U.S. Chamber Calls for Flexible Approach to Health Care

WASHINGTON, D.C.-The United States Chamber of Commerce today urged Congress to give employers and employees more options to finance and structure the health care system, control spiraling costs and expand coverage to the nation's uninsured.

"Today's employers are facing the highest health premium increases in a decade while working families are struggling to maintain their health coverage," said Bruce Josten, Chamber executive vice president. "That explosive combination should set off alarm bells for policymakers that the time for meaningful health care reform is now."

As America's employers confront record, double-digit health care inflation and a weakened economy, some may respond by scaling back or even dropping coverage or requiring employees to contribute a larger portion of the cost.

"Our current policies act as a barrier to progress," said Josten. "Recent research underscores the need to encourage flexible approaches that allow employers to contain costs and give their employees more control over their health care choices."

Josten spoke at a briefing on health benefits options accompanying the release of a report by the Wye River Group on Healthcare. The Wye report, supported by the National Chamber Foundation - the Chamber's public policy arm, provides employers with practical how-to advice on ways to establish health benefits under existing laws that provide their employees with greater choice, flexibility and responsibility.

The Chamber further advocates strengthening and expanding the current market-based system through tax incentives for individuals who buy their own health insurance, including refundable tax credits for those with low incomes and full tax code parity for all who pay premiums, and making coverage more affordable through pooled purchasing under ERISA for small businesses, individuals and the self-employed.

One step the Congress should take immediately, according to the Chamber, is allowing employees who have unspent funds remaining in a flexible-spending account for out-of-pocket health care costs to take an after-tax refund of those funds or roll it over toward the next year's expenses.

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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