US Spending Twice What It Needs to Cover the Uninsured; Fair Care Can Slash the Cost of Covering the Uninsured

2/26/2003

From: Tom Gardner of the Council for Affordable Health Insurance 703-836-6200 ext. 386

ALEXANDRIA, Va., Feb. 26 -- Recently the Kaiser Family Foundation reported that the government spent $31 billion to treat the uninsured in 2001. The Council for Affordable Health Insurance (CAHI) considers this to be a huge waste of resources considering, Fair Care legislation would cost only $15 billion per year.

"I was disappointed when I saw the government spent $31 billion to take care of the uninsured," stated CAHI Director Dr. Merrill Matthews. "Why are lawmakers wasting taxpayers' money? If Congress were to pass the Fair Care legislation, the vast majority of uninsured would get coverage -- while costing the federal government about $15 billion a year."

Fair Care legislation, which was recently introduced by Congressmen Bill Lipinski (D-IL) and Mark Kennedy (R-MN), provides tax credits to the uninsured so they can purchase private health insurance. The legislation also establishes state health insurance safety-net programs.

"Most of the uninsured are lower- and middle-income workers who don't have the money to buy health insurance," stated CAHI Director Merrill Matthews. "Fair Care helps the uninsured afford the insurance plan that is best suited for them. It is more efficient and practical to let them get the insurance and medical assistance they need, and it has the added bonus of saving the taxpayers' money."

To schedule an interview with CAHI Director Merrill Matthews or for more information on Fair Care please contact Tom Gardner, director of communications, at 703-836-6200 ext. 386 or tgardner@cahi.org

CAHI is a research and advocacy association of insurance carriers active in the individual, small group, MSA, and senior markets. CAHI's membership includes health insurance companies, small businesses, physicians, actuaries, and insurance brokers. Since 1992, CAHI has been an advocate for market-oriented solutions such as MSAs to the problems in America's health care system.