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FOIA Number: 2006-0810-F (2) FOIA MARKER This is not a textual record. This is used as an administrative marker by the William J. Clinton Presidential Library Staff. Collection/Record Group: Clinton Presidential Records Subgroup/Office of Origin: First Lady's Office Series/Staff Member: First Lady's Press Office Subseries: Press Office Clippings 1993 - 1994 OA/ID Number: 6128 FolderID: Folder Title: [HEALTH CARE CLIPS: JUNE 1994-JULY 1994] [4] Stack: Row: Section: Shelf: Position: S 61 3 4 3 THE PATIENT'S ADVOCATE BY MARILYN MOON Health Reform and You Q. I'm very concerned about possible higher taxes as PRESERVATION PHOTOCOPY a result of health plans being offered by President It is difficult to know Clinton and others. These plans are going to be funded with a tobacco tax. At the same time, the federal health officials are trying to cut the number whether the proposed of Americans who smoke and some folks even talk about having tobacco banned. It seems like a case of revenue sources will be having your cake and eating it too. Are we going to get stuck with a lot of other heavier taxes when the tobacco tax doesn't provide the needed revenues? sufficient. A. One of the effects of a tobacco tax will likely be to discourage smoking, but the estimates of Many states do not have the resources to cover how much revenue would be raised take a all their citizens without federal government reduction in smoking into account. The 75-cent support. If such help is not part of this approach, tax on each pack proposed by Clinton would not all states would participate. But if there is some raise about $10 billion to $11 billion each year. federal support, would the federal government By itself, this tax is certainly not enough to choose just a few states for an experiment? In pay for comprehensive health care reform. The either case, this would result in disparities in various plans also assume other ways to finance coverage across the United States. Moreover, expanded coverage, including savings from states need to worry about companies' relocating if cutting Medicare and reducing or eliminating state taxes were raised. That is less of a problem the Medicaid program. Other ways that some for the United States as a whole. But despite these plans finance reform include requiring that problems, if national health care reform fails to employers contribute to health insurance and pass, a number of states are likely to move on their limiting the extent to which insurance benefits own to change the health care system. can be deducted from taxable income. Like you, many people fear that additional revenue sources may also be needed, especially if costs Under the proposed health plans pending in of health care continue to rise in the future. the Congress, how will part-time and hourly Comprehensive reform legislation would be employees be covered? complicated, and it is difficult to know with A. The Clinton proposal, with its employer certainty whether the revenue sources that have mandate, would require employers to pay on a been proposed will be sufficient, especially after prorated basis for part-time and hourly workers as the program has been in place for a few years. long as they work more than 10 hours a week. The single-payer approach sponsored by Rep. Jim Q. Have policy makers considered evaluating McDermott (D-Wash.) would cover everyone several of the plans by having different states try regardless of employment status and pay for the public system through payroll and income taxes. 6-28-94 them out? This way, they could give different plans a chance to see which one or ones could The other major proposals would either require work best, and implement the best plan for the country. optional, and these plans would make insurance the responsibility of individuals. Employers under these A. One of the suggestions for compromise on HEALTH MAGAZINE WASHINGTON POST individuals to purchase insurance or leave coverage plans would be free to help pay the premiums, but health care reform is to give states a great deal they would have no increased incentives to expand of latitude in designing reform. Many of the their current efforts. Low-income individuals under existing proposals already allow some state all the plans would receive some type of subsidy to flexibility. There are, however, several help in the purchase of insurance, but the details problems with allowing more flexibility, many of vary. The more generous these subsidies, the them surrounding the issue of who would pay. more expensive the proposal. WASHINGTON o you have a question about President Clinton's health proposal or about D the other bills in Congress? The Washington Post free telephone information service takes questions from readers about how the plan could affect them. Call POSTHASTE at 202-334-9000 on Я touch-tone phone and enter category code 8500 (in Prince William County, 703-690-4110). Health economist Marilyn Moon of the Urban Institute provides answers in this column based on information from the White House, Congress and other sources. While she cannot answer all questions or give personal advice, she will answer a range of inquiries. THE PATIENT' BY MARILYN MOON Health Reform and You Q. I'm very concerned about possible higher taxes as a result of health plans being offered by President It is difficult to know Clinton and others. These plans are going to be funded with a tobacco tax. At the same time, the federal health officials are trying to cut the number whether the proposed of Americans who smoke and some folks even talk about having tobacco banned. It seems like a case of revenue sources will be having your cake and eating it too. Are we going to get stuck with a lot of other heavier taxes when the tobacco tax doesn' it provide the needed revenues? sufficient. A. One of the effects of a tobacco tax will likely be to discourage smoking, but the estimates of Many states do not have the resources to cover how much revenue would be raised take a all their citizens without federal government reduction in smoking into account. The 75-cent support. If such help is not part of this approach, tax on each pack proposed by Clinton would not all states would participate. But if there is some raise about $10 billion to $11 billion each year. federal support, would the federal government PRESERVATION By itself, this tax is certainly not enough to choose just a few states for an experiment? In PHOTOCOPY pay for comprehensive health care reform. The either case, this would result in disparities in various plans also assume other ways to finance coverage across the United States. Moreover, expanded coverage, including savings from states need to worry about companies' relocating if cutting Medicare and reducing or eliminating state taxes were raised. That is less of a problem the Medicaid program. Other ways that some for the United States as a whole. But despite these plans finance reform include requiring that problems, if national health care reform fails to employers contribute to health insurance and pass, a number of states are likely to move on their limiting the extent to which insurance benefits own to change the health care system. can be deducted from taxable income. Like you, many people fear that additional revenue sources may also be needed, especially if costs Q. Under the proposed health plans pending in of health care continue to rise in the future. the Congress, how will part-time and hourly Comprehensive reform legislation would be employees be covered? complicated, and it is difficult to know with A. The Clinton proposal, with its employer certainty whether the revenue sources that have mandate, would require employers to pay on a been proposed will be sufficient, especially after prorated basis for part-time and hourly workers as the program has been in place for a few years. long as they work more than 10 hours a week. The single-payer approach sponsored by Rep. Jim & Have policy makers considered evaluating McDermott (D-Wash.) would cover everyone several of the plans by having different states try regardless of employment status and pay for the them out? This way, they could give different public system through payroll and income taxes. plans a chance to see which one or ones could The other major proposals would either require work best, and implement the best plan for the individuals to purchase insurance or leave coverage country. optional, and these plans would make insurance the responsibility of individuals. Employers under these A. One of the suggestions for compromise on plans would be free to help pay the premiums, but health care reform is to give states a great deal they would have no increased incentives to expand of latitude in designing reform. Many of the their current efforts. Low-income individuals under existing proposals already allow some state all the plans would receive some type of subsidy to flexibility. There are, however, several help in the purchase of insurance, but the details problems with allowing more flexibility, many of vary. The more generous these subsidies, the them surrounding the issue of who would pay. more expensive the proposal. 0 you have a question about President Clinton's health proposal or about D the other bills in Congress? The Washington Post free telephone information service takes questions from readers about how the plan could affect them. Call POSTHASTE at 202-334-9000 on a touch-tone phone and enter category code 8500 (in Prince William County, 703-690-4110). Health economist Marilyn Moon of the Urban Institute provides answers in this column based on information from the White House, Congress and other sources. While she cannot answer all questions or give personal advice, she will answer a range of inquiries. PM-Relying on Leon, Bjt, 720 Panetta: A Persistent, Tough Insider Who Alienates Few With PM-White House-Shakeup Bjt AP Photo WX103 By ALAN FRAM= Associated Press Writer= WASHINGTON (AP) When President Clinton needed a punchline last March during a dinner thrown by the Washington press corps, he used Leon Panetta literally. It says right here that someday we'll all die, sighed Hillary Rodham Clinton in a parody the first couple had taped of the insurance industry's Harry and Louise ads attacking the Clintons' health-care plan. His jaw dropping, Clinton responded, Even Leon Panetta?' The president picked the amiable congressional veteran for the punchline of the joke because of Panetta's refusal to wither under the intense political fire of the administration's first year, when he served as director of the Office of Management and Budget. Now, for that attribute and others, Clinton has chosen Panetta again, this time as his chief of staff. The owlish, broad-shouldered Panetta, who turned 56 today, comes to his new job after 16 years as a California congressman and nearly 18 months as Clinton's budget director. He replaces Clinton's boyhood friend, Mack McLarty, who was seen as too gentle for the election-year crunch that awaits health care, the crime bill and some of the president's other top legislative priorities. Asked to list Panetta's qualities, lawmakers and others describe a man who seems custom-made for the difficult job of Clinton's gatekeeper: Organized. Experienced. Loves process. Knows how to say no. Understands issues and Congress. Popular with the press. In the Capitol, Panetta's ascension Monday was greeted with uniform glee by fellow Democrats and with respect by Republicans. What Leon brings with him is a good knowledge of the workings of Congress, how to work with it and get around pitfalls, said Rep. Charles Stenholm, D-Texas, a conservative who sometimes clashed with Panetta when both were on the House Budget Committee. He's very fair. He listens. " Leon knows Washington and knows Congress better than anybody in the current White House team, said House Minority Whip Newt Gingrich, R-Ga. ``He brings a level-headed, cheerful persistence that will be helpful to the president.' Before coming to Congress, Panetta was a Republican and director of the Civil Rights Office in President Nixon's Department of Health, Education and Welfare. Panetta was fired in 1970 after he complained that the agency was not aggressive enough; he became a Democrat soon afterward. Panetta's ready, cackling laugh and the ubiquitous thick looseleaf books tucked under his arms were his trademarks in the halls of the House. There, he persistently ranted about the need to attack burgeoning federal deficits for years before Ross Perot dragged the issue into the spotlight of the last presidential campaign. On a subject that can be eye-glazingly dull, he was able to deliver passionate speeches on the need to cut red ink, his voice loud and his face bulging with emotion. Known as a master of the minutiae of the $1.5 trillion federal budget, Panetta was a major player in the 1990 budget summit with President Bush that yielded a $500 billion deficit-reduction package of taxes and spending cuts. As White House budget chief, he helped guide Clinton's similar deficit-cutting plan to enactment last year. In both those episodes, he was seen by some liberal Democrats as, if anything, too eager to reduce the deficit at the expense of cherished social programs. During the marathon 1990 budget summit with Bush, he seemed more willing than some other Democratic participants to strike a compromise with the administration. It is that willingness to reach out that persuaded many Republicans that Panetta was a fair, dedicated lawmaker. He's never been one you leave negotiations with feeling angry and thinking he's less than a straight shooter, " said Sen. Pete Domenici of New Mexico, ranking Republican on the Senate Budget Committee. But that doesn't mean he's not tough. But some Republicans haven't forgiven Panetta's departure from the GOP. Others also recall the 1984 House commission Panetta headed that awarded a disputed Indiana congressional race to the Democratic candidate. This is the big leagues, and when hardball is called for, Leon will go more than to the wall, " said Rep. Jerry Lewis, R-Calif. And it is that quality that Clinton will be able to rely on during these next, crucial months his presidency faces. **** filed by: APE- (--) on 06/28/94 at 00:01EDT **** **** printed by: WHPR (JEL) on 06/28/94 at 08:17EDT **** PM-Digest Briefs, 1106 Eds: This package does not contain the following items from the News Digest: PM-Korea-Nuclear. WASHINGTON (AP) The daunting demands on President Clinton's new chief of staff range from smoothing out ragged White House operations to advancing administration priorities such as health care and welfare reform. Budget Director Leon Panetta says he'll be settling into a job he calls the toughest in town by mid-July. At the same time current chief of staff Mack McLarty, among the last of the Arkansans Clinton brought to his inner circle, will take on his new role as counselor to his boyhood friend. What's happening is, we're now looking at a very large legislative agenda, Panetta, a former California congressman, said Monday night on CNN's Larry King Live. I have that kind of experience. I know the players. I know the arena With McLarty sitting beside him, he added: The feeling was, this is the best time that Mack become what he really is, which is a close adviser of the president = WASHINGTON (AP) When President Clinton needed a punchline last March during a dinner thrown by the Washington press corps, he used Leon Panetta literally. It says right here that someday we'll all die, sighed Hillary Rodham Clinton in a parody the first couple had taped of the insurance industry's Harry and Louise ads attacking the Clintons' health-care plan. His jaw dropping, Clinton responded, Even Leon Panetta?' The president picked the amiable congressional veteran for the punchline of the joke because of Panetta's refusal to wither under the intense political fire of the administration's first year, when he served as director of the Office of Management and Budget. Now, for that attribute and others, Clinton has chosen Panetta again, this time as his chief of staff. = WASHINGTON (AP) With key committee votes approaching in both houses, Senate Republicans are circulating a scaled-down alternative to President Clinton's health reform bill that relies on tax breaks for workers and federal subsidies for the poor to expand coverage to the uninsured. In contrast to Clinton's bill, the GOP draft contains no requirement for universal coverage and is stripped of the administration's proposal for employers to finance insurance for their workers. It also drops the tobacco tax hike the administration and many lawmakers favor to pay for expanded health care. Financing would come from $100 billion in savings from Medicaid and Medicare over five years. Like virtually all proposals under discussion, the GOP draft calls for changes to make it tougher for insurance companies to deny coverage to those seeking it. = UNDATED For all the shuddering on Wall Street, the plunging dollar isn't likely to cause much pain on Main Street. At the beginning of the year, one dollar was worth about 113 Japanese yen. By Monday the dollar's worth had fallen roughly 12 percent to a postwar low of 99.93 yen before rallying slightly to close at 100.35 yen on the Tokyo foreign exchange market today. The dollar is also down 10 percent from its high this year vs. the German mark, Europe's strongest currency. In theory, the dollar's decline weakens U.S. purchasing power because it takes more dollars to buy the same amount of imported goods. It also can mean higher prices and inflation. One old economic formula says that a 10 percent decline in the dollar's value translates into a 1 percent rise in consumer prices over 1 to 1&1/2 years. = LOS ANGELES (AP) Defense attorneys and prosecutors are asking a judge for access to evidence that could either link O.J. Simpson to a bloody crime scene or help exonerate him. Simpson, 46, has pleaded innocent to murdering his ex-wife and her friend, Ronald Goldman. Their stabbed and slashed bodies were found outside Nicole Brown Simpson's condominium on June 12. Simpson has been jailed without bail since June 17. On Monday, Ms. Simpson's father disputed a coroner's report that said she was on the phone at 11 p.m. the night she was killed. A defense lawyer had said the timing of the call bolstered Simpson's alibi. A judge scheduled a hearing today to decide whether to give defense lawyers access to blood samples and other evidence, and whether prosecutors can take a sample of Simpson's hair. Simpson was to attend the hearing. = WASHINGTON (AP) Pregnant women in Iowa, newborns in Tennessee, a 67-year-old leukemia patient in Boston different people in different circumstances, they and hundreds of others became Cold War guinea pigs. They all were used in the government's search to learn more about how radiation affects the human body, according to new information made public by the Energy Department. The department disclosed on Monday that a review of more than 11,000 documents unearthed at least 48 new experiments in which perhaps as many as 1,200 people were subjected to radiation exposure, often with no evidence of consent. The additional human radiation tests were among stacks of documents made public by the department on its nuclear program as evidence of what Energy Secretary Hazel O'Leary called a new era of openness in the once-secretive agency. = WASHINGTON (AP) Federal regulators are considering tougher requirements on TV stations to boost the number of educational programs for young viewers. They also want to make sure that shows such as `The Jetsons'' and Leave It to Beaver'' don't show up again as ``educational'' programs. The Federal Communications Commission is collecting recommendations today from broadcast networks, program producers and watchdog groups at its first hearing in 10 years on the state of children's television. The commission is considering whether it should adopt a definition of what constitutes an educational program and require stations to air a set amount of educational programs for children every week. = PORT-AU-PRINCE, Haiti (AP) The interception of 1,330 Haitians on the high seas has stunned U.S. officials and taxed America's ability to handle the refugees. The Haitians picked up Monday, combined with 786 Haitians apprehended over the weekend, nearly equal the 2,239 intercepted in all of 1993. The surge, which is expected to continue, could dramatically increase pressure on the Clinton administration to quickly resolve Haiti's festering political crisis. U.S. Coast Guard officials, who stationed about 15 cutters and patrol craft off Haiti after the new policy was announced, hinted the new Clinton policy caused the refugee tide. **** filed by:APE-(--) on 06/28/94 at 05:33EDT **** **** printed by: WHPR (JEL) on 06/28/94 at 08:17EDT **** bc-sun-editorial a0843 (bal) (ATTN: Editorial Page editors) Health Reform: Who Pays? (c) 1994, The Baltimore Sun= The following editorial appeared in Monday's Baltimore Sun: Senate moderates pushing health care reform that puts the emphasis on individuals, not employers, in purchasing insurance may be on to something. The fact is that in the end it will always be individuals not employers, not the government who have to pay the doctor (and the hospital and the pharmacist and the insurance peddler). When you have an employer mandate, as Bill and Hillary Clinton propose, the cost is ostensibly covered by the boss. But employees inevitably feel the impact in the form of smaller paychecks. What the debate on Capitol Hill is really all about is cost shifting of somehow finding a way to force healthy, reasonably well-off people to help pay the bills of the sick and the less fortunate. The nation's poor already are covered by Medicaid, the elderly by Medicare. But the nation's jerry-built health care system too often fails to cover lower-income people who are self-employed or working for employers who do not provide insurance. And why? Because insurance companies tend to deny coverage to those with pre-existing conditions and refuse customers the right to carry their coverage from job to job. Because healthy citizens or the millions of employees used to having their medical insurance extracted tax-free from their paychecks don't really want a change. Because there is so much red tape involved in medical billing that billions of dollars go to administration rather than health care. A year ago remember? health care reform was widely regarded as a cause whose time had come. But then came the details, and from them emanated so many devils that today the whole reform movement could collapse. Republicans who once were guarded or cautiously supportive of health reform now seem more emboldened to oppose the Clintons outright. Perhaps this can be blamed on the secretive way in which Clinton concocted a vastly complicated 1, 300-page bill. Perhaps it can be attributed to a small-business lobby that cranked out the Harry and Louise'' commercials without ever quite informing the public that employers providing health care were carrying the water of their deadbeat competitors. Be that as it may, the focus now is on proposals before the Senate Finance Committee that would throw out employer mandates'' and substitute them with insurance reforms, subsidies for the working poor'' paid for through tobacco and payroll taxes and vague prospects for taking further action perhaps even individual mandates'' if more than 5 percent of the population remains uncovered at century's end. As many holes can be picked in this approach as in the Clinton proposal or its variations. But if it is theoretically correct that the individual is the end source of health dollars, then bipartisan proposals in Senate Finance deserve a fair hearing. The alternative, as even the Clintons are starting to suspect, could be nothing at all. Distributed by the Los Angeles Times-Washington Post News Service= **** filed by:LAWP(-- on 06/28/94 at 02:43EDT **** **** printed by: WHPR (JEL) on 06/28/94 at 08:17EDT **** bc-MA-Beth-Israel-Pres TO STATE AND MEDICAL EDITORS: BETH ISRAEL HOSPITAL PRESIDENT DR. MITCHELL T. RABKIN PARTICIPATES IN WHITE HOUSE HEALTH CARE MEETING IN SUPPORT OF CLINTON HEALTH PLAN BOSTON, June 27 /PRNewswire/ -- Beth Israel Hospital President Dr. Mitchell T. Rabkin today met with President