Revised 6.1 Percent CBO Estimate Underscores Need To Reduce Number of Uninsured Americans

Apr 27, 1999

FOR IMMEDIATE RELEASE

April 27, 1999

CONTACT: Richard Coorsh

(202) 824-1787

rcoorsh@hiaa.org

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

It comes as no surprise that the Congressional Budget Office (CBO) has increased its estimate of the likely hikes in premiums due to the so-called patient protection legislation sponsored by Senator Kennedy and Representative Dingell. If anything, research sponsored by HIAA and other organizations shows that even this latest CBO estimate understates the adverse effects on consumers that would accompany this legislation.

Congress should set as "job one" reducing the number of uninsured Americans, not adding new regulations that would increase the number of people without all-important health insurance protection. The CBO also estimates that each one percent increase in premiums results in at least 200,000 Americans losing or not getting health coverage. Consequently, the CBO’s latest estimate that the Kennedy/Dingell bill would raise premiums by 6.1 percent emphasizes that the most important patient protection should be protection against cost increases brought about by expensive, unnecessary government mandates.

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