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The original documents are located in Box 43, folder "1975/03/20 - Jack Veneman" of the James M. Cannon Files at the Gerald R. Ford Presidential Library. Copyright Notice The copyright law of the United States (Title 17, United States Code) governs the making of photocopies or other reproductions of copyrighted material. Gerald Ford donated to the United States of America his copyrights in all of his unpublished writings in National Archives collections. Works prepared by U.S. Government employees as part of their official duties are in the public domain. The copyrights to materials written by other individuals or organizations are presumed to remain with them. If you think any of the information displayed in the PDF is subject to a valid copyright claim, please contact the Gerald R. Ford Presidential Library. Digitized from Box 43 of the James M. Cannon Files at the Gerald R. Ford Presidential Library 3PM - Meeting with Jack Veneman Thursday, March 20, 1975 giors JOHN G. VENEMAN 555 California Street, Suite 2635, San Francisco, CA 94104 (415) 397-2932 March 5, 1975 Mr. James Cannon Director Domestic Council The White House 1600 Pennsylvania Avenue Washington, D.C. Dear Jim: Just want to confirm our meeting at 11.00 am on Monday, March 17. It was good talking to you on the phone and I look forward to seeing you. Sincerely, 10, 3/20 3PM zliz Reschedule GERALD LIBRANT R. FORD OFFICE OF THE VICE PRESIDENT WASHINGTON, D.C. VICE PRESIDENT Mr. John G. Veneman 555 California Street Suite 2635 San Francisco, California 94104 4 * * 4 # OFFICE OF THE VICE PRESIDENT WASHINGTON February 28, 1975 Mundey 3/17 11 Am Mr. John G. Veneman 555 California Street Suite 2635 wr Dirk Durham San Francisco, California 94104 Dear Jack: Thank you very much for your letter of February 24, 1975. I appreciate the kind words, and only hope I can live up to them. After officially becoming Executive Director of the Domestic Council, I would be most happy to have one of the staff speak with Dr. Frank Seubold about Health Maintenance Organization. With warm personal regards, Sincerely, James M. Cannon FORD is 076830 LIBRARY February 28, 1975 Mr. John G. Veneman 555 California Street Suite 2635 San Francisco, California 94104 Dear Jack: Thank you very much for your letter of February 24, 1975. I appreciate the kind words, and only hope I can live up to them. After officially becoming Executive Director of the Domestic Council, I would be most happy to have one of the staff speak with Dr. Frank 7A send to A Seubold about Health Maintenance Organization. With warm personal regards, Sincerely, Human resources Needhard James M. Cannon FORD & LIBRARY 07V335 February 28, 1975 Mr. John G. Veneman 555 California Street Suite 2635 San Francisco, California 94104 Dear Jack: Thank you very much for your letter of February 24, 1975. I appreciate the kind words, and only hope I can live up to them. After officially becoming Executive Director of the Domestic Council, I would be most happy to have one of the staff speak with Dr. Frank Seubold about Health Maintenance Organization. With warm personal regards, Sincerely, James M. Cannon LIBRARY GERALD R. FORD JOHN G. VENEMAN 555 California Street, Suite 2635, San Francisco, CA 94104 (415) 397-2932 February 24, 1975 Mr. James Cannon Director Domestic Council The White House 1600 Pennsylvania Avenue Washington, D.C. Dear Jim: Congratulations on your new assignment. The news that the Vice President and you will assume the responsibilities of the Domestic Council was wel- comed with enthusiasm by a great many people, both within and outside of Government. The conflicting pressures for reduced Federal spending and the demands for increased involvement in the human services areas makes your task difficult but challenging. I believe I mentioned my continued involvement in Health policy during our discussion in Washington last Fall. Perhaps one develops a somewhat different perspective of what is going on from the outside, but there are a couple of trends I see taking place that causes some concern. As you may know, I was deeply involved in the develop- ment of the Health Maintenance Organization concept as an alternative to the present method of delivering health care. We were successful in getting Administration