Nearly 100,000 working West Virginians would lose health insurance through their employers under health-care plan proposed by John McCain's campaign, a new report says.

Since the McCain plan would eliminate tax breaks for businesses that provide health insurance to their employees, many businesses - especially small businesses - would chose to drop health coverage as a fringe benefit, the report from the Economic Policy Institute says.

Gary Zuckett, executive director of the West Virginia Citizen Action Group, released state statistics in conjunction with the report published by the Washington-based institute. (See www.wvcag.org for the full report.)

Larry Matheney, secretary-treasurer of the West Virginia AFL-CIO, said McCain's health plan "would eventually strip 99,125 West Virginia workers, currently enrolled in employer based group plans, of their coverage and add them to the rolls of the currently 250,000 uninsured West Virginians."

Larry Swann, chairman of the McCain campaign in West Virginia, did not return telephone messages left at his office and his home.

The EPI Report, written by Josh Bivens and Elise Gould, estimates allowing employers to deduct costs to provide employee health-insurance saves them about $200 million in taxes each year.

"While the system is far from perfect, it does pool and spread risk, and it is how 165 million U.S. residents under the age of 65 receive health insurance.

"Kicking away the foundations of this system should only be done if there is a well-crafted alternative," the EPI report states.

Nearly 100,000 working West Virginians would lose health insurance through their employers under health-care plan proposed by John McCain's campaign, a new report says.

Since the McCain plan would eliminate tax breaks for businesses that provide health insurance to their employees, many businesses - especially small businesses - would chose to drop health coverage as a fringe benefit, the report from the Economic Policy Institute says.

Gary Zuckett, executive director of the West Virginia Citizen Action Group, released state statistics in conjunction with the report published by the Washington-based institute. (See www.wvcag.org for the full report.)

Larry Matheney, secretary-treasurer of the West Virginia AFL-CIO, said McCain's health plan "would eventually strip 99,125 West Virginia workers, currently enrolled in employer based group plans, of their coverage and add them to the rolls of the currently 250,000 uninsured West Virginians."

Larry Swann, chairman of the McCain campaign in West Virginia, did not return telephone messages left at his office and his home.

The EPI Report, written by Josh Bivens and Elise Gould, estimates allowing employers to deduct costs to provide employee health-insurance saves them about $200 million in taxes each year.

"While the system is far from perfect, it does pool and spread risk, and it is how 165 million U.S. residents under the age of 65 receive health insurance.

"Kicking away the foundations of this system should only be done if there is a well-crafted alternative," the EPI report states.

McCain's plan includes a $5,000 tax credit to help people pay for health insurance, a sum they can deduct directly from their federal taxes.

But health insurance for a typical family of four, the EPI estimates, could easily cost $12,000 a year.

Appearing on "This Week" hosted by George Stephanopoulos on Sept. 28, McCain acknowledged his plan could lead to tax increases for people whose employers provide health insurance for them today.

The EPI report estimates 165 million U.S. residents under 65 receive health insurance coverage through their employers today.

Since McCain's health-care reform plan would end this tax break for employers, the EPI predicts as many as 27 million Americans nationwide could lose their health insurance in the near future.

Zuckett criticized McCain's "on your own" approach to health insurance for making it easier for insurance companies to deny coverage or raise rates based on an individual's health history.

"We need an approach that actually delivers a solution of guaranteed quality, affordable health care for all," he said.

Reach Paul J. Nyden at pjny...@wvgazette.com or 348-5164.