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PHOTOCOPY
PRESERVATION
and
PHOTOCOPY
PRESERVATION
BUSINESS
THE IMPACT OF THE HEALTH SECURITY ACT
ON SMALL BUSINESS
Under the Health Security Act, small low-wage businesses
receive large discounts. When discounts are factored in, many
small employers will pay significantly less than 80% of the
premium.
On average, firms with fewer than 25 employees will pay
only 50% of the premium -- instead of the full 80%.
[Chart 1]
Firms with fewer than 25 employees with average wages
of less than $12,000 will pay only 13% of the premium on
average. Discounts from the federal government make up
the remaining 67% of the employer share -- an 84%
discount. [Chart 2]
Businesses that currently provide health insurance, especially
small businesses, will save under the Health Security Act.
Small businesses that provide insurance will have
their premium payments decrease dramatically as a
percent of payroll -- from an average of 9.1% today
to 7% under reform. [Chart 3]
On average, small businesses will have lower premium
payments per worker than other employers. In the year
2000, premiums payments for firms with fewer than 25
employees will decrease by $650 per worker. [Chart 4]
Even small businesses that don't provide today will be able to
provide more affordable insurance.
-
Firms with fewer than 25 employees that do not currently
offer insurance will contribute only 43% of total premium
payments on average.
Chart 1
EMPLOYER SHARE OF HEALTH INSURANCE PREMIUMS
WITH AND WITHOUT DISCOUNTS, BY FIRM SIZE
Firm Size
Employer Share
Employer Share
Without Discounts
With Discounts
Under 25
80%
50.2%
25-99
80%
62.4%
100-499
80%
69.5%
500-1000
80%
73%
1000-4999
80%
78.6%
All Firms in
80%
66%
Regional Alliance
Chart 2
EMPLOYER SHARE OF HEALTH INSURANCE PREMIUMS
WITH AND WITHOUT DISCOUNTS, THE HEALTH SECURITY ACT
Employer Cap
Employer Share
Employer Share
Discount on
Without Discounts
With Discounts
Employer Share
3.5%
80%
12.5%
84%
4.4%
80%
19.8%
75%
5.3%
80%
28.5%
64%
6.2%
80%
40.9%
49%
7.1%
80%
53.2%
34%
7.9%
80%
60.2%
25%
EMPLOYERS' PREMIUM PAYMENTS UNDER THE HEALTH SECURITY ACT
Payments per Worker for Firms Currently Offering Insurance, By Firm Size: 2000
$4,000
Without Reform
With Reform
$3,500
$3,429
$3,308
$3,006
$3,020
$2,950
Premium Payments per Worker
$3,000
$2,741
$2,776
$2,626
$2,625
$2,500
$2,466
$2,358
Chart
$2,091
$2,000
$1,500
$1,000
< 25
25-99
100-499
500-999
1000-4999
< 5000
Firm Size
JRCE: HHS and The Urban Institute's TRIM2 Model, benchmarked to HCFA's National Health Accounts. CBO premium estimates.
EMPLOYERS' PREMIUM PAYMENTS UNDER THE HEALTH SECURITY ACT
Average Annual Percentage of Payroll for Firms Currently Offering Insurance, by Firm Size: 2000
10%
Without Reform
With Reform
9.1%
9%
8.7%
8.3%
8.2%
8.3%
8%
7.5%
7.4%
7.3%
7.2%
7.2%
7.0%
7.1%
7%
6%
Percent of Payroll
5%
Chart
4%
3%
2%
1%
0%
^
<25
25-99
100-499
500-999
1000-4999
< 5000
Firm Size (Number of Employees)
SOURCE: HHS and The Urban Institute's TRIM2 Model, Benchmarked to HCFA's National Health Accounts. CBO premium estimates.
file bacan
THE WHITE HOUSE
WASHINGTON
December 20, 1993
HEALTH CARE MEETING WITH CEOS
DATE: TUESDAY, DECEMBER 21, 1993
TIME: 4:00 PM
LOCATION: 100 OEOB
FROM: ALEXIS HERMAN
AMY ZISOOK
I.
Purpose
To have a candid discussion with supporters of The President
in order to get an honest assessment of the business
community's position on the Health Security Act. To solicit
concrete suggestions of ways that the business community can
be better positioned to be more supportive of the
administration and have input into policy revisions.
II. Background
Corporate America has been slow in coming on board with our
plan. Most of these CEOs have been involved in the health
care reform debate in one way or another for 10 years. They
believe that the system must be changed, but they are not
convinced that the Clinton plan is the correct way to change
it. They have many questions about the details, but are
primarily concerned that we are just creating another
bureaucracy which will balloon out of control.
Among the primary areas of concern are:
1) A philosophical difference with the administration
on creating another "entitlement" program.
2) They don't believe our numbers.
3) Concrete revisions in the plan should include:
- corporate alliances receiving equal treatment
to regional alliances;
- acknowledgement that the 1 percent surcharge
will make this plan more expensive for them; and
- ERISA protection so that the states won't
interfere with their programs.
