1,000 Insurance Agents Descend on Capitol Hill to Argue Health Reform

As health care reform hits an urgent pace on Capitol Hill, more than 1,000 insurance professionals mobbed lawmaker offices to argue against the formation of a government-run health insurer, which they worry will undermine the private sector.

As news emerged that a Senate committee had passed a version of the bill -- including the public option -- agents were attending meetings in congressional offices. A few hours after Sen. Chris Dodd, D-Conn., announced the bill's approval in the Health, Education, Labor and Pensions Committee, he was scheduled for a meeting with home-state agents.

Spencer Houldin, president of Ericson Insurance in Washington, Conn., was among them. Houldin, who also volunteers as chairman of the government affairs committee of the Independent Insurance Agents & Brokers of America, wanted an answer to his questions about the government-run insurer: "Where will that lead to, and will it squeeze out the private plans that are in place?" He said he believes the idea will drag down the health insurance industry. "There's no way a government program will be on a level playing field. Eventually, it'll make the private plans obsolete."

The organized "fly-in" of amateur lobbyists from 49 states was organized by the Health Insurance Agent & Broker Alliance, a coalition of industry associations.

Janet Trautwein, chief executive officer of the National Association of Health Underwriters, said in a statement, "Agents and brokers are the point of contact for the majority of Americans who purchase health care coverage. The government would find it difficult to institute successful health care reform without the help of the agent and broker community."

While the agents reached most of Congress, President Barack Obama stood with a few Democratic members at a news conference to praise the Senate committee's passage of the bill. "We're now closer to the goal of health reform than we have ever been," he said. Obama said the legislation would "keep insurers honest" and assure "fair treatment of the insured by the insurance industry."

(Jesse A. Hamilton, Washington bureau manager: Jesse.Hamilton@ambest.com)