Clinton, First Lady Hillary Rodham Clinton, and Vice President Al Gore at the White House, and spoke on behalf of medical academic leaders nationwide who support the Clinton/Kennedy health care bill. Over 70 chief executive officers of teaching hospitals and deans of medical schools attended the meeting which was held in the East Room of the White House this morning at 11:30 a.m. followed by a press conference on the North Lawn of the White House. Dr. Rabkin's remarks follow: Remarks by Mitchell T. Rabkin, MD President and Chief Executive Officer Boston's Beth Israel Hospital and Professor of Medicine, Harvard Medical School, Boston at the White House, Washington, DC Monday, 27 June, 1994 "Thank you, Mrs. Clinton, and members of the White House staff, for making this meeting possible on behalf of my colleagues. Those assembled here and others unable to attend are leaders of America's top medical schools and teaching hospitals, concerned with the future of health care in America -- its quality, availability, financing, and its critical role in the health and future success of this nation. "In some respects, today's gathering is an outgrowth of a productive meeting in Boston a couple of months ago in which President Clinton, Senator Ted Kennedy and others reaffirmed the critical importance of both universal coverage and also support for the special functions of teaching and research in academic medical institutions. Their strong commitment has encouraged this larger and nationally representative group to speak out today as individuals, firmly and positively, on the primacy of these issues -- universal coverage; support for the teaching and training of tomorrow's doctors, nurses and other health care providers; and support for the research that uncovers new knowledge to understand and fight disease, disability, and poor health. "As the debate heats up over health care reform, and as they wrongly imply in the TV commercial that there is some link between universal coverage and rationing, it becomes important for Harry and Louise to understand that rationing exists today, with 39 million of our citizens uninsured, many of them working Americans and their dependents, and millions more in working families this year who will lose their coverage through job loss, new illness, or other personal threats. True health care reform should eliminate that rationing, and that is precisely what universal coverage does. Without guaranteed health care coverage for everyone, each of us is insecure, each of us stands on the threshold of medical poverty. With universal coverage, no one is rationed out of the system. "As the debate mounts, our task is to share these insights with the people we serve back at home -- all the people. They are the interests we represent; their health and welfare and their concerns must shape the outcome. Their voices must be heard. We are pleased to join with President and Mrs. Clinton in standing up to be counted for the health of all America. "Now, it is my pleasure to introduce the distinguished Dr. William Peck, Dean of the Washington University School of Medicine, St. Louis, Missouri.' (Remarks by Dr. Peck) NOTE: More than 70 teaching hospital CEOs and medical school deans attended the White House meeting at the invitation of President Clinton and Hillary Rodham Clinton. For further information, contact: J. Antony Lloyd, Vice President Corporate Communications Boston's Beth Israel Hospital, 330 Brookline Avenue, Boston, MA 02215 Internet Address: tlloydbih.harvard.edu -0- 6/27/94 /CONTACT: Chris Hickey of Beth Israel Hospital, 617-735-4431/ CO: Beth Israel Hospital ST: Massachusetts IN: HEA SU: CM -- NE021 -- 2408 06-27-94 18:08 EDT **** filed by:PR-F(--) on 06/27/94 at 18:14EDT **** **** printed by:WHPR(JEL) on 06/28/94 at 08:19EDT **** Clintons push health reform plan WASHINGTON, June 27 (UPI) Battling moves on Capitol Hill to limit the scope of health care coverage, President Clinton asked medical school deans and heads of academic health centers Monday to personally call their congressmen on behalf of universal access. At a White House ceremony to trumpet support for his plan from the leaders of prestigious research centers nationwide, Clinton urged lawmakers now crafting alternatives to put politics behind and put health care first. This surely is not a political issue, Clinton said in launching a fervent appeal for help from the group. If we can get beyond the politics to the reality, we can prevail here. And I want you to do that. You can do that. Clinton spoke with an eye to efforts now underway in the key Senate Finance Committee and other panels to craft legislation that would limit coverage to just 95 percent of Americans. Having renewed his VOW to veto any bill that comes to him with less than universal coverage, Clinton returned to the White House bully pulpit to try to turn up the pressure on lawmakers. Pointing to the influence of those gathered in the East Room, noting that nearly every congressman has a research institution or medical center in his home state, Clinton said, I ask you to commit to make a personal contact and a personal appeal to every member of the Congress from your state to put politics aside and put the health care of the American people first. If we could have people of both parties bring to the deliberations of the law in Congress less politics and more concern for health care we would pass a bill in this session of Congress, with bipartisan support, that guarantees health care to all Americans. First lady Hillary Rodham Clinton, who has visited many of the institutions represented in the room, said each was here today to uniformly support universal coverage because in the absence of universal coverage, every other mission is at risk for the future. And Dr. Mitch Rabkin, president of the Beth Israel Hospital in Boston, railed back at the health industry's widely aired Harry and Louise'' ads attacking the Clinton proposal for rationing health care. It becomes important for Harry and Louise to understand that rationing exists today, Rabkin said. True health care reform should eliminate that rationing That is what universal coverage does. Clinton added: The suggestion that somehow we don't have rationing today and we will have it if this passes is, to put it mildly, a stretch of reality. **** filed by: UPI- (us) on 06/27/94 at 13:24EDT **** **** printed by: WHPR (JEL) on 06/28/94 at 08:20EDT **** HE NEGOTIATIONS Moynihan Is Expected to Seek Employer Health Payments By ADAM CLYMER Special 10 The York WASHINGTON, June 27 - Senator Daniel Patrick Moynihan will ask the enate Finance Committee on Tues- iay to vote for a national health in- surance proposal that would ulti- mately require employers to pay most of the insurance costs for their workers, a Senate aide said tonight. The New York Democrat expects the issue to come to a vote on Wednes- day and is not sure of the outcome, the aide said. Republicans on the committee maintain that anything re- THER RER Dear quiring employers to pay will be de- CARE feated. Mr. Moynihan's proposal thrusts the Finance Committee, whose ideo- Senate as a whole, back into the cen- er of the health care debate. A vic- HEALTH HIGH logical balance reflects that of the tory in the Finance Committee would be a dramatic message that victory in the Senate is likely, which in turn would shore up the courage of ner- vous Democrats in the House. The committee, which has always claimed the central role on health issues, had looked increasingly mar- THE ginal until now, apparently waiting on the sidelines until three other com- mittees took up their own legislation As the Senate Finance Committee met privately on health care yesterday, Becky Ogle of the Consortium of before even scheduling its first vote. Citizens with Disabilities waited outside, her wheelchair displaying her support for the Clinton plan. Consistent With Clinton The proposal backs away from where they will have to propose an ployers to "share responsibility," as President Clinton's call for immedi- plan, which has no requirements for amendment to take it out. the Administration puts it, for the ate employer responsibility, a posi- employers or individuals to buy in- With 11 Democrats and 9 Republi- costs of health insurance. surance. tion Mr. Moynihan had supported - cans on the committee, Mr. Moynihan Mr. Moynihan's proposal will re- although he acknowledged it would be Under the original Breaux pro- could lose one Democrat and still place one which he announced earlier very hard to pass. But the plan is posal, national health insurance ef- prevail on such an amendment with a this month but never put before the formulated in a way that makes it tie vote. But he would still need 11 forts would begin with steps, on which committee. That plan hewed more likely all employers would be re- there is little disagreement, that votes to approve the bill, something clsoely to Mr. Clinton's proposal, but quired to pay for insurance within would make insurance easier to buy he hopes the committee can do by the had no significant support in the com- five years. It is therefore consistent and harder to cancel. end of the week. mittee. with Mr. Clinton's demand that all But these measures did not sub- Even if he loses, the aide explained, What he will announce tomorrow is Americans be provided health insur- the Republicans, and particularly stantially raise the percentage of closely patterned on a proposal made ance. Americans with health insurance, Senator Bob Dole of Kansas, the Re- last month by Senator John Breaux, a By putting the requirement in his publican leader, will be forced to vote there would be an automatic require- Louisiana Democrat who is frequent- new proposal, Mr. Moynihan will also against what Democrats can charac- ment for employers to start paying, ly a swing vote on the committee. But put the Republicans in a position which is known as an "employer terize as a proposal to require em- Mr. Breaux has since come out for a mandate." For example, if firms with 100,or more employers, who now employ 6) percent of the nation's work force, did not increase their percentage of CO erage from the current 89 percent workers and their dependents to 96 percent, then all employers in that category would have to insure their workers. Slower, and slightly less universal requirements would be imposed on smaller companies. The uncertain air that hung over the Finance Committee's efforts was evident early this afternoon as Demo- crats met at the Capitol to discuss what they thought Mr. Moynihar should propose, reporters gathered outside and tourists waited nearby THE NEW YORK TIMES, TUESDAY, JUNE 28. 1994 for admission to the Senate gallery. Mr. Moynihan later emerged to say that he hoped the committee could finish work on a bill this week. When a reporter asked if it would work into next week's scheduled Congressional vacation, he said, "We're not that kind of a committee." Ways and Means Tussle In the House, the Ways and Means Committee struggled over its version of the bill, putting off decisions how to control costs but arguing for nearly 15 minutes over the design and information to be printed on the na- tional health card all Americans would receive under the bill. At one point, Representative Bill Thomas, Republican of California, suggested printing 202-456-1414 on-the card. "For anyone who doesn't know the number, that's the White House,' he explained. His proposal was re- jected. 9 THE DETAILS Study Sees Problems in Subsidies to Help the Poor Buy Insurance By ROBERT PEAR reduced at the very moment when the numbers of people in middle-income Chafee proposal and 95 cents under Special to The New York Times need was greatest, in recessions, as families. On the other hand, it says, if the Cooper proposal. WASHINGTON, June 27 - A new the numbers of poor and unemployed Taking issue with the subsidies decline sharply as earn- study finds serious, unsuspected people rose. ings rise, they may discourage people Put another way, such a family problems with many proposals for Government subsidies to help peo- a crucial part of from trying to earn more, especially would keep 24 cents of each additional the Federal Government to help low- ple buy insurance have been in health people with incomes between the pov- dollar earned under the Clinton pro- income people buy private health in- plans proposed by President Clinton; erty level and twice that amount posal, but only 5 cents of each addi- surance by subsidizing their premi- Representative Jim Cooper, Demo- plans to overhaul ($15,000 to $30,000 a year for a family tional dollar under the Cooper pro- ums. crat of Tennessee; Senator John H. of four). In other words they would posal. Chafee, Republican of Rhode Island, health insurance. lose their benefits and be subjected to Such subsidies are a feature of and Senator Edward M. Kennedy, more taxes as well. The Use of Overtime most of the health insurance bills Democrat of Massachusetts. Spend- being considered in Congress. Subsi- ing on such subsidies would be sub- ject to limits set by Congress. None of Gradual Phasing Down Urged Such high marginal tax rates could dies have been suggested as a way to easily discourage extra work effort make sure that all Americans obtain the proposals would increase the age without jeopardizing poor work- ers. The workers would continue re- because people would keep relatively health insurance, with or without a spending limits in time of recession. People just above the poverty level requirement that employers contrib- ceiving similar coverage, with their little of their additional earnings, the already pay a high "tax" on addition- report says. ute to the cost of workers' coverage. On Providing Subsidies premiums fully paid by the public al earnings because they may lose subsidy system." But the study, issued today by the food stamps, tax credits and other Mr. Greenstein- said that an em- Moreover, it says, "Firms that em- benefits as their incomes rise. ployer mandate could also have some Center on Budget and Policy Priori- Robert Greenstein, director of the ties, a nonpartisan research institute, Center on Budget and Policy Priori- ploy large numbers of low-income unintended effects. For example, he says that if subsidies are not careful- ties, said the cost of subsidies would workers would be able to make them- Thus, the study concludes: "Low- said, it would create incentives for ly designed they will discourage peo- be much higher if there was no re- selves and their employees better off income subsidies should be phased companies to make greater use of quirement for employers to pay any by terminating health coverage and down very gradually. Otherwise, in- overtime by full-time workers, rather ple from working and may encourage companies to drop health insurance of the premiums for their workers. converting some or all of the savings centives to work will be weakened toc than hiring additional employees. they now provide to employees. But, he observed, in the absence of an into higher wages or other employee much." Use of overtime does not increase employer mandate, companies would benefits." A family of four is classified as health care premium costs, while hir- Moreover, the study, which looked have "powerful incentives" to drop Mr. Cooper defended his proposal, poor by the Government if it had cash ing new employees would do so," he said. at all proposals, says there are seri- coverage for their employees and to saying, "It is essential that health income less than $14,764 in 1993. For ous problems in plans to limit the shift costs to the Government, which care reform include subsidies to each additional dollar earned, the re- The study by the Center on Budget amount the Government could spend would subsidize the premiums. make coverage affordable for low- port says, a family of four that has and Policy Priorities examines the on subsidies in any year: "they make income people." income 25 percent above the poverty effects of subsidies on people at dif- no adjustment for recessions.' Describing what would happen level and receives food stamps would ferent income levels. The work of the without an employer mandate, Mr. The study says that the proposed lose a total of 76 cents under the center was assisted by a grant of To stay within the spending limits, Greenstein said the study found: subsidies will become extremely ex- Clinton proposal, 78 cents under the $20,000 from the Henry J. Kaiser the study says, subsidies would be "Employers could terminate cover- pensive if they are available to large Kennedy proposal, 90 cents under the Family Foundation. THE NEW YORK TIMES, TUESDAY, JUNE 28, 1994 Poll Finds Public Losing Confidence in Clinton, Economy Health Proposal Flags, but Key Points Have Strong Support president's bottom-line issue-a By David S. Broder guarantee of universal health insur- and Richard Morin Washington Post Staff Writers ance coverage. Says nearly as clearly-72 per- On the eve of President Clinton's cent to 27 percent-that employers decision to shake up his staff,in- should be required to provide that creasing numbers of Americans said insurance for their full-time work- Clinton was a mistake-prone leader ers, as in the Clinton plan. lacking in decisiveness and losing his Supports, 61 percent to 37 per- sense of the real problems facing cent, charging people more for plans families, according to the latest that provide a choice of doctors than Washington Post-ABC News poll. those with assigned doctors. Clinton Although Clinton's overall approv- maintains his plan would provide al rating held steady from a month free choice for all. earlier at 50 percent, the new poll Were it left to the public, there confirms that the president has lost would also be federal price controls ground with the public since the be- on doctors, hospitals and drugs. Ful- ginning of the year on a broad vari- ly 75 percent of those polled support ety of issues. The poll also found an that, but none of the major plans in- upsurge in concern about the state cluding Clinton's is proposing direct of the economy. controls-which are fiercely op- Opinion on the overall Clinton PRESIDENT CLINTON posed by the health care providers. health care plan is increasingly nega- seen as lacking decisiveness On the downside for Clinton, tive, but those polled say the presi- those polled: dent is right in seeking a major over- nated by reports that the dollar was Voice increasing opposition when haul of the system to require dropping against the Japanese yen asked about "Clinton's health care employers to pay most of the bills and the German mark. plan." Disapproval of the plan has for everyone's health insurance. If As a result, Clinton's approval more than doubled since its intro- those polled had their way, however, scores on handling the economy, duction last September, reaching a abortion would be dropped from the which had been in positive territory new high of 53 percent in this poll. basic benefits package in the plan. from December through May, Only 42 percent approve of it, Clinton's overall approval score is dipped to 46 percent approval and matching the previous low. 8 or 9 percentage points below 48 percent disapproval in the latest where it had stabilized in the first Display a similar but slower ero- poll. sion of support when the Clinton three months of 1994. His disap- Economic anxiety was highest in proval is at 44 percent. plan is compared to the present sys- the West and his economic perfor- But 55 percent said Clinton is not tem. The percentage thinking the mance scores were notably low a strong and decisive leader, up from plan better than what now exists has there and in the South, and among 44 percent in January. Now there dropped from 64 percent last Sep- women, working-class and poor peo- are three people who think he makes tember to 49 percent now; those ple. more mistakes than the average saying it would be worse have in- Among independents, approval of president for every two who say he creased from 17 percent to 41 per- Clinton's economic performance makes fewer. cent. dropped 10 points to 37 percent be- What has been a pillar of support These negative trends clearly tween January and June. for Clinton-his empathy for aver- threaten Clinton's effort to put pub- Crime continues as the overriding age Americans-is suffering ero- lic pressure on Congress to enact his concern with the economy edging sion. In January, 55 percent said he plan. Still, only 22 percent of those health care on the voters' priority understands problems of people like list for Clinton and Congress. Nei- polled say Congress should reject it themselves and 39 percent said he ther Clinton nor Congress earns entirely. A stable 70 percent have does not. Now the numbers are 52 public approval for their current been saying for months they prefer percent yes and 46 percent no. handling of health care, but the pub- to see something passed with minor That may be related to increasing lic expresses slightly more confi- or major changes. Elsewhere, the worries about the economy. Despite dence in the lawmakers than in Clin- poll has little in the way of good several months of low inflation and ton-44 percent to 36 percent-to news for the president. The inter- increasing employment, economic do the job right. viewees are almost evenly split on confidence is lower than it was last Public attitudes toward health whether he is an old-style, tax-and- winter. In January and February, the care remain a confusing and some- spend Democrat (44 percent) or a number of people who saw the econ- times contradictory mixture. new-style Democrat careful with the omy improving exceeded, by 9 or 10 On the positive side for what Clin- public money (49 percent). percentage points, the number who ton is trying to persuade Congress Almost three out of five of those saw it declining. Now, 42 percent to do, the public: polied say the changes he is seeking say it is getting worse and 39 per- Says, 58 percent to 38 percent, are mainly the right ones. But in a cent, better. that the system needs a major over- 1996 trial heat between Clinton and The survey of 1,531 people was haul, not just a good tuneup. an unnamed Republican challenger, taken last Thursday through Sun- Agrees, by an overwhelming 78 Clinton can barely deadlock-36 day, when economic news was domi- percent to 20 percent, with the percent to 39 percent. TUESDAY. JUNE 28. 1994 THE WASHINGTON POST 35 A12 TUESDAY, JUNE 28, 1994 Moynihan package of economic incentives, new insurance regulation and gov- ernment subsidies for the poor in A4 TUESDAY. JUNE 28. 1994 Holds Back hopes of ensuring coverage of 95 percent of Americans by the year 2000. If the 95 percent target were TODAY IN CONGRESS Health Plan not reached, mandatory measures would not be automatic, but would SENATE be studied by a new, national com- Meets at 9 a.m. mission. Committees: The commission then would Appropriations-9 a.m. Interior subc By Dana Priest meets to mark up H.R. 4602, its FY95 Washington Post Staff Writer make recommendations to Con- approps. S-128, Capitol. gress to achieve the coverage goal. Appropriations-1 a.m. Meets to Senate Finance Committee Chair- mark up H.R. 4602. S-128, Cap. Special provisions in the bill would Energy & Natural Resources-9:30 man Daniel Patrick Moynihan (D- make it difficult, but not impossible, a.m. Energy research & development N.Y.) postponed release of his health for Congress to reject the recom- subc. hearing. 366 Dirksen Office Bldg. care plan yesterday, indicating he Energy & Natural Resources-2:30 mendations. p.m. Water & power subc. hearing. 366 still was making final decisions about The Finance Committee is one of DOB. its shape and would release it today. Environment & Public Works-10 28, 1994 THE POST five congressional committees that At a closed session of committee a.m. Hearing on Superfund Reform Act are trying to pass health reform of 1994. Treasury Sec. Lloyd Bentsen; Democrats this morning, members plans this session. Those plans EPA Administrator Carol Browner. 406 again discussed whether to fashion a DOB. would be melded by the House and bill that finances universal coverage Foreign Relations-10 a.m. by a certain date-President Clin- Senate leadership into bills for de- Convention on Regulating Fishing bate on the House and Senate Vessels on High Seas hearing. 