These CEOs were chosen because they are supportive of The
President and willing to be helpful to us in formulating the
best possible plan for both business and individuals.
III. Participants
Paul Allaire, Chairman & CEO, Xerox
Edwin (Ed) Artzt, Chairman & CEO, Procter & Gamble
George Fisher, Chairman & CEO, Eastman Kodak
Joseph (Joe) Gorman, Chairman & CEO, TRW
Harold (Red) Poling, Retired Chairman & CEO, Ford Motor
Roger Altman
Alexis Herman
Ira Magaziner
Melanne Verveer
Maggie Williams
IV. Press
Closed
V.
Sequence of Events
This is an informal meeting. Alexis Herman will introduce
the guests to you. You should make brief welcoming remarks
and open the meeting for their comments and concerns. Close
the meeting with a pitch for their support and their
continued participation in helping the administration fine-
tune the plan.
VI. Remarks
None required.
PARTICIPANTS
Paul Allaire
Chairman & CEO, Xerox
Stamford, Connecticut
Allaire was a campaign supporter and has been very
supportive of the administration. He has attended a CEO
luncheon with The President and several additional meetings
at the White House. He also participated in a CEO
conference call on health care reform with Mack McLarty, Bob
Rubin, Roger Altman and Alexis Herman several month ago.
Allaire wrote a "Letter to the Editor" of the New York Times
in response to their one-sided article about CEO reaction to
the Health Security Act at the Business Council meeting in
October. Although they have not completely analyzed the
plan and its impact on Xerox, Allaire supports the
principals and will work with us, in a positive way, to
refine it.
Allaire will talk about the Rochester model and how it has
worked for Xerox and the other companies in Rochester in
managing their health care costs. He will also share his
sense of what other CEOs are thinking which is that they are
afraid of the unknown, but they want to contribute to the
process.
Allaire is also on the boards of Sara Lee Corporation and
the New York Stock Exchange.
Edwin (Ed) Artzt (arts-t)
Chairman & CEO, Procter & Gamble
Cincinnati, Ohio
Artzt has been Chair & CEO of Procter & Gamble since 1990,
after serving the company since 1953. He also serves on the
boards of GTE, Teladyne and Delta Airlines. He participated
in the Economic Conference in Little Rock and has attended a
CEO luncheon with The President. Procter & Gamble was
extremely helpful with NAFTA and was generally supportive of
the economic package. Artzt is considered a leading opinion
maker within the CEO community in addition to being very
influential with members of Congress such as Chairman
Rostenkowski.
He and Joe Gorman are very close and work together on health
care and other issues.
George Fisher
Chairman, & CEO, Eastman Kodak
Rochester, New York
Fisher has been with Eastman Kodak since late October after
a surprise departure from Motorola.
A Republican, Fisher was enormously impressed with The
President at the Economic Conference in Little Rock and has
been supportive of the administration's initiatives. Fisher
was supportive of the economic package and he was
particularly active on behalf of NAFTA.
He is on the boards of American Express and 3M Corporation,
and he is Chairman of the U.S. Council on Competitiveness.
We have not had any personal discussions with him on health
care reform since he has joined Eastman Kodak. His health
care policy people believe that the underlying financial
assumptions are flawed. They think that a transition period
needs to be added to the plan so that savings can be
achieved.
They also view the plan as a single-payer system contrary to
our assertion that it is not.
Joseph Gorman
Chairman & CEO, TRW, Inc.
Cleveland, Ohio
As you recall, Gorman hosted you and nine CEOs for a similar
meeting in Cleveland on November 12.
TRW has still not committed to any form of support of the
Health Security Act, but they continue to work very
constructively with us on suggested changes in the corporate
alliance, both to allow more flexibility and to lighten the
oversight of the Department of Labor, as well as providing
us with insight from other corporations with whom they come
in contact.
Gorman was appointed by The President this year as a
principal on the National Security Telecommunications
Advisory Council. He is also chairman of the U.S. side of
the U.S.-Japan Business Council and is extremely interested
in and knowledgeable about trade issues. He is on the board
of Procter & Gamble.
Gorman was an early supporter of The President's economic
package, attending the first press conference with The
President in February. Laramie McNamara of his Washington
office worked tirelessly for its passage. He was very
supportive of NAFTA as well.
He has attended several small events with The President as
well as a White House dinner.
Harold (Red) Poling
Retired Chairman & CEO, Ford Motor Company,
Detroit, Michigan
As you know, Red Poling has been enormously helpful to the
administration beginning with his support of the economic
package. Ford, as well as Chrysler and General Motors, has
been very supportive of the Health Security Act as their
competitiveness has been hindered by health care costs over
the past decade.
Ford orchestrated the "Letter to the Editor" in the New York
Times responding to the comments of the CEOs at the Business
Council meeting.
On Thursday, December 2, Mr. Poling brought Ford's new
Chairman, Alexander Trotman to meet The President. At that
meeting The President asked him to stay involved with us on
health care reform.
