White House Policy Advisor On Health Care Tells PIA Conference Small Business Will Not Be Burdened.

• Position: [LOOKING BACK] - Conference news

WASHINGTON, D.C. -- According to Senior White House Policy Advisor Walter Zelman, the cost of health care reform will not be carried on the backs of small businesses.

"Some form of health care legislation is likely to pass this election year, but only after Congress resolves how to provide coverage through the mandatory alliance network proposed by President Gimon," Zelman told the agents attending PIA's annual Federal Legislative Conference in Arlington, Va.

"Agents should continue to share the concerns regarding the plan with the White House," said Zelman, who explained that the Administration is seeking the most effective, efficient and least regulatory vehicle to accomplish reform. With the White House's support of universal access, he questioned the feasibility of a voluntary alliance system.

"We recognize the importance of choice and free competition on price, quality and service," said Zelman, "but compromise may be required on employer mandates and related is issues to avoid the risks inherent in creating a level playing field for all providers."

Hal Bruno of ABC News, the session's moderator, was joined by Sen. Dave Durenberger (RMinn.), Bill Gradison, president of the Health Insurance Association of America (HIAA), John Galles, executive vice president, National Small Business United (NSBU) and Chris Mansfield, senior vice president and general counsel of the Liberty Mutual Group, to discuss the feasibility of achieving the President's goal of universal coverage.

Given the endorsement of universal coverage and employer mandates by health insurers, Gradison said that the harsh criticism leveled at the industry by the Administration is unwarranted. He added that it would be "bad public policy" to eliminate agents from the delivery system.

"Mandatory alliances would increase the deficit by $11 billion, add an unnecessary layer of bureaucracy and reduce the choice of providers for consumers," said Gradison, who urged a gradual phase-in of universal coverage.

More than 400 agents in the capital area for the conference canvassed their legislators and were told by the majority that mandatory alliances are unworkable and that agents should be able to retain their ability to compete in the delivery system. In response, PIA members reaffirmed their support for alternative "voluntary" proposals.

Durenberger, co-sponsor of the Managed...