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Trial Lawyer Lawsuits, Excessive Government Health Care Mandates Cause Jump in Ranks of Uninsured

Bipartisan Health Care Access Legislation Stalled in Congress by Democrat Leaders with Close Ties to Trial Lawyers

WASHINGTON, D.C. – Citing new government figures that show an increase in the number of Americans who do not have health insurance, Education & the Workforce Committee Chairman John Boehner (R-OH) today blasted Democrat leaders in Congress for their close ties to trial lawyers and for opposing bipartisan legislation supported by President Bush that would bring quality health care coverage to millions of families who are currently uninsured.  According to new figures released by the U.S. Census Bureau today, the number of Americans who have no health insurance rose to 45 million Americans, an increase from 43.6 million last year.

“These dismaying new numbers are the consequence of a lethal mix of trial lawyer lawsuits, excessive government mandates, and political gamesmanship by Democratic Party leaders,” said Boehner.  “Frivolous lawsuits and excessive regulation have caused health care costs to rise, making it harder for small employers to voluntarily offer health coverage to their workers.  President Bush supports bipartisan legislation passed by the House that would help to address this problem, but Sen. John Kerry and other Senate Democrats have fought against it every step of the way.  The leaders of the Democratic Party are too consumed with partisan politics, and too close to the trial lawyers who are profiting from the status quo at the expense of uninsured working families.”

In the last two years, the House has twice passed the Small Business Health Fairness Act (H.R. 660) to create association health plans (AHPs) and significantly expand access to health coverage for uninsured families across the country; the bill is awaiting action by the Senate.  President Bush has consistently expressed his support for this legislation, and has called for Senate action on it.

“We need to ensure that all Americans have affordable health insurance coverage options, and our primary goal should be creating affordable options to help the uninsured,” Boehner added.  “President Bush has proposed a number of initiatives to lower health care costs and reduce the number of uninsured, including giving small businesses the opportunity to pool together through association health plans.  The Senate should follow the House’s lead and pass this common-sense measure so that President Bush can sign it into law.”

The rising cost of health insurance premiums is the biggest factor in this decline and number one problem facing small business in this country.  Estimates indicate that 60 percent or more of the working uninsured work for or depend on small employers who lack the ability to provide health benefits for their workers.

On June 19, 2003, the House passed the Small Business Health Fairness Act (H.R. 660) – introduced by Employer-Employee Relations Subcommittee Chairman Sam Johnson (R-TX), Rep. Ernie Fletcher (R-KY), Boehner, Rep. Cal Dooley (D-CA), and Rep. Nydia Velazquez (D-NY) -- on a bipartisan basis that included the support of 36 Democrats.  The House passed the measure (H.R. 4281) again on May 13, 2004, by a vote of 252-162 (with the support of 37 Democrats) to demonstrate its commitment to helping the millions of Americans who have no health insurance.  Companion legislation (S. 545) sponsored by Sen. Kit Bond (R-MO), Sen. Jim Talent (R-MO), and Sen. Olympia Snow (R-ME), among others, is pending in the Senate.

The Small Business Health Fairness Act creates association health plans (AHPs), which allow small businesses to band together through associations and purchase quality health care at a lower cost.  The bipartisan bill would increase small businesses’ bargaining power with health care providers, give them freedom from costly state-mandated benefit packages, and lower their overhead costs by as much as 30 percent – benefits that large corporations and unions already enjoy because of their larger economies of scale.

A broad and diverse coalition of more than 130 groups have endorsed the bill, including the U.S. Chamber of Commerce, the National Federation of Independent Business, the American Farm Bureau Federation, the Associated Builders and Contractors, The Latino Coalition, National Black Chamber of Commerce, the National Association of Women Business Owners, and the National Restaurant Association. For more information about Association Health Plans and the broad coalition that supports AHPs, please visit the website www.ahpsnow.com/.

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