 |
NEWS RELEASE
June 23, 2009
Council to House committee: health care reform legislation should build on employer-based systemWASHINGTON, D.C. — “President Obama has consistently stated that health care reform efforts should build on the nation’s established traditions and that individuals who like their current health insurance coverage should be allowed to keep it. As the House of Representatives considers sweeping reform legislation, we urge lawmakers to protect and preserve the employer-sponsored health benefits already valued by nearly 160 million Americans,” said American Benefits Council James A. Klein today, testifying before the House Education and Labor Committee on the subject of health care reform legislation. “The best reform options are those that preserve and strengthen the voluntary role employers play as the largest source of health coverage for most Americans. By keeping employers engaged as sponsors of health coverage, we also keep the innovation, expertise and commitment that employers bring to the table in the collective effort to achieve broad-based, practical health system reform,” Klein said in his testimony. The Council’s recommendations on health reform are contained in the January 2009 report Condition Critical, which is aimed at achieving a stronger, more sustainable health care system. In identifying the critical employer priorities for health care reform, Klein noted several points: Concerns with Pay or Play Mandate: “An employer requirement to provide coverage is not needed to achieve universal coverage. The myriad requirements that would inevitably be imposed on those who might prefer to sponsor health coverage would ultimately, if unintentionally, result in a net reduction in employer-sponsored coverage by leading some companies to simply ‘pay’ rather than ‘play’. We are also concerned about proposals under consideration that could require employers to pay their ‘normal’ premium contribution to a health insurance exchange if an employee opts out of an employer plan,” Klein said. Maintaining the ERISA Framework: “Large employers that operate across state borders consider ERISA’s established regulatory framework essential to their ability to offer and administer employee benefits consistently and efficiently. This regulatory approach also translates into better benefits and lower costs for employees,” Klein said. “The House tri-committee draft appears to establish two different penalty regimes within the insurance exchanges. Inasmuch as employers will be permitted to obtain coverage through the exchanges, this will subject employers to expansive new liabilities,” Klein noted. Improving the Individual Insurance Market and Public Programs: “The conditions needed to achieve a reformed and well regulated private market will be challenging enough without attempting to introduce public plan options that risk destabilizing the insurance market at the time when it will be undergoing significant change and meeting demanding new standards. The appropriate role for public health insurance programs is to complement, rather than compete with, private health plan options,” Klein said. Reduced Costs Through Increased Quality of Care: “Health care may be the one service or product in the United States where many purchasers routinely and willingly pay as much, or more, for poor quality as for good quality. There are a host of reforms that can be undertaken to increase the quality of care, and that will also result in significant cost savings system-wide,” Klein said. Increased Savings Through Transparency in Pricing and Quality: “A more transparent system makes price and performance information more easily accessible, so consumers can identify providers with a proven record of delivering high quality care and health care providers have the tools to evaluate their performance and encourages continuous quality improvement,” Klein said. “If approached with great care, addressing the nation’s health policy challenges can be an integral element of – rather than an obstacle to – economic recovery and achieving personal financial security. The American Benefits Council stands ready to continue providing information and the perspectives of the companies and professionals who are designing, administering and paying for health plans providing comprehensive health coverage for workers and their families,” Klein concluded. Klein’s testimony is available on the Council Web site. For more information, or to arrange an interview with Council staff, please contact Jason Hammersla, Council director of communications, at jhammersla@abcstaff.org or by phone at 202-289-6700
The American Benefits Council is the national trade association for companies concerned about federal legislation and regulations affecting all aspects of the employee benefits system. The Council’s members represent the entire spectrum of the private employee benefits community and either sponsor directly or administer retirement and health plans covering more than 100 million Americans.
|
