HCFA: Uninsured, Increased Government Regulation Will Spur National Health Care Spending Hike

Jul 15, 1999

FOR IMMEDIATE RELEASE

July 15, 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):

A report released on July 13, 1999, by the federal Health Care Financing Administration (HCFA) indicates that national health care spending will grow by 6.5 percent each year for the years 1998 through 2008. According to the report, two of the factors responsible for this spending increase are the rising number of uninsured, and "… a continued trend toward increased state and federal regulation of health plans." The HCFA report also acknowledges that in recent years, managed care has played a significant role in controlling the growth of health care spending.

Members of Congress and of state governments should take into account HCFA’s report, and carefully consider the ramifications to consumers of foisting additional regulation onto private health plans. So-called "patient protections" that would impose more regulations on private health plans would fuel the flames of health care cost inflation and increase the number of uninsured Americans.

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