THE WHITE HOUSE
WASHINGTON
December 10, 1993
MEMORANDUM FOR SELECTED DISTRIBUTION
FROM:
Alexis Herman
RE:
Update on Business Outreach on Health Care Reform
Over the past three months the Office of Public Liaison has
met with and facilitated policy meetings on health care with
a cross-section of the business community in an effort to
educate the community on the details of the Health Security Act,
as well as to assess how individual companies feel about the
plan.
Specifically, in the past six weeks, we have met with 300
Washington representatives of Fortune 500 companies in
industry-by-industry briefings, small meetings with 25-30
Presidents and/or Executive Directors of small business
associations, and through conducted telephone conferences with 20
key CEOS.
On December 11, we conducted a meeting of 15 key Washington
representatives who had been a part of previous briefings. This
group is an ongoing group of friendly Washington representatives
of prominent companies who provide us, on an consistent basis, an
honest assessment of how our plan is viewed in the business
community as well as our other initiatives. These meetings are
not designed to debate the policy issues, but instead to provide
intelligence and to give recommendations on how the
Administration should proceed on its outreach efforts.
The net result of these meetings have generally yielded overall
concern regarding the Health Care Security Act in the business
community. The concerns can best be described as a sense of
movement away from the President's plan due to either a preceived
philosophical difference with the Administration on the size of
the plan, and the belief that we may be creating a new
entitlement program, or simply a fundamental disbelief of our
numbers.
-2-
The specific recommendations that have flowed from these meetings
can be captured in two areas: Strategic Communications and
Revisions to the Plan.
1. Communication
A. Communications are now viewed as too technical in the
public domain. Communicate one or two key concepts on
behalf of health reform.
(a) Are important to business, i.e., cost savings.
(b) Differentiate between the Clinton Plan and the
Cooper Plan.
B. Better articulate the cost of cost shifting and how
our plan saves on that.
C. Better articulate that universal coverage is cost
control.
D. Focus the debate on health care reform as improving the
economy. Stress job creation.
2. Revisions to the Plan
A. Treat corporate alliances as equals to regional
alliances.
B. Clarify strong ERISA protection.
C. Give greater rewards for good wellness programs.
The following active steps are proposed to launch an aggressive,
effort to harness and maintain business support for the Health
Security Act.
A. Recruit business surrogates of national prominance who are
willing to say positive things about the plan, as well as
respond to criticisms. They provide needed business
credibility to the plan's benefits in reducing the deficit
and controlling business health care costs. These business
surrogates can also recruit support from their peers. Red
Poling has agreed to help lead this effort. We must balance
with other individuals such as Arnold Hyatt and Bob Strauss.
B. Close on business support for the following two areas:
Industry-by-industry, 300 businesses have been educated
-3
through the industry-by-industry series of meetings. We must
determine where they are, recruit supporters, and determine
the concerns of those who are not there.
Business impacted by redlining. We are meeting with those
companies and small business associations who have been
affected by redlining practices--Those who have been excluded
them from health care insurance in the past. We will use
supportive companies in the same way we will use prominent
CEOs to express support for the plan.
C. Plan a business event, utilizing the types of individuals
described above, before the Christmas holidays to exhibit
business support for the President's efforts during this
news vacuum.
D. Plan several additional business events with the POTUS and
Hillary Rodham Clinton in early January, prior to the
return of Congress.
E. Continue to take the business pulse.
F. Reinstate CEO lunches. This is a proven vehicle for
garnering business support and positive media about health
care reform.
Implement the following over the next two weeks:
A. Monthly meeting of the larger administration group to
facilitate coordination.
B. Weekly meeting of the coordinating team to stay abreast
of the issue in tactics.
C. Identify a coordinator to tracking information and
assist in the execution of the overall strategy.
THE WHITE HOUSE
WASHINGTON
December 7, 1993
MEMORANDUM FOR SECRETARY LLOYD BENTSEN
SECRETARY RON BROWN
MACK MCLARTY
ROGER ALTMAN
ERSKINE BOWLES
BOB RUBIN
ANN JORDAN
FROM: JULEXT ALEXIS HERMAN
SUBJECT: CEO OUTREACH CALLS - HEALTH CARE REFORM
As we discussed, attached is the initial list of CEOs that will
represent the administration's call list on health care. As you
can see, each section is assigned to one of you.
As we agreed, you should communicate with these CEOs on a regular
basis (a minimum of once a month is recommended) to: educate them
on changes in the plan; receive their input on recommended
changes; and to take the general pulse of the business community.
It is extremely important that you feedback this information to
my office regularly (I hope that you will complete your first
round of calls by Friday, December 17). My office will then
process your reports for use in fine-tuning both the legislation
and our outreach efforts.
