FOR IMMEDIATE RELEASE
Contacts: Todd Irons (202) 973-2927 Suzy DeFrancis
(202) 973-3610 Deanna Johnson Keim (202) 289-6700
New Dingell-Norwood Bill Exposes Employers to Even Broader
Liability
New Study Confirms Employers Are Not Protected from
Unlimited Lawsuits
Washington, DC, September 19, 2000 — The Health Benefits
Coalition today released a study of the revised Dingell-Norwood bill that
shows employers would still be subject to unlimited lawsuits, and their
exposure to liability would actually be worse than under the original
bill. The analysis was prepared by the Groom Law Group and commissioned by
the Association of Private Pension and Welfare Plans, an employer
organization and member of the Health Benefits Coalition.
"Like a terrible sequel to a bad movie, the Dingell-Norwood bill keeps
getting worse with each new production," said Jim Klein, President of the
Association of Private Pension and Welfare Plans. "But while a bad movie
sequel is over once the credits roll, employers will face the frightening
possibility of new, unlimited lawsuits for years to come if this bill
becomes law."
According to the analysis, the revised Dingell-Norwood bill exposes
employers to virtually all the same suits allowed under the original
legislation, but with even fewer limits on liability. For example:
- In addition to creating a far reaching set of federal and state
personal injury suits that are nearly unlimited and cover any claim for
benefits, the legislation also allows new federal suits relating to plan
administration.
- For the first time, the new bill allows personal injury lawsuits for
even simple errors in the administration of the COBRA continuation of
coverage requirements, and the preexisting conditions limitations
established in the Health Insurance Portability and Accountability Act
(HIPPA).
- It allows unlimited compensatory and punitive damages under both
federal and state law.
The expanded liability provisions in the latest Dingell-Norwood
proposal would force many employers, especially small businesses, to stop
offering health care coverage to their employees rather than face the risk
of a ruinous lawsuit. Even if they are not sued directly, employers and
their employees will still face higher costs resulting from the flood of
new lawsuits into the health care system. Either way, if this bill passes
more than a million people would lose their insurance (CBO, Lewin
Group).
For a copy of the 17-page study please call one of the contacts listed
above.
# # #
The Health Benefits Coalition is a broad-based
organization representing three million employers providing health care
coverage to more than 100 million employees and families. The coalition
believes affordable, quality health care is best achieved through broader
coverage, choice and competition in the marketplace – not government
mandates.
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