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Ford Press Releases - Insurance, 1972
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4525550
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Ford Press Releases - Insurance, 1972
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Gerald R. Ford Congressional Papers
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1972
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The original documents are located in Box D8, folder "Ford Press Releases - Insurance,
1972" of the Ford Congressional Papers: Press Secretary and Speech File 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. The Council 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States of America his copyrights in all of his unpublished writings in National Archives collections.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 D8 of The Ford Congressional Papers: Press Secretary and Speech File at the Gerald R. Ford Presidential Library
TIIII
U. S. HOUSE
REPUBLICAN POLICY
COMMITTEE
OF REPRESENTATIVES
REP. JOHN J. RHODES, (R.-ARIZ.) CHAIRMAN
1616 LONGWORTH HOUSE OFFICE BUILDING
TELEPHONE 225-6168
10
92nd Congress
April 18, 1972
Second Session
Statement Number 4
HOUSE REPUBLICAN POLICY COMMITTEE STATEMENT ON H. R. 12202,
INCREASED GOVERNMENT CONTRIBUTION UNDER FEDERAL EMPLOYEES HEALTH BENEFITS PROGRAM
The House Republican Policy Committee opposes the passage of H. R. 12202,
which provides for increased Government contributions under the Federal Employees
Health Benefits Program.
Existing Federal health insurance programs provide present and former
Federal employees and their families substantial protection against the burdensome
costs of medical services. Over two and one-half million employees and annuitants
and five and one-half million dependents have received billions of dollars in
health benefits.
Less than two years ago the Congress increased the Government's share of
the cost of its employees' health insurance premiums. To assure that a continuing
and fair proportion be contributed, a "40 percent of cost" formula was adopted.
This level of contribution has proven eminently satisfactory and no justification
for further increases has been demonstrated. H. R. 12202 would, however, increase
the Government's contribution to 55 percent, beginning in 1972. There would be an
additional increase of 5 percent each year thereafter until 1976, at which time 75
percent of premiums would then be paid by the Federal Government. The bill would
allow former employees who retired prior to July, 1960, and who are now covered
under the 1960 Retired Federal Employees Health Benefits Act, to elect coverage
under more generous provisions. H. R. 12202 would, in addition, extend dependents'
- 2 -
coverage to unmarried children over age 22 who are full-time students and receive
over one-half of their support from the Federal employee.
At present, the Federal Government is contributing $575 million
annually toward the health insurance costs of its employees. If H. R. 12202 is
enacted, by fiscal year 1977, when its provisions are fully effective, the
cumulative cost increase to the Government would be over $2.5 billion. Under
the existing 40 percent contribution formula, it is projected that, due to the
increased number of employees and retirees to be included in the health benefits
program, changes by the insureds from low to high option coverage and rises in
medical charges, the Federal Government in fiscal year 1977 will be contributing
$942 million. H. R. 12202, if enacted, will require in fiscal year 1977 the
Federal Government to contribute $2.005 billion--an additional Federal outlay of
$1.063 billion. A proposed amendment to insure applicability of the provisions of
H. R. 12202 to employees of the Postal Service would further increase the Federal
contribution more than $100 million annually and make meaningless the established
collective bargaining processes of the reorganized postal system.
Most disappointing is the Democrat majority's willingness to ignore the
spiral of devastating Federal deficits and their consequences to the economy.
An increased level of Government contribution under the Federal
Employees Health Benefits Program is untimely, unjustified and irresponsible.
The House Republican Policy Committee urges the rejection of H. R. 12202.