Under a 1986 law, many workers have the option of continuing their employer-provided coverage, at their own cost, if they lose their jobs.

By contrast, they said, a family that earns $80,000 and has employer-provided coverage worth $20,000 could see a tax increase of about $1,500.

The report said future retirees would have less employer-provided coverage.

Under the new law, the existing system of employer-provided coverage, which works well for millions of Americans, will be maintained and improved .

That would mean lower taxes for more than 100 million Americans with employer-provided coverage worth less than the standard deduction, Mr. Bush said.

"A whole class of people think they have coverage who really haven't" because of limitations in their employer-provided coverage.

For workers fortunate enough to have employer-provided coverage, the system provides technological wizardry on demand for those able to pay.

Now, declining employer-provided coverage has left more people uninsured - nearly 41 million at any one time, up by 2 million in 1994.

During the rest of the 90's, employer-provided coverage is likely to decline further, and Medicaid will contract.