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President's Letter to Congress proposing legislation on health care
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7342725
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President's Letter to Congress proposing legislation on health care
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White House Press Releases (Ford Administration)
Press Releases
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1976-02-25
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1976
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Digitized from Box 22 of the White House Press Releases at the Gerald R. Ford Presidential Library
EMBARGOED UNTIL 3:00 P.M. (EST)
February 25, 1976
Office of the White House Press Secretary
THE WHITE HOUSE
TO THE CONGRESS OF THE UNITED STATES:
The health of our people is one of our Nation's most
vital resources.
Significant progress has been made in improving the
health of the Nation's people during the last 25 years,
as can be seen in the reductions in the infant mortality
rate, increases in life expectancy, and the conquering of
some communicable diseases. This progress has come under
a largely private health care system with the support of
public funds.
In the past 10 year period (1965-1975) Federal spending
for health has increased from $5 billion to $37 billion.
With greater Federal funding has come a multitude of
Federal programs, regulations and restrictions ---- all
motivated by the best of intentions but each adding to
the confusion and overlap and inequity that now charac-
terizes our efforts at the national level.
Today I am proposing to the Congress legislation that
addresses these problems. I am asking Congress to enact
the Financial Assistance for Health Care Act which will
consolidate Medicaid and 15 categorical Federal health
programs into a $10 billion block grant to the States. I
am proposing that future Federal funding for this new
program be increased annually in increments of $500 million
plus the amounts needed after 1980 to ensure that no State
will in the future receive less under this proposal than
it received in fiscal year 1976.
The Financial Assistance for Health Care proposal is
being submitted after extensive consultation with organiza-
tions representing the publicly elected officials who will
be responsible for administering the program. I believe
this proposal represents a major step toward overcoming
some of the most serious defects in our present system of
Federal financing of health care.
My proposal is designed to achieve a more equitable
distribution of Federal health dollars among States and to
increase State control over health spending. My proposal
also recognizes the appropriate Federal role in providing
financial assistance to State and local governments to
improve the quality and distribution of health services.
The enactment of this legislation will achieve a more
equitable distribution of Federal health dollars by providing
funds according to a formula giving primary weight to a
State's low-income population. The formula also takes into
account the relative tax effort" made by a State and the
per capita income of that State.
Let me emphasize that every State will receive more
Federal funds in fiscal years 1977, 1978 and 1979 under the
block grant than it received in fiscal year 1976. My proposal
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also allows for a gradual phase-in of the distribution formula
in future years to ensure a systematic, orderly transition
that will permit States to adjust to the new program.
To assure accountability and responsiveness to the public,
my proposal requires each State to develop an annual health
-care plan as a condition to receiving Federal funds. This
plan will be developed through a Statewide public review
and comment process which will assure participation by all
concerned parties. Thus, increased State responsibility will
be coupled with expanded public participation, and accountability
in the development of State health policies.
This proposed consolidation of health programs is
essential to continue our national progress in the field of
health. It is designed to permit States greater flexibility
in providing for delivery of health care services to those
with low income. It eliminates the requirements for State
matching. And it recognizes the need for a cooperative
relationship among governments at all levels. My proposal
would reduce Federal red tape increase local control over
health spending, and expand public participation in health
planning.
While I am proposing to increase State control over
health spending, we will continue to concentrate our efforts
in areas of appropriate Federal responsibility. For example,
my budget proposals for 1977 include the following:
In food and drug safety, I have asked for $226
million in 1977, an increase of $17 million, to
enable further progress in priority areas;
-- In the area of drug abuse prevention, I propose
almost $500 million for prevention and treatment
to expand national drug abuse treatment capacity
to meet the current need
My budget requests more than $3 billion for health
research, including continued support of major
national efforts in cancer and heart disease
research and support for new scientific oppor--
tunities in the fields of environmental health,
aging, and immunology:
In our effort to improve the training and utili-
zation of doctors and other health professionals,
I have requested new legislation and funding of
$319 million, designed to concentrate on the
problems of geographic and specialty mal...
distribution of health professionals;
To assist local communities to attract physicians,
dentists and other health professionals to under--
served areas, I am proposing to expand the
National Health Service Corps demonstration
program 38% from $18 million to $25 million.
To assist the development of a strong health
maintenance alternative, I have directed HEW
to move rapidly in administering the dual option
provisions of the HMO Act. And, to complete
the 5-year effort to demonstrate and test the
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3
health maintenance organization concept, I have
requested an additional year's authorization for
new commitments. As of last June, there were 10
health maintenance organizations certified through
the dual option provisions
- To provide improved health services to American
Indians and Alaska Natives, I am asking for $355
million. Spending by the Indian Health Service
alone in 1977 will result in over $685 per
beneficiary, or over $2,740 per Indian family
of four;
- In the area of veterans' health care, I have
requested $4.5 billion to assure continued
quality care by providing for increases in
medical staff and research related to VA health
care delivery.
A realistic assessment of the present health care
programs and the responsibilities of Federal, State, and
local governments fully demonstrates that the reforms I
am proposing in Federal health care are needed now. The
Medicare Improvements of 1976 that I recommended to the
Congress on February 11 also represents a balanced response
to needed program reforms. This proposal is designed to
improve catastrophic health cost protection for our aged
and disabled, restrain cost increases in the Medicare
program and provide training for the hospital insurance
trust fund.
I request that the Congress give both these measures
the earliest possible consideration.
GERALD R. FORD
THE WHITE HOUSE,
February 25, 1976.
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