419 DOB. ton's bottom line for health care re- Foreign Relations-2 p.m. Western floors. form-and how to pay for it. Hemisphere & Peace Corps affairs subc. Finance is considered the most Hearing on U.S. policy toward Haiti. 419 Members who attended the meet- DOB influential of the five committees ing. said Moynihan appeared to be Governmental Affairs-10 a.m. leaning toward allowing the commit- because it most closely reflects the Hearing on delinquent criminal debt. makeup of the Senate as a whole 342 DOB. tee to vote on a measure, sponsored Judiciary-10 a.m. Constitution subc. by:Sen. John Breaux (D-La.), that and has a reputation for bipartisan hearing on implementation of Hate compromise. Crime Statistics Act. 226 DOB. would trigger a requirement that Select Intelligence-4 p.m., closed. employers pay for their workers' Late yesterday, Moynihan met Hearing on intelligence matters. 219 health insurance if voluntary meas- with Treasury Secretary Lloyd Hart Office Bldg. ures failed to reduce the number of Bentsen and Leon E. Panetta, the Conferees-2 p.m. Legislative approps. for FY95. H-301. Cap. uninsured. But there was a consen- head of the White House Office of HOUSE sus in the meeting that any such Management and Budget who yes- Meets at 10:30 a.m. terday was appointed White House Committees: measure for mandatory employer Agriculture-10 a m. Considers payments would not pass the com- chief of staff, to discuss the com- legislation to implement agricultural mittee, the members said. mittee's deliberations. provisions of the Uruguay Round of GATT. 1300 Longworth House Office Breaux said yesterday that even Meanwhile, Sen. Robert F. Ben- Bldg he would vote against his original nett (R-Utah) became the first Sen- Banking, Finance, & Urban trigger proposal. "Foolish consis- ate Republican to threaten a filibus- Affairs-10 a m. International development. finance, trade & monetary tency is the hobgoblin of little ter on health care if the bill that policy subc. hearing on international minds," Breaux said, quoting Ralph gets to the floor is anything like the labor standards & use of trade Waldo Emerson. But such a com- Clinton plan or a similar one passed agreements & development assistance. 2128 Raybum House Office Bldg mittee vote might serve the pur- by the Labor and Human Resourc- Government Operations-9:30 a.m. pose of convincing the White House es Committee, headed by Sen. Ed- Commerce, consumer & monetary affairs subc. hearing on Chief Financial that its proposed "employer man- ward M. Kennedy (D-Mass.). Officers Act compliance. 233 RHOB. date" is a non-starter, committee "The Clinton plan, and its clone House Administration-10: m. Democrats said. the Kennedy plan, are in my view Personnel & police subc. considers printing resolutions & personnel items. According to an option discussed poison," said Bennett. "They must H-328, Cap. yesterday, Moynihan then would be defeated, even at the cost of Merchant Marine & Fisheries-10 offer a proposal contained in his gridlock. Yes, filibuster, if that is a.m. Coast Guard & navigation subc. hearing on new commandant of Coast own plan. a draft of which was ob- what it takes. This senator is pre- Guard. 1334 LHOB. tained by The Washington Post last pared to engage in that to see to it Merchant Marine & Fisheries-2 p.m. week. Oceanography. Gulf of Mexico, & outer that neither of these plans becomes continental shelf subc. & environment & Moynihan's draft proposes a law." natural resources subc. hearing on Coastal Zone Management Act. 1334 House Votes LHOB. Natural Resources-10 a.m. National parks. forests & public lands subc. To Streamline eliminate red tape by encour- hearing. 1324 LHOB. aging agencies to buy com- Rules-10:30 a.m. Hearing on H.R. mercial goods and services; District of Columbia approps.: H.R. 4600. expedited rescissions: & H.R. Procurement raise the acquisition threshold 4299. intelligence programs auth. to $100,000; streamline con- H-313. Cap. The House yesterday ap- tracts between the govern- Science, Space & Technology-10.30 ment and small businesses; p.m. Energy subc. hearing on women & proved legislation designed to K-12 science & mathematics education. and establish pilot programs to 2325 RHOB. streamline the way the gov- experiment with other innova- Science, Space & Technology-2 p.m. ernment buys goods and ser- tive reforms. Technology, environment & aviation vices. subc. mark up. 2318 RHOB. He described the bill as rev- Rep. John Conyers Jr. (D- Small Business-1:30 p.m. olutionary. Procurement, taxation & tourism subc. Mich.). chairman of the House Earlier this month the Sen- hearing on unfair competition. 2359 Government Operations Com- RHOB. ate approved its version of mittee, and Rep. Ronald V. Ways & Means- TBA. Mark up of procurement legislation and health care reform legislation. Dellums (D-Calif.), chairman the two houses must hold a of the House Armed Services negotiating session to recon- Committee, played key roles cile differences. in steering through the legisla- tion, which passed on a voice vote. Convers said the bill would 37 WHERE HEALTH CARE REFORM STANDS CONGRESS L egislation to reform health care must follow the path below before being enacted by Congress and signed into law by President Clinton. Five committees with broad jurisdiction over health issues are developing recommendations for health plans. On March 23, a bill largely similar to Clinton's The House Energy and Commerce health proposal-requiring employers to pay 80 percent of their subcommittee abandoned efforts to produce a bill and the full committee appears gridlocked. workers' insurance premiums-moved out of the House Ways and Means health subcommittee on a 6 to 5 vote. A The Senate Labor and Human Resources modified version is now before the full committee. Committee (which does not have a subcommittee that votes directly on health issues) on June 9 On May 25, a similar bill was approved 17 to 10 by a approved a bill similar in most respects to House Education and Labor subcommittee. This legislation Clinton's proposal that would require all employers would allow discounts for very small firms and was except for very small businesses to pay about 80 approved. 26-17, June 23 by the full Education and Labor percent of the health insurance premiums for their workers. Committee. A second bill, proposing Canadian-style, government-run A bill has been proposed by Senate Finance national health insurance financed by taxes-was Committee Chairman Daniel Patrick Moynihan approved June 9 by the subcommittee and June 23 by (D-N.Y.). The committee is discussing it and an alternative in closed session. the full committee, 22-21. HOUSE SENATE 1. Subcommittees did preliminary work. Health Health Labor- and the Management TUESDAY, JUNE 28. 1994 THE WASHINGTON POST Environment Relations Senate bill markups don't occur at the subcommittee level. Approved Unable to Approved a bill reach two bills agreement 2. Committees with broad jurisdiction now send recommendations to leaders. YOU ARE HERE: The debate over national health care Ways and Energy and Education Labor and Finance legislation Means Commerce and Labor Human Sen. Daniel is at this Rep. Sam Rep. John D. Rep. William Resources Patrick stage in the Gibbons Dingell D. Ford Sen. Edward Moynihan (D-Fla.). 0 (D-Mich.), (D-Mich.) M. Kennedy (D-N.Y.), lengthy chairman chairman chairman (D-Mass.), chairman process chairman detailed here. Working on sub- No action Approved two Approved Discussing bill in committee bill so far bills bill closed session 3. Leaders meld bills. House Speaker Thomas S. Foley (D-Wash:). Senate Majority Leader George J. left. and Majority Leader Richard A. Mitchell (D-Maine) may blend bills Gephardt (D-Mo.), right. meld bills into into one before sending to floor. one and send to Rules Committee House debates bill. 4. Members Senate debates bill. Substitutes may be offered. debate bills. Substitutes may be offered. 5. Bill goes to conference. House Senate conference committee reconciles differences and sends final version back to each chamber. 6. Each chamber votes. House votes on a Senate votes on a final "conference final "conference Congress hopes to pass report" version. report" version. a bill by the end of this session in October. 7. -Compiled by Spencer Rich Bill goes to President Clinton. 38 BY ABIGAIL TRAFFORD Lacking a Sense of Urgency, Congress Dawdles on Reform hen Hillary Rodham Clinton health status or whether a family member has a W challenged members of Congress to pre-existing medical condition. give Americans the kind of health This idea doesn't originate with the First Lady. coverage they themselves enjoy, she In fact, some members of Congress have been was roundly criticized for not playing by advocating it. Senator Ted Kennedy (D-Mass.) has Washington rules. Key Republicans thought it was proposed that the Federal Employees Health a cheap shot against Congress. No Benefit Program, which covers Congress and the inside-the-Beltway savvy, the insiders sniffed. The federal government, serve as a model for extending Arkansas Outsiders just don't get it on how to play coverage to all Americans. As he has said: "If that with Congress in the big political leagues. kind of coverage is good enough for members of But that is a typical Congress, it is good enough for Beltway conceit to cast the COMMENTARY every man, woman and child in outsiders as bumbling America." barbarians on Capitol Hill. Granted, there's a And this is not a Democrats-only point of certain schoolyard common sense that says don't view. The concept has bipartisan support, or at slam the people from whom you want to get least lip service. Two weeks ago, according to something. In that sense, the First Lady's timing news reports, Senate Minority Leader Bob Dole was not the best since at that moment the critical (R-Kan.) said in a taped interview for NBC that Senate Finance Committee was trying to fashion a he thought all Americans ought to be able to bill to present to the whole Senate. participate in the federal health care program. It was also a little disingenuous to single out So why all the fuss about Hillary Clinton putting Congress, since the federal government, her foot in her mouth? Entre nous, as over-civilized including the Clintons themselves, have the insiders would say, it was just bad political manners. same health care coverage as the lawmakers on But the concept makes good political sense. Capitol Hill. It also stirs the populist pot. Challenging But beyond Washington, her words struck a members of Congress to give as good as they get chord. The bigger mistake was to limit her highlights the underlying issue of timing: What's remarks to Congress. After all, why shouldn't taking so long? every American have the same health care Perhaps the critical difference between Congress coverage as not only members of Congress but and the 38 million uninsured Americans is that also federal bureaucrats? many of those without coverage personally feel the The suspicion in the heartland is that if urgency of enacting a national health care Congress had the same imperfect health care plan-now. Not in five years or 10 years. After all, coverage as many Americans, a national health most other industrialized countries have long had care plan would have been passed years ago. national health programs for their citizens. That's the point: The policy architects inside Of the 38 million Americans who are without the government who design health plans and the members of Congress who legislate them do not health coverage at any given time, about 24 personally feel the desperate urgency of the million are chronically uninsured, according to need for health reform. They don't know what EBRI. A recent study suggests that the it's like to fall through the cracks in the current long-term uninsured may number 28 million nonsystem of health care and face financial ruin people in the U.S. Over the past decade, the because of uncovered medical costs. ranks of those without coverage has steadily Celebrity-status politicians along with their increased. entourage of policy analysts belong to an elite "What's the message here-that the richest segment of society: the mostly healthy, country on earth with the greatest legislative body employed or employable, and covered. cannot give to its people what other countries They are quite different from the profile of give?" asks HHS Secretary Donna Shalala. the uninsured. According to the Employee As the trend for people to be without Benefit Research Institute (EBRI), adults insurance goes up, the goals of a national plan without coverage are usually working in firms come down. The latest gimmick to break the with fewer than 100 employees. They also tend political gridlock is to fashion a bill that to be poor; about half are in families earning less redefines the concept of universal coverage. In than $20,000. For many people with little or no this doublespeak, 91 percent or 95 percent of health insurance. a medical problem has the the population suddenly equals "universal." potential of quickly bankrupting a family. Another Capitol Hill strategy gaining favor is If they had the same options for health proclaiming that the subject is so complex. it best coverage as federal workers, they would find to take another year to design a national plan. themselves enjoying a choice of affordable plans Only people with good health care coverage with fairly comprehensive benefits, regardless of could find these steps acceptable. TUESDAY. JUNE 28, 1994 THE WASHINGTON POST BY MARILYN MOON Health Reform and You Q. I'm very concerned about possible higher taxes as a result of health plans being offered by President It is difficult to know Clinton and others. These plans are going to be funded with a tobacco tax. At the same time, the federal health officials are trying to cut the number whether the proposed of Americans who smoke and some folks even talk about having tobacco banned. It seems like a case of revenue sources will be having your cake and eating it too. Are we going to get stuck with a lot of other heavier taxes when the tobacco tax doesn't provide the needed revenues? sufficient. A. One of the effects of a tobacco tax will likely be to discourage smoking, but the estimates of Many states do not have the resources to cover how much revenue would be raised take a all their citizens without federal government reduction in smoking into account. The 75-cent support. If such help is not part of this approach, tax on each pack proposed by Clinton would not all states would participate. But if there is some raise about $10 billion to $11 billion each year. federal support, would the federal government By itself, this tax is certainly not enough to choose just a few states for an experiment? In pay for comprehensive health care reform. The either case, this would result in disparities in various plans also assume other ways to finance coverage across the United States. Moreover, expanded coverage, including savings from states need to worry about companies' relocating if cutting Medicare and reducing or eliminating state taxes were raised. That is less of a problem the Medicaid program. Other ways that some for the United States as a whole. But despite these plans finance reform include requiring that problems, if national health care reform fails to employers contribute to health insurance and pass, a number of states are likely to move on their limiting the extent to which insurance benefits own to change the health care system. can be deducted from taxable income. Like you, many people fear that additional revenue sources may also be needed, especially if costs & Under the proposed health plans pending in of health care continue to rise in the future. the Congress, how will part-time and hourly Comprehensive reform legislation would be employees be covered? complicated, and it is difficult to know with A. The Clinton proposal, with its employer certainty whether the revenue sources that have mandate, would require employers to pay on a been proposed will be sufficient, especially after prorated basis for part-time and hourly workers as the program has been in place for a few years. long as they work more than 10 hours a week. The single-payer approach sponsored by Rep. Jim Q. Have policy makers considered evaluating McDermott (D-Wash.) would cover everyone several of the plans by having different states try regardless of employment status and pay for the them out? This way, they could give different public system through payroll and income taxes. plans a chance to see which one or ones could The other major proposals would either require work best, and implement the best plan for the individuals to purchase insurance or leave coverage country. optional, and these plans would make insurance the responsibility of individuals. Employers under these A. One of the suggestions for compromise on plans would be free to help pay the premiums, but health care reform is to give states a great deal they would have no increased incentives to expand of latitude in designing reform. Many of the their current efforts. Low-income individuals under existing proposals already allow some state all the plans would receive some type of subsidy to flexibility. There are, however, several help in the purchase of insurance, but the details problems with allowing more flexibility, many of vary. The more generous these subsidies, the them surrounding the issue of who would pay. more expensive the proposal. 0 you have a question about President Clinton's health proposal or about D the other bills in Congress? The Washington Post free telephone information service takes questions from readers about how the plan could affect them. Call POSTHASTE at 202-334-9000 on a touch-tone phone and enter category code 8500 (in Prince William County, 703-690-4110). Health economist Marilyn Moon of the Urban Institute provides answers in this column based on information from the White House, Congress and other sources. While she cannot answer all questions or give personal advice, she will answer a range of inquiries. TUESDAY. JUNE 28. 1994 THE WASHINGTON POST 58 Go Figure One Company's Data It already has; last year, industry analysts say, revenue of the suburban-Vir- ginia research and consulting company Fuel Diverse Views jumped about 30% to around $20 million, reflecting a surge in health-care reform In Health-Care Debate business. Value Health doesn't break out figures for Lewin. whose business also includes analyses for federal and state governments as well as studies for hospi- Lobbyists Clamor for Studies tals and other health-care providers. "I think a lot of people who have rather By Lewin-VHI; Clients scruffy reputations think that Lewin gives them a little bit of credibility," says Rep. Expect Certain Results Pete Stark, a California Democrat who heads the House Ways and Means Commit- tee's health subcommittee. He adds, "You 'Take It With a Grain of Salt' take It with a grain of salt.' By HILARY STOUT A1 Special Computer Model Most agree on why Lewin is in such big Staff Reporter of THE WALL STREET JOURNAL demand: It is both good and fast. For many WASHINGTON - Every member of years virtually the only firm doing this Congress this year received a health-re- kind of health-economics analysis, the form report from a group called Families 24-year-old company was in an ideal mar- USA with a glossy orange cover and the ket position to cash in on the health-care headline: "Better Benefits. Millions reform movement. But its best weapon is a Helped by Clinton Réform." highly sophisticated computer model, the Each lawmaker also got a report from Health Benefits Simulation Model, devel- the Heritage Foundation warning that the oped over the past decade. It can do things other companies' computers can't. Deter- Economic Analyses Faulted mined to perform its own, independent analysis of the 1,342-page Clinton health- As drug makers try to win business from frugal health plans and physicians, eco- care bill, Lewin completed the task in just nomic analyses of drug treatments have over a month, more than three times faster proliferated. But concerns are growing than the Congressional Budget Office. about wide variations in the reliability of Robert Rubin, a 48-year-old internist the studies. Article on page B1. and nephrologist and the company's presi- dent, says Lewin decided to undertake the Clinton bill "has huge hidden costs, in the project at its own expense because "we form of wage reductions and job losses. actually thought we could do a service to The two studies have one thing in the country. While this sounds corny, we common: Both were based on analyses by really did believe that." the same company, Lewin-VHI Inc., a He estimates the company lost between division of Valúe Health Inc. $80,000 and $200,000 in business it had to These days, no self-respecting interest turn down in order to finish the study by a group comes to the table without a study to December deadline. Lewin's final report back up its view, and Lewin is one of the concluded that the White House had un- hottest health-care research outfits in derestimated premiums for the federally Washington. When it comes to lobbying guaranteed benefits package by 17%, but Congress, "the days of wine, women and that its basic scheme for financing univer- song are over," says Fred Graefe, a vet- sal coverage was sound. When the report eran health-care lobbyist. "I don't go any- came out, according to one person on the where in this town without being armed scene, White House officials were so re- with a Lewin-VHI study. You can't win lieved that some jumped up and down in without it." glee. Conflicting Results Studies With Viewpoint The company's success and influence The paying customers don't care what point up both the power and shortcomings Lewin determined on its own. Various of research data in today's Washington: groups - often bitter opponents - set their The nature of the questions guides the own parameters for studies they can use to nature of the answers. When you are a promote their positions on health care. paying client, you usually get to ask the For example, another study Lewin did questions. Consequently, studies often re- for Families USA, which backs the Clinton port conflicting results, adding to a com- plan, concludes that the president's plan plex issue's uncertainties rather than help- would save the average American $695 a ing cut through the fog. year in health-care expenses. But the The debate over health care is no study Lewin prepared for the Heritage exception. Indeed, so many interest groups Foundation, a foe of the Clinton proposal, brandish Lewin data to bolster their view- says the bill would save families on points that Senate Finance Committee average only $31 - and 53% of Americans Chairman Daniel Patrick Moynihan says would see health costs go up. about the only sure thing regarding health- Are the studies contradictory? Net at care legislation is this: "Whatever else Please Turn to Page A10, Column 1 1/2 comes out of this year. Lewin-VHI will do very well." THE WALL STREET JOURNAL TUESDAY, JUNE 28, 1994 A10 THE WALL STREET JOURNAL TUESDAY, JUNE 28, 1994 Go Figure: Data From a Single Firm, Lewin-VHh Are Used to Support Differing Views of Health Care But the Lewin study didn't address the All this research ping-pong dismays Continued From First Page portion of the same bill that would help some people active in the struggle over all, say Lewin's top executives. "I think subsidize health-care coverage for individ- health care. An aide to one prominent that if you took all our reports and put them uals whose incomes are up to 200% of the lawmaker on health-care issues says on a table, you would be hard-pressed to poverty level. Lewin's union client didn't Lewin studies are overused and end up find a contradiction." says Larry Lewin, want that part assessed: "The next step of "looking like they can come to whatever the company's 56-year-old chairman. who that model would have been to look at the conclusion their clients want." came to Washington to work in the John- subsidies in the Cooper bill, and we But Carmela Dyer, an official of the son administration. "It has to do with how didn't." Ms. Connerton says. The study American Hospital Association. contends the question is asked." Often, adds Dr. would have cost more, and "the subsidies the volume and diversity