Contact: |
Johanna Schneider |
|
202-872-1260 |
Release Date: |
01/07/1999 |
Statement by The Business Roundtable
Washington, DC, January 7, 1999 - As health care costs are
rising, Representative Charlie Norwood (R-GA) today will
announce a new bill - the "Access to Quality Care Act" or
PARCA '99 - which will only add to increased costs and
decreased coverage for businesses and families. If enacted, it
will seriously jeopardize America's employer-based health care
system.
Norwood's new bill, which combines measures of his failed
Patient Access to Responsible Care Act (PARCA) and the failed
Kennedy-Dingell "Patients' Bill of Rights," would add to the
growing costs that businesses are experiencing to provide
health benefits to their employees. According to a recent
survey by Towers Perrin, large employers' health benefit costs
are growing an average of 7 percent this year, almost twice
the rate of 1998. Additional mandates to the employer-based
health care system could price employers out of providing
health care coverage for their employees.
One particularly detrimental provision would allow
additional lawsuits against health plans and employers, which
would put employers at risk of being sued for medical
malpractice.
"Increased lawsuits could drive up premiums as much as 8.6
percent, according to the Barents Group, of KPMG Peat Marwick,
forcing businesses to pay $94.1 billion ($1,284 per worker) in
extra premium costs over five years," said Tony Burns,
chairman, president and CEO of Ryder System, Inc. and chairman
of The Business Roundtable Health and Retirement Task Force.
"Close to 2 million Americans could lose their health
insurance next year as increased costs force many employers to
eliminate coverage altogether, or pass on higher premiums and
out-of-pocket costs to employees who can't afford them."
Rep. Norwood claims that his revised bill exempts employers
from liability for medical decisions. But the only way
employers can escape liability under his bill is to give up
any responsibility for benefit decisions affecting their
employees. Even if his bill could effectively shelter
employers from lawsuits and direct liability-which his
proposal does not accomplish-the costs of expanded liability
would still be passed on to employers, employees and their
families.
The Business Roundtable urges Congress to oppose Norwood's
latest bill, as well as any legislation that increases costs
and decreases coverage for hard working American families.
The Business Roundtable is an association of chief
executive officers of leading corporations with a combined
work force of more than 10 million employees. The chief
executives are committed to advocating public policies that
foster vigorous economic growth and dynamic global economy.
###