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House passes a gift
for trial lawyers
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Release Date:
10/08/99
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NFIB blasted the House
lawmakers who passed a managed care reform bill
that will increase the cost of health care and
increase the liability faced by small business
owners. The Norwood-Dingell bill opposed by Main
Street passed the House.
"Those who
voted to pass the Norwood-Dingell bill delivered
a gift to the trial bar today - and small
businesses and their employees will be stuck
with the tab," says Dan Danner, NFIB's vice
president of Federal Public Policy. "This
legislation will drive up costs and, in turn,
drive up the ranks of the uninsured."
Three out of five of the 44.3 million
Americans without health insurance are from
families headed by someone who works in a small
business.
"This legislation drives up
costs two ways: by new mandates and by inviting
more lawsuits," says Danner. "Those small
businesses that have been able to afford health
insurance for their employees are already
struggling to meet premium increases of more
than 20 percent a year in some cases. They can't
absorb the additional costs these new mandates
will add. Nor will they be willing to risk being
dragged into court just because they provide
health insurance.
"Lawsuits cost small
businesses an average of $100,000, even if the
business is found innocent -that's enough to put
most small businesses right out of business. So
the effect of this legislation is that fewer
small businesses will be able to afford to
provide health insurance. That means more
Americans go without insurance."
"On
Wednesday, the House passed a bill that offers
tremendous help and hope to the 44.3 million
Americans without health insurance," says
Danner. "Yesterday, they took a major step
backward. As the health-care debate continues in
Washington, small business will continue to
fight for a solution that addresses the real
crisis in health care today: access and cost."
10.07.99
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