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Records of the White House Office of Press Secretary (George H. W. Bush Administration)
Marlin Fitzwater Alphabetical Subject Files
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CATASTROPHIC HEALTH
- 8 -
Sept 12
MR. FITZWATER: In the meeting this morning with
Republican members of Congress, they discussed with the President
administration position on a number of pieces of legislation. But
certainly, one of the foremost of concern to them is the catastrophic
bill. And the President assured them that we share their concern for
its impact on senior citizens, that we have been looking for a way to
mitigate this situation for the last couple of months.
We have not found an answer yet. Our primary concern is
*
that this bill, as you know, would add some $6 billion to the
Treasury, and without that income we would automatically trigger the
sequester under Gramm-Rudman-Hollings and violate the congressional
budget agreement. So we have financial concerns, but we are looking
for ways to deal with this problem.
Q Marlin, as you know, the President supported this
thing that he said was not a tax when it happened. He said it was a
good way -- remember in the debates last year --
MR. FITZWATER: Right.
Q
-- a good way to provide services. It was a
premium.
MR. FITZWATER: Yes.
Q What does it portend for this whole process if when
we pass a small premium for an added service, catastrophic - -- which
the Reagan administration wanted to put on -- that suddenly there's a
rebellion and that elderly people who are middle and upper income
don't want to pay for it? Is the President going to essentially say
now we'll mitigate it for these people, we'll take it back? Is his
mind set to repeal this piece of legislation?
MR. FITZWATER: His mind set is that we have learned, as
the Congress has learned when this passed the Senate only 11
people voted against it that you need to be very careful and
considerate of the cost of these kinds of entitlement programs before
they are passed. And that the President did agree with this.
President Reagan signed it; indeed, he had proposed it. And as you
suggest, the message is clear that when you pass this kind of
legislation you'd better know what it costs before you do it.
And so, we're looking at --
Q
So does the President want to repeal it? Does he --
MR. FITZWATER: Well, that's what we haven't decided yet.
But, obviously, many members of Congress are pushing for repeal. But
our problem is that repeal has rather devastating effects on the
deficit side with regard to triggering a sequester.
Q
Is that the only real concern, Marlin?
Q
But he's obviously changed from support to "I don't
know," right?
MR. FITZWATER: No. We have always said that we support
the bill and we are concerned about the program -- about the taxes
and the impact on the deficit. But we recognize this impact on the
elderly, we recognize their concern, and we are working with members
of Congress now to try to develop some kind of solution.
Q
But you just said someone asked you, does the
President want to repeal it, and you said he hasn't decided. He has
changed from outright support, obviously.
MR. FITZWATER: Yes, but repeal implies a solution that
we don't have yet. A lot of congressmen just want a straight out
repeal, but we're not sure that that's the best way to approach it.
MORE
#100-09/12
MF
see what is
* (starid) on 1st
and last pages
- 9 -
9/12
Q
fight for keeping it the way it is, either?
But President Bush is not going to stand up and
is that we support it and we don't see any change. But we are
MR. FITZWATER: Well, he says at the moment our position
looking for alternatives.
Q
Does the President think this is a necessary
program, it? Marlin; the problem is just he doesn't know how to pay for
Or is he not so sure it's a good idea now?
MR. FITZWATER: Well, the administration thought it was a
think it's got good objectives, but they have felt the heat. And the
good program in the past, as did most of the Congress. People still
clear people at home in the August recess obviously made their views
at the financing and see what can be done.
about paying for this benefit. So they're taking another very look
Q
But, Marlin, you're talking about - -- you say the
present Congress has learned that you'd better know what these things
cost before you pass it. It seems in fact -- are you saying that in
fact there are cost overruns here that the President, when he was
Vice President, didn't foresee, or are you really saying that the
President is feeling the heat, too, from the elderly lobby?
MR. FITZWATER: Everybody is, sure. I hope there is not
any misapprehension about the political aspects of this program. I
proportions. mean, the elderly complaints are rolling in in tidal waves of immense
--
Q Well, is that what the President has really learned
MR. FITZWATER: And that has not been lost on --
certainly not members of Congress and not the administration. anyone And
our point being that we need to be very -- our point is -- what the
that lesson for the future is, when you've got these entitlement programs
provide a service that everyone agrees is needed, you'd better
be sure you understand the financing. And in this case we didn't.
Not the administration, not the Congress.
Q
get from the elderly?
And did you also underestimate the reaction you'd
MR. FITZWATER: Absolutely.