Attached are response sheets for your use.
cc: Maggie Williams
Ira Magaziner
Christine Varney
Health Care Monthly Phone Call List
November 17
MACK MCLARTY
COMPANY
TELEPHONE
STATUS
NAME/CEO
Curtis H. "Hank"
Bethlehem Steel
215/694-2424
Supporter
Barnette,
Corporation
Chairman and CEO
Lou Gerstner
IBM Corporation
914/765-1900
Undecided
August A. Busch,
Anheuser-Busch
314/577-3316
Supporter
III, Chairman and
Companies, Inc.
President
ALEXIS HERMAN
COMPANY
TELEPHONE
STATUS
NAME/CEO
Dwayne Andreas,
Archer Daniels
217/424-5515
supporter
Chairman & CEO
Midland Company
Joseph "Joe"
TRW, Inc.
216/291-7000
undecided
Gorman,
Chairman & CEO
C.A. "Chuck"
USX Corporation
412/433-1121
supporter
Corry, Chairman
& CEO
Harold A.
Ford Motor
313/322-7800
supporter
Poling,
Company
Chairman & CEO
Lawrence
Allied-Signal
201/455-2000
undecided
"Larry"
Inc.
Bossidy,
Chairman & CEO
Garry N.
The Drummond
205/387-0501
supporter
Drummond, CEO
Company
Sam Maury,
The Business
202/872-1260
undecided
Executive
Roundtable
Director
Jerry
National
202/637-3106
undecided
Jasinowski,
Association of
President
Manufacturers
Dick Lesher,
U.S. Chamber of
202/463-5500
undecided
President
Commerce
ALEXIS HERMAN
COMPANY
TELEPHONE
STATUS
NAME/CEO
Phil Cassidy,
The Business
202/298-7650
undecided
Executive
Council
Director
ROBERT RUBIN
COMPANY
TELEPHONE
STATUS
NAME/CEO
Robert E. "Bob"
AT&T
212/605-5500
undecided
Allen, Chairman &
CEO
Edwin L. "Ed"
The Proctor &
513/983-1100
undecided
Arzt, Chairman &
Gamble Company
CEO
Donald V. "Don"
Caterpillar,
309/675-1000
undecided
Fites; Chairman,
Inc.
President & CEO
Robert D. Haas,
Levi Strauss &
415/622-3456
undecided
Chairman & CEO
Co.
James R. "Jamie"
Corning Inc.
607/974-9000
undecided
Houghton,
Chairman & CEO
Walter V.
The Chemical
212/270-6000
undecided
Shipley, Chairman
Banking Corp.
& CEO
Richard M.
Bank of America
415/622-3456
undecided
Rosenberg;
National Trust
Chairman,
and Savings
President & CEO
Association
ROGER ALTMAN
COMPANY
TELEPHONE
STATUS
NAME/CEO
Joe Antonini,
K-Mart Corp.
313/643-1000
opposed
Chairman,
President & CEO
Edward A.
Sears, Roebuck
312/875-2500
Likely
Brennan,
& Company
undecided
Chairman,
President & CEO
ROGER ALTMAN
COMPANY
TELEPHONE
STATUS
NAME/CEO
Donald G. "Don"
The Gap, Inc.
415/952-4400
undecided
Fisher, Chairman
& CEO
Charles Lazarus,
Toys'R'Us, Inc.
201/262-7800
likely
Chairman & CEO
opposed
Steven Burd
Safeway, Inc.
510/891-3000
undecided
John D. Ong,
BF Goodrich
216/374-2000
undecided
Chairman & CEO
Company
Robert C. "Bob"
Prudential
201/802-6000
opposed
Winters,
Insurance
Chairman & CEO
Company
D. Wayne
Pepsico. Inc.
914/253-2000
undecided
Calloway,
Chairman & CEO
Alan L. Wurtzel,
Circuit City
202/265-3232
supporter
Chairman
Stores, Inc.
Kenneth A. "Ken"
Dayton-Hudson
612/370-6948
undecided
Macke, Chairman
Corporation
s CEO
SEC. RON BROWN
COMPANY
TELEPHONE
STATUS
NAME/CEO
Robert L. "Bob"
American
817/963-1234
supporter
Crandall;
Airlines
Chairman,
President & CEO
Robert Eaton,
Chrysler
313/956-6728
supporter
Chairman
Corporation
Earl G. Graves,
Earl G. Graves
212/242-8000
supporter
President
Ltd.
Mike Jordan
Westinghouse
412/224-2000
undecided
Electric
Corporation
Michael A "Mike"
Phillip Morris
212/880-5000
likely
Miles, Chairman
Companies, Inc.
opposed
& CEO
SEC. RON BROWN
COMPANY
TELEPHONE
STATUS
NAME/CEO
William D. "Bill"
Quaker Oats
312/222-7111
undecided
Smithburg,
Company
Chairman,
President & CEO
Lewis Platt
Hewlett Packard
415/857-1501
undecided
Company
John F. "Jack"
General
203/373-2211
undecided
Welch, Jr.,
Electric
Chairman & CEO
Company
SEC. LLOYD
COMPANY
TELEPHONE
STATUS
BENTSEN
NAME/CEO
Pete Silas
Phillips
918/661-6600
undecided
Petroleum Co.