of Lewin's clients Rubin, a former Reagan administration would have only gone up to a certain point, underscores its objectivity. She was the health official, "There are subtle differ- and most of the people affected by the tax project officer on a study Lewin did for the ences in the assumptions used, or the cap are middle-income.' she says. AHA concluding that the Clinton plan's methodology.' The same month the union released its Medicare savings would mean hospitals For Heritage, Lewin factored in the study. the Heritage Foundation released might get only 71 cents for each dollar of wages that might be lost because of the its own Lewin analysis of a health-care care provided to elderly patients. plan's requirement that all firms pay part proposal with an even stricter tax cap. of the cost of their workers' health bene- Divergent Interests That bill. which was sponsored by Republi- fits. In the Families USA study, it did not. can Sen. Don Nickles of Oklahoma and The company itself is an alliance of Moreover. the studies make projections which Heritage helped write, would wipe divergent political interests. Mr. Lewin. a over different time frames. and each group out all tax breaks for employer-provided Harvard Business School graduate and has chosen to highlight results from differ- health benefits. replacing them with tax former Marine, decided he wanted to come ent years. There is something else at work credits for the purchase of health insur- to Washington after John Kennedy was in the conclusions. too, says Dr. Rubin: ance. Looking at the trade-off, Lewin found slain and became involved in Lyndon "It's the spin the client puts on it." that families' annual health costs would Johnson's war on poverty. He also was a For example, in April, Lewin did a decline by an average of about $643- member of Bill Clinton's transition team. study for the Service Employees Interna- counter to the conclusions in the union's Dr. Rubin, who still teaches a medical- tional Union, which vehemently opposes "Hammering the Middle Class" study of school course every Friday, was an assis- the idea of limiting the tax breaks for the Cooper bill. tant secretary in the Health and Human employer-provided health benefits. The study concluded that workers would lose An Armory of Reports Services Department during the Reagan administration. between $195 and $476 a year if a cap were But it doesn't stop there. The Cooper Founded as Lewin & Associates in 1970, placed on those tax breaks. The union bill's supporters have another Lewin report the company in the mid-1980s merged with incorporated the most onerous of the in their arsenal, a more recent study an archrival called ICF, then headed by Lewin findings into its own report, titled it prepared for the Healthcare Leadership Dr. Rubin. It was like "the Dallas Cowboys "Hammering the Middle Class" and called Council, a group of insurers and other and the Washington Redskins merging," a press conference. firms in the medical industry pushing for a Mr. Lewin says. As Lewin-ICF, the firm "We were extremely unhappy about the market-based reform scheme. The study grew rapidly but narrowed its focus to title," says Dr. Rubin, though Lewin didn't says that while the Cooper bill would cover health and environmental work. In late challenge the union over it. Lewin's agree- only 91% of the U.S. population, it would 1992, it was sold to Value Health, based in take care of 97% of the cost of medical care ment with clients gives it the right to Avon, Conn., for $11 million. review press releases issued on Lewin in this country. To avoid conflicts, Dr. Rubin says that research and to put out its own release if it A phony 91% solution, contended Fami- on all "politically sensitive" material. both feels study results have been distorted. lies USA in a mid-June report based on- he and Mr. Lewin review the final product. you guessed it - still another Lewin study. The company's executives also say they Lewin's services cost about $25,000 for a The Cooper bill "would result in 1.3 million will turn down clients who clearly want to simple run of numbers to as much as Americans losing health insurance each skew the results. $125,000 for a more complex analysis, and month," said Ron Pollack, Families USA's "We're at the point now where people clients seem to expect to get the kind of executive director. say our reputation for being fair is such research they pay for. Peggy Connerton, that we're just not going to do something in director of public policy for the service- a half-baked way," says Dr. Rubin. employees union, says the group gave Lewin "the scenarios and the parameters" 2/2 for the study it commissioned. The union asked Lewin to analyze effects of the Managed Competition Act, a proposal writ- ten chiefly by Democratic Rep. Jim Cooper of Tennessee. The bill would limit the tax deduction businesses can take for provid- ing health benefits to workers. The result, the study concluded, would be either lower wages or higher out-of-pocket expenses for workers. THE WALL STREET JOURNAL TUESDAY, JUNE 28, 1994 70 Moynihan Remains Skeptical of Parts Moynihan Is Skeptical Of Health Plan Drafted by Moderates Of Part of Health Plan Drafted by Moderates By DAVID ROGERS can. "Seventy-three percent of our people And HILARY STOUT are employed by small business. 1 just Staff Reporters of THE WALL STREET JOURNAL think putting it in would doom the bill. Continued From Page A3 WASHINGTON-Daniel Patrick Moyni- As a practical matter, any such trigger care plan. Rep. Sam Gibbons, the acting han, chairman of the Senate Finance Com- would be designed foremost to give the chairman, said he "imagined" he would mittee, is expected to embrace portions of administration some political cover by have to give ground still on the question of a health-reform plan drafted by panel mod- preserving the hope of universal coverage. a standby cost-control provision for private erates. But he remains skeptical of the No one is discussing an effective date insurance. But the Florida Democrat again underlying financing and the plan's ability before the year 2000, when President Clin- delayed taking up the divisive issue in an to achieve its stated goal of covering 95% of ton would be either at the end of his second effort to complete other sections of the bill Americans. term or out of office. And the interim goal first. This skepticism is reinforced by early. of 95% coverage is meaningless unless If Mr. Gibbons is to meet his deadlines cost estimates indicating the plan won't there is a commitment of resources to this week, the issue is likely to come up have sufficient funds to fully phase in pro- subsidize poor and working-class families today, and insurance interests claim they posed subsidies by the target year 2002. who won't buy insurance otherwise be- have the votes to strike the provision And Mr. Moynihan, who is now drafting cause of the high cost. entirely. Democrats prefer to find some his own alternative, may force a debate in Five-Year Budget compromise, however, to preserve party the committee on a standby mechanism to require businesses to provide health insur- As drafted, the centrist proposal sets unity, and there have been preliminary out a five-year budget of $246 billion to discussions about delaying implementa- ance for their employees if the 95% goal finance both the initial subsidies and new tion of the cost controls or requiring a isn't met on time. The New York Democrat will present tax deductions to help individuals buy vote by Congress before they are put in his proposals to the full committee tomor- health insurance. The plan calls for an place. ambitious $1-a-pack increase, in cigarette The opposition among Democrats re- row, with the process being closely taxes that would yield a windfall in the flects misgivings among not only moder- watched by the White House because of the committee's pivotal role as a forum for early years. But once the phase in of ates on the panel but also an influential compromise on health care. Treasury Sec- subsidies begins in 1997. budget analysts bloc of often more-liberal members who retary Lloyd Bentsen and Leon Panetta, predict the available funds could start have ties to the insurance industry. These named yesterday by President Clinton to running short as early as 1998. include Reps. Barbara Kennelly of Con- be his new chief of staff, met with Mr. To avoid widening the deficit, the gov- necticut and Richard Neal of Massachu- ernment must slow the rate of increase for setts, who both have large home-state Moynihan last night. When asked whether Sen. Moynihan's draft would meet the subsidies. But this means that fewer peo- insurance constituencies, and Rep. Mi- ple would receive the assistance needed to chael McNulty of New York, a former president's standard of universal cover- age, Mr. Bentsen said: "My understand- make insurance affordable, and some insurance executive. ing is it does." estimates indicate the subsides may be adequate to reach only 92% coverage. Over Moderate Alternative a longer period, by 2003 and 2004, cost The moderate alternative, which was estimates suggest that the full subsidies the subject of a closed-door committee could eventually be implemented, but meeting yesterday, stops short of this the cost of the program could range near promise and wouldn't require employers to $100 billion a year. help pay for their workers' insurance. The finance panel faces significant Instead, it relies on a mix of market procedural hurdles if it tries to complete its reforms and subsidies to try to achieve 95% work before the July Fourth recess, which coverage by the year 2002. begins at the end of this week. But a 1994 Given the power of this bloc, many of certain surreal quality has settled over the these ideas could be incorporated in the proceedings as both sides have an invest- chairman's proposal, and it's uncertain ment in not seeming to obstruct progress. how much further he can take the debate. Sen. Dole Plans Alternative Though weekend news reports suggested Senate Republican Leader Robert Dole that Mr. Moynihan may try to move of Kansas is attempting to draft his own up the deadline, this is at odds with alternative for the GOP members. but administration estimates now indicating doesn't want to give the administration the proposal won't generate sufficient any chance to blame him for its failure to funds to finance the required subsidies get more from the finance panel. until 2003 or 2004. Though decisions haven't been made To achieve coverage of 95% of all yet. staff drafts of the GOP plan focus Americans by an earlier date. the plan largely on insurance-market reforms with would require even more taxes and spend- more-modest subsidies than those pro- ing reductions to pay for more-generous posed by Mr. Chafee and other moderates. subsidies to encourage low-income people A cigarette-tax increase is among the to buy insurance. This could prove an options, but much greater weight is put on impossible hurdle and increase the likeli- savings. including a proposed per-capita WALL STREET JOURNAL TUESDAY, JUNE 28, hood that any standby provisions would cap on federal expenditures for Medicaid be triggered into action. and a more symbolic elimination of gov- In shaping their proposal. moderates on ernment contributions for health insur- the panel had considered a variety of ance for high-level federal employees, in- standby devices. But a leader of the cen- cluding members of Congress and the trist group. Sen. John Chafee, warned president. THE yesterday that even a standby mandate on While attention focused on the Senate employers to pay for health care could kill yesterday. the House Ways and Means hopes of compromise. Committee pushed stubbornly ahead in "Look kiddo. I come from a small-busi- trying to complete work on its own health- ness state," said the Rhode Island Republi- Please Turn to Page A4. Column 2 74 Extra Baggage Distorts Use Medicare Rates, Original Intent of A to Z Destroy Health Care In response to your May 24 editorial In his "Hospitals' Overcapacity is Fi- "Look Who's Blocking A to Z": The dis- nanced by Insurers" (Letters, June 15), charge petition for the A to Z plan is com- Prof. Uwe Reinhart questioned why health pletely different from the legislation I co- insurers, businesses and individual payers sponsored. and your readers need to know do not reimburse health care providers at the truth. Medicare rates rather than suffer the ef- The A to Z bill provides a process for fect of government cost shifting. He and amendments to be offered to lower discre- your readers deserve an answer. tionary spending for fiscal 1994. This is a First, nongovernment payers of health good and necessary proposal. On that. I care bills do not have the police powers to fully agree. The rule. however, is different enforce a policy of paying suppliers as low and actually changes the substance of the as 40% of costs and 17% of charges. Second, bill. While it establishes the length of de- none of us would want the Third World bate and the nature of the amendments to level of hospital care that would result if all be offered, it also broadens the scope of the of us paid hospitals at Medicare reim- bill to include cuts in mandatory spending bursement rates. I have an office full of ex- programs. such as Social Security. a pro- amples where Medicare payments to hos- vision that was never included in the orig- pitals are only 17% to 18% of charges. inal bill. This is a highly unusual tactic- While some hospitals carry excess fat, particularly since the two sponsors of the health care as we know it would cease to legislation never informed the co-sponsors exist in the U.S. if all payers used of this unprecedented approach. Medicare rates. The purpose of a rule is to set the para- Here is a simple Hospital Finance 101 meters within which a bill is to be consid- question: If 45% of your customers pay ered. It should not change the substance of you 40% of your costs, how much do you the bill. In the case of the original legisla- have to charge the remaining 55% in order tion, it would permit specific cuts in waste- to break even? The universally held truth ful discretionary spending, but does not among U.S. hospital finance professionals endanger a vital program like Social Secu- is that Medicare/Medicaid payment rates rity. have inflated U.S. hospital prices by 50% The previous two rules mirrored legis- to 75% in the private sector. In the world lation we co-sponsored. It was, in fact, the of classroom theories there may have third rule that completely altered the orig- been a cost shift, but not in the real inal intent of the bill. worlds of hospital finance and health in- As a fiscally responsible member of surance. Congress with a proven record of fiscal re- The massive "hidden tax" on U.S. straint and trimming of government waste health care commonly referred to as gov- through my work on the House Budget ernment cost shifting is nothing more than Committee, I remain committed to reduc- last ditch liberal efforts to foster unsound ing our national budget deficit and cutting entitlement programs by government spending. These are genuine goals that mandates rather than leveling with a tax- merit consideration through an equally weary public on the real costs of such pro- genuine process. I am one of two members grams. Let us have faith that the truth will of Congress who received the second high- eventually prevail over deception. est rating-99%-from the bipartisan Con- RON JONES cord Coalition out of the 435 lawmakers in President the House. Mutual Medical REP. OLYMPIA J. SNOWE (R., Maine) Peoria, III. Washington THE WALL STREET JOURNAL TUESDAY, JUNE 28, 1994 85 TUESDAY, JUNE 28, 1994 USA TODAY SHAKE-UP WASHINGTON Panetta, McLarty, Gergen and Rivlin Panel today awaits LEON PANETTA, new chief of staff; was budget director: Record: Barely 100 days into Clinton's administration. the Moynihan plan with a revolutionary economic plan designed to rein in the deficit, trade pact and Russian aid package in limbo on Cap- itol Hill, Panetta told reporters Clinton needed to "define The Finance Committee, the key Senate panel on health reform, learns today how Chairman Daniel Patrick Moyni- his priorities" and take the battle to the public. The com- ments were viewed by some as insubordinate, by others as han, D-N.Y., intends to finance his plan. He distributes a detailed proposal that calls for 95% of intentional message-sending In reality, it was just Panetta Americans to have health insurance by 2000. He's expected being candid as always. to use a watered-down form of President Clinton's contro- Reputation: Panetta, a former House Budget Com- versial employer mandate - forcing firms to pay for their mittee chairman, is a hard-working pragmatist, affable workers' coverage. "There will probably be some votes on even while making the tough choices that come daily for a mandates," says Sen. John Breaux, D-La. But he doubts man charged with balancing a $1.5 trillion budget while there is sufficient support for requiring the payments. paring the mighty deficit he hates. Moynihan's backup: If the 95% goal wasn't met, a new Why he got top spot: Panetta combines McLarty's commission would recommend specific steps - possibly in- charm with some of the rougher traits associated with for- cluding the mandate - to reach it. Such recommendations mer White House bosses. He also knows Congress, a plus in would take effect unless Congress voted them down. the final crucial battles over health-care and crime legisla- President Clinton says employers should share the cost of tion this summer and fall. insuring all Americans. Monday. right after naming budget director Leon Panetta his new White House chief of staff. THOMAS 'MACK' McLARTY, new counselor to Clinton; he sent Panetta and Treasury Secretary Lloyd Bentsen to was chief of staff: press that point with Moynihan. - Jessica Lee Record: Fairly or not, he caught the blame for: the travel office staff firings that were SENATE RACE: Sen. Jim Sas- later rescinded; Clinton's $200 hair- ser, D-Tenn., is gaining support for cut, which was widely reported - the post of majority leader. Mon- inaccurately - as tying up Los An- day he got the endorsement of four geles Airport; the handling of the more senators. Patty Murray of investigation into the suicide of top Washington and Max Baucus of aide and fellow Arkansan Vince Montana ended speculation that Foster; the spiraling Whitewater the race between Sasser and Sen. investigation; Paula Jones' sexual Tom Daschle, D-S.D., would be a harassment suit; the staff's tell-all regional contest when they ramblings to Washington Post pledged their support. Earlier this writer Bob Woodward for the book Gannett News Service month, Sen. Russell Feingoid, D- The Agenda; the misuse of a White SASSER: Gains four USA TODAY Wis., who had been considered a House helicopter for a staffer's golf PRESERVATION McLARTY PHOTOCOPY more endorsements Daschle supporter, and Sen. Barba- outing. Γa Boxer, D-Calif., said they would Behind the latest move: A Clin- vote for Sasser, who has more than 20 senators' support. ton friend since childhood, and later a political supporter while heading a utility in Arkansas, his arrival at the White SPACE STATION: The House is ready to resume its House was met with skepticism that he was tough or politi- annual debate on funding for the planned space station. A cal enough to handle the job. The White House says he was subcommittee approved the Clinton administration's $2.1 behind the reshuffling, but first lady Hillary Rodham Clin- billion request for the orbiting space laboratory as part of a ton also was disappointed with McLarty's handling of Veterans Affairs and Housing and Urban Development health-care reform. spending bill earlier this month. To date, the federal gov- ernment has spent $11.2 billion on the space station. DAVID GERGEN, new special adviser to president and secretary of State; was counselor to Clinton: WHITEWATER HEARINGS SET: The House Bank- Record: Gergen's darts at the ing Committee scheduled Whitewater hearings for July 26. new administration in U.S. News Committee Chairman Henry Gonzalez, D-Texas, invited 22 & World Report brought a call witnesses to appear, including special counsel Robert Fiske from McLarty. He wanted the and former White House counsel Bernard Nussbaum. magazine editor - and aide to The hearing will cover the death of White House lawyer three Republican presidents - to Vince Foster and whether Clinton aides tried to cover up join Clinton's staff as senior adviser the Whitewater affair. to stabilize relations with Congress Republicans had wanted a broader hearing to probe and the media. McLarty sold the whether a failed savings and loan, owned by Clinton's deal to Clinton. At first, Gergen was Whitewater partner James McDougal, improperly fun- credited with steadying the staff neled money into the real estate development. and with improving the White But Fiske asked that the hearing only cover issues he has House's workings with the media. USA TODAY finished investigating He'll release his report on Foster and Perception: Hillary Clinton GERGEN the possible coverup this week. never warmed to him, and many staffers resented his Republican credentials. This chance to PRIMARIES AND RUNOFFS: Utah voters are expect- improve foreign policy spin could round out his public ser- ed to largely ignore today's first-ever June primaries. A Sen- vice portfolio. ate race pits Craig Oliver against Bill Rigley for the Inde- pendent Party nomination. The winner will face incumbent ALICE RIVLIN, new budget director; was deputy: Republican Sen. Orrin Hatch and Democratic challenger Record: She surprised Washington when she be- Patrick Shea. In the House. Dixie Thompson and Torn Dras- came Panetta's deputy. She was chil are battling for the GOP nomination. The winner goes widely regarded as overqualified against Democratic incumbent Rep. Bill Orton. for the job after eight years as In other states' runoffs today: head of the Congressional Budget Alabama - Republican governor. Former governor Office. the non-partisan arm of Fob James faces Ann Bedsole. House 5th District Republi- Congress that analyzes the budget can: Wayne Park faces Hugh McInnish; one of them will and the fiscal impact of legislation. meet Democratic Rep. Bud Cramer. She sounded alarms about the ris- Mississippi - Democrat U.S. Senate: Ken Harper ing deficits during the Reagan ad- goes against Hiram Eastland for the right to face GOP in- ministration. cumbent Sen. Trent Lott. House 1st District: Each party Challenge: Rivlin, a hard-liner has a runoff for election to replace retiring Rep. Jamie on the budget deficit, lacks experi- Whitten. On the Democratic side, Bill Wheeler faces Tim ence in working with Congress to Ford; on the GOP side, Roger Wicker battles Grant Fox. USA,TODAY put together the budget - one of RIVLIN the qualities that made Panetta Written by Charmagne Helton popular on Capitol Hill. Moynihan health plan melds with moderates' By J. Jennings Moss THE WASHINGTON TIMES To Clinton, "every Sen. Daniel Patrick Moynihan's health need not mean 'all' plan, to be presented to the Finance Com- mittee today, will be a merger of his ideas and a proposal by a bipartisan group of By Frank J. Murray moderates. according to senators. THE WASHINGTON TIMES When Mr. Moynihan, New York Demo- How could "every American" not be crat and chairman of the committee, defined as 100 percent of Americans? presents the final product to the panel. it If the Clinton White House knows, will shift the debate from closed rooms to it's not telling, but the administration public hearing rooms. has begun making such a distinction on Speaking to reporters after meeting with "universal" health care coverage. the panel's Democrats yesterday morning, From President Clinton to Press Sec- Mr. Moynihan said he had not decided retary Dee Dee whether mandates on employers or indi- NEWS Myers, the rhetoric's viduals would be in the package. The mod- logic sounds like res- erates' plan called for no mandates. ANALYSIS ervations a men- "That is basically a question of what will tal asterisk to the move a bill. I'll have a final judgment on president's read-my-lips promise of that in the morning," Mr. Moynihan said. private insurance for every American. If that is the intent. it could allow Mr. A Polish