Q
I want to see if I can pin you down on whether the
President's primary concern on repeal -- in fact, only major concern
on repeal -- is triggering the sequester? Were it not for that,
would the President repeal this program? Would he support repeal?
we'd and like to provide the benefits. We thought it was a good program,
MR. FITZWATER: Well, I can't say that because obviously
so forth. But we have to look at all the aspects of it.
Q Are you searching now for a way to repeal the
program and avoid the sequester? Is that the focus of your search?
financial problems.
MR. FITZWATER: We're searching for a way to mitigate the
Q Of repealing the program?
we've been for the last couple of months.
MR. FITZWATER: And saving the program. And that's where
Q Well, I'm sorry. I really don't understand whether
you're aiming to save the program or whether you're aiming to repeal
and save the budget.
MR. FITZWATER: Well, we're saving the program. We have
testified that we support the program and we don't see any need for
MORE
#100-09/12
- 10 -
9/12
change, but we have also been searching for a couple of months for
possible changes. We continue to do that.
Q On another subject -- back on --
Q No. Marlin.
Q Wait a minute.
Q No, let's kick this around a little longer.
this rolling in of complaints? I mean, how many has the
Q Marlin, Marlin, do you have a quantitative count of
switchboard been flooded and the mail way up?
Q What is the income distribution of this tidal wave?
MR. FITZWATER: Probably 535 to zero.
Q
Congress and not from elderly citizens? They have not been calling?
No, the complaints you've heard are directly from
probably have been elderly concerns directly to the government
MR. FITZWATER: Oh, there may have been elderly - there
meetings it has been relatively unanimous.
through HHS and other places, but certainly in the Congressional
Q
Marlin, are you saying that this tidal wave
that objections is from all elderly across the board or primarily those of
are paying taxes and would have to pay the surtax?
morning several members of Congress emphasized that in terms of their
MR. FITZWATER: I don't know specifically, although this
categories of the elderly.
constituents and the people they talked to in August, it was from all
Q
primarily all the elderly recipients. And this would not increase
just cut that in half and raise the premiums which affect all people, --
One of the suggestions is to have the surtax to
the deficit in any way. Primarily it would be budget-neutral but
would change the mix. Is the administration willing to consider that
since there's no difference in --
Paula, but obviously we're looking at whatever can be done. And I
MR. FITZWATER: Well, I can't comment on various options,
until we've reached some kind of an agreement.
know that's one of them, but we don't want to commit at this point
Q Well, last week your OMB Deputy Director testified
that they -- the administration would prefer that we just keep the
program as is and, as you said, the concern for sequester and
triggering the deficit. If you were to consider repeal, would it be
only on condition that that $6 billion in revenue loss be offset?
position is to keep the program, but it's also true that we have
MR. FITZWATER: Well, as you correctly point out, our
agreed to look at various alternatives, but I'm just not free to
discuss what we might do or what we might not do.
Q
mean, if you were to go with repeal, you'd lose $6 billion, so would I
But would any of them have to be budget-neutral?
you have to offset that?
MR. FITZWATER: But I don't want to signal that in
advance, Paula. We'll have to -- something we'd work out in the
negotiating process.
Q
about no program reductions at all? No reductions in services?
But when you say "keep the program," are you talking
kind of detail because when you get into discussions of how the
MR. FITZWATER: Well, there again I can't specify that
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#100-09/12
9/12
- 11 -
program might be altered or financing changes, those things are all
up to negotiation. And we just don't want to make any commitments
to support the program.
other than the public one, SO at the moment our policy is to continue
because you need it for budgetary reasons?
Q Well, do you want to keep it for its own sake or
MR. FITZWATER: Both. We want to keep it for its own
sake, first of all, and secondly, to make changes, there are
significant budgetary problems.
side of the Q equation. It sounds like you're just hung up on the budget
very difficult issue.
MR. FITZWATER: No, we're hung up on all sides. It's a
Q
Back to another difficult issue, drugs, was the
White House surprised by the Democratic response to the President's
proposal? Was it more critical than you expected, and were you
surprised that some Democrats talked about raising taxes?
the Democrats thought raising taxes was a viable response, yes.
MR. FITZWATER: I'd say we were a little surprised that
Q
because you think that's --
Were you pleased that that was their response
fighting drugs and they're for raising taxes.
MR. FITZWATER: Well, it did make it clear that we're for
Q Is this what you call stopping the partisan --
Q Is there any possibility that --
MR. FITZWATER: (Laughter. Hey, she asked the question.
Nick, go ahead.
Q
Is there any possibility that Yeltsin would be
available to the press while he's here on the White House grounds?
MR. FITZWATER: I don't know. You'd have to ask him.