Michael H. "Mike"
Tenneco, Inc.
713/757-2131
undecided
Walsh, President
& CEO
ANN JORDON
COMPANY
TELEPHONE
STATUS
NAME/CEO
Linda J.
Warnaco Group,
212/370-8204
undecided
Wachner,
Inc.
President & CEO
CALL SHEETS
HEALTH CARE
PERSON CALLED:
DATE:
COMMENTS:
SPECIFIC RANKING ( Please check)
Yes/Supportive
Leaning Yes
Helpful, but not support
Leaning No
Undecided
file
THE WHITE HOUSE
WASHINGTON
January 10, 1994
Stephen L. Brown, CLU, FSA
Chairman & Chief Executive Officer
John Hancock Mutual Life Insurance Company
John Hancock Place
P.O. Box 111
Boston, Massachusetts 02117
Dear Mr. Brown:
Thank you for your letter concerning our initiative for
health care reform. I apologize for the delay in responding, but
we have received an unprecedented amount of mail, and especially
on the topic of health care reform.
I deeply appreciate your words of support for our efforts.
We clearly share a commitment to universal coverage, insurance
reform, and quality improvements. Your support is especially
critical because of the important role you play as a leader in
your industry.
I appreciate also the concerns you raised in your letter.
As I am sure you are aware, we are committed to the key
principles -- security, savings, simplicity, choice, quality, and
responsibility. The guarantees of universal coverage and compre-
hensive benefits are non-negotiable. As we have made clear
repeatedly, we are receptive to discussing alternative paths to
health care reform, as long as they address these key principles.
You suggest that "managed care techniques" are a more
effective way to control costs than "government-dictated price
controls." This is, of course, an important and complex issue.
We want to preserve individuals' ability to choose their own
doctor. To this end, we have required that all alliances offer
consumers a choice of private health plans, including a fee-for-
service plan.
We believe that, while offering choice to consumers, we can
still effectively control health care cost inflation. We have
placed market competition and cost-conscious, informed consumer
choice at the core of our cost-containment efforts. We believe
that costs will be disciplined by the buying power of the
regional alliances, competition among plans, cost-incentives for
informed consumers, and administrative simplification. The caps
Stephen L. Brown
January 10, 1994
Page Two
on health care premium growth simply serve as a backstop that
will be triggered only if the market-based measures prove not to
be effective.
You also suggest in your letter that the purchasing
alliances should be made optional so that employers could choose
to operate their own insurance programs. We share this view as
it relates to the large companies which have been effective
purchasers of health care. The legislation as introduced
provides that large companies (those with more than 5,000
employees) can continue to self-insure as long as they adhere to
the overall standards. We understand that these companies have
been effective in controlling costs and we want to encourage them
to continue those efforts.
We would be pleased to continue to discuss these and other
related concerns with you. Your expertise will be very important
as this process continues.
Sincerely yours,
Hillary Rodham Clinton Clenton
Melanne
January 18, 1994
MEMORANDUM FOR HILLARY RODHAM CLINTON
FROM:
Kim Tilley, Amanda Crumley
SUBJECT:
Briefings for Wednesday, January 19, 1994
Radio Call-In
(Lisa Caputo will provide a verbal briefing)
CEO Meeting
- List of attendees
- Letter to Policy Committee of Business Rountable
- Business Roundtable Response to Media Inquiries
*Note: Brief bios on the attending CEO's will provided in the morning.
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January 18, 1994
HEALTH CARE MEETING WITH SUPPORTIVE CEOS
DATE: Wednesday, January 19, 1994
TIME: 11:00 am
LOCATION: Roosevelt Room
FROM: Alexis Herman
Marilyn Yager
I.
PURPOSE
To have a candid discussion with corporate supporters of the
Health Security Act regarding:
Areas of concern they may have regarding the Act,
despite their support.
Their recommendations and suggestions as to how to
better work with the business community regarding our
health care approach.
Relay our desire for their active involvement in
soliciting support both from their industry peers and
beyond.
II. BACKGROUND
Most of our corporate supporters have been working with us
since the September 23 unveiling event. However, beyond one
conference call in September, our key corporate supporters
have not been invited to the White House to discuss health
reform strategy, nor to hear their concerns and
recommendations. In light of recent meetings with other
corporate CEOs, it seemed especially important to meet with
our corporate supporters to provide opportunity for their
input and comments.
In addition, this opportunity should be used to seek their
active advocacy with other CEOs. We have a pretty good
representation of CEOs from the different individual
industries who are working with us, i.e., auto, steel, coal,
chain drug stores, and alcohol. Their issues range from the
early retiree provision, to the prescription drug benefit,
to the financing provision.
Each of these CEOs have been strong public supporters of the
Act, however they also have issues and provisions, which if
given the opportunity, they would like to see us revise.
There is some concern among our corporate base that we are
listening more to non-supportive CEOs, than we are to our
supporters. Tomorrow's meeting should make clear that as
Congress begins its deliberations, we welcome their
comments. More specifically, most of these CEOs share the
concerns that we are hearing elsewhere that:
The corporate alliances are not viable.
