Chamber Says Weak Economy, Legislation Could Reverse Two-Year Decline in Number of Uninsured -- Warns that Weak Economy, Legislation Would Reverse Trend

WASHINGTON, D.C. – The United States Chamber of Commerce welcomed the news from the Census Bureau that the number of Americans without health insurance dropped for the second year by 600,000 from 1999 to 2000 due to expansions in employer-provided coverage, but warned those numbers are nearly a year old and represent a far different economic situation.

"The good news is that our nation's past economic growth made it possible for more businesses to offer health care benefits to their growing workforce, with the greatest gains coming in lower income families," said Kate Sullivan, Chamber director for health care policy. "The bad news is our economy has weakened since these numbers were taken – and mandates currently under consideration in Congress could reverse the gains we've made in covering more Americans."

Legislation before Congress that would expand patients' rights to sue their health plans for unlimited damages will, if passed, cause employers to drop health coverage. According to Sullivan, "It's simple health care economics: making employer health plans fair game for trial lawyers will increase the cost of those plans and chill employers' willingness to risk lawsuits, which add up to less coverage."

In addition, Congress will soon vote on a major expansion of the current mandate on mental health benefits that is estimated to increase costs 4.2 percent for some types of health plans.

America's employers are facing record double-digit health care inflation this year (11%), the highest rate of increase in nearly a decade, with small business owners particularly hard hit (16.5%). As costs escalate, the economy slows, and additional mandates are imposed, companies may respond by scaling back, requiring employees to contribute a larger portion of the cost or even dropping coverage.

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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