“Both bills will make healthcare less available.”

Supports the “Fair Care for the Uninsured Act”

Washington, D.C. – The Council of Citizens Against Government Waste (CCAGW) today criticized the both the Kennedy-McCain (S. 283) and the Frist-Breaux-Jeffords (S. 889) Patients’ Bills of Rights.  The taxpayer watchdog called on Congress to reject both in favor of the more market-oriented S. 683 and H.R. 1331, “The Fair Care for the Uninsured Act of 2001.”

“Neither of the so-called Patients’ Bills of Rights will improve the health system’s real disease: the 44 million Americans without health insurance,” CCAGW President Thomas A. Schatz said.  “Further, these bills do nothing to cure the health system’s core weakness: lack of a true consumer market for purchasing health insurance.” 

“The Patients’ Bills of Rights is really a Trial Lawyer Bill of Rights that will cause an explosion of litigation,” Schatz also said.  “Further, the Supreme Court last year ruled HMOs can be sued in state courts, so patients already have a remedy if they are mistreated or unsatisfied with their medical care.  The best first step to extending health coverage is passing the Fair Care for the Uninsured Act.” 

The Fair Care bill provides for a refundable tax credit of $1,000 per adult and $3,000 per family for the purchase of private health insurance.  Due to tax incentives created by Congress, most Americans rely on their employer to obtain affordable health insurance.  Many employers provide this tax-free benefit to their employees, but millions are left uninsured, particularly the self-employed and those who work in low-wage jobs, because their employer is unable to provide benefits.  Therefore, executives often have a generous tax-free benefit while the working poor often have to go without health insurance.  CCAGW argues that a similar tax incentive should be created for individuals and families so they can pick the plan they want without having to rely on their employers.

“Many Americans are unsatisfied with their health plan because their employer decides what the plan will cover instead of the employee,” Schatz concluded.  “Neither the McCain-Kennedy bill  or the slightly less onerous Frist-Breaux-Jeffords bill do anything to correct this basic market flaw with health insurance or help the truly disadvantaged.  Fair Care will go along way to re-establish a true consumer market in health insurance.  Individuals and families will be able to pick plans that suit their needs and Fair Care will help those without insurance.  This is the first step to provide true comprehensive protection for patients, followed by tax credits for everyone so all can regain control of their healthcare decisions.”

CCAGW is the lobbying arm of Citizens Against Government Waste, the nation’s largest taxpayer advocacy group with over a million members and supporters nationwide.  It is a nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, mismanagement and abuse in government.