The regional alliances will be too large to
compete with and too bureaucratic.
The states have too much flexibility on issues
ranging from oversight of alliances and ERISA
exemptions.
Beyond hearing their concerns about provisions of the Act,
this meeting is designed to solicit their suggestions about
how to better work the business community and to maintain
neutrality in the business associations. Most of these CEOs
are members of the Business Roundtable (BRT) and carried
significant water for us last week during the BRT conference
calls on whether to endorse using the Cooper plan as a basis
to work from. The BRT intends to go with the Cooper bill,
but their final vote will not take place until their
February 2nd meeting. (BRT memo attached)
Other CEOs at this meeting are equally active in their
respective business associations, i.e. National Association
of Chain Drug Stores, Distilled Spirits Assn, Iron and Steel
Institute, etc. We need them to really be working these
organizations.
III. PARTICIPANTS
CEO List (attached)
Roger Altman
Alexis Herman
Bob Rubin
Ira Magaziner
Melanne Verveer
IV. PRESS
Closed
V.
SEQUENCE OF EVENTS
This is an informal meeting. Alexis Herman will introduce
the guests to you. You should make brief welcoming remarks,
indicate our desire to talk strategy, but that first we
would like to hear their concerns and comments about the
Act. Close the meeting with a pitch for their commitment to
call their colleagues and to work their business
associations as a part of a larger action plan.
VI.
TALKING POINTS
Thank you for your early and tenacious supportiveness.
We invited you to come today to talk strategy, but also
to receive your ongoing input and your concerns. The
President has always said that, aside from universal
coverage and serious cost containment, everything is on
the table.
We know that you share some of the concerns expressed
to us by other business CEOs:
1.
Insuring that the corporate alliances are truly
attractive and viable for corporations who wish to
use them.
2.
Insuring that the regional alliances operate
withing a real competitive market and are not so
large as to minimize the clout of corporate
alliances.
3.
Insuring our commitment to ERISA and the corporate
role with multistate employees.
We want to work with you on these things and need you
to help us send this message to your colleagues.
Having said that, I also want to reassure you of our
commitment on some issues that I know you care about:
1.
the employee mandate.
2.
the early retiree provision.
3.
the prescription drug benefit.
We need your help to work on behalf of these issues as
well as the broader principles the President has
outlined.
We need you to help us with an action plan. We need
you to work your business associations, your
individuals colleagues, your employees, and your
suppliers. We also need your willingness to write op-
eds, and perhaps other press opportunities.
Closing comments.
ATTENDEES
January 19, 1994
MEETING WITH THE FIRST LADY
11:00am, Roosevelt Room
West Wing, The White House
(Use the Northwest Gate)
likes canadian vouches to system for stamps it coorles re:
Dwayne Andreas
Chairman & CEO
7 How and health.
Archer Daniels Midland Company
"mistake to support any bill.
Curtis H. "Hank" Barnette
we did a side by - side. we
Chairman & CEO
Bethlehem Steel Corporation
can't pappore Casher no
revir'l Courage, no reture
August A. Busch, III
Chairman and President
benefit, no can control
Anheuser-Busch Companies, Inc.
Garry N. Drummond
wanted to know Chambee's
CEO
Drummond Company, Inc.
position
David H. Hoag
Chairman & CEO
The LTV Corporation
Alan L. Wurtzel
- recommend a reg mtg.
Chairman Circuit City Stores, Inc. not aware BRT problem -
plates on leg a where per helpful.
C.A. Corry
Chairman and CEO
Anne debate on where BRT will tar
USX Corporation
came me because 9 Casher
Victor L. Lund
provide caseing tax deduct ty.
President and CEO
phone calls had an import
American Stores Company
Alex Trottman
comparative surbsheets.
Chairman & CEO
1
Ford Motor Company
Alex Grass
Chairman
Rite Aid Corporation
file
Bus. group
Page Two
George McCarthy
President
Hiram Walker Group
Robert Hannan
clinten only people sice Mal Imports
President & CEO
prescription duy coverage $.
Thrift Drug, Inc.
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Our trade ann. is founding
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and to
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in Part time herge
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employees 8 bus - secries
John D Ong
'B18L Overi N.W
Chairman
sure 1100
Washington. D.C. 20036-8019
Charles A Cony
(aca) 878-1280 FAX (202) 486-3508
Samuel L. Maury
Richard J. Mahoney
Executive Director
cooletmon
Robert C. Winters
Edger 3. Woolard. Jr.
January 14, 1994
BY FACSIMILE
TO THE MEMBERS OF THE POLICY COMMITTEE OF THE BUSINESS ROUNDTABLE
On January 13th and 14th we held conference calls with those of you who were available.
Forty-five of you participated on the calls and twelve more called me or sent me notes
expressing your views. We had the views of over two-thirds of the Policy Committee.
