Having No Coverage Means Having No Choice

Feb 22, 2000

FOR IMMEDIATE RELEASE

CONTACT: Richard Coorsh

February 22, 2000

(202) 824-1787

e-mail: rcoorsh@hiaa.org

The following statement was released today by Chip Kahn, President of the Health Insurance Association of America (HIAA):

A report released today by the Center for Studying Health System Change (HSC) finds that the percentage of American families who have a choice of health plans is larger than commonly assumed, and that this percentage has actually grown modestly over the past two years.

Unfortunately, public policy proposals discussed in the report that some have advanced as a way of increasing choice beyond the 64 percent of American families who have it actually would move in the opposite direction. For example, it is hard to understand how increasing the ability of trial lawyers to sue health plans and employers who are voluntarily offering health coverage to their employees would increase consumer choice. This proposal would raise costs to consumers and employers while forcing many employers to drop coverage altogether.

Another suggestion would be to create purchasing cooperatives known as "HealthMarts." Unfortunately, HealthMarts would fragment state-regulated small group insurance markets, increasing health coverage costs for many employers and workers and forcing many of those with the greatest health care needs to lose coverage. This result regarding HealthMarts was recently confirmed in a study released by the nonpartisan Congressional Budget Office.

We are encouraged that the percentage of Americans with a choice of health plans is significant, and growing. But we caution those who would attempt to increase consumers’ choice through proposals that would raise costs and raise the number of uninsured. Having no coverage is having no choice at all.

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