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Records of the Office of the Chief of Staff (Clinton Administration)
Harold Ickes, Jr.'s Files
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2674838-20220433S-009-017-2023
Health Care Files
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SENT BY:
9-30-94 ; 7:06AM ;
CWA TRUST-DEPT. OF. CHIEF. STAFF. :# 2/ 3
LABOR
he
For Release: Immediately
The Labor HMO
Contact: Brian Schilling
7401 Wisconsin Avc
Phone: 1-800-638-8113 or (301)951-3000
Bethesda, MD 20814
Labor HMO Brings Hope in Wake of Health Reform Demise
National health care reform officially died this week in Congress and all across the United
States - - everywhere, that is, except in the new offices of the Labor HMO in Bethesda, MD.
The Labor HMO is poised to supply high quality low cost managed health care to union
groups across the country. "We're ready to pick up the ball dropped by Congress," said
President Robert Gaw, "labor doesn't have to put up with the status quo any longer."
The Labor HMO, which provides professional managed care services to union trusts, is
significantly different from traditional HMOs. Because it is linked with the existing
Communications Workers of America's (CWA) Health and Welfare Trust and the CWA
Benefits Trust, The Labor HMO has all the financial advantages a self-insured health plan
typically enjoys - lower taxes and no state regulation. "This allows us to concentrate on
what's important," said Gaw, "providing excellent coverage and keeping costs down."
Presently, the I abor HMO serves members nationwide through an extensive network of
doctors and hospitals throughout the U.S. Most of the covered groups are small and medium
sized telecommunications companies, print shops, public sector groups and television
companies. In addition to CWA members, the Labor HMO offers comprehensive major
medical coverage, dental, vision, disability and medicare supplement plans to members of
other unions and affiliated association members. The National Association of Socially
Responsible Organizations (NASRO) has endorsed these benefits and has actively encouraged
its own members to receive health benefits through the plan for the past two years.
Beginning next year, the Labor HMO will recruit its own capitated primary care physician
network. Recruitment efforts will target physicians in citics where union membership is high.
Funding for the physician recruitment effort will come in part from a planned January 1995
private placement stock offering expected to raise three million dollars in capital.
The Labor HMO's staff is drawn from some of the country's leading HMO's, provider
associations, and insurance companies. "The right expertise is essential to running a quality
HMO" notes Gaw, "but there's no substitute for understanding the people you want to serve. #
SENT BY:
9-30-94 ; 7:07AM :
CWA TRUST-DEPT.OF.CHIEF.STAFF. :# 3/ 3
CWA Health Plan, The Labor HMO
7401 Wisconsin Ave,
Bethesda, MD 20814
Contact: Brian Schilling (800) 638-8113 or (202) 466-6917
CWA Health Plan mission - provide high-quality, affordable health and other benefits to CWA
members & their widowed spouses, associate members, and retirees.
Number of members served by the CWA Health Plan - - 2,000+
Number of states in which CWA Health Plan operates - 50
Years in existence - 7 (since 1987)
Type of organization - Non-profit, Taft-Hartley Trust regulated by US Department of Labor.
Trust Administrator - Robert G. Gaw and Associates
Who the plan serves - CWA members, associate members, retirees, and attiliated unions, non-
profits, small businesses, and the sclf-employed.
Average increase in monthly contributions vs. national average
CWA Health Plan increases 8% in 91', 6% in 92' and 5% in 93'
Average nat. increases 12% in 91', 15% in 92' and 8% in 93.
Providers currently in CWA Health Plan network - 140,000
Hospitals & facilities in CWA Health Plan network - - 1,200+
Benefits products currently offered by the CWA Health Plan -
- HMO, PPO, and Indemnity type major medical
- Medicare Supplement (network & non-network based)
- Dental and Vision
- Prescription Drug Cards
- Term Life Insurance
- Long Term Care
- Retirement Investment
- Basic Supplemental Health
- Disability
factsheet 9/12
0202 223 3413
AFSCME LEGIS DEP
0001
LABOR
he
AFSCME LEGISLATION DEPARTMENT
1625L Street, N.W.
Washington, D. C. 20036
Fax No. (202)223-3413
FACSIMILE COVER SHEET
DATE:
9/20/94
TO: (Name)
Mike Lux
ORGANIZATION:
DOCUMENT DESCRIPTION:
FAX NO.: Area Code (
)
456-6218
FROM:
Chuck Loveless
PHONE: Area Code (
)
429-1194
NUMBER OF PAGES TO FOLLOW:
3
RESPONSE REQUESTED? Yes
No
SPECIAL INSTRUCTIONS:
7202 223 3413
AFSCME LEGIS.DEP
002
Senator George Mitchell
Majority Leader
United States Senate
Washington, D.C. 20510
September 20, 1994
Dear Senator Mitchell:
We believe strongly that it would be a grave mistake to bow to
last minute pressure to pass any "mainstream" health care
legislation that is both unworkable and destined to cause real
harm to millions of Americans.