diplomat speculated Sen. John H. Chafee. Rhode Island Re- Clinton to back away from his promise publican and a pivotal player in the seven- to veto any health bill providing less- Embassy that Mr. Kozminski's quick recep- tion at the White House was con- member bipartisan "rump group," later than-universal coverage in the foresee- nected to Mr. Clinton's upcoming said he expects employer mandates to be able future. Row trip to Eastern Europe. He is due included in Mr. Moynihan's bill. The reason "You all can define that however you in Warsaw July 6 for a visit to co- for the inclusion is so the committee can want," Miss Myers said yesterday. incide with a meeting of foreign take a vote on the contentious issue, which The quest for a definition permeated ministers of nine countries that likely would fail. her press briefing, and she was told the have received U.S. aid through "The proposal that the moderates have words seemed simple enough they the Support for Eastern European put together will be merged with the should mean the same thing to public, Democracy Act, the diplomat chairman's bill. We don't know what it will president and news media. From envoy to critic said. actually entail - if it has mandates until Throughout the long briefing Miss Secretary of State Warren we see it tomorrow," Sen. Tom Daschle, Myers eluded every request that she Hungarian Ambassador Pal Christopher, who will accompany South Dakota Democrat, said yesterday. define universal or at least agree that Tar will go from an envoy for his Mr. Clinton, is due to meet the Mr. Daschle is part of the minority on the "every American" means 100 percent. country to a critic of the new foreign ministers of Albania, Bul- Among the definitions Webster's government, dominated by for- garia, the Czech Republic, the committee - those who back President Clinton's proposal to require businesses to New World Dictionary lists for "uni- mer Communists, when he re- Former Yugoslav Republic of versal" as an adjective, the most rel- turns home next week. Macedonia, Hungary, Poland, Slo- pay 80 percent of the cost of their workers' evant seem to be "present or occurring Mr. Tar, in his last public vakia, Slovenia and Romania. th insurance 80 that every American everywhere or in all things used, speech as ambassador yesterday, Mr. Kozminski, who replaced has health coverage. intended to be used, or understood by told the American Jewish Com- Ambassador Kazimierz "I'm skeptical that it [universal cover- all." mittee (AJC) to watch the new Dziewanowski, is one of the sec- age] can be obtained if this is all we do," Mr. With many legislators mentioning government for any cracks in a ond wave of diplomats from East- Daschle said of the idea of eliminating alternatives that would result in 91 per- coalition between the Socialists, ern European countries, follow- mandates. "But I'm optimistic that this will cent or 95 percent coverage, an inter- whose supporters are anti- ing those who arrived here after allow us to continue the process and we'll viewer on KMOX radio in St. Louis Western and anti-capitalist, and the collapse of communism. have opportunities on the floor and in con- asked Mr. Clinton on Friday if he was the Free Democrats, who support Before he left Poland, Mr. Koz- ference to try and build upon what we do willing to compromise on that. a market economy. minski told reporters that I here in the committee." "You said you'd veto any bill that did "The old Communists are back who went before him represented not insure every single living Amer- in power. They profess to be the "poetry of breakthrough" Two congressional panels already have approved health plans similar to Mr. Clin- ican," the reporter recalled accurately. Social Democrats," he said. But and that his job is more "Universal," Mr. Clinton responded. the "contradictions in the coali- mundane, calling his m on the ton's and a third - the House Ways and "We need to have universal coverage. tion" are many. "prose of normality." Means Committee - is trying to finish its That's what I said." The supporters of the Social- The other ambassadors who work this week. Clinton backers hope these Asked yesterday how the president ists expect "some redistribution presented their credentials, in or measures will prevail. differentiated "universal" coverage or of wealth, increase in pensions. a der of their precedence in the If these Democrats win. at least one Re- insurance for "every American" from decrease in prices but I don't diplomatic corps, are Fatikh Tes- publican has vowed to filibuster a health 100 percent, Miss Myers got into a long see that. habaev of Uzbekistan, Branislav bill. and somewhat caustic debate with re- "From everything I hear, they Lichardus of Slovakia, Jerome "The Clinton plan and its clone - the porters. She accused them of being want to speed up privitization, for Mendouga of Cameroon, F [Senate Labor and Human Resources Com- ready to define the president's words. example," he said. Tabbarah of Lebanon, Khalii mittee] plan are in my view poison," said "I think the president and others of "For the time being, I don't see Ugur of Turkmenistan, Kepas is Sen. Robert F. Bennett, Utah Republican. us here at the White House have any slowing down" in the eco- mael Watangia of Papua New worked hard to stay out of a debate nomic policies promoted by his Guinea, Lionel J. Wood of New "They are based on the assumption that the about numbers," she said. conservative party. Zealand, Moise Koffi Kournoue o only way reform can work is through "His definition of universal care is "I think the pendulum will the Ivory Coast, Benjamin Kip- government-imposed price controls. They guaranteed private insurance for ev- swing back to the center-right," korir of Kenya, Sven Alkalaj of must be defeated even at the cost of grid- ery American," Miss Myers explained. he said of the next elections Bosnia and Manaspas Xuto of lock. Yes, filibuster, if that is what it take." "But isn't that 100 percent?" re- scheduled in four years. Thailand. On Sunday. The Washington Post re- porter after reporter inquired, asking Mr. Tar, an international banker The Uzbek ambassador had ported that Mr. Moynihan had prepared a whether 95 percent or some other before becoming a diplomat, in- waited the longest to present his draft bill that ditched all mandates in favor number could be deemed "universal." tends to head a conservative credentials. He arrived in of relying on incentives to businesses to "We're just not getting drawn into a think tank and prepare to run for November provide health insurance, insurance re- debate about numbers," she said over parliament. forms and government aid to the poor. The and over. Herman Obermayer, an AJC DIPLOMATIC goal would be to have 95 percent of the Finally, a reporter said what was board member, introduced Mr. DIARY public covered by 2000. wanted was definition, not numbers. Tar as a "unique ambassador "We think it was clear, we think we from a unique country for Jews." Today A Finance Committee staffer said yester- understood it, and we think when the He said Hungary, with 80,000 10 a.m. - News conference day, "substantial things have changed" time comes - when he puts his signa- Jewish residents, had the second- Salim A. Salim, secretary-general since the article was published. although ture or veto on it - it will be because highest number of Jews in Eu- the Organization of African Unity, the aide would not discuss those changes. this is or isn't what we think we under- rope after France. meets the press at the residence O During the past two months, as Finance stood." she was told. "The ambassador is a man of South African Ambassador Harry Committee members have met behind Miss Myers laughed and said, "I political conscience but not a Schwarz. 3101 Massachusetts Ave closed doors. the number of people - re- don't have any idea what you just politician," Mr. Obermayer said. NW. Contact: 202/232-4400. meant by what you said." 8 p.m. - Lecture - James porters, lobbyists and activists - loitering It got so tiresome that she finally Hutson of the Library of Cong outside its Dirksen Senate Office Building announced herself open to any other Cheaper by the dozen? reviews Swiss-U.S. relations during suite of offices has swelled. topic. Many new ambassadors here World War II. Swiss Embassy. 290 Yesterday. government watchdog Ralph Cathedral Ave. NW. Contact: You guys are cranky. It's Monday. might want to drop a thank-you Nader paced the corridor while a group of 202/745-7900. You don't want to be here," she ob- note to the new Polish envoy, people in wheelchairs and others who sup- served. whose arrival in Washington If you have a tip, suggestion or port the Clinton plan lingered near the In his January State of the Union ended what for some was a long question, call Embassy Row at meeting room door. address, Mr. Clinton waved a pen and wait to see President Clinton. 202/636-3297. "What they doing in there is ludicrous, warned he would use his first veto if he Only 16 days after landing absolutely ludicrous and we expect those did not get what he asked for. here, Ambassador Jerzy Kozmin- guys to come up with a health plan for ev- "If the legislation you send me does ski presented his diplomatic cre- eryone in this country - not 95 percent, not not guarantee every American private dentials last week in a White 91 percent but 100 percent." said Becky health insurance that can never be House ceremony. Ogle, 38. of the Real Health Care for All taken away, I will take this pen, veto But because he was the latest campaign. that legislation, and we'll come right arrival, protocol demanded that back here and start over again," Mr. Ms. Ogle, who has spina bifida, sat in a the ceremony also include 11 Clinton said. other ambassadors who were wheelchair plastered with bumper stickers waiting to present their creden- promoting universal coverage. 123 TUESDAY. JUNE 28. 1994 The Washington Times Third party, anyone? Two years after the strongest showing by an independent pres- idential candidate in 80 years, Clinton likes camp pollsters say President Clinton and top Republicans have failed President Clinton has finally to win the election-crucial block Inside Politics adopted Camp David. of independent voters. He plans to spend the long In- The Christian Science Monitor dependence Day weekend in the reports Ross Perot is running at Maryland retreat he had largely 20 percent in recent polls, a r shunned since taking office, his higher than the 19 percent of the third consecutive weekend in the national vote he received in 1992. Catoctin Mountains. Anger toward Washington is also "He certainly enjoyed his up since the last election. weekends there, the last two "The American people are will- weekends there." White House ing to break from the two-party Press Secretary Dee Dee Myers system," says pollster Gordon said. She insisted he wasn't Black of the New York Indepen- sneaking away to fish, as Jimmy dent Party. "The problem is you Carter says he did. have to have the resources to pre- And Mr. Clinton hasn't yet sent them with an alternative." dropped in on nearby Holly Hills But some political observers Compiled by Alan McConagha Country Club that former admin- warn that American voters have istrative director David Watkins historically not been kind to The Richards lectures claimed to be checking out on his third-party candidates and that behalf when he took his famous this is not a firm block of voters Congress' coverage In what the Houston Chronicle helicopter golfing trip. waiting to be seduced by a The Wall Street Journal re- described as another of her lec- "He's spending time with his third party. ported that the congressional tures to teen-agers, Texas Gov. family, mostly, I think. Reading," health plan is not likely to be a Miss Myers said. crowd pleaser despite the politi- Ann Richards proposed statewid Red Meat II cal fuss being made by Hillary curfews for young people to help Rodham Clinton over getting one reduce juvenile crime. GOP vs. Rosty Democratic National Chair as good as the members enjoy. The Democrat said she hoped Two House Republicans are David Wilhelm at a party strat- The federal employees' pack- threatening to file a complaint egy meeting: "The Republican Texas communities would impose age isn't "as generous as most their own but added that she against Rep. Dan Rostenkowski if Party has a problem. Its state, union health plans, or the pro- would consider legislation at the the chamber's ethics committee parties are rapidly being taken grams of many Fortune 500 com- does not launch a probe of the over by the forces of the radical state level. Her GOP opponent, panies." For example, there are House post office episode, Roll right, the very same people who George W. Bush, supports local no preventive dental care or sub- option only on curfews. Call reports. brought us the 1992 Republican stance abuse benefits. Chris Shays of Connecticut and convention in Houston." Mrs. Richards said, "My Scott Klug of Wisconsin are pre- mamma always said that there's Christian Republicans pared to force a floor vote on a not anything going on at 2 o'clock Outbursts redux resolution that would require an Leading Republicans say the in the morning that should be of ethics panel probe of the post of "Actually, his outbursts are influence of religious conserva- any concern to me." fice if the committee does not nothing new," wrote Carl M. Can- tives depends on whether they take it up on its own. non in the Baltimore Sun. limit themselves to messages on Red meat House Democratic leaders "In the past year, President abortion and homosexuals or if have supported the federal at- Clinton has publicly displayed hi. they broaden appeals to issues Dick Cheney in Iowa: "When torney in resisting GOP calls for temper with increasing fre- such as the economy and health, we left office, America's strength an immediate ethics probe, say- quency, causing some promism the New York Times reports. and resolve could not be ques- ing such action could impede the Democrats to wonder why such As evidence that the religious tioned. In the 17 months he's Justice Department's criminal consummate political cam- conservatives are not dividing been in office, Bill Clinton has case against Mr. Rostenkowski. paigner is unnerved by the kind the party, some Republicans squandered that legacy." of criticism that is standard in point to their support for two pro- Futures modern politics." choice Republicans - Sens. Paul Social Security cuts Mr. Cannon said that a Demo- Coverdell of Georgia in 1992 and Columnist Michael Barone in In Washington state's 2nd Con- crat who knew Mr. Clinton w Kay Bailey Hutchison of Texas in U.S. News & World Report says gressional District, Democratic he was governor of Arkansas 1993. current political signs suggest state Rep. Rob Johnson and Re- contends that his political skills Senate Minority Leader Bob that Social Security payments publican businessman Jim An- seem to fail when he is criticized Dole told the Times' Richard L. may be cut sharply for future drews became the latest to "He's a good man, but he was Berke: "The plus side of it is beneficiaries. throng the field in what is rated a governor and then president for we're bringing people into the Mr. Barone says the fiscal, de- partisan toss-up to succeed retir- all but, like, two years since he party, and they are middle class mographic and political vectors ing Democratic Rep. Al Swift. was in his 20s. with strong family values. If I point in that direction because of Not Rollins "He's never had to bite his thought they were all directed at the public's general inclination to tongue, never had to pick up 1. one or two issues, I'd be worried." curb government spending and Former GOP Chairman Rich dinner check, always had a DC the fact that Social Security Bond insisted to the New York liceman there when a bully A miracle? "is where the money is." Post's Fredric Dicker that he was comes by. He's been spoiled "Jimmy Carter, truster of Leo- He speculates that cuts would not the one who recommended and it shows." nid Brezhnev until Afghanistan, not be vigorously postested be- consultant Ed Rollins to Berna- truster and promoter of the BCCI cause the people now turning 65 dette Castro, New York's Repub- banker until thousands of deposi- do not have the sense of moral lican Senate candidate. tors were bilked of their savings, entitlement "a stronger emo- "I would have strongly argued makes his pilgrimage to the last tion than greed" that moti- against him in the belief that the Stalinist - and again bets on the vated the World War II genera- race is already a long shot and contagion of his own indisputable tion. the candidate doesn't need the goodness." wrote columnist Wil- Americans of the silent gen- problem of a hired gun," Mr. liam Safire in the New York eration don't feel as entitled to Bond said. Times. benefits far greater than the monetary worth of their contri- butions, and baby boomers and Fear and loathing generation X don't expect to get The blasted dream Hunter S. Thompson in an ex- much from Social Security any- "Once Clintonites dreamed of cerpt from his new book, "Better way, Mr. Barone observed. realignment. Now they are than Sex: Confessions of a Politi- Now that Demcorats control scrambling for survival," says cal Junkie Nixon was a mon- the government and the push for Ronald Brownstein in the Los An- ster with insanely wrong convic- the cuts is likely to be led by geles Times. tions. Clinton is a humorless punk Democratic Sen. Bob Kerrey, "Under siege from Whitewater, with bad habits. Nixon was so head of the entitlements commis- Cattlegate and Paula Jones, his bad he could get innocent people sion, the objections of older poll numbers sagging, his health into politics, but Clinton is bad in Democrats may be overcome. care plan struggling for air, it is a way that will get-all but the The reason for President Clin- difficult to remember that Clin- worst ones out." ton to go along despite campaign pledges to the contrary? It would ton once seemed to many Demo- make more money available for crats their best hope for realign- innovative government programs. ing national politics. "Bill Clinton's promise was that he could inspire a lasting new Democratic majority in na- tional politics. "Does anybody think of Bill Clinton that way today?" 130 The ripple of the unintended consequences of health care reform\ By Peter J. Levin the mandate to pay for an ever lic has exhibited an aggressive program EHSDS, or the Experi- changes were occurring in the mar- islative solutions to bureaucrati- increasing number of aged nursing desire to benefit from their physi- mental Health Services Delivery ketplace: (1) there was a new focus cally revamp the health care sys- F Former Health, Education and home residents whose care has cians' use of the latest techniques. systems, was created to foster the on cost consciousness by employ- tem. A number of attempts at Welfare Secretary Joseph Cal- become the liability of the state. Comprehensive Health Planning development of rational delivery ers; and (2) care was being moved health planning have taken place in ifano in an April 1, 1993 arti- There may be more responsive, was enacted to help rationalize systems in a number of selected out of the hospital into a variety of the past that were not as overarch- cle in the Washington Post wrote of effective, and less costly ways to health care delivery locally by lim- areas. The idea was to put togeth- ambulatory settings by providers. ing as what President Clinton has the ripple of unexpected conse- care for these people but the legis- iting the diffusion of technology er the 4P's (payers, political, pub- These were to have a much more proposed. Health planning has quences when government tries to lation prevents flexibility in choice that was deemed to be duplicative lic, providers) in a voluntary coali- lasting effect than all of the failed in our country because it did re-invent the way we deliver and of facilities, services, or methods of and unnecessary by putting the tion that together with dialogue attempts in the past at legislating not take into account the realities of pay for health care. there is a long payment. brakes on hospital capital expendi- and data would lead, in a locality, health planning. politics, interest groups, and the history of federal attempts at trying Medicaid stands out today as a tures. Local CHP agencies made to a more rational and equitable Probably the most acute legisla- evolving marketplace. Rarely have to improve the structure of the prime example of a federal attempt up of community representatives, health care delivery system. tive failure was the passage of cat- we been able to replace the market health care system in this country to affect the availability of, pay- providers and others were to over- EHSDS had no legal clout, astrophic coverage as a part of through policy innovation. and the unintended, frequently neg- ment for and cost of health services see and guide the evolution of the approval authority or money to Medicare. this well intentioned Government has repeatedly ative consequences. With all the to Americans. While many in need health care delivery system in a influence behavior. In a way, these effort to cover the very sick and shown that it can create programs best intentions, it is naive to try to have benefitted from Medicaid, a locale largely by conducting a served as prototypes for the struc- reduce bad debts by health care to increase the level of services, redo the American Health care sys- very unfortunate consequence has multi-step public review process. ture of the HSA's, or Health Sys- providers backfired when the elec- but that it has an extremely difficult tem in one piece of legislation. been the cost shift to individuals the infamous CON, or certificate of tems Agencies, which were given torate, in the form of Medicare eli- time slowing down the proliferation Medicaid was passed in 1965 as and insurers, and ultimately to need, process was created as the formal approval authority over the gible, rose up and demanded its of regulations, services, and expen- a means of sharing with the states employers and employees, because means of doing this within a state CON process in their locals as suc- repeal. They refused to pay more ditures. Our system of government TUESDAY. JUNE 28. 