New "Patient Protection" Bills Could Destroy
Employer-Sponsored Health Insurance
Sep 13, 1999
FOR IMMEDIATE RELEASE
September 13, 1999
CONTACT: Richard Coorsh
(202) 824-1787
rcoorsh@hiaa.org
WASHINGTON, D.C. – Despite the assertions of Congressional
sponsors, new so-called "patient protection" legislation would allow
employers to be sued over health benefits voluntarily provided to
their employees, and could destroy the employer-based health
insurance system, according to a new legal opinion released today by
the Health Insurance Association of America (HIAA).
The new HIAA legal opinion demonstrates that the Shadegg-Coburn
bill introduced last week – as well as the "Dingwood" bill
introduced last month – expressly authorize lawsuits against any
employer shown to exercise any oversight over its health
coverage. The opinion also states that the "shield" in both bills –
which the bills’ sponsors claim would protect employers against
lawsuits – would apply only if an employer gives up
any involvement with any coverage decision.
Under these bills, even an employer’s simple act of choosing
health coverage for employees would be considered exercising
oversight over health coverage, thereby exposing the employer to the
possibility of a lawsuit.
"This legal opinion shows how both bills offer employers who
sponsor health coverage a ‘Hobson’s choice’ between the horrific and
the horrendous," remarked HIAA President Chip Kahn. "Employers
either could pay for higher cost coverage that they cannot control,
or retain control and expose themselves to costly lawsuits. Given
these choices, many employers are likely to throw in the towel and
simply drop coverage altogether, leaving millions more Americans
uninsured."
HIAA’s new legal opinion was prepared by Washington, D.C.-based
attorney William G. Schiffbauer.
HIAA is the nation’s most prominent trade association
representing the private health care system. Its members provide
health, long-term care, disability, and supplemental coverage to
more than 115 million Americans.
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NOTE: HIAA’s new legal opinion is available at http://www.hiaa.org/news/news-state/opinion.htm
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