<nobr>May 22, 2007</nobr>

ERIC Supports Health-Care Coverage Expansion, But Concerned About Intrusion on ERISA Preemption

Washington, D.C. -- ERIC applauds House Health, Employment, Labor and Pensions Subcommittee Chairman Robert Andrews (D-NJ) and ranking member John Kline (R-MN) for examining recommendations to improve coordination of Federal and State health-care reform initiatives. ERIC urges lawmakers to protect the Employee Retirement Income Security Act (ERISA) preemption clause while addressing concerns.

ERIC supports efforts to expand health care coverage and access, and strongly encourages Congress and the States to recognize the importance of ERISA and the role played by its preemption clause in ensuring the ability of employers to maintain affordable, uniform coverage for American workers and their families. The uniformity across state lines ensured by ERISA preemption helps control costs for tens of millions of Americans, and ERIC believes it is critical that States address the health care crisis in a way that does not violate the ERISA preemption clause.

An increasing number of states, urged on by special interest groups, have in the past attempted to subvert ERISA's national uniformity provisions law by mandating employers specific health care benefits as well as the scope and form of those benefits to their employees. Legislation is pending in more than 30 states that would significantly constrain and complicate healthcare benefits for ERIC members.

ERIC President Mark Ugoretz said, "The national uniformity provisions of ERISA have served the country remarkably well for over 30 years. The result has been lower costs and greater innovation than in any other health sector. It is imperative that Congress reaffirm the ERISA preemption clause to prevent States from forcing employers to navigate through a balkanized environment of inconsistent State laws."

Edwina Rogers, ERIC's Vice President for Health Policy, added that "ERIC believes there are other ways to improve healthcare access and quality instead of issuing broad mandates, and we have been working with major employers, physician groups, and other stakeholders to form the Patient Centered Primary Care Collaborative to advance the concept that the Patient Centered Medical Home is the best way to improve the health-care delivery system."

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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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