CONTACTS: Frank Coleman/Linda Rozett
(202)463-5682/888-249-NEWS
Friday, September 29, 2000
Chamber Hails Decline in Number of
Uninsured
Warns Congressional Action Could
Undercut Gains
WASHINGTON, D.C. – The United States Chamber of
Commerce welcomed the news from the Census Bureau that the number of
Americans without health insurance dropped by 1.7 million from 1998
to 1999 due to expansions in employer-provided coverage, but warned
congressional action could reverse that trend through legislation
that expands patients’ rights to sue their health plans.
"The good news is that our nation’s strong economic
growth has made it possible for more businesses to offer health care
benefits to their workers," said Kate Sullivan, Chamber director for
health care policy. "Congress must not pass legislation that would
cause employers to drop health coverage, or the recent gains will be
swiftly undone."
Employer-based groups make up 89 percent of the
private health insurance market and provide fundamental financial
security for more than 172 million workers, retirees and their
families, according to the Chamber. Health care cost and coverage
solutions should preserve the employer-based system, not replace
it.
The Chamber advocates strengthening and expanding
the current system through a number of initiatives including: tax
incentives for individuals who buy their own health insurance
including forward-funded, refundable tax credits for those with low
incomes; pooled purchasing under ERISA for small businesses,
individuals and the self-employed; and expanded use of medical
savings accounts.
"Adding new government mandates will do nothing for
the millions of Americans who still lack basic health care
insurance," said Sullivan. "It’s simple health care economics 101:
making employer health plans fair game for trial lawyers will
increase the cost of those plans, which equals less
coverage."
Employers are experiencing the highest premium
increases in a decade, according to the Chamber. As costs rise,
companies scale back or even drop coverage or require employees to
contribute a larger portion of the cost. And, as employees’ costs
rise, overall participation declines, raising the number of
uninsured and raising the cost for those who remain.
The U.S. Chamber of Commerce is the world’s largest
business federation representing more than three million businesses
and organizations of every size, sector and region.
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