CAHI Director Blasts Kennedy Health Care Plan: 'We need less government intervention, not more'

6/27/2002

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

ALEXANDRIA, Va., June 27 -- When Senator Edward Kennedy (D-Mass.) unveiled his latest attempt to "reform" the American health care system, Council for Affordable Health Insurance (CAHI) Director Merrill Matthews thought it was deja vu all over again. Matthews exclaimed, "The last time Senator Kennedy tried to reform the health care system he nearly destroyed it!"

"CAHI has always been an advocate for free market solutions for our nation's health care problems. We fiercely opposed the attempt by Bill and Hillary Clinton impose universal health care upon the American people. We beat it last time, and we'll beat it again." Matthews continued, "When will the politicians learn that Americans want more abundant and more affordable health care? More legislation will just make it less affordable and more scarce."

In recent years, many states have passed health insurance mandates. These mandates, although well intentioned, have caused health insurance costs to skyrocket. This in turn means that fewer people can afford health insurance. Some of the latest examples of this trend can be found in New Jersey, where a family health insurance policy now costs up to $210,000 per year; Nevada, where doctors are refusing to treat patients because they can't afford their malpractice premiums; and New York's 1992 guaranteed issue legislation which has lead to a "death spiral" for the New York health care market. (For more information see CAHI's Issues and Answers publication "What Were These States Thinking?")

If Senator Kennedy wants to improve the American health care system, CAHI suggests that he follows the examples of insurers like Aetna, Fortis, Destiny, and Vivius, which have created new and innovative ways to get affordable health insurance to those that need it. These insurance companies and the American people need a free and open market place to take advantage of affordable health insurance. More government regulation will only make things worse.

CAHI is a non-profit research and advocacy association of insurance carriers active in the individual, small group, MSA and senior markets. CAHI's membership includes more than 40 insurance companies, small businesses, physicians, actuaries and insurance brokers. Since 1992, CAHI has been an advocate for market-oriented solutions to the problems in America's health care system.