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Dingell/Norwood HMO
reform plan fails yet another small business
test
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Release Date:
10/05/99
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WASHINGTON, Oct. 5, 1999 --
NFIB called the latest move by the sponsors of
the leading HMO reform plan --a request for $7
billion in offsets to pay for the high costs
associated with the plan -- further proof that
it would hike health care premiums and drive
more Americans to the ranks of the
uninsured.
NFIB is strongly urging
members of Congress to oppose H.R. 2723,
sponsored by U.S. Reps. John Dingell (16th
Dist.-Mich.) and Charles Norwood
(10thDist.-Ga.), when it comes before the U.S.
House of Representatives later this week. Small
business opposes the bill because it fails to
address accessibility and cost and would leave
employers who provide health benefits open to
lawsuits filed by employees who become
dissatisfied with treatment decisions made by
their HMOs.
Dingell and Norwood recently
filed an amendment to offset the costs
associated with H.R. 2723, acknowledging that
health care premiums could rise as a result of
the new requirements their bill places on
managed care companies. Businesses that offer
health insurance to their employees can deduct
the costs of the premiums from their tax
returns. The offsets would cover the revenue
losses estimated to result from the increased
deductions for higher medical
premiums.
"Cost is by far the No. 1
threat to existing health coverage and the
greatest barrier to improved coverage," said Dan
Danner, vice president of federal public policy
for NFIB. "The Dingell/Norwood plan utterly
fails to address costs. In fact, today's request
for offsets to cover the high costs associated
with the plan is further proof that it
completely ignores the real crisis in health
care today -- the uninsured."
A Census
Bureau study released yesterday shows that more
than one million Americans were added to the
ranks of the uninsured in 1998, bringing the
total to 44.3 million -- three out of five of
whom are from families headed by someone who is
self-employed or works for a small
firm.
NFIB is calling on members of
Congress to vote for the Quality Care For The
Uninsured Act (H.R. 2990), introduced by U.S.
Rep. James Talent (2ndDist.-Mo.). The Act would
increase the number of Americans with health
insurance by giving small businesses the right
to band together to purchase health insurance
through association health plans, providing tax
benefits to individuals who purchase their own
health coverage, and enhancing medical savings
accounts.
"Mr. Dingell and Mr. Norwood
are clearly acknowledging that their legislation
will lead to higher health care costs and add
even more Americans to the ranks of the
uninsured," Danner said.
The National
Federation of Independent Business is the
nation's largest small business advocacy group.
A nonprofit, nonpartisan organization founded in
1943, NFIB represents the consensus views of its
600,000 members in Washington and all 50 state
capitals. More information is available online
at www.nfib.com.
CONTACT: Mary Mead
Crawford or Mindi
Boyagian at
202.554.9000.
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