Q Can we find out --
Q I mean, which way is he coming out?
Q
driveway, or where is his limo?
Will you allow him to go out and talk in the
MR. FITZWATER: He's free to do whatever he wants.
Q Marlin, before you leave, what's the purpose --
minutes?
MR. FITZWATER: What time is the speech? We've got 15
Q
What's the purpose of the Hassan visit?
issues, primarily, however, economic assistance.
MR. FITZWATER: He's here to talk about a wide range of
Q To who? To who? Economic assistance --
MR. FITZWATER: To Jordan.
prices are down? Is that why?
Q To Jordan? For what purpose? Just because the oil
MR. FITZWATER: Yes, they're having significant economic
MORE
#100-09/12
SEPT 14
9/14
that be done without busting the budget? And is it your view now
that the White House is going to have to take a far more active role
in this if this program is to be saved?
MR. FITZWATER: On catastrophic? Well, we are working
with the Senator and others on the Hill on a solution. We don't want
to commit to any one course of action at this point.
Q
How do you feel about making it voluntary? He's
commiting to a solution.
MR. FITZWATER: Well, he is, but we've got a lot of
people to discuss it with and we don't want to take a public position
until we can reach a greater consensus.
Q
Can it be made voluntary and not bust the budget?
MR. FITZWATER: I don't know.
Q
I mean there are a lot of senators and congressmen,
as you well know, up on the Hill who insist that short of a very
active White House position -- presidential position on this, that
he'll be steamrolled and the thing will be repealed outright. That
came up the other day when Gingrich and company were in here.
MR. FITZWATER: Well, we are --
Q
Yet there still seems to be no well -- clearly
defined White House position on this thing, and I'm curious as to
why.
MR. FITZWATER: The reason for that is that we are
discussing it with any number of members and there are a number of
different ways to approach it. And we are not wedded to any single
one, but to working out the best solution. And as we have said here
before, there are a lot of people who feel strongly on both sides,
and there are different alternative financing mechanisms. So it
doesn't pay us to take a position on voluntary implementation or
whatever until we work out a consensus.
Q
Marlin, when you talk about the best solution, are
you talking about the best solution for all the elderly or for
keeping any alternative within the budget?
MR. FITZWATER: The best solution for the elderly, in
terms of preserving the benefits, making the premiums realistic, and
preserving the fiscal aspects of it in terms of the budget.
Q
Are you willing to preserve the progressivity of the
payments?
MR. FITZWATER: We'd like to preserve the benefits, but
the payments and progressivity, all those are aspects that are under
discussion.
Q
You're not trying to keep that principle in there?
MR. FITZWATER: Well, we're not going to say. We're
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#102-09/14
specifics. saying we're willing to discuss it, but we're not committing to any
Q
Do you want to preserve all the benefits under
current
MR. FITZWATER: That's our initial position, sure -- that
we think it's a good program, we proposed this program, and we'd like
to keep it.
10/3
Q
Is the President making any calls on the
catastrophic before the catastrophic vote today?
MR. FITZWATER: I don't believe so, no.
Q
Do you have a preference among the three
alternatives they will be considering?
MR. FITZWATER: Our position is the same as it's always
been, that we prefer to maintain the benefits while finding some way
to mitigate the cost of the premiums.
Q
Well, they have three actual alternatives they're
going to choose from. Can we presume from that that you like the
Ways and Means approach the best?
MR. FITZWATER: We wouldn't want to specify publicly
which we favor until we see the final product.
- 6 -
Oct 3
Q
But you are against the repeal amendment, aren't
ou?
MR. FITZWATER: Yes. We've opposed repeal.
*
10/2
Q
Do you have a position on the various options taken
about catastrophic health in the House tomorrow?
MR. FITZWATER: That's another case where there are still
a number of options in the works. Our position is clear, but we'll
work with various peoples.
Q
Why are there options in the works? I mean, we know
what amendments will be offered on the floor. You don't have a
position on the bill or one of those amendments?
MR. FITZWATER: Well, our position, basically, is that we
want to retain the benefits and mitigate the premium cost. Bud there
are some ways that some of the bills want to reduce all the benefits,
some want to eliminate the premium entirely, some want to eliminate
the surtax. I mean, there's any number of different approaches.
Q
But there's three approaches the House is going to
vote on. Do you have a position on those?
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#106-10/02
MR. FITZWATER: No. We'll wait and work with them still.
We haven't reached a final point yet.
Q
Don't want to get out in front on this one, huh?
MR. FITZWATER: Nope. We're right where we want to be.
(Laughter.)
Q Obscure.