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THE ERISA COMMITTEE

<nobr>Feb 24, 2010</nobr>

ERIC Member Survey Finds Major Employers Overwhelmingly Support Health Reform that Preserves ERISA Preemption

ERIC News Release
For Immediate Release: February 24, 2010

Washington, D.C. -- The ERISA Industry Committee (ERIC), the Washington, D.C.-based trade association representing America's major employers, in January 2010 conducted a survey among its membership to better understand their priorities for health care reform. The survey found that major employers overwhelmingly favored health reform that builds upon the employer-based system and preserves the preemption provisions of the Employee Retirement Income Security Act (ERISA).

The five-question survey, which was administered following the election of Republican Massachusetts Senator Scott Brown, specifically asked ERIC members what course of action Congress should take with respect to health reform, and about their preferences for what provisions (including financing and non-financing provisions) as they relate to employers should and should not be included in health care reform legislation.

The survey reinforced that ERIC members strongly favor preserving and building upon the employer-based system and uniformly reject proposals that jeopardize it. ERIC members were nearly unanimous (97%) in their support for the inclusion of a clause in reform legislation that would guarantee non-interference with ERISA's preemption provisions.

In addition, 100% of respondents listed a breach of the ERISA preemption provisions, including legislation that would allow state waivers of ERISA's protections, as an item that should not be included in health reform legislation (95% of respondents indicated that it was very important not to include and 5% of respondents indicated that it was somewhat important not to include).

In announcing the survey results, ERIC President Mark Ugoretz said that, "ERIC's survey reinforces the notion that employers depend on the national uniformity provisions of ERISA to administer their plans. Workers depend on preemption to ensure that they retain the same benefits regardless of where they live or work. It is imperative that if Congress and the Administration move forward on health reform following the February 25th summit they reaffirm the ERISA preemption clause to prevent states and municipalities from forcing employers to navigate through a balkanized environment of inconsistent state laws."

In terms of overall health reform, 87% of ERIC members who responded favor passage of some form of health care reform. The vast majority of respondents (73%) would support a "slimmed down" approach, (where only provisions receiving bi-partisan support would be included, and many of the unpopular financing mechanisms would be omitted) while only 14% of respondents favor a comprehensive bill like those that have stalled in the wake of the Massachusetts special election to fill the Senate seat of the late Ted Kennedy.

Nearly all respondents opposed incentives that would encourage employees to purchase insurance outside of their employer's plan. The survey also reinforced large employers' alarm over escalating costs of health care and expressed a strong desire that cost containment be addressed in any reform legislation.

According to the survey, ERIC members strongly support several of the cost containment strategies that have already been debated in Congress. Nearly all respondents favor reform of medical malpractice laws and fostering the use of interoperable health information technology. Additionally, a large majority of respondents favor increasing HIPAA rewards to encourage participation in wellness programs.

A link to the survey results appears below.

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For more information:
Ted Godbout
Manager, Communications
The ERISA Industry Committee
1400 L Street, NW, Suite 350
Washington, DC 20005
Phone: 202-789-1400
Fax: 202-789-1120
tgodbout@eric.org
www.eric.org

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The ERISA Industry Committee (ERIC) is a non-profit association committed to representing the advancement of the employee retirement, health, and compensation plans of America's largest employers. ERIC's members provide benchmark retirement, health care coverage, compensation, and other economic security benefits directly to tens of millions of active and retired workers and their families. ERIC has a strong interest in proposals affecting its members' ability to deliver those benefits, their cost and their effectiveness, as well as the role of those benefits in the American economy.


Text Files:

ERIC Health Reform Survey Results


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