Contact: Stephanie Valle 202-225-2931

Washington, Oct 30 - Congressman Phil Gingrey (R-GA) released a statement today on a provision in H.R. 3962, the Democrats’ health care reform bill, that business groups have said could take away retiree health benefits from millions of workers. Section 110 of the bill, which aims to prohibit companies from cutting retiree health benefits, instead could have the reverse effect – a concern that Speaker Pelosi has thus far ignored.

In a letter from a consortium of businesses sent to Speaker Pelosi in July, business leaders said that: “Mandating benefits in this manner significantly increases both the cost and risk to the employer of voluntarily providing retiree health plans at all. These costs and risks will have to be paid for by reduced benefits, wages, or jobs. The unintended consequence of [this section] would be a drastic reduction in the number of employers offering retiree benefits.” The list of signatories on the letter included the U.S. Chamber of Commerce, American Benefits Council, Business Roundtable, Corporate Health Care Coalition, HR Policy Association, National Association of Manufacturers, National Business Group on Health, National Coalition on Benefits, National Retail Federation, and Society for Human Resource Management, & The ERISA Industry Committee.

Congressman Gingrey’s statement is as follows:

“In a bill that purports to increase access to health insurance, it is ironic that millions of Americans could actually lose their employer-sponsored health retiree benefits. Our nation’s workers and retirees should not lose their health retirement benefits to pay for health care reform. Over the past three years, this Democratic Congress has pursued a path of stealing from many to give to a few. On top of the almost 5.5 million jobs that will be destroyed by this bill, the elimination of tens of millions in retirement benefits is simply unacceptable, and I am confident that the American people will reject it and hold all those who support it accountable.”