of the bill this week during a floor speech.
"Those who decry this bill because it does not guarantee small business employees a comprehensive plan, must be reminded that most employees of small businesses do not have a choice today, if they are fortunate to have health insurance coverage," Hatch said. "The legislation before the Senate will create new options for small businesses and the potential for more choices for their employees."
Bennett spokeswoman Mary Jane Collipriest said he will support the bill because it "will give small businesses the opportunity to offer health coverage to their employees and increase the number of insured Americans."
(Copyright 2006 by The Associated Press. All Rights Reserved.)
