Representative Robert E. Andrews
New Jersey — First Congressional District
In the News
 
FOR IMMEDIATE RELEASE
Date:  July 13, 2000 
 

PRESIDENT SIGNS ANDREWS PLAN TO HELP RELIGIOUS 

GROUPS PROVIDE HEALTH INSURANCE TO THEIR EMPLOYEES
 

WASHINGTON, D.C. – Congressman Rob Andrews (D-Haddon Heights) today announced that the President has signed into law legislation, which contained his plan to better enable religiously affiliated institutions to provide their employees with health benefits.  Andrews bill, the Church Plan Parity and Entanglement Prevention Act,, and was the basis for the Senate version introduced by Senator Bingaman of New Mexico which the President signed into law, exempts churches, synagogues, mosques, and similar religious organizations from restrictive State laws governing health insurance plans which prevented many of these organizations from providing health insurance for their employees and their families.  Andrews' plan allows these organizations to offer health insurance plans governed under federal insurance guidelines known as ERISA. 

"I am certain that the overwhelming support in both Houses of Congress for this worthwhile proposal to grant quality health care coverage to the employees of the Nation's religious institutions and their families weighed in on the President's decision to sign this plan into law.  I thank the President and my colleagues for their support," said Rep. Andrews.  "Religiously affiliated groups that attempt, in good faith, to provide their employees and the families of those employees with health care coverage should not be subjected to unnecessary restrictions.  This proposal helps these organizations help their employees access healthcare for themselves and their families." 

Andrews' plan, which was cosponsored by Congressman John Boehner (OH-08), the Chairman of the subcommittee that oversees ERISA law, allows health care plans offered by religiously affiliated groups to be federally regulated thus exempting them from restrictive requirements of individual states.   Prior to this change, these plans were not subject to federal regulations and interpretations on how they were governed in relation to state regulations varied greatly.  Due to the vague nature of this interpretation religious organizations had a difficult time finding an underwriter for their health care plans.  Insurance providers were skeptical of the risks associated with underwriting these plans because they might be penalized under state law for doing business with an unlicensed insurer.   Andrews plan solves the problem by:

· Providing that religiously affiliated health plans are to be treated as single-employer plans for purposes of state licensing and solvency requirements;
· Preempting the application of state licensing and solvency laws to self-insured church welfare plans;
· Preserving the application of state insurance law other than licensing and solvency requirements to self-insured church plans;
· Providing that states can enforce against church welfare plans as if they were licensed insurers.

The new law is scheduled to take effect immediately.
 
 
 
 
 
 
 
 
 
 
 
 

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