Democrats press for HMO fees to fund health reform

By Kim Dixon and Donna Smith

WASHINGTON (Reuters) - A group of Democrats on the tax-writing Senate Finance Committee on Wednesday called for health insurers to pay fees worth up to $100 billion over a decade to help pay for the overhaul of the U.S. healthcare system.

The proposed fees are among the options being discussed by the committee, Senator Charles Schumer told reporters at a briefing with fellow committee Democrats Debbie Stabenow, Robert Menendez and Jay Rockefeller.

Insurers are among the last segment of the healthcare industry that have not pledged to help fund the estimated $1 trillion reform that aims to rein in soaring costs and provide medical coverage to millions of the uninsured.

Drugmakers have committed $80 billion and the hospital sector has offered $155 billion, both over a decade.

"We need the insurance companies to step up to the plate," Schumer said. "It makes sense that private health insurers, who are going to gain 40 million customers in a reformed system, should pay their fair share."

He said details on how such a fee could be structured were still in flux, but a congressional source said they could be based on revenue or market share.

About 46 million individuals lack health insurance in the United States, and a major goal of reform is to add many of these people to the rolls.

A spokesman for America's Health Insurance Plans, the industry's lobbying group, said insurers have already agreed to meaningful reforms such as guaranteed coverage for pre-existing health conditions, adding taxes would undermine affordability.