1994 The Washington the cost burden of caring for per- of the governments' failure to pay approved local health plan. It cessors to the CHPs. to benefit the few who needed addi- makes it almost impossible to have sons with poverty level incomes or the real cost for the provision of ser- required hospitals, nursing homes The public interest was expected tional coverage with almost no vis- unbiased evaluation followed by those whom had become impover- vices. and others to apply to obtain to be dominant on each HSA board, ible improvement in the benefits to rational dialogue that then leads to ished by the cost of medical care. There have been several other approval prior to making capital free from control by providers, the the vast majority. For the first time the curtailment of government Medicaid may be the government well-intentioned efforts at planning investments. Physicians in private group with the greatest economic we saw consumers rebel against a sponsored programs and expendi- cost increase "sleeper" of all time. by the Congress. Regional Medical offices were exempt from oversight interest and the ability to organize federal program that promised pay- tures. It would be useful for the It has eaten up state budgets at a Programs were initiated to serve as and the approval process and they sustained monitoring of and a ready ment for the very seriously ill, a electorate to acknowledge that our more rapid rate than any other fed- a framework for dissemination of were able to invest in new technol- interface with the planning and small but costly minority in the pro- country does not have a successful eral-state cost sharing program the most advanced medical knowl- ogy and the creation of services as approval process. In fact, politi- gram. They did this because there history of merging public policy and paralyzed the ability of states to edge throughout the country to they wished. the CON process was cal and bureaucratic interests grew was an immediate increase in the and private delivery to create new expand care for children and oth- practicing physicians and their par- in itself a bureaucratic hurdle in proportionate power and the monthly premium and no visible government sponsored programs ers. this has occurred because of ents who were suffering from heart which led to the creation of an HSAs soon became politically and expansion of benefits to the major- that are supposed to decrease the disease, cancer and stroke. The industry of consultants, lawyers, procedurally gridlocked from deal- ity. We might conclude from this cost, increase the availability and idea was a noble one, to make spe- and lobbyists who were necessary ing with the major issues of health that with the creation of a national reduce the use of inappropriate ser- Peter J. Levin is a fellow in cialty care available in rural and to obtain local Comprehensive care reform. health plan the public will not hes- vices. this certainly will not hap- Health Care in the office of Sen. suburban areas that previously was Health Planning and state agency While all these programs were itate to hold their elected repre- pen through the passage and imple- Connie Mack, Republicant of Flori- found only in major urban medical approval. In almost all states, this well intentioned, they were chewed sentatives accountable for the ben- mentation of a single bill by da. Mr. Levin is former dean in the centers. It appeared desirable to cumbersome and intrusive process up in the reality of changes occur- efits package. this will result in Congress. A carefully phased in College of Public Health of the Uni- disperse specialists and this has has been overturned because of its ring in the marketplace. Provider constant pressure to increase the program aimed at realistic targets versity of South Florida, Tampa occurred. Now, specialists are dismal record at controlling costs or survival once again was primary coverage. proposing limited immediate solu- and former chairman of the Flori- found everywhere their diffusion rationalizing the diffusion of tech- over a generalized desire to We should be aware of "the rip- tions with financial safeguards has da Hospital Cost Containment limited only by constraints of the nology. improve community well-being. ple of unexpected consequences a much greater chance of passage Board. marketplace. In addition, the pub- Another federally sponsored And, more important, two major whenever we begin to expect leg- and ultimate success. 6/28/94 FROM USDAY 1994,06-27 23:25 #660 P. 03/05 Harry and Louise Turning Tail Washington - Harry and Leuise small health insurance companies as tes. bottom-line Jemands entil now Chickenlittie, the housey fearmongers tually had only nerrow objections 10 It's too late." said 1 Senate starTer, watching featured in those health insurance in- CEnter's approach. but they attacked it Clinton's propotals disabline in the Senate Finance duatry TV commercials, appear to he with a bludgeon. As u terror campaign. Committee "They" turred and feathered the suffering d sudden done of fright them. 3 it has bown M brilliant sucress. Although Clinton plan for su lung - and new they want to selves Serves hum -ight, LOO. mast Americans still want national in. put a nice Pat on it?" After ontha of sprcading terror surance they have become you WHIN of Like Harry and Louse loctors, too, have about President Hill Christin's health anything Clinton proposes that they are been having second dhoughts about their long. F1 sposals. Hurry and Louise unexpect letting health reform slip away standing opposition to government-funded "so- ediy showed -P in a newspaper ad here Specifically, ae R result of the general. craimed medicine. What scares them is that yeste. day. supporting supporting HIA A-aided onelaught against the Clin- they are rapidly losing their independence to Cititon's two basic demands: univer- Lars-Erik ten reforms, the Senate Finance Com- for profit insurance companies, which are far 3a. erage and an employer-breed fi- Nelson mitter LM walking away from both the stricter about holding down costs than the gov- nameing avecem employer-paid premiums and from emailment than ever been. "Many doctors notieve If health care reforms and insurance reforms guaranteed or versal coverage. And the is what that maybe living under the government is net- are gring to work Bb well - we want. they must scares Harry and Louise ter than living under these compunies," D-. Rot. work together. Hand in Hand. Everyone cooperar- The thin, minimalist compromises being offered land Lowe of the California Medical Association ing. That means universal coverage. says the 40 on Capital Hill could soddle the health insurers Cold the Washington Post and month These sponsored by the Health Insurance Association of with the worst of all worlde: The obligation to at for-profit entities are really making pronte an America. Through universal coverage and our Sept all applicants for insurance without requiring the backs of doctors present employer-based system. we can huld down all American:, or their employers, to pay into the For doctors the choice is not returning the COSTS and ensure coverage for everyone." system. Without universal coverage, Americans Norman Rockwell dave or independent medical Exectly what Clinton has been goying all along. could wall until they were sick before buying th- proctices: those times are gone. New they maki This IN " amazing turnsbout Up to now, Harry surence. and the insurers would not be nhic to decide which prospect given them more freedom LI, at 1 Louise have apread fear that Clinton's plans turn them away. HIAA has lung recognized this practice medicine: A Canadian-style government to national insurance will mean rationing of dunger, but it has not advertised in support of who financed * store with free choice of doctors Class health care They have washed that it could run versal coverage. It her only attacked ton's mixed government-private atem; or being out of money. presumably leaving people to die in Similarly, HIAA favors employer-based financ- forced by market preasure into an insurance come she streets They have shares their worry that ing as the securest income source for insurance pany's hrath-maintenance organization Americans would be fr reed into health plans de. companies. If employers are required to pay o0 As health reform about to fall victim to signed he government bureaucrats who would not percent of insurance premiums. as Clinron wants. inertia. to partisan pelitics and to cover important illnesses. the insurance companies will be rolling in money. inhhying, even its opponects realize the current More important. their incessant drumbest of When asked. HIAA officials have always NO d they health system has to change and toot the Clin- negativism has helped to poison the debate about favor universal coverage and employer-paid premi- ton plan, with all to un doubted faults. may be bec- national health care. Harry and Louise - i.e.. the ums. But they DRIVE not advortised in favo: of Clin- ter than the likely alternativea. WORLD BRIEFS NATION BRIEFS Surge in Haitians Kravchuk, a former Communist Clinton to Move detect condition Seized on Boats lender who carried the become of independence throughout the car. To Dismiss Suit In an article in the Journal of Clinical Medicine. an immunoi- The U.S. Coust Guard picked up paign. was the clear favorite in President Bill Clinton will nak agist at the University of Medi- western the strongh old of about 1.300 boat people fleeing that a sexual Increasment lawsuit cine and Dentistry of New Jersey Ukrainian nationalism But for Heith yesterday, more these half the mer Prime Minister I. onid be dismissed until he leaves the reports his team cas: can detect total number picked up in Caribbe- Kushma. who seeks closer time presidency, according to papers his Lyme disease RE soon as a few on waters in all of last year. The surge ccincides with Presi- with Moscow, commanded strong lawyer filed yesterday in U.S. Dis- days or weeks after infection trict Court in Little R.s.k. Ark. Current tests are sometimes in- support in the industrialized dest dent Clinton's new policy. which The motion ASKS the court to al- conclusive and can fail to detect and south, regions with large eth- rook effect June 16. to grant refu- nic Russian populations low Clinton is delay the normally the discuss for as long as a LOU- gees picked-up at vest # chance for 8 required response to the allega- ple of years after infection. hearing to determine whether rhev Linns until courts have decided are eligible for political asytom. Missing Freighter whether = president can be: such House Unit to Hear A US embasay spokesman suic about 900 were picked DD yeaterday Pollution 'Suspect' Attorney Robert Bennett of Washington said in the court pe- Whitewater Case in 25 toat. Later, the Coast Guard An ore-camying ship that disup. pera that Clinton will file a inot. in Mian.. said the figure was closer peared after leaving port last week by Aug. 5 arguing that presidents The House Banking Committee to 300. but that :: would not have may have caused the oil stick coat- are Time while in office from will begin Whitewater acorings an accurate count until today in ing penguins and spoiling priatine having to deal with private law- July 26 and has asked special addition 25 heats carrying 786 Hai- South African beaches, officials suits. counsel Robert B. Fiske Jr. and tiana had been intercepted by U.S. and yesterday top White. House officials to Lear ships over the weekend. in all of The Apells Sea. " Penamenian- FDA OKs Drug tify. 1993 Coust Guard Petty Officer registered are carrier based in Committee Chairman Henry B. Toni Long-Gay said, 2,239 Haitiana Hong Kong. left Saldanha Bay To Combat AIDS Gonzelez eaid yesterday that he in- were apprehended north of Cape Town on June 20 vited Fiske to the initial hearing to with & crew of 36 and has not been A fourth drug that attacks the report or. the "Washington prese heard from since. It was carrying virus that AIDS was ap- of his investigation into the Arkan Voting Shows Split about 800,000 gallons of fuel 0.1. proved yesterday by the Fond and BAS land deal in which President Among Ukrainians Drug Administration and is EX- hill Clintor and first lady Hillary Vow on Arafat pected to be on the market within Radham Clinton were partners. Ukraine A nationalist weat and two weeks. pro-Russian east lurched toward a The chemical name is stavudine, The mayor of Jerusalem an- or d4'1' It will be sold by Bristol- Storm Systems cuilision yesterday when early elee. nounced plans yesterday to Cy in Myers Souibb Co. under the brand Lion returns signated a July runuff Jews from abroad to stand in the Sock It to South name Zerit. between President Leonid Krav- way of any future visit to the city chuk end his main challenger by PLO Chairman Yasser Arafat Storms rumoled across the Unitficial results from Sunday's "I was not elected 5 deal only New Way to Detect South. spinning off tornadoes, presidential butloting showed a with sanitation,' said right-wing Lyme Symptoms anapping trees nn1 flooding stark regional division in the vast Mayor Ehud Olmert durying Prime streams former Soviet republic the world's Minister Yitzhak Rabin's inais- Researchers say they have de At lenst five people were killed, Hurd-largest nuclear power. The tonce lest week that Arefat had 0 veloped a new Lyme disease test dozens were injured and 36.eral first official returns were not ex- right LO pruy nt Mustim holy aites. that could lead to earlier diagno- towns had heavy dainege. JUNF nectod until today. COMPLED KICIM NEWS SPATCHES 818 and treatment of the hard-co- COMPLETED FROM NEW DISPATURES 6/28/94 Senate Girds for Partisan Clash on Health Care Reform expects to get few if any Republicans. Relying entirely on (Washn) By Karen Hosler and John Fairhall= (c) 1994, Democrats is risky because there are only 56 Democrats, The Baltimore Sun= and 51 votes are required to pass a bill. WASHINGTON Despite centrist efforts to compromise on The White House is trying to remain above the health care reform, Republican and Democratic Senate legislative hard ball at least until the end of this week, leaders are preparing for a partisan clash that could when Congress adjourns for a weeklong Independence Day prevent any sweeping legislation from passing this year. recess. But Clinton, Hillary Rodham Clinton and various Senate Republican leader Bob Dole of Kansas and Senate interest groups backing health care reform are working to Majority Leader George J. Mitchell of Maine have both build enthusiasm for the central elements of their apparently concluded that it serves their political and proposal. personal interests to fight rather than bargain. Dole is resisting the compromise plan drafted last week (Optional add end) by a bipartisan group of moderates from the Senate Finance Committee. Even though that proposal is less ambitious White House press secretary Dee Dee Myers noted that than a bill Dole co-sponsored last year, the Republican the president is flexible about the financing of leader is crafting an even more modest plan and imploring legislation. Although he supports a requirement that his troops to line up behind him. employers pay the bulk of insurance costs, "he would look 'I've got 40 Republicans, and they've only got at other ways," she told reporters. three," Dole said of the three Republican moderates who Administration officials argue that without all helped shape the compromise. "Two of them aren't going to Americans participating in the insurance system, it will be around here next year like the rest of us," he added, be impossible to control the skyrocketing cost of health referring to two members who are retiring. care and protect unhealthy people against exorbitant The political calculation of Dole, a prospective insurance rates. challenger to President Clinton in 1996, is easy to "Universal coverage is really critical to health care understand. There is little incentive for him to cast reform," said Dr. Michael E. Johns, dean of medical tough votes in order to give Clinton a victory on health faculty at the Johns Hopkins School of Medicine in care legislation that would be the centerpiece of the Baltimore. "To go through this incredible effort and president's re-election effort. then come out with something that leaves a large segment But there are a lot of reasons for Dole to wait until of the population uncovered, really is just not facing up after this year's congressional elections, when, both to the reality of the situation." tradition and polls suggest, the Republicans will pick up Distributed by the Los Angeles Times-Washington Post more seats and be in stronger position to write the health News Service= care legislation as they want it. The Republican leader fears, however, that he will look like an obstructionist if he is forced to stop a Clinton-like bill with a filibuster near the end of the process. So he is trying his best now, confidants say, to Japan Faces Currency Crisis as Yen Outweighs Dollar prevent the Finance Committee from breaking its deadlock. (Tokyo) By Thomas Easton= (c) 1994, The Baltimore That wouldn't stop the legislative process, but it would Sun= make it so difficult that the effort might collapse on its TOKYO Japan, already gripped by political turmoil, now own. faces a full blown currency crisis. Mitchell, who serves as the president's chief agent in The yen became more valuable than the penny Monday for the Senate, is devising a risky strategy aimed at calling the first time since World War II, as financial markets Dole's bluff. He and other Democratic liberals, who are shrugged off strong central bank intervention. The losing true believers in the health care overhaul Clinton struggle between the Bank of Japan and the market became proposes, don't want to yield as much ground as it would evident early in the day, with the yen steadily rising take to win Republican votes. despite the bank's purchase of billions of U.S. dollars. Even the bipartisan compromise itself a breakthrough "The fear," said David Snoddy, a financial analyst at in many respects falls far short of meeting Clinton's Jardine Fleming, an investment bank, ``is that nobody goal of guaranteed health insurance for every American knows why this happening." that can never be taken away. At the end of trading, the yen was quoted at 99.93 to Some Democrats, like Sen. Thomas A. Daschle of South the U.S. dollar, down just a fraction from an intraday Dakota, a Mitchell protege who hopes to replace him next high of 99.5 and, importantly, cracking the psychological year as majority leader, are willing to back the barrier of yen-penny parity. The previous low was 100.40, bipartisan bill, even though they feel it isn't generous set Friday. enough, just to break the committee deadlock. (The dollar also closed under 100 yen in London, Let's get it through committee and see what we can do finishing the day at 99.96 yen, but stabilized slightly in on the floor," Daschle said. New York, where it closed at 100.45 yen, down from A much-postponed committee drafting session on health Friday's close of 100.60.) care legislation was put off again Monday until Wednesday. The committee is expected to consider proposals to require (Begin optional trim) employers to buy health insurance for employees after a certain date. Supporters of a Clinton-style plan say such News shows are filled with the predictable kaleidoscope an employer ``mandate" is crucial to ensuring universal of reactions: Manufacturers of cars and electronics coverage. express anguish and mutter about having to raise the price Mitchell's plan is to combine whatever comes out of the of their exported goods; importers of cars and food can Senate Finance Committee with a much more generous version barely contain their joy; foreign tourists groan at the of the Clinton plan approved by the Labor and Human cost of even the briefest stay in Japan; and Japanese Resources Committee, chaired by Sen. Edward M. Kennedy, leaving to go abroad talk about the delights of riding on D-Mass. happily on a strong currency. Mitchell's strategy is to tailor the combined bill The most recent rise in the value of Japan's money largely to meet the concerns of Democrats because he merely continues a trend evident since the early 1970s, 159 6/28/94 when it was delinked from its post-war rate of 360 yen to the dollar. In the past, however, the yen's increase in Health Reform: Who Pays? value has occurred when the country's economic growth was far stronger and the attractiveness of domestic production (c) 1994, The Baltimore Sun= The following editorial more evident. appeared in Monday's Baltimore Sun: The latest surge has caused great alarm in Japan as one Senate moderates pushing health care reform that puts industrial company after another has shifted manufacturing the emphasis on individuals, not employers, in purchasing to less costly sites outside the country. Companies insurance may be on to something. The fact is that in the continuing to produce in Japan are beginning to consider end it will always be individuals not employers, not the increased purchases of crucial materials like steel and government who have to pay the doctor (and the hospital parts from abroad, breaking the domestic suppliers' hold. and the pharmacist and the insurance peddler). When you have an ``employer mandate," as Bill The new high for the yen comes just as Japan seems to and Hillary Clinton propose, the cost is ostensibly be pulling out of its worst recession in almost half a covered by the boss. But employees inevitably feel the century. Similar rebounds during the past 30 months have impact in the form of smaller paychecks. faded following new highs in the yen and in almost every What the debate on Capitol Hill is really all about is forecast now being issued in Tokyo there is an ominous cost shifting of somehow finding a way to force healthy, caveat that this could occur once again. reasonably well-off people to help pay the bills of the sick and the less fortunate. (End optional trim) The nation's poor already are covered by Medicaid, the elderly by Medicare. But the nation's jerry-built health Explaining the strength of the Japanese currency, care system too often fails to cover lower-income people economists point to numerous factors ranging from monetary who are self-employed or working for employers who do not policy throughout the world, to inflationary expectations provide insurance. And why? Because insurance companies in the United States. But the single factor that appears tend to deny coverage to those with pre-existing to cut across all analysis is the persistently strong conditions and refuse customers the right to carry their trade surplus posted by Japan. coverage from job to job. Because healthy citizens or the Next to the surplus exists a painful paradox. That is millions of employees used to having their medical the bewildering fact that Japanese consumers cannot afford insurance extracted tax-free from their paychecks don't products sold here even those made in Japan for anything really want a change. Because there is so much red tape like the prices charged abroad. This has been a strong involved in medical billing that billions of dollars go to impetus here for political reform that could crack the administration rather than health care. government-fostered a web of regulations blocking imports. A year ago remember? health care reform was widely regarded as a cause whose time had come. But then came the Yet the initial triumph of political reform last summer details, and from them emanated so many devils that today has stalled. The latest government resigned Saturday and the whole reform movement could collapse. Republicans who in a general chaotic scramble for power, it is possible once were guarded or cautiously supportive of health that a ruling coalition will emerge that has little reform now seem more emboldened to oppose the Clintons commitment to change or any consistent policy. outright. Since last July the United States has been involved in Perhaps this can be blamed on the secretive way in often testy negotiations with Japanese officials to widen which Clinton concocted a vastly complicated 1,300-page market access and thus diminish the country's persistent bill. Perhaps it can be attributed to a small-business trade surpluses. Those discussions appear to have been put lobby that cranked out the ``Harry and Louise" on hold with the demise of Japan's government. commercials without ever quite informing the public that employers providing health care were carrying the water of (Optional add end) their deadbeat competitors. Be that as it may, the focus now is on proposals before Even in the midst the current pessimism, however, there the Senate Finance Committee that would throw out is some thought that what is occurring now may be merely ``employer mandates" and substitute them with insurance the markets over-reacting. reforms, subsidies for the ``working poor" paid for It's a classic overshoot," said Robert Feldman of through tobacco and payroll taxes and vague prospects for Salomon Brothers, a U.S. investment firm. taking further action perhaps even ``individual Concern about inflation in the United States and other mandates" if more than 5 percent of the population economic factors in each country has been overblown, remains uncovered at century's end. Feldman said. Both countries have already taken, or are As many holes can be picked in this approach as in the soon to take, steps that will redress any reservations. Clinton proposal or its variations. But if it is Distributed by the Los Angeles Times-Washington Post theoretically correct that the individual is the end News Service source of health dollars, then bipartisan proposals in Senate Finance deserve a fair hearing. The alternative, as even the Clintons are starting to suspect, could be nothing at all. Distributed by the Los Angeles Times-Washington Post News Service= Politics & Policy: A Look at Lawmakers' Medical Plans Suggests Congress's Health Coverage Isn't So Generous --- By Hilary Stout Staff Reporter of The Wall Street Journal WASHINGTON -- For President Clinton and his allies on health care, it has become the one sure-fire applause line: Give every American what Congress gets. "You say it and the audience goes crazy," says Families USA