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On The Issues: Feingold-Graham State-Based Health Care Reform Act Fact Sheet

April 25, 2007

Overview

The bill is designed to provide more uninsured Americans with health care coverage. The legislation seeks to accomplish this goal by establishing a pilot grant program to enable states or localities to propose and administer health insurance expansion projects. These state-based reforms will provide the country with the evidence and experience necessary to address nationwide health care reform.

Pilot Project

This bill will provide grants for states to participate in a five-year pilot project. States with approved proposals will be required to provide some matching funds. States are expected to provide some limited financial protections for low-income individuals, meet a baseline of coverage, and expand coverage within the five-year period. States are also expected to improve the efficiency of health care spending and lower administrative health care costs.

Health Care Coverage Task Force

The legislation creates a Health Care Coverage Task Force. The Task Force will approve grant proposals, oversee the implementation of the demonstration projects, and review the progress toward achieving established goals. The Task Force will be comprised of both political and non-political appointees. The Secretary of the Department of Health and Human Services will be responsible for housing the Task Force and will be a member as well.

Congressional Approval

Because the states can propose amendments to federal law, the proposals will need to be passed by Congress. In order to hasten passage, the state plans will be sent from the Task Force en bloc and under expedited procedure. No amendments to the plans will be allowed. Once the plans are passed by Congress, the states will receive the authority and funding needed to implement their plans for reform.

Meaningful Health Care Coverage

Participating states will be required to submit an annual report to the Task Force detailing their progress. The Task Force will then be responsible for submitting an evaluation of all demonstration projects to Congress at the end of the five-year period. The Task Force will provide recommendations for further reform based on the states’ experiences, and the bill will require congressional debate of these recommendations and findings. This will help ensure that meaningful reform for the entire country will be considered by Congress.