The dynamics of the two calls were different. On the first call there was much more concern
regarding employer mandates and their significance to the health care debate. In the second call
members were far more concerned with the fundamental approach of the Clinton plan.
It was clear from the discussions that there are problems with both the Clinton and the Cooper-
Grandy-Breaux-Durenberger bills. Key concerns raised about the Clinton plan include the
magnitude of the cost and financing problems, the heavy regulation of the alliances and the use
of price controls. The issue of tax deductibility of employer costs and cost shifting were
concerns identified with respect to the Cooper-Breaux bills.
Fourteen members of the Policy Committee do not believe that Cooper-Grandy-Breaux-
Durenberger should be the starting point for health care reform. Many of them feel strongly
about jt. Some of those members support the Clinton plan.
The strong majority, however, (43 members) voted to support Cooper-Breaux as a starting
point. There was not a strong consensus as to when to finalize that position. Thirty-two wanted
to Issue 2 statement immediately and twenty-five wished to wait.
Those wishing to wait Indicated the White House was willing to make changes in its bin and
suggested that we put off a final decision until the February 2nd Policy Commitree meeting.
Those members working with the White House will see what kind of changes the Administration
Members of the Policy Committee
January 14, 1994
Page two
is willing to make and report at the February 2nd meeting. Given the close vote, Bob Winters
and I have decided to wait until February 2nd to ask for a final decision.
In the meantime, we have received a number of calls from reporters who have caugh: wind of
our discussions inquiring about our position. We have prepared the attached statement to
respond to these inquiries.
Thank you for your participation and input. I look forward to seeing you on the 2nd.
Sincerely,
Jchn John D. Ong
DO:m:bm
Attachment
file
Business
The Business
John D. Ong
1815L Street N.W.
Chairmen
Suite 1100
Washington, D.C. 20036-5010
Charles A. Cony
(aca) 878-1260 FAX (202) 496-3500
Coohairman
Samuel L. Maury
Richard J. Mahoney
Executive Director
Cochalmen
Robert C. Winters
Conhalman
Edgar 9. Woolard. Jr.
Cochaimen
January 14, 1994
BY FACSIMILE
TO THE MEMBERS OF THE POLICY COMMITTEE OF THE BUSINESS ROUNDTABLE
On January 13th and 14th we held conference calls with those of you who were available.
Forty-five of you participated on the calls and twelve more called me or sent me notes
expressing your views. We had the views of over two-thirds of the Policy Committee.
The dynamics of the two calls were different. On the first call there was much more concern
regarding employer mandates and their significance to the health care debate. In the second call
members were far more concerned with the fundamental approach of the Clinton plan.
It was clear from the discussions that there are problems with both the Clinton and the Cooper-
Grandy-Breaux-Durenberger bills. Key concerns raised about the Clinton plan include the
magnitude of the cost and financing problems, the heavy regulation of the alliances and the use
of price controls. The issue of tax deductibility of employer costs and cost shifting were
concerns identified with respect to the Cooper-Breaux bills.
Fourteen members of the Policy Committee do not believe that Cooper-Grandy-Breaux-
Durenberger should be the starting point for health care reform. Many of them feel strongly
about it. Some of those members support the Clinton plan.
The strong majority, however, (43 members) voted to support Cooper-Breaux as a starting
point. There was not a strong consensus as to when to finalize that position. Thirty-two wanted
to issue a statement immediately and twenty-five wished to wait.
Those wishing to wait indicated the White House was willing to make changes in its bin and
suggested that we put off a final decision until the February 2nd Policy Committee meeting.
Those members working with the White House will see what kind of changes the Administration
Members of the Policy Committee
January 14, 1994
Page two
is willing to make and report at the February 2nd meeting. Given the close vote, Bob Winters
and I have decided to wait until February 2nd to ask for a final decision.
In the meantime, we have received a number of calls from reporters who have caugh: wind of
our discussions inquiring about our position. We have prepared the attached statement to
respond to these inquiries.
Thank you for your participation and input. I look forward to seeing you on the 2nd.
Sincerely,
Jchn John D. Ong
JDO:m:lm
Attachment
STATEMENT FOR RESPONSE TO MEDIA INQUIRIES
There is strong support in the Policy Committee of The Business Roundtable for the Cooper-
Grandy-Breaux-Durenberger bills as a "starting point" for health reform legislation. The
Business Roundtable will finalize its position at its next scheduled meeting
MEMORANDUM
TO:
Interested Parties
FROM:
Bob Brandon
RE:
Companies with FASB § 106 liability in excess of $100
million: Facilities in selected districts.
DATE:
January 24, 1994
HOUSE WAYS AND MEANS COMMITTEE
Member of Congress
Company
Number of Employees
Pickle (D-TX)
Abbot Labs
2,800
IBM
7,000
Lockheed
1,600
Minnesota Mining
& Manfr.
1,500
Motorola
4,000
Sonat
1,500
Texas Instruments
4,000
Coyne (D-PA)
USX-US Steel
1,500
Westinghouse Elect.
