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Norwood-Dingell is
gift to trial lawyers
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Release Date:
10/07/99
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WASHINGTON, Oct. 7, 1999 --
The small business group NFIB today blasted
passage in the U.S. House of Representatives of
the managed care reform bill offered by U.S.
Reps. Charles Norwood (10th Dist.-Ga.) and John
Dingell (16th Dist.-Mich.).
"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," said 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." He pointed
out that three out of every five Americans
without health insurance are from families
headed by someone who works in a small business.
Every 1 percent increase in cost adds an
estimated 300,000 individuals to the ranks of
the uninsured, who already top 44 million,
Danner said. "This legislation drives up costs
two ways: by new mandates and by inviting more
lawsuits. 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."
"Just yesterday, the House
passed a bill that offers tremendous help and
hope to the 44.3 million Americans without
health insurance. Yet today, 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," Danner said.
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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 its600,000 members in Washington and
all 50 state capitals. More information is
available online at
www.nfib.com.
CONTACT: Mary Mead
Crawford or Jean
Hudson at 202.554.9000.
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