support to include payments to HMO's in PL 93-603, which ultimately led to the HMO Development Act of 1973. During the past year, the support for the program from key officials seems to have diminished. Questions are being raised about the sincerity of the Administration toward the concept. LIBRARY GERALD FORD - 2 - At no time did we suggest that HMO's were the panacea that would cure all the ills of the health delivery system. We did, however, feel that HMO's, over time, would begin to institutionalize a combination of broad health care coverage with strong cost control incentives into health economics, something that no other movements in the health policy field showed equally good chances of accomplishing. Such policies as the HMO concept, which combine increased productivity and cost control, are especially important in controlling both inflation and recession, and should be strongly supported during such periods. The budget for HMO development has been cut signifi- cantly, which is understandable though perhaps not desirable. But equally as important is for someone, be it the President, the Vice President, or the Secretary of HEW, to champion the cause. If this were to occur, I would predict that a good many plans would develop or expand without additional Federal funds. There are some impressive statistics available from HEW which verify the cost effectiveness of the HMO concept. It would be helpful if you or a member of your staff spent a few minutes with Dr. Frank Seubold, the Director of the Program for HEW. Another area that concerns me somewhat are the dis- cussions going on in Congress to extend health coverage to the unemployed. I hope the emotional concerns created by today's economy do not lead us into an overly narrow approach for National Health Insurance that would be undesirable in the future. Enough of the personal opinions. The purpose of this letter was to extend my very best to you. Perhaps we can get together when I'm in Washington. Please extend my regard to the Vice President. Sincerely, D BERALD FORD LIBRARY

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    "ocrText": "The original documents are located in Box 43, folder \"1975/03/20 - Jack Veneman\" of the\nJames M. Cannon Files at the Gerald R. Ford Presidential Library.\nCopyright Notice\nThe copyright law of the United States (Title 17, United States Code) governs the making of\nphotocopies or other reproductions of copyrighted material. Gerald Ford donated to the United\nStates of America his copyrights in all of his unpublished writings in National Archives collections.\nWorks prepared by U.S. Government employees as part of their official duties are in the public\ndomain. The copyrights to materials written by other individuals or organizations are presumed to\nremain with them. If you think any of the information displayed in the PDF is subject to a valid\ncopyright claim, please contact the Gerald R. Ford Presidential Library.\nDigitized from Box 43 of the James M. Cannon Files at the Gerald R. Ford Presidential Library\n3PM - Meeting with Jack Veneman\nThursday, March 20, 1975\ngiors\nJOHN G. VENEMAN\n555 California Street, Suite 2635, San Francisco, CA 94104\n(415) 397-2932\nMarch 5, 1975\nMr. James Cannon\nDirector\nDomestic Council\nThe White House\n1600 Pennsylvania Avenue\nWashington, D.C.\nDear Jim:\nJust want to confirm our meeting at\n11.00 am on Monday, March 17.\nIt was good talking to you on the phone\nand I look forward to seeing you.\nSincerely,\n10,\n3/20 3PM\nzliz\nReschedule\nGERALD LIBRANT R. FORD\nOFFICE OF THE VICE PRESIDENT\nWASHINGTON, D.C.\nVICE PRESIDENT\nMr. John G. Veneman\n555 California Street\nSuite 2635\nSan Francisco, California 94104\n4 * *\n4\n#\nOFFICE OF THE VICE PRESIDENT\nWASHINGTON\nFebruary 28, 1975\nMundey 3/17\n11 Am\nMr. John G. Veneman\n555 California Street\nSuite 2635\nwr Dirk Durham\nSan Francisco, California 94104\nDear Jack:\nThank you very much for your letter of\nFebruary 24, 1975. I appreciate the kind words,\nand only hope I can live up to them.\nAfter officially becoming Executive\nDirector of the Domestic Council, I would be most\nhappy to have one of the staff speak with Dr. Frank\nSeubold about Health Maintenance Organization.