News Release: September 27, 2000
The New Jersey Business & Industry Associationtoday opposed legislation
that will allow patients to sue their healthcare insurers for eventhe most
minor harm. NJBIA believes the legislation will open a floodgate of
litigation that will drive up healthcare costs for employers and employees
alike.NJBIA, with more than 16,500 member companies across the state, testified
against S-1333 and S-722 in a hearing held by the Senate Health Care
Committee today.
In addition to encouraging virtually unlimited "medical malpractice"
lawsuits against insurers, the legislation does not require that patients
first go through an independent appeals process before filing suit.The
independent appeals process is found in laws of six of the seven statesthat
passed similar legislation. It ensures that the courts are used onlyas a
last resort in patient disputes with healthcare insurers. New Jerseyalready
has an independent appeals process in place that was created by the
Healthcare Quality Act. This appeals process has served the publicwell.
"This legislation will allow a person to sue their health plan for virtually
anything, regardless of how minor, and it will create a breeding groundfor
frivolous lawsuits that will raise healthcare costs for everyone,"said
NJBIA Assistant Vice President Bryan Markowitz.
"This bill will lead to thousands of lawsuits costing millionsof dollars.
Every New Jersey citizen with health insurance will have to bear thecost of
this ill-conceived legislation through higher premiums, co-paymentsand
deductibles."
For more information, contact Chris Biddle at 609-393-7707, ext. 227.
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