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NEWS RELEASE
April 23, 2009
Council urges house subcommittee to reform health care by preserving and strengthening voluntary employer systemWASHINGTON, D.C. — "The best health care reform options are those that preserve and strengthen the voluntary role employers play as the largest source of health coverage for more than 160 million Americans. By keeping employers engaged as sponsors of health coverage, we also keep the expertise and innovation in health benefits that employers bring to the table," said Michael Langan during his testimony today before the Health, Employment, Labor, and Pensions Subcommittee of the House Education and Labor Committee. A principal with Towers Perrin, he spoke on behalf of the American Benefits Council during today's hearing on Ways to Reduce the Cost of Health Insurance for Employers, Employees and their Families.Langan continued, "Strategies that focus on making health coverage more affordable will help employers of all sizes and benefit a significant portion of the American population. Of note, in 2008, the Kaiser Family Foundation reported that 99 percent of U.S. employers with more than 200 employees and 62 percent of those with fewer than 200 employees offered health care coverage. We would like to see health care reform that makes those numbers grow." However, Langan also cautioned that "the Council believes that a 'pay or play' approach could lead to a net reduction in employer-sponsored coverage as employers decide to "pay" into a fund rather than bear the onerous burdens associated with a coverage mandate. Instead, an essential component for maintaining a strong employer-based health system starts with protecting the federal regulatory framework established by ERISA. This regulatory approach already translates into better benefits and lower costs for employees." The Council's vision of health reform, as listed in its Condition Critical report released in January 2009, also calls for improvements in both private health insurance products, especially in the individual insurance market, and in public programs as both work best by serving distinctly different roles and populations, Langan explained. "The most important prescription for health reform may well be the willingness of all major stakeholder groups to work collaboratively to achieve our shared goal of a stronger, more sustainable health care system. The members of the American Benefits Council are committed to working with all those who believe, as we do, that health reform is both urgently needed and can only succeed if it is developed through an open, consensus-based process," said Langan. Langan's full testimony is available on the Council's 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 (office) or (202) 253-5458 (cell).
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.
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