We are profoundly disappointed that our work and yours to support
comprehensive, universal and affordable health care reform has
been diminished in these last ditch efforts to draft a reform
strategy. With prospects for that kind of reform now quite
distant, we urge you not to support any proposal that has the
potential to injure the health care benefits of the very people
reform is supposed to be helping. We also urge that there be
sufficient time for public scrutiny of any new compromises that
may develop.
The "mainstream" proposal represents a step backward for our
members.
Not only would it fail to cover everyone, it contains incentives
for employers and individuals to drop coverage they now have.
Not only does it lack any effective cost control, it would
increase costs to many consumers through a tax on hard-won
insurance plans.
It would shift the burden of paying for health care away from
employers and onto the elderly and low-income individuals, in
part through outs in Medicare and Medicaid without a
corresponding increase in benefits such as long term care and
prescription drugs, and through changes in medical malpractice.
Medicaid beneficiaries would lose their current coverage.
Promised subsidies to help them buy insurance would vanish if
budget failsafe requirements were triggered. Even if subsidies
were furnished, care would be much less affordable, and fewer
benefits would be covered.
The benefits section, including multiple benefit packages that
each individual health plan is left to define, would lead
directly to adverse risk selection and inadequate coverage.
09/22/94
11:51
₱202 223 3413
AFSCME LEGIS. DEP
003
Insurance interests could sit on the boards of health insurance
purchasing cooperatives. This means the cooperatives authorized
to negotiate the price of insurance, and to create broad pools of
people without discrimination, would be influenced by the
companies who would stand to profit from selling insurance at
higher rates to healthier risk pools, a set-up for failure.
There is not even a conflict of interest provision to regulate
the companies' actions while sitting on the boards.
The means-tested home care benefit would be no better than the
current Medicaid program. Because the benefit would be so
minimally funded, many middle-income families would be forced to
a poverty level in order to qualify for the benefit.
Last but perhaps most important, the "mainstream" proposal would
obstruct statos that want to move ahead on expanding acoess and
controlling health care costs. It would undermine the
implementation of a state single payer system by allowing large
self-insured employers to opt out of those systems. States would
be prohibited from extending consumer protection and coverage
requirements to the employees of self-insured employers.
The undersigned organizations support comprehensive reform of the
nation's fragmented health care system, a system which cannot
measure up to any standards of justice and equity. We are deeply
disappointed by the failure to enact comprehensive health care
reform legislation this year. However we feel strongly that the
"mainstream" proposal retreats even further from that goal, and
we urge you to oppose this proposal.
Sincerely,
AIDS Action Council
Alliance Against Discrimination Against Mental Illness and
Substance Abuse Treatment
Amalgamated Clothing and Textile Workers Union (ACTWU)
American Association of Private Practice Psychiatriste
American Association of Retired People (AARP)
American College of Nurse Midwives
American Counseling Association
American Federation of State, County and Municipal Employees
(AFSCME)
American Mental Health Counselors Association
American Psychoanalytic Association
American Public Health Association
Americans for Democratic Action
Bazelon Center for Mental Health Law
Campaign for Health Security
Center on Disability and Health
Churchwomen United
Citizen Action
2
09/22/94 11:51 202 223 3413
AFSCME LEGIS.DEP
₫004
Consumers Union
Family Service America
Gray Panthers
International Ladies Garment Workers Union (ILGWU)
International Longshoremen's and Warehousemen's Union (ILWU)
International Union of Electronic, Electrical, Salaried, Machine
and Furniture Workers (IUE)
Interreligious Health Care Access Campaign
National Association of Public Hospitals
National Association of Social Workers
National Council of Churches
National Council for Independent Living
National Council of Senior Citizens
National Education Association (NEA)
National Federation of Clinical Social Workers
National Health Care for the Homeless Council
National Rural Health Network
National Organization of State Associations for Children
National Women's Health Network
Oil, Chemical and Atomic Workers Union
Public Citizen
Real Health Care for All
Unitarian Universalist Association
United Church of Christ, Office for Church and Society
U.S. Public Interest Research Group (U.S. PIRG)
Washington Psychiatric Society
Neighbor to Neighbor
Network
3