Washington, D.C. - The Council for Citizens Against Government Waste (CCAGW) today applauded the House of Representatives for rejecting the original Ganske-Dingell/Kennedy-McCain Patients’ Bill of Rights legislation.  However, the organization expressed strong reservations over the legislation that was agreed to by a majority of House members and supported by President Bush.

“We appreciate the efforts of the president, the House leadership, Rep. Charlie Norwood (R-Ga.), and others in reaching a compromise on healthcare legislation.  While the new bill slightly reduces the likelihood of expensive lawsuits that will raise health insurance premiums to employers, it will do little to correct the basic market flaw with health insurance in America today,” CAGW President Thomas A. Schatz said.

“We expect the House-Senate conference committee will find it quite challenging and even confrontational to iron out the differences between the respective bills,” Schatz added.  “It would be better if members of Congress went back to the drawing board and passed legislation that will help the 44 million people without health insurance and truly put individuals in charge of their own health insurance.  The legislation to do that is the Fair Care for the Uninsured Act.”

Fair Care (H.R. 1331/S. 683) provides a refundable tax credit of $1,000 for the individual and $3,000 for a family that cannot get health insurance through their employer.

CCAGW’s analysis finds that the House version of the Patients’ Bill of Rights would raise insurance rates and throw more people into the ranks of the uninsured.  The compromise legislation has ambiguous language; creates conflicts between federal and state laws; permits excessive damage awards in state and federal courts; and allows independent reviewers to overturn contracts between employers and health insurance companies.

“The real problem with healthcare is that most Americans get it through their employer who decides what the plan will cover.  When an employee leaves a job, the health insurance stays behind,” Schatz also said.  “The tax code allows CEOs to obtain generous health plans and punishes the waitress whose employer does not offer health insurance.  Further, getting health insurance through the employer gives the impression that health insurance is free, which raises premium costs.  We need to change the way health insurance works in this country and a good way to start is the Fair Care Act.”

“This bill will help the people who really need assistance and create a market in which the consumer is in charge of health insurance, not the employer.  Eventually, the tax credit should be extended to all Americans so they can own their health insurance policy.  Congress is on the wrong track to healthcare reform with the Patients’ Bill of Rights,” concluded Schatz.

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