foundation's Arnold Bennett, a member of the team helping the administration craft its health-care message. Hillary Rodham Clinton uses it in virtually every speech she gives. Just this week a group of Democratic senators, including Labor and Human Resources Committee Chairman Edward Kennedy of Massachusetts, called a news conference to demand that the general public get the coverage that "members of Congress have arranged for themselves." Sen. Harris Wofford, the Pennsylvania Democrat who won his seat in 1992 by stressing health care and faces a stiff re-election fight this year, is circulating a petition demanding a bill that offers "every Pennsylvanian and every American the same kind of guaranteed coverage and choice of private health plans that members of Congress get.' But while focusing on Congress's benefits may be a stroke of political brilliance, the prospect of actually getting what Congress gets might not please large numbers of Americans, including some of the most vigorous supporters of the president's health-care bill. The federal employees package isn't as generous as most union health plans, or the programs of many Fortune 500 companies. For example, many of the policies available to federal employees don't include substance-abuse benefits or preventive dental care. However, Congress's benefits package would be an improvement for a vast number of Americans, particularly many employees of small and midsize businesses and, of course, the estimated 39 million people with no health insurance. Still, the federal government's share of the premium isn't as generous as most unions and many big employers -- or, for that matter, the 80% share the White House would like employers to bear. And as far as the scope of the benefits and the patient cost-sharing requirements, Congress's plan isn't nearly as comprehensive as Medicaid, the federal-state health program for low-income people. What lawmakers -- and indeed all federal employees, including the president -- get is the opportunity to enroll in one of an array of health-care plans, each offering a comprehensive package of medical benefits, with the premium paid in part by their employer: the taxpayers. In the Washington area, members of Congress can choose from among nearly 30 health plans, including 14 health-maintenance organizations and seven "fee-forservice" plans, which pay at least part of the bill for visits to the doctor or hospital of the patient's choice. The benefits in each plan vary, but generally include hospital and emergency services, doctor visits, lab tests, prescription drugs and some dental care. Depending on the policy, coverage may include children's immunizations and some nursing-home benefits. Unlike much of the general public, Congress is also free of some of the onerous insurance-industry practices that shut some people out of the market. Under the Federal Employee Health Benefits Program, no health plan can drop C refuse to enroll a government employee or dependent because of a medical condition. But as far as cost-sharing goes, Congress isn't getting quite the ride that many working Americans do. According to the Office of Personnel Management, which runs the federal benefits program, the government pays on average 72% ( employee health premiums, and no more than 75%. But for some policies the share is far less. For example, the government's share of a family policy for a Blue Cross/Blue Shield "high option" fee-for-service plan is $306.41 a month, or less than half; the employee pays $343.24. For a Blue Cross standard option plan -- which has higher deductibles and generally pays 75% of most doctor bills instead of 80% -- the government pays $303.77 for a family plan and the employee pays $101.25. The political thrust and parry over the "what Congress gets" argument flusters some Republicans. For instance, House Minority Whip Newt Gingrich, a staunch foe of the president's health-care proposals, was taken aback on NBC's "Meet the Press" Sunday when a reporter asked him, "Why can't the average citizen have the same health-care plan that Congressman Gingrich has?" The Georgia Republican replied, "I have a Blue Cross plan that I pay for every month. I think it's about $400." Not exactly. The total monthly premium for the standard-option Blue Cross plan Mr. Gingrich and his family are enrolled in is just over $400. But on Monday a spokesman for Mr. Gingrich said the congressman only pays about $100 a month. The government picks up the remaining $300. Among other things, Republicans are especially irked that Democrats seldom mention that the president gets the same benefits as lawmakers. (The Clintons have the same plan Rep. Gingrich has.) Senate Minority Leader Robert Dole of Kansas this week denounced the argument as a "cheap shot," and said he plans to propose that the president and members of Congress pay their entire premium costs themselves. Democratic Sen. Wofford, though, has already gone him one-up: He says he'll pay the full cost of his health insurance until Congress passes coverage for all, and is challenging his GOP opponent, Pennsylvania Rep. Rick Santorum, to do the same. In addition, the president's allies are already planning a sequel to the "what Congress gets" line, says Mr. Bennett of Families USA. If moderate and conservative lawmakers continue to tout a bill that would cover 91% of the American population as a worthy achievement, he says, the retort will be: "Which nine senators intend to give up their health insurance?" What Congress Gets Highlights of the Blue Cross/Blue Shield Standard Option Plan, one popular health plan in the Federal Employee Health Benefits Program Annual deductible $200 Annual inpatient hospital deductible $250 Out-of-pocket limit $3,250 Inpatient hospitalization 100% coverage Doctor services 75% Outpatient hospital services 75% Prescription drugs $50 deductible, then 60% coverage Total premium $405.02 per month Member's shares $101.25 Government share $303.77 **** filed by:WSJ-(--) on 06/25/94 at 23:17EDT **** **** printed by: WHPR (JEL) on 06/27/94 at 08:11EDT **** BC-MO-BRF--Dean-Clinton,0130 Dean Of MU School Of Medicine Invited To White House Meeting COLUMBIA, Mo. (AP) The dean of the medical school at the University of Missouri at Columbia will travel to the White House next week for a conference on health care reform. Dr. Lester R. Bryant will join 60 other leaders of academic health centers in meetings Monday with President Clinton, Hillary Rodham Clinton and senior White House officials. Academic health centers are a vital foundation of America's health-care system, " Bryant said Friday in a statement announcing the White House visit. We train the health-care providers of tomorrow, including the primary-care physicians who will be integral to the growth of managed care plans. As part of the meeting, participants will sign a statement endorsing universal medical coverage. **** filed by:APW-(MO) on 06/24/94 at 20:46EDT **** **** printed by: WHPR(JEL) on 06/27/94 at 08:14EDT **** BC-OK- Health Care-Okla, 310 Meeting With Mrs. Clinton Strikes Nerve With Boren OKLAHOMA CITY (AP) The first lady pitched President Clinton's health care plan to a group of Oklahoma leaders, a move that drew raised eyebrows from Oklahoma Sen. David Boren. Hillary Rodham Clinton told the Oklahomans on Friday that universal coverage was the critical component of the president's plan and that employer mandates were the most effective way of achieving it. Participants said they weren't asked explicitly by the president's wife tc lobby Boren and other members of the Oklahoma delegation. But one Oklahoman said the implication'' was there that they should ask the delegation to support the Clinton plan. Boren, a Democrat, is among a group of moderate senators who put together a compromise health care package. I'm always happy when Oklahomans get invited to the White House, " Borer said Thursday. I'm all for that. But as a device to try to switch my vote, it's not a very effective one, because it's so transparent. Just coincidentally, all of a sudden, they decide to have a group of Oklahomans come in. Purely by coincidence. Sort of a state chosen by random. It's SO transparent. I would not call it a very subtle form of politics. " The alternative plan is aimed at covering 95 percent of Americans by the year 2002 without forcing employers or individuals to buy health insurance. Oklahomans interviewed after their meeting with Mrs. Clinton and other White House officials said the session was beneficial and cleared up some confusion and inaccurate information that had been circulated about Clinton's plan. They said the moderates' plan was mentioned but not discussed at length because details weren't available. The Oklahoma group included state lawmakers, hospital administrators, a labor leader and others. **** filed by:APW- (OK) on 06/25/94 at 01:51EDT **** **** printed by: WHPR (JEL) on 06/27/94 at 08:13EDT **** bc-conghealth CONGRESS DOES UNTO OTHERS IN HEALTH CARE AS IT DOES UNTO ITSELF MORE OR LESS Eds: Good thru weekend; originally moved Friday. By WENDY KOCH= Gannett News Service= WASHINGTON Members of Congress, fighting a nagging image of special privilege, still have free parking spots at the airport and subsidized meals at the Capitol. But they don't get a special break on health insurance. Lawmakers get the same options as all federal workers, including President Clinton, and many private-sector employees. They are guaranteed coverage by their employer, who pays about three-fourths of the cost. Every member of Congress has health care that can never be taken away and it is paid for in large part by our employers the American taxpayer, said Sen. Edward Kennedy, D-Mass. As Congress debates health care reform, the issue of parity is becoming an increasingly potent weapon for members who support the requirement that employers supply health care insurance, and an embarrassing one for those who don't. In many of her speeches, Hillary Rodham Clinton makes a simple populist pitch: Congress should give Americans what members get sort of Do unto others To counter the Democrat pitch, Senate Minority Leader Bob Dole of Kansas said he will propose that the president and members of Congress pay the entire cost of their health coverage. Clinton's plan guarantees workers coverage with employers paying 80 percent of the cost of a standard plan. They wanted to find the average, said Bill Custer, research director of the Employee Benefits Research Institute, a private, non-partisan research group. But some lawmakers are confused about their own benefits and are proposing plans that guarantee constituents much less. When asked about his own coverage on NBC's Meet the Press, House Minority Whip Newt Gingrich stumbled. He said he pays about $400 a month for his Blue Cross/Blue Shield plan. Actually, as his office later corrected, the Georgia Republican pays $101.25 monthly for his family's standard option plan. Uncle Sam pays the rest: $303.77. His plan is the most common one selected by members of Congress, said Stuart Balderson, financial clerk of the Senate. It is the one that covers President Clinton's family. Its cost also closely resembles the average monthly premium paid by private-sector workers with a similar family plan. In 1991, at medium and large companies, workers paid $96.97. At small businesses they paid more, the Labor Department says. Some workers do much better. Union workers and employees at Fortune 500 companies, for example, often get more generous plans. Typically, they do not contribute toward their monthly premium, benefits may be broader, and they are likely to continue to receive coverage after retirement. If these workers were to get only what Congress gets, they would lose out. So unions and some others are seeking exceptions from the White House. But these are more the exception than the rule. Many would do as well, or better, with a Congress-type plan. For the 15 percent without health insurance an estimated 39 million Americans getting what Congress gets would be as blessing. For those on Medicaid, the federal health insurance program for the poor, benefits might be narrower but reimbursement rates for health care providers would rise. As a result, said Custer, quality of care probably would improve. Medicare beneficiaries who need hospital stays would have lower out-of-pocket costs. And for the 30 percent of workers with no employer-provided insurance, a Congress-type plan would ensure them coverage. Currently, all federal workers can enroll in the Federal Employee Health Benefits Program, which provides a selection of nearly two dozens plans with varying premiums and benefits. Uncle Sam picks up the tab for an average of 7 percent of a plan's cost. The worker pays the difference. Unlike most private-sector workers, federal employees can continue employer-subsidized coverage after retirement, if they meet eligibility guidelines. Only one-fifth of private sector retirees retain coverage subsidized by an employer. Among federal workers, Clinton and his family get perhaps the best supplemental care. They have round-the-clock access to a personal physician a the White House. We'd hope the president has the best care, said Reg McGhee, spokesman for the United Auto Workers union. `If a world crisis happens, we'd hope the president wouldn't be away at his dental appointment for two hours. Ironically, Clinton's initial proposal would have scrapped the federal workers' plan, hailed for its fine record of cost containment, and required that they join the same purchasing cooperative as other workers in their geographic area. Yet Kennedy has put the federal plan back into a bill that passed his Senate Labor and Human Resources Committee. He argues all workers should be entitled to buy from the same system that has produced good benefits and cost savings for members of Congress. What ultimately happens to health care reform if anything will be the result of a long, bitter battle between Congress and the White House. There are going to be lots of twists and turns in the process, said Lorrie McHugh, the White House's health care spokeswoman. **** filed by:GN-F(--) on 06/25/94 at 13:52EDT **** **** printed by: WHPR (JEL) on 06/27/94 at 08:13EDT **** New Senate Proposal Retreats On Required Health Insurance Moderates' Plan Also Drops Universal Coverage By ROBIN TONER Special to The New York Times Al WASHINGTON, June 24- A bipar- ates' proposal is widely seen as a tisan group of moderates on the Sen- good approximation of what the com- ate Finance Committee unveiled a mittee is likely to produce. Democrat- new health plan today that eliminates ic leaders are eager to get the com- any politically contentious require- mittee moving, even if it produces a ments that individuals or employers plan that requires substantial revi- purchase insurance. But the plan also sion later. falls short of guaranteeing universal The moderates argued that theirs coverage, President Clinton's bottom was a politically attainable proposal line. that would extend health coverage to The group appeared to decide that millions of uninsured Americans it was easier to give up the goal of through a system of subsidies for low- guaranteed universal coverage than income people and new insurance produce a palatable mechanism to regulations to make coverage easier attain it. The Finance Committee as a to get. It would also seek to restruc- whole has been stalled for months ture the health care market through over the issue of how to pay for mechanisms like insurance purchas- universal coverage, and the moder- ing groups. Senator John H. Chafee, Republi- can of Rhode Island and a leader of the group, declared, "We believe this is a very serious advance." He esti- mated that the plan could eventually cover as many as 20 million of the 37 million Americans who now lack health insurance. But the plan was quickly de- nounced by many advocates of health care restructuring because it fails to meet the goal of universal coverage. One of the seven members of the moderate group, Senator Bill Brad- ley, Democrat of New Jersey, dis- tanced himself from the proposal, saying, "I regret this plan did not do more to achieve universal coverage through a shared responsibility by individuals and employers." The group reached final agreement Continued on Page 9, Column I 1/2 2 THE NEW YORK TIMES, SATURDAY, JUNE 25, 1994 3 1 NEGOTIATIONS Health Plan Is Proposed By Moderates Continued From Page 1 on the measure in a private meeting this morning, after members decided to drop a proposal to guarantee uni- versal coverage by ultimately requir- ing people to purchase health insur- ance. That idea, known as an individ- ual mandate, had met fierce resist- ance from groups representing labor, consumers, health organizations and the elderly. "I started coming to the conclusion nobody was for it," said Senator John B. Breaux, Democrat of Louisiana, the other leader of the group. "I just thought, why on earth am I support- ing something that nobody else is for?" A Republican strategist close to the talks, who spoke on the condition of anonymity, agreed, saying: "There was no constituency for it. And they believe these reforms are going to get to a substantial level of insur- ance." The 7 moderates will present their 1 on Monday to the Senate Fl- nance Committee, which has 20 mem- bers. Many on Capitol Hill consider this proposal to be the best hope of breaking the logjam. The architects of the proposal were very much drive en by the need to get "a bill that could , Mr. Chafee said. The White House responded to the compromise plan with great caution, continuing its attempt to keep legisla- tion moving through committees while retaining the hope of ultimately fixing it - by restoring universal coverage before final passage. "It's encouraging to see members work in a bipartisan fashion," said Lorrie McHugh, the White House spokeswoman on health. "There will be many twists and turns along the I to health care reform, but we are confident that the road will lead to the President's bottom line of uni- versal coverage." ator Daniel Patrick Moynihan, Democrat of New York, departed this Photographs by Stephen Crowley/ The New York Time afternoon for his farm in upstate New Above, Senators Daniel Patrick Monynihan, Demo- versal coverage. Below, from left, Senators Kent York after describing the plan as "an crat of New York, left, and Bob Packwood, Republi- Conrad, Democrat of North Dakota, John Chafee, extraordinarily powerful proposal." can of Oregon, on their way to a meeting with Republican of Rhode Island, John B. Breaux, Demo- The Fight's Not Over moderates on the Finance Committee to discuss a crat of Louisiana, and Dave Durenberger, Republi- ator Tom Daschle of South Da- scaled-down health insurance proposal without uni- can of Minnesota, announcing the plan. kota, an influential Democrat on the committee and a close ally of the Administration, said he doubted that Chlopak, a spokesman for the group. like allowing new insurance purchas- ered a plan that, at that point, would anything substantially closer to uni- The group of seven has struggled ing pools for small companies and have required individuals to pur- versal coverage could be passed by for an agreement throughout the individuals. chase insurance. the Finance Committee. He called the week in a modest room at the end of a These changes, Mr. Durenberger proposal a "good beginning" and add- stuffy corridor on the second floor of argued, would make insurance more Seeking Middle Ground ed: "My guess is this is pretty repre- the Capitol. They included three Re- affordable. He said, "The principal publicans Senators Chafee, Dave Mr. Breaux today argued that their sentative of the committee as a reason people don't get coverage is whole. But I think you can expect all Durenberger of Minnesota and John because they can't afford it." The plan represented middle ground. C. Danforth of Missouri and four "Our group really had a choice: of of the issues to be revisited on the plan would also increase the cigarette floor." Democrats: Senators Breaux, Brad- tax by $1 a pack and impose a new tax siding with that group of people who ley, David L. Boren of Oklahoma and wanted to do everything and do it all Senator John D. Rockefeller 4th, a Kent Conrad of North Dakota. on high-cost health plans. at once, or with those who wanted to W Virginia Democrat and another Much of the debate has focused on do almost nothing and take a long staunch Administration ally, was The-plan they produced would use what would happen if these voluntary time doing it," he said. more muted. "I commend the com- subsidies to help low-income people changes and incentives did not But there was substantial skepti- mit I and effort of my Finance buy insurance, ultimately aiding peo- produce universal coverage; or some- cism off Capitol Hill. The National Committee colleagues, but if this is ple with incomes up to 2.4 times the thing close to it. About 85 percent of Leadership Coalition for Health Care the best they have to offer, it only official poverty level. That would help Americans are insured now. Under Reform, an alliance of 93 corpora- shows we have a lot of work to do." a family of four with an income up to the moderates' plan, if 95 percent of tions, unions and health groups. said A spokesman for the Health Care $35,433. It would also allow a tax Americans were not covered by the in a statement that the plan fell 1 Reform Project, a coalition of 56 civ- deduction for people who paid any of year 2002, a National Health Commis- in terms of both improving coverage ic, elderly and consumer groups that the cost of their insurance: And it sion would make recommendations and containing costs. That reflected criticized the emerging plan on would require insurance companies to Congress on what to do about it. the widely held view in health policy Thursday, dismissed the final plan to end practices like denying cover- Congress would have to act on the circles that until everyone is brought today. "We view this as the lowest age for pre-existing conditions. recommendations but would not be into the health care system, costs will common denominator, not even close In addition, it would enact a variety bound to accept them. just be moved from one group to to universal coverage," said Bob of changes in the health marketplace, Earlier, the moderates had consid- another rather than being conta THE NEW YORK TIMES, SATURDAY, JUNE 25, 1994 2/2 4 THE DETAILS A Call for Health Cost Curbs, But Not Mandatory Insurance By ROBERT PEAR same premiums to all people buying Special to The New York Times coverage through purchasing pools in WASHINGTON, June 24 - A plan a particular geographic area. But, endorsed today by members of the unlike Mr. Clinton's proposal, higher Senate Finance Committee is seen as premiums for older people would be a way of getting some form of health permitted. There would be five age plan through a panel that has been categories, and premiums for the old- stalled on the issue for months. Any est people could be no more than plan leaving the committee could be twice the premiums for the youngest. substantially modified later. Companies with more than 100 em- Under the bill, private insurers ployees would be able to buy private would have to offer coverage to all health insurance or serve as their applicants at standard rates calculat- own insurers, paying claims from ed by the Government. To help people corporate assets as many companies pay the premiums, the Federal Gov- now do. ernment would offer subsidies to mil- The bill says insurance purchasing lions of Americans, including many groups could negotiate prices with with incomes substantially above the doctors and hospitals but would not official poverty level, which is new have to sign contracts with all doct- $14,764 for a family of four. tors and hospitals in their areas. The proposal would also help peo- A novel feature of the Chafee- ple buy coverage by creating a new Breaux proposal is a mechanism to tax deduction for people who pay any prevent any increase in Federal of the cost of their health insurance. health spending beyond what is at- Under current law, self-employed ready projected. If outlays exceeded people can take a deduction for 25 those projections, Congress could percent of the amount they pay for rein in spending. If Congress took no health insurance