FOR IMMEDIATE RELEASE, CONTACT: Brian Cook, Rep. Stark: (202) 225-3202 Matthew Beck, Rep. Rangel: (202) 225-3943

FOR IMMEDIATE RELEASE

Wednesday, September 24, 2008

KAISER REPORT UNDERSCORES DANGER OF HEALTH “REFORM” PLANS THAT WOULD UNDERMINE EMPLOYER-SPONSORED COVERAGE

WASHINGTON, D.C. – Ways and Means Committee Chairman Charles B. Rangel (D-NY) and Health Subcommittee Chairman Pete Stark (D-CA) issued the following statements today in response to a recent Kaiser Family Foundation and Health Research and Educational Trust’s annual Employer Health Benefits Survey.

The report finds that 65% of employers offered health benefits in 2008 and 60% of workers have coverage through their employer, lower coverage rates than in 1999. Average premiums rose 5% from last year to $4,200 for individuals and $12,680 for family coverage. Average premiums have increased 119% since 1999.

“This report further underscores the danger of ‘reform’ policies that would undermine employer-sponsored health care,” said Chairman Rangel. “As we contemplate launching a major health reform effort, we should be wary of tax policies that would undermine coverage that the majority of Americans receive today. The premium increases and coverage declines in today's survey make it clear that proposals to replace current tax incentives with an inadequate tax credit will simply make matters worse.”

According to the survey, a large percentage of firms report that in the future they plan to increase the amount employees contribute to premiums (40%), increase deductible amounts (41%), increase office visit cost sharing (45%) and increase prescription drug co-pays (45%).

“Today’s survey reinforces what we heard from experts at yesterday's Subcommittee hearing. Unless we enact significant reforms, people will continue to fall through the cracks of insurance company rules, employers will continue to drop coverage, and out-of-pocket costs will continue to rise faster than wages,” cautioned Health Subcommittee Chairman Pete Stark. “Until we have universal coverage, these cost shifts away from insurers to consumers will continue.”

Please click here to view testimony from the recent Ways and Means Health Subcommittee Hearing on the health of the private health insurance market.