Employers from Around the Country Rally
Against Health Care Lawsuits
Contact: |
Johanna Schneider |
|
(202) 872-1260 |
Release Date: |
03/07/2000 |
Group Urges Opposition to Dingell-Norwood
Bill
Washington, DC - The Business Roundtable and employers from
around the country joined together today to voice opposition
to the Dingell-Norwood bill and provisions to expose employers
to health care lawsuits. The group, comprised of large and
small businesses, urged the conference committee on patients'
rights legislation to heed employers' warnings that
Dingell-Norwood will benefit trial lawyers and force many
employers to drop health coverage.
Demonstrating united employer concern over health care
liability, business men and women from Arizona, California,
Connecticut, Michigan, New Jersey, Ohio, Tennessee, Virginia
and Wisconsin spoke out against the devastating effect this
legislation will have on employer-sponsored health insurance.
Additionally, more than 800 employers and employer groups have
signed more than 40 letters to members of Congress detailing
their opposition to any liability provision included as part
of the conference bill. Some of the letters thanked members of
Congress for their vote against Dingell-Norwood, while others
expressed disappointment in members' support of this damaging
legislation.
Employers are also communicating to their employees about
the harmful consequences of runaway lawsuits. "I have
personally communicated to FMC employees how the
Dingell-Norwood bill could jeopardize current health insurance
benefits," stated Robert N. Burt, chairman and chief executive
officer of Chicago-based FMC Corporation and chairman of The
Business Roundtable. "Instead of expensive litigation that can
take years to get through the court system, we support a quick
and independent review that will ensure that our employees and
their families get the care they need when they need it." An
employee outreach video produced by Caterpillar was also shown
at the press conference.
As shown today, employers fear they may have to reevaluate
their roles in providing health benefits if faced with going
to court. "I would consider dropping coverage to my employees
altogether if I am at risk for being sued," said Rodney Smith,
president of Smith-Midland a concrete business located in
Midland, Virginia. Even for those employers who don't drop
coverage entirely, the exposure to costly health care lawsuits
will leave many employers with no other choice but to reduce
benefits or increase premiums and out-of-pocket costs.
In addition to countless new lawsuits, the Dingell-Norwood
bill is estimated to burden American families and businesses
by driving up the cost of health benefits - 4.1 percent
according to the Congressional Budget Office. The 4.1 percent
would come on top of an already expected 12 percent rise in
health care costs this year for many large employers - for
small employers it will be even worse. This 4.1 percent
increase in costs will force 1.2 million more into the ranks
of the uninsured, since experts say every 1 percent increase
in premiums results in 300,000 more uninsured.
"Employers voluntarily provide health benefits to 160
million Americans," said Johanna Schneider, Director of
Communications for The Business Roundtable. "However, if
Congress passes a bill that allows employers to be hauled into
court, many employers will have no other choice but to stop
providing coverage altogether. We urge the conference
committee to reject this costly legislation and work towards a
better solution that doesn't benefit trial lawyers at the
expense of employers, employees and their families."
# # #
The Business Roundtable is an association of chief
executive officers of leading corporations with a combined
workforce of more than 10 million employees in the United
States. The chief executives are committed to advocating
public policies that foster vigorous economic growth and a
dynamic global economy.
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