\nWith warm personal regards,\nSincerely,\nJames M. Cannon\nFORD is 076830 LIBRARY\nFebruary 28, 1975\nMr. John G. Veneman\n555 California Street\nSuite 2635\nSan Francisco, California 94104\nDear Jack:\nThank you very much for your letter of\nFebruary 24, 1975. I appreciate the kind words,\nand only hope I can live up to them.\nAfter officially becoming Executive\nDirector of the Domestic Council, I would be most\nhappy to have one of the staff speak with Dr. Frank\n7A send to\nA\nSeubold about Health Maintenance Organization.\nWith warm personal regards,\nSincerely,\nHuman\nresources\nNeedhard\nJames M. Cannon\nFORD & LIBRARY 07V335\nFebruary 28, 1975\nMr. John G. Veneman\n555 California Street\nSuite 2635\nSan Francisco, California 94104\nDear Jack:\nThank you very much for your letter of\nFebruary 24, 1975. I appreciate the kind words,\nand only hope I can live up to them.\nAfter officially becoming Executive\nDirector of the Domestic Council, I would be most\nhappy to have one of the staff speak with Dr. Frank\nSeubold about Health Maintenance Organization.\nWith warm personal regards,\nSincerely,\nJames M. Cannon\nLIBRARY GERALD R. FORD\nJOHN G. VENEMAN\n555 California Street, Suite 2635, San Francisco, CA 94104\n(415) 397-2932\nFebruary 24, 1975\nMr. James Cannon\nDirector\nDomestic Council\nThe White House\n1600 Pennsylvania Avenue\nWashington, D.C.\nDear Jim:\nCongratulations on your new assignment. The news\nthat the Vice President and you will assume the\nresponsibilities of the Domestic Council was wel-\ncomed with enthusiasm by a great many people, both\nwithin and outside of Government. The conflicting\npressures for reduced Federal spending and the\ndemands for increased involvement in the human\nservices areas makes your task difficult but\nchallenging.\nI believe I mentioned my continued involvement in\nHealth policy during our discussion in Washington\nlast Fall. Perhaps one develops a somewhat different\nperspective of what is going on from the outside, but\nthere are a couple of trends I see taking place that\ncauses some concern.\nAs you may know, I was deeply involved in the develop-\nment of the Health Maintenance Organization concept as\nan alternative to the present method of delivering\nhealth care. We were successful in getting Administration\nsupport to include payments to HMO's in PL 93-603, which\nultimately led to the HMO Development Act of 1973.\nDuring the past year, the support for the program from\nkey officials seems to have diminished. Questions are\nbeing raised about the sincerity of the Administration\ntoward the concept.\nLIBRARY GERALD FORD\n- 2 -\nAt no time did we suggest that HMO's were the panacea\nthat would cure all the ills of the health delivery\nsystem. We did, however, feel that HMO's, over time,\nwould begin to institutionalize a combination of broad\nhealth care coverage with strong cost control incentives\ninto health economics, something that no other movements\nin the health policy field showed equally good chances\nof accomplishing. Such policies as the HMO concept,\nwhich combine increased productivity and cost control,\nare especially important in controlling both inflation\nand recession, and should be strongly supported during\nsuch periods.\nThe budget for HMO development has been cut signifi-\ncantly, which is understandable though perhaps not\ndesirable. But equally as important is for someone,\nbe it the President, the Vice President, or the Secretary\nof HEW, to champion the cause. If this were to occur,\nI would predict that a good many plans would develop or\nexpand without additional Federal funds.\nThere are some impressive statistics available from\nHEW which verify the cost effectiveness of the HMO\nconcept. It would be helpful if you or a member of\nyour staff spent a few minutes with Dr. Frank Seubold,\nthe Director of the Program for HEW.\nAnother area that concerns me somewhat are the dis-\ncussions going on in Congress to extend health coverage\nto the unemployed. I hope the emotional concerns created\nby today's economy do not lead us into an overly narrow\napproach for National Health Insurance that would be\nundesirable in the future.\nEnough of the personal opinions. The purpose of this\nletter was to extend my very best to you. Perhaps we\ncan get together when I'm in Washington.\nPlease extend my regard to the Vice President.\nSincerely,\nD\nBERALD FORD LIBRARY"
}