U.S. Chamber Calls McCain-Kennedy Threat to Health System

WASHINGTON, D.C.-The United States Chamber of Commerce today urged lawmakers to reject costly health care legislation that would expose employers to unlimited liability and threaten to undermine health coverage for millions of working families.

"McCain-Kennedy should be called the Trial Lawyers' Right to Bill, not the Patients' Bill of Rights," said Bruce Josten, Chamber executive vice president, during a news conference organized by the Health Benefits Coalition. "Especially now when health care costs are going through the roof, expanding liability would be the straw that broke the camel's back for the employer-based health coverage system."

Average health care costs for employers are expected to increase 13 percent in 2001 - an enormous increase on top of the already significant increase of 12 percent last year - while the number of uninsured Americans stands at 43 million.

"The uninsured deserve better from policymakers than political lip service - the insured deserve better than more mandates resulting in higher premiums and more frivolous litigation against employers who voluntarily provide coverage to some 172 million of them," said Josten.

The McCain-Kennedy Patients' Bill of Rights (S. 283) exposes employers to unlimited liability for the actions of their health plans, raising health care costs for the employer-based system. With this legislation, many businesses would be forced to increase co-pays or deductibles for their employees, or drop insurance coverage altogether, adding to the ranks of the nation's 43 million uninsured.

"Adding new mandates and expanding liability will only serve to increase insurance costs and undermine employers' ability to offer this valuable benefit," said Josten.

To preserve and strengthen the employer-based health care system, the Chamber supports greater tax equity for individuals and the self-employed, pooled purchasing and tax credits to extend health care coverage to more Americans.

The U.S. Chamber of Commerce is the world's largest business federation, representing more than three million businesses and organizations of every size, sector and region.

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