U.S. Chamber Opposes Health Care Mandates on Employers -- Federal Control of Private Health Plans Will Raise Costs

WASHINGTON, D.C. - The United States Chamber of Commerce argued that adding new federal mandates to health care plans will raise the cost for everyone and lead to reduced coverage for some.

"Mandates for particular benefits - no matter how popular - are a bad idea," said Kate Sullivan, Chamber director of health care policy, testifying before the Senate Health, Education, Labor and Pensions Committee. "Imposing mandates will further increase costs and jeopardize the affordability and availability of health plans for workers."

Health plan costs this year increased at their greatest rate in nearly ten years and the anemic economy makes absorbing these costs far more difficult, according to the Chamber. Adding mandated coverage for contraceptives will raise the cost of coverage for some plans and employers will be forced to pass on some of those costs to their workers. The number of workers declining health care coverage is rising, in part due to the rising cost.

"Rather than focus on more benefits for those who have health care coverage, lawmakers should look for ways to provide coverage to those who don't have it," said Sullivan. "More than forty million Americans don't have health care insurance and adding birth control mandates won't help them get coverage.

"While some women may gain coverage for their contraceptive needs, other women may lose their coverage entirely and remain uninsured when they are accidentally injured, require surgery or experience a major illness," Sullivan testified.

The Chamber opposes mandates because they raise the cost of health plans, limit employers' ability to tailor benefits according to workforce need and demand, and stifle health plans' efforts to provide consumers with a variety of choices and the ability to select the benefits most appropriate for their personal situations.

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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