800
Andrews (D-TX)
Atlantic Richfield
841
Crevron
650
Payne (D-VA)
Abbot Labs
700
Conagra
1,100
Dupont
2,000
General Electric
1,100
Hoagland (D-NE)
Campbell Soup
950
Kellogg
850
Union Pacific
4,500
Neal (D-MA)
Monsanto
1,000
Brewster (D-OK)
Weyerhaeuser
700
Grandy (R-IA)
Houghton (R-NY)
Corning Inc.
8,748
Cummins Engine
900
Dresser Industries
2,735
2
HOUSE ENERGY AND COMMERCE COMMITTEE
Member of Congress
Company
Number of Employees
Tauzin (D-LA)
Boeing
1,085
Dupont
590
Energy Corp.
900
Slattery (D-KS)
Southwestern Bell
1,300
Boucher (D-VA)
Cooper (D-TN)
Emerson Electric
900
Ingersoll Rand
600
Rowland (D-GA)
Amoco
1,280
Boeing
936
Lehman (D-CA)
Margolies-Mezvinsky (D-PA) Dana Corp.
525
Ford Motor Corp.
650
Johnson and Johnson
850
Rohm and Haas
1,300
Unisys
3,000
Bilirakis (R-FL)
Johnson and Johnson
600
Unisys
615
McMillan (R-NC)
Dana Corp
1,500
Duke Power
3,900
Dupont
800
Eaton Corp
600
Westinghouse Electric
1,000
Upton (R-MI)
Allied-Signal
1,100
Cooper Industries
900
Eaton Corp
650
Upjohn
600
Whirlpool
1,600
Paxon (R-NY)
Shenk (D-CA)
American Airlines
1,022
General Dynamics
11,800
Merck & Co.
600
Lambert (D-AR)
Conagra
1,400
Eastman Kodak
600
Emerson Electric
2,370
Tenneco
900
3
Palone (D-NJ)
Dupont
1,000
Ford Motor Corp
1,200
Hercules
750
IBM
700
Johnson and Johnson
1,000
Union Carbide
890
Klug (R-Wis)
Greenwood (R-PA)
HOUSE EDUCATION AND LABOR COMMITTEE
Member of Congress
Company
Number of Employess
Andrews (D-NJ)
Campbell Soup
1,500
General Electric
2,400
Roemer (D-IN)
Allied-Signal
2,000
Whirlpool
625
Johnson Controls
600
Green (D-TX)
Klink (D-PA)
Westinghouse Electric
850
English (D-OK)
Minnesota Mining & Mnfr.
625
Northrop Corp.
1,200
Strickland (D-OH)
Baesler (D-KY)
Donnelley and Sons
670
Minnesota Mining &
Manufact.
520
Texas Instruments
700
Whirlpool
550
Goodling (R-PA)
Caterpillar
2,000
Consolidated Freight
600
Dupont
750
Philadelphia Electric
600
Quaker Oats
525
Petri (R-WI)
James River Corp.
600
Kimberly-Clark
5,800
Roukema (R-NJ)
Becton Dickinson
800
IBM
1,300
Ingersoll-Rand
1,000
Gunderson (R-WI)
4
Molinari (R-NY)
Procter and Gamble
600
Miller (D-CA)
Chevron
11,500
Dow Chemical
800
OTHER TARGETED HOUSE MEMBERS
Member
Company
Number of Employees
Chapman (D-TX)
International Paper
972
Kimberly-Clark
525
Condit (D-CA)
Campbell Soup
700
Glickman (D-KS)
Boeing
19,300
Southwestern Bell
1,438
McCurdy (D-OK)
General Motors
5,800
Northrop Corp.
635
Rose (D-NC)
Campbell Soup
750
Corning Inc.
800
Dupont
1,600
Spratt (D-SC)
Stenholm (D-TX)
Lockheed
1,100
Texas Instruments
700
Texas Utilities
1,200
Valentine (D-NC)
Abbot Labs
2,300
Allied-Signal
700
CSX
1,000
IBM
14,000
Pfizer
726
Volkmer (D-MO)
General Motors
5,000
Union Electric
2,500
Boehlert (R-NY)
General Electric
3,800
Fish (R-NY)
Consolidated Edison
700
IBM
28,700
Pepsico
2,000
Texaco
620
Gilman (R-NY)
IBM
900
Union Carbide
600
5
Goss (R-FL)
Horn (R-CA)
McDonald Douglas
41,000
Rockwell International
8,800
Hobson (R-OH)
Cooper Industries
700
Dupont
1,108
General Electric
913
Leach (R-IA)
Alcoa
2,825
International Paper
850
Procter and Gamble
630
Rockwell International
7,586
Machtley (R-RI)
Allied-Signal
750
Raytheon
2,100
Morella (R-MD)
General Electric
1,000
IBM
1,300
Shays (R-CT)
CPC International
550
Chase Manhattan
600
IBM
530
United Technologies
1,750
Snowe (R-ME)
Champion International
1,300
Georgia Pacific
800
International Paper
1,100
James River Corp.
800