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Letter to the Honorable Don Nickles [i] (April 2001)

handle is hein.congrec/cbo9235 and id is 1 raw text is: April 23, 2001 Honorable Don Nickles Assistant Majority Leader United States Senate Washington, DC 20510 Dear Senator: At your request, the Congressional Budget Office has prepared the attached table showing the ultimate average effect on premiums for employer- sponsored health insurance of S. 283, the Bipartisan Patient Protection Act of 2001, as introduced on February 7, 2001. We estimate that enacting the bill would ultimately increase the premiums for employer-sponsored health plans by an average of 4.2 percent. Among its other provisions, the bill would require a group health plan or issuer of health insurance to pay routine patient costs in clinical trials approved and funded by certain organizations, including the Food and Drug Administration (FDA). The FDA does not fund clinical trials. The estimate assumes plans would be required to pay routine patient costs in clinical trials approved by the FDA. It is worth noting that there have been significant changes in the environment, and hence our baseline, since last year. For example, this estimate reflects recent court decisions that decrease the likelihood that state laws regulating the appeals processes of health plans are preempted by current federal law.

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