States get a say on health benefits

Associated Press

WASHINGTON

The Obama administration on Friday rolled out a benefits framework for millions of people who will get private insurance through the health-care overhaul, but states will decide the specifics.

The new law calls for the federal government to set a basic benefits package for private insurance. But that’s tricky territory for the administration as it tries to avoid the “big brother” label on health care. Obama will be defending his signature domestic law on two fronts next year — before the Supreme Court and the voters.

Friday’s proposal from Health and Human Services Secretary Kathleen Sebelius allows states to retain some leeway. Private insurance traditionally has been regulated at the state level, and many state officials don’t like having to answer to Washington.

The basic benefits package eventually could affect 90 million people, HHS said. That includes those who would gain private insurance thanks to the health-care law, and many more enrolled in small-employer and individual plans.