<nobr>Aug 3, 2009</nobr>

ERIC, Over 150 Organizations Urge House Health Reform Leadership: "Don't Undermine Employer Plans"

ERIC and over 150 other organizations sent a letter July 30 to Speaker of the House Nancy Pelosi (D-CA) and House Minority Leader John Boehner (R-OH) expressing opposition to provisions contained in H.R. 3200, the House's healthcare reform legislation, that would undermine the national uniformity and preemption provisions of the Employee Retirement Income Security Act (ERISA).

The letter cites specifically the unacceptable changes to ERISA in H.R. 3200 that will undermine the ability of companies to sponsor health coverage for employees and their families, including provisions that would increase the burdens on employer-sponsored coverage and limit employer flexibility by requiring them to meet federal one-size fits all standards after a five-year "grace period."

The letter specifically addresses three prominent provisions in the House bill:

• Automatic federal waivers to ERISA for states that enact single-payer health care systems. ERISA waivers would make it impossible for employers to offer consistent benefits and create tremendous disparities for workers and their families whose coverage is provided by the same employer, but who live in different states.


• Unlimited state law remedies for employer-sponsored health coverage obtained through health insurance exchanges. Not only does H.R. 3200 fail to include much needed medical liability reforms, state law remedies makes the current situation worse -- creating more litigation and driving up the costs of health care services and coverage.


• Prohibition on modifications to retiree health plans. This provision overrides one of the most important principles of ERISA and the employer-based health care system -- the voluntary nature of employee benefits.

A link to the letter appears below.

Please address questions and comments on the letter or health reform in general to Gretchen Young, Vice President Health Policy, gyoung@eric.org.

Letter to House Leadership

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