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These records pertain to health care reform.

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286185975
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Health Care Reform - 92 Proposal - Darman Presentation to POTUS 12/20/91
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286185975
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Health Care Reform - 92 Proposal - Darman Presentation to POTUS 12/20/91
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These records pertain to health care reform.
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06970-004
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Records of the White House Office of Policy Development (George H. W. Bush Administration)
Johannes Kuttner Subject Files
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Originally Processed With FOIA(s): FOIA Number: 1999-0118-F 1999-0118-F FOIA MARKER This is not a textual record. This is used as an administrative marker by the George Bush Presidential Library Staff. Record Group/Collection: George H.W. Bush Presidential Records Collection/Office of Origin: Policy Development, White House Office of Series: Kuttner, Johannes, Files Subseries: OA/ID Number: 06970 Folder ID Number: 06970-004 Folder Title: Health Care Reform - 92 Proposal - Darman Presentation to POTUS 12/20/91 Stack: Row: Section: Shelf: Position: G O 0 0 O BUDGET REVIEW: COMPREHENSIVE HEALTH REFORM TABLE OF CONTENTS (FOR DISCUSSION 12/20/91) TAB (1) Summary (2) The Problem (3) Conceptual Alternatives for "Comprehensive Reform" (4) Principles Guiding Reform (5) Solution Element (A) : "Health Insurance Market Reform" (6) Solution Element (B) : Health Insurance Tax Credits/Deductions/Exclusions (7) Solution Element (C) : Medicaid Restructuring and State Flexibility (8) Solution Element (D) : Medicare Cost Containment (without hitting beneficiaries) and Upper Income Tax Cap (9) Solution Element (E) : [Other -- noted, but not elaborated here] (10) Steelman Commission Recommendations [As framed, these are an alternative to comprehensive reform -- but most can be subsumed within comprehensive reform.] BASIC ELEMENTS OF POSSIBLE COMPREHENSIVE HEALTH REFORM FOR DISCUSSION -- 12/20/91 (1) This approach is intended to: (a) address the cost and access problem (see especially Tab 2, pp. 8, 10, 12) ; (b) meet the substantive and political test necessary to have a "comprehensive plan"; (c) do $0 in a way: (i) that is in accord with a "pro-competitive" approach to reform -- building on American strengths -- rather than a "pay-or-play" or "Canadian" approach (Tab 3); (ii) that is consistent with the principles at Tab 4; and (iii) that is consistent with the budget agreement's pay-as-you-go requirements. If adopted, this approach would allow the President to put forward a plan that would, over time: assure access to affordable basic health insurance coverage for all poor and working poor Americans; assure that health insurance would be renewable and portable -- regardless of the condition of one's health; restrain the growing cost of health care and move the current system toward more cost-effectiveness; preserve and build upon the best of the private, innovative, high-quality American health system; and avoid a turn toward a government-managed health system that would (ultimately) ration access to health care. (2) The new elements of this plan are in addition to other health initiatives already advanced by the Administration -- all of which would continue to be supported as well: e.g., emphasizing prevention and personal responsibility; advancing malpractice reform; increasing investment in research; targeting resources on at-risk infants and mothers; improving quality assessment; and reducing subsidies for the rich. (The new elements are summarized at (3), (4), (5), and (6) below.) (3) Solution Element (A) -- Health Insurance Market Reform (Tab 5) : To make health insurance more affordable and accessible for the working poor -- especially those who work for smaller firms -- and to encourage more cost-effective insurance plans, state insurance systems would be modified (or overridden) to: pool risk; guarantee issue, renewability, and portability; override anti-managed care and mandated benefit laws; extend group coverage for college graduates for 6 months after graduation; and facilitate the development of Health Insurance Networks to increase bargaining power for small employers and to reduce administrative costs. (4) Solution Element (B) -- Health Insurance Tax Credits (Tab 6) : To make health insurance more affordable for the uninsured poor (those without public or private coverage) and the working poor, a new transferrable health insurance tax credit (and a related new health insurance deduction) would be provided. The health insurance credit would be up to $1250 per poor individual and $3125/family -- and the related new deduction would be available to a family with up to 60K income. (5) Solution Element (C) -- Medicaid restructuring (Tab 7) : To control rising Medicaid costs and allow States greater opportunity for cost-effective innovation, a major restructuring of the Medicaid program would be proposed. It would switch away from the current, open-ended, fee-for-service system toward "managed care" [new label needed!] and other more cost-effective health-insurance-and-delivery systems. (6) Solution Element (D): To fill the financing gap, while also advancing sound policy measures, the plan would: reduce the Medicare SMI premium subsidy for those older Americans with over 100K/year income (a modified reproposal) ; cap the exclusion of health premium costs for all those individuals with over 100K/year income (with the excludable premium cap at $1920/individual and $4800/family) -- Tab 8; and adopt other Medicare cost control measures -- without adversely affecting beneficiaries. (These are summarized at Tab 8.) NOTE: This part is sure to be unpopular with health providers, and may lend itself to (unfair) political criticism. It is, however, defensible policy -- and essential to fill the financing gap (assuming, as seems necessary and prudent, that the tax cap is not to be lowered).