|
WASHINGTON, DC —Today, the Corporate Health Care
Coalition (CHCC) sent the following letter to the Members of the
House Education and Labor Health, Employment, Labor and Pensions
Subcommittee in response to its May 22 hearing on federal and state
initiatives on health care reform. While the letter commends the
Subcommittee for considering ways to address the health care crisis
and provide health insurance for more Americans, it urges them to
recognize the importance of the Employee Retirement Income Security
Act (ERISA) and its preemption clause in ensuring the ability of
large employers to maintain uniform national health care plans.
May 22,
2007
The Honorable
Robert E. Andrews
Chairman
Subcommittee on Health, Employment, Labor and Pensions
U.S. House of Representatives
Washington, DC 20515
Re: Health,
Employment, Labor, and Pensions Subcommittee Hearing on “Health
Care Reform: Recommendations to Improve Coordination of Federal
and State Initiatives”
Dear Chairman
Andrews:
The members
of the Corporate Health Care Coalition (CHCC) commend you for considering
ways to address the health care crisis and the unacceptable number
of Americans who lack health insurance. As you consider health care
reform proposals, we ask that you recognize the importance of the
Employee Retirement Income Security Act (ERISA) and the important
role that its preemption clause plays in ensuring the ability of
large employers to maintain uniform national health care plans.
CHCC is comprised of 17 large, multi-state, predominantly self-insured
companies that operate health benefit plans for employees and their
families as well as retirees. Our organization is distinguished
by its focus on issues that are critical for employers who sponsor
health benefit plans on a nationwide basis. Members of CHCC have
been in the forefront of efforts to ensure quality and cost-effective
benefits since its inception.
Enactment of ERISA and the success of its preemption in enabling
employers with employees in multiple jurisdictions to offer uniform
nationwide plans has been one of the few strengths of our badly
flawed health care system. The benefits of ERISA preemption go beyond
administrative convenience for employers. ERISA preemption provides
equity, cost and convenience considerations for employees, ensuring
that all employees of multi-state employers are treated consistently
and fairly regardless of where they work.
When employers negotiate contracts with large vendors using a standard
approach, they have the maximum amount of leverage in ensuring the
lowest possible premium costs, benefiting employees in the form
of lower out-of-pocket expenses for their coverage. This advantage
would be lost if employers instead had to negotiate separate plans
to comply with the unique rules of each jurisdiction in which they
have employees. Eliminating ERISA preemption would ultimately result
in higher costs for employers and their employees.
Several states are undertaking efforts to address the problem of
the uninsured and other flaws in the system. We praise those that
are doing so in a careful manner and working closely with all of
the stakeholders to seek a solution that is economically responsible.
However, as lawmakers focus on the problem of the uninsured, they
should be careful to avoid jeopardizing the benefits of millions
of Americans who receive their existing coverage through the employment-based
system. ERISA preemption enables large employers to provide comprehensive
benefits in a relatively cost-effective manner for millions of Americans.
Our members believe that it is critical that, as the states continue
to address the health care crisis, their efforts do not weaken the
ERISA preemption clause.
Thank you for your attention in this matter.
Sincerely,
Marisa L. Milton
Executive Director
|