for themselves and action, Federal subsidies for low-in- their families. The new proposal come people would be automatically would increase the deduction to 100 reduced and higher taxes would be percent and make it available to all imposed on insurance plans. Tax de- people who spent their own money on health insurance, not just the self- employed. A plan for more Taxes to Cover Costs Senators John H. Chafee, Republi- affordable health can of Rhode Island, and John B. Breaux, Democrat of Louisiana, are the leaders of the effort that produced coverage would not the bill. They estimate that the subsi- dies and the new tax deduction would make it universal. cost the Federal Government $246 billion over five years. The bill would cover part of this cost with a $1 ductions for the cost of health insur- increase in the Federal cigarette tax, ance would be limited, and consum- now 24 cents a pack. It would also tax ers could be required to pay larger the 40 percent of insurance plans portions of their medical bills. charging the highest premiums in Consumer Group Is Opposed any geographic area. Uninsured people and businesses Supporters of this proposal de- with 100 or fewer workers would be scribed It as a way to avoid increases able to pool their purchasing power in in the Federal budget deficit. But regional groups. Nothing in the bill Cathy L Hurwit, legislative director would require such groups or limit of Citizen Action, a consumer group the number that could operate in a with three million members, said: given area. The groups would be simi- "The cumulative effect of these ac- lar to the regional purchasing alli- tions would be to increase costs to ances proposed by President Clinton, consumers or reduce their benefits. but they would be smaller and have Those responsible for the cost in- less power to control health costs. creases - the insurance industry, The subsidies envisioned in the new drug companies, some hospitals and bill would eventually be available to health maintenance organizations - people with incomes up to 2.4 times get off scot-free." the official poverty level. For a fam- The bill includes several restric- ily of four, the income celling would tions on medical malpractice law- be $35,433 a year. suits. Damages for pain and suffering The Chafee-Breaux bill would set could not exceed $250,000, and there up a National Health Commission to would be new limits on fees for plain- assess progress toward the goal of tiffs' lawyers. Doctors have sought universal insurance coverage. The such changes, but consumer groups commission would report to Congress generally oppose them. every two years, describing the unin- The new proposal would leave sured and the reasons they lacked Medicare as a separate program for coverage. If more than 5 percent of elderly and disabled people. It would Americans still lacked coverage in also offer additional benefits, like pre- the year 2002, the commission would scription drug coverage, for people advise Congress on how to attain uni- who joined health maintenance or- versal coverage. Congress would ganizations or other private health have to vote on the commission's plans under Medicare. recommendations within a certain The Senators' proposal, like Presi- period, to be specified later. At dent Clinton's bill, calls for substan- present, at least 37 million Ameri- tial cutbacks in the growth of spend- cans, 15 percent of the population, ing on Medicare and Medicaid, the have no health insurance. program for low-income people. That The commission would also define would be achieved mainly by restrict- a standard package of health benefits ing doctors' and hospitals' payments. covering doctors' services, hospital The Senators' proposal would re- care, prescription drugs, family plan- duce projected spending for Medi- ning, X-rays and laboratory services. care and Medicaid by $133 billion, or 7 percent, over five years. The Clinton Under the Chafee-Breaux bill, in- plan would cut $50 billion more from surers would charge roughly the the programs' projected growth. THE NEW YORK TIMES, SATURDAY, JUNE 25, 1994 12 Senate Moderates Reach Compromise on Health Care Legislatio By Dana Priest The rump group of moderates had allow final floor passage of anything Washington Post Staff Writer convened to try to find a compro- now under consideration. mise. Its proposal announced yester- Senate Minority Leader Robert J. After toiling for a week to pro- day would eschew employer man- Dole (R-Kan.), who previously had suce a consensus document, a bipar- dates, but would seek to ensure backed many of the rump group's isan group of Senate moderates coverage for all through a system of ideas, denounced the effort this esterday proposed a limited health government-funded vouchers for week as a bipartisan position ap- care package they hoped would low-mcome Americans, new taxes peared near. Dole announced he Cheak a deadlock in the influential Fi- imposed on higher-priced packages would support a conservative, bare- nance Committee. and increased cigarette taxes, and bones package that would rely pri- Sen. John H. Chafee (R-R.I.), who the establishment of voluntary pur- marily on changes in insurance rules sed the effort, said the plan repre- chasing groups for small businesses. to make coverage more affordable. ented what the group believed was If the measures failed to provide Senate Majority Leader George J. measure that could pass" the Sen- coverage for 95 percent of all Amer- Mitchell (Maine) and other Demo- ate. icans by the year 2002, a national cratic heavyweights publicly ap- But in an indication of the ongoing commission would recommend new plauded bipartisanism. But Mitch- difficulties of reaching even limited measures to Congress. ell's chief health care deputy, Sen. congressional agreement on health The other senators in the group Thomas A. Daschle (D-S.D.), sare reform, two of the eight-mem- are Republicans John C. Danforth warned about compromising too far. her group's five Democrats quickly (Mo.) and Dave Durenberger "If we're fashioning legislation de- disowned the proposal. (Minn.), and Democrats John Breaux signed to bring about a certain num- In a statement withdrawing his (La.), David L. Boren (Okla.) and ber of votes, it's the wrong ap- support, Sen. Bill Bradley (D-N.J.) Kent Conrad (N.D.). proach," he told a small group of said: "I regret this proposal did not Senate Finance is one of five com- reporters. "I'm prepared to support do more to achieve universal cover- mittees-two in the Senate and something that will pass by the nar- age." The group's plan would not three in the House-with jurisdic- rowest majority." guarantee health insurance for all tion over health care, and each is Both the president and Hillary Americans by a certain date-the trying to pass its own bill. Those Rodham Clinton continued stumping bottom line for President Clinton bills then will be melded by the lead- for the Clinton plan, insisting that as and many of his supporters in Con- ership, with the resulting bill in each far as the White House was con- chamber debated and voted on. cerned. universal coverage was non- gress. Sen. Max Baucus (D-Mont.), who Two of the five committees, one negotiable. also withdrew from the effort, said in the Senate and one in the House, See HEALTH, A5, Col. 1 the plan "would not do anything to have now passed bills-both of them reduce the annual growth of health closely resembling Clinton's propos- care costs." al, providing universal coverage for Meanwhile, Finance Committee all Americans and mandating that Chairman Sen. Daniel Patrick Moy- employers pay for most of it. nihan (D-N.Y.), who yesterday The Senate's Labor and Human morning praised the group's effort Resources Committee, chaired by as "incredibly powerful" and said it Sen. Edward M. Kennedy (D-Mass.), contained "a lot of good ideas," by af- early this month passed a bill much ternoon was said by his staff to feel like Clinton's plan that is likely to be the plan "had gone so far off base" attacked strongly on the floor by the that little of it was acceptable. same conservatives and business in- Moynihan plans to introduce on terests who have fought so hard Monday his own version of a health against employer mandates in the care reform plan, which will include Finance Committee. slightly stronger guarantees of uni- On Thursday; the liberal House versal coverage, according to con- Education and Labor Committee gressional sources. The committee passed a similar bill, requiring em- is due to begin public discussions of ployers to pay 80 percent of the cost the issue next week, in hopes it of employee insurance. The commit- eventually can agree on a bill. tee also passed "without recommen- The Finance Committee has been dation" a separate bill that would deadlocked for months as Republi- provide tax-paid, government-man- cans and conservative Democrats aged insurance for all Americans. rejected "employer mandates" re- But while the congressional pro- quiring employers to pay for work- cess continued this week, and the Fi- ers' health insurance, and more lib- nance Committee rump group eral Democrats insisted that any bill worked painstakingly away in Cha- fulfill Clinton's pledge of universal fee's Capitol Hill hideaway office, coverage. None of the plans that al- Democratic and Republican leaders ready had been proposed, including were hardening their public posi- Clinton's bill, had enough votes to tions and seemed further than ever pass the committee. away from a compromise that would 26 THE WASHINGTON Post SATURDAY, JUNE 25, 1 2 Health Proposal May Break Deadlock HEALTH, From A4 others turned back several of their Rostenkowski, who was ousted from amendments, worried that the In one of the more convoluted the committee chair after being in- health care bill being crafted there twists of health care politics, Dole dicted last month, had planned to will be too liberal. suggested in a closed-door Finance make changes to the subcommittee Gibbons "is ardently and zealously Committee meeting that the com- bill that would be more favorable to fighting to defend" his own proposal, mittee publicly criticize Hillary Clin- private business. said Rep. Michael A. Andrews (D- ton for suggesting that some mem- As the committee broke up for Tex.). bers of Congress are unwilling to the evening last night, due to meet Gibbons's plan, which includes the give the American public the same again today for a six-hour session, level of health care they accord employer mandate, closely resem- Gibbons declared. "We're going to themselves. According to congres- bles one approved several months vote out of the Ways and Means sional sources who were in the ago by a Ways and Means subcom- Committee before we go home for room, Moynihan agreed that Clinton mittee headed by Rep. Fortney the Fourth of July recess a health se- was out of line and promised to "Pete" Stark (D-Calif.), of whom Gib- curity bill for the whole nation," one speak to the White House about the bons-unlike his predecessor as that will cover all Americans "from matter. chairman, Rep. Dan Rostenkowski Closed-door caucuses continued (D-III)-is a great admirer. birth to death and even before they yesterday in the House Ways and "He's like a teacher, a coach, a are born with prenatal care professor," said Gibbons of Stark. We're going to get there!" Means Committee, where some moderate members, frustrated when The clash of egos between Stark and Staff writer Spencer Rich Chairman Sam Gibbons (D-Fla.) and Rostenkowski was well-known, and contributed to this report. his administration unfairly emphasized its failures and ignored its accomplishments. He said news reporting today was `much more negative Senate Health Proposal Does Not Guarantee Coverage much more editorial and much less direct" than for All (Washn) By Karen Tumulty= (c) 1994, Los Angeles ever before. Times= And he said the American people were subjected to a WASHINGTON A bipartisan group of senators on the constant unremitting drumbeat of negativism and Finance Committee unveiled the fruits of its closely cynicism" from talk radio particularly Limbaugh and his watched attempt to produce a compromise health care plan many imitators. Friday, but despite weeks of effort, their proposal failed He noted that Limbaugh would follow him on the same to reach President Clinton's bottom-line goal of radio station for three hours without any opportunity for guaranteed coverage for every American. response or challenge. "There have been created unrealistic expectations of `And there's no truth detector," Clinton said. You what can be achieved," Sen. John Chafee, R-R.I., the won't get on afterwards and say what was true and what leader of the group, said in defending the new proposal. wasn't." `This compromise sends a clear message to the American Limbaugh, in his show Friday, answered the president people that we will not allow health care reform to be mockingly, "There is no need for a truth detector. I am jeopardized by extremists from either party." the truth detector." Of the five congressional committees charged with producing health legislation, the Finance Committee has been viewed as the most crucial battleground for Clinton's effort to overhaul the health care system, in part because the committee's membership closely reflects the range of White House Maintains Support for Breyer (Washn) By opinions on the difficult issue that exist in the Congress Melissa Healy and Paul Richter= (c) 1994, Los Angeles as a whole. Times= And the moderates' failure to bridge the gap between WASHINGTON The White House, reacting Friday to a Clinton and his opponents represented at least a temporary report that Supreme Court nominee Stephen G. Breyer ruled setback for the administration. in cases in which he had major financial interests, Still, although few expect the Chafee formulation to declared its continued confidence in the Boston judge and become law as presented, it could prove crucial in moving said that it does not expect the charges to affect his the process along. nomination. To date, only the Senate Labor and Human Resources Breyer, who had as much $500,000 invested in the Committee has managed to produce a bill for consideration insurance conglomerate Lloyds of London in the mid to late by the full Senate and its measure is widely considered 1980s, ruled in several cases that dealt with companies' far too liberal. That has increased the pressure on the liability for the clean-up of Superfund sites, according Finance committee's moderates to find more acceptable to a report in Newsday. middle ground or risk losing any chance for significant The rulings may have affected the London firm's reform. exposure to liability in legal actions that involved The president emphasized in speeches this week that he Superfund sites, as well as in asbestos cases, the Newsday is sticking to his promise to veto any legislation that report suggested. does not guarantee coverage for the roughly 39 million Legal ethicists responded with caution to the report. people about 15 percent of the population who now lack But Senate aides said it will almost certainly prompt a it. further look. And Senate supporters of the Clinton plan had insisted `Are alarm bells going off in the Senate? No," said they could accept the moderates' plan only if it one Senate staff member. Should people be concerned and guaranteed universal coverage. will (the committee) inquire? Yes." On Friday, however, some Clinton allies on the Finance Clinton administration officials, however, disputed the Committee shifted their ground slightly, saying they might suggestion that Breyer issued rulings in cases where he vote for the proposal even without the guarantee as a knew his investments were at stake. The judge regularly means of getting the issue to the Senate floor and disclosed his investment with Lloyds by filing public avoiding the embarrassment of failing to produce a financial documents with the government, officials said. committe bill. Additionally, officials said, Breyer "went far beyond The Finance Committee had been scheduled to begin what the rules require" by instructing the broker who drafting a bill on Monday, but Friday evening announced placed his Lloyds investment to steer clear of units that it would delay meeting in public until later next within the insurance group that had stakes in American week. tort liability. Beyond those instructions, White House officials said, (Optional add end) Breyer was not in a position to learn the firms his investments were used to underwrite. Thus, they said, he The conservative Democrats and moderate Republicans could not knowingly have ruled in cases where he had a allied with Chafee had been meeting feverishly in recent personal financial stake. days, hoping to produce a plan that could both meet Lloyds, one of the world's largest and most prestigious Clinton's universal coverage test and claim significant insurance firms, is made up of ``syndicates" groups of support from both parties. investors who hope to reap returns when the insurance Their initial strategy for achieving universal coverage premiums collected are greater than the claims made was a so-called ``individual mandate" a requirement that against them. uninsured workers be required to buy health insurance, White House Counsel Lloyd N. Cutler told Newsday that much the way car owners must buy accident insurance under there was no case to Judge Breyer's knowledge where his some state laws. The individual mandate was to kick in svndicate or Llovds itself had an interest in the only if voluntary efforts failed at expanding coverage to particular case he was deciding." 95 percent of the workforce. The senators hoped that approach would be an acceptable alternative to Clinton's proposal for requiring employers 48 to pay 80 percent of the cost of their workers' health Times= coverage. Clinton's employer mandate has drawn intense Stock and bond prices took another drubbing Friday opposition from business, which contends that the after central banks worldwide failed in an effort to additional costs would force smaller and weaker firms to bolster the dollar against other currencies, thus lay off workers, or shut down altogether. enhancing fears that the Federal Reserve Board again will The senators' plan for an individual mandate was raise U.S. interest rates. attacked from both the left and the right, and ultimately, The Dow Jones average of 30 industrials tumbled 62.15 they decided against suggesting any requirements on to 3,636.94 its worst daily decline since losing 72.27 on employers or their workers. March 30, and dropping the blue-chip average to its lowest Instead, they would put into motion an intricate series level in six weeks. of reforms aimed at making health coverage more affordable It was the average's fifth loss in six sessions, during and thus more nearly universal. which the industrials have skidded 174.40 points, or 4.5 percent. This week alone, the Dow Jones industrials suffered their worst pummeling since mid-October in 1989. Losers overall swamped gainers by nearly five to one on Two Indicted in Immigration Fraud Case (Los Angeles) the New York Stock Exchange, but the session was not a By Patrick J. McDonnell= (c) 1994, Los Angeles Times= rout. Big Board volume was a moderate 261 million shares, LOS ANGELES In one of the largest cases of such well below the average daily turnover so far this year. immigration fraud, a federal grand jury Friday indicted a In the credit markets, government bond prices skidded Southern California couple on suspicion of filing more and their yields soared amid investors' expectations that than 2,600 bogus claims for political asylum. the Federal Reserve will now try to prop up the dollar by Authorities charged that the couple doing business as raising U.S. interest rates for the fifth time this year. General Office Services out of sites in the Los Angeles-area communities of El Monte, Azusa and Santa Ana The Treasury's bellwether 30-year bond lost more than employed a now-common scheme: Duping applicants, mostly 1&1/4 points, or 12&1/2 for every 1,000 in face value, illegal immigrants from Mexico, into thinking they were while its yield jumped to 7.52 percent from 7.40 percent merely applying for permits to work in the United States. on Thursday. Stocks came under pressure at the opening bell, with Instead, authorities said, the suspects charged clients traders knowing that foreign stocks already had plummeted up to $1,150 to file the phony applications for political on news that the Federal Reserve and several other central asylum. banks had been unsuccessful in propping up the dollar by "The immigrants themselves have been duped by these directly buying dollars in currency markets. preparers and are victims in this whole scenario," said Indeed, after only 90 minutes of trading, the Dow Jones Rosemary Melville, who heads the Los Angeles asylum office industrials had lost more than 50 points, which activated of the U.S. Immigration and Naturalization Service. the NYSE's "circuit breaker" constraints designed to After obtaining clients' signature on the application limit the market's volatility. The constraints stayed in forms, authorities said, the suspects filled in data about place for the rest of the day. the purported political asylum claims. "The big disappointment today is we had a concerted Most of the documents featured identical assertions, effort to support the dollar, and the currency traders officials said, contending that applicants were opposition won," said Gail M. Dudack, market strategist at S.G. party members in Mexico and had been beaten by Mexican Warburg & Co. in New York. "Now there's this whole pallor police. All feared for their lives if they returned home, that just hangs over the market." the applications stated. The dollar traded late in the day at 100.45 Japanese Many applicants receive work permits as a result of yen, down 0.8 yen from levels late Thursday and near a their applications while their cases are being considered. post-World War II low, and at 1.584 Deutsche marks, down However, work permits in this case were later revoked and 0.019 mark, to reach a one-year low against the German the applicants subject to deportation once officials currency. determined that the asylum claims were bogus. The number of asylum applicants from Mexico has been (Begin optional trim) growing sharply, authorities say, although Mexican nationals seldom qualify for political asylum. Foreigners With the greenback still in retreat, investors ``are persecuted in their homelands because of their race, nervous that the Fed is going to have to raise interest creed, political opinions or membership in social groups rates to correct the decline in the dollar," said Stephen may qualify for asylum, allowing them to remain and work E. Keane, research director at the brokerage Robert W. in the United States. Baird & Co. in Milwaukee. Charged were Cecilia Parra Sanchez, 45, and her Among other things, the dollar's weakness prompts husband, Emilio Parra Garcia, 27, of San Bernardino, foreign investors to dump dollar-denominated stocks in Calif. He was arrested earlier this month at his home but search of better returns from investments based in other his wife remains a fugitive, authorities said. currencies. Because they expect the Federal Reserve to Federal agents searching the couple's home discovered drive rates higher in defense of the dollar, investors copies of 2,601 fraudulent asylum cases that had been also pushed bond prices lower, which in turn lifts the filed with the INS, U.S. Attorney Nora M. Manella said. bonds' yields. If convicted on all charges, each suspect faces maximum There's also the concern that if U.S. rates keep possible sentences of 20 years in prison and $1 million in climbing, they will dampen the nation's and state's fines. economic growth and lead to disappointing corporate profits that also could push stocks lower. (End optional trim) Stocks, Bond Prices Tumble After Central Banks Fail to After the opening plunge, stocks stabilized for much of Boost Dollar By James F. Peltz= (c) 1994, Los Angeles the session but then resumed their decline in the final 49 opportunity to change priorities offered by the collapse of the Clinton's proposing a bill that, at 1,364 pages, was so Soviet Union is lost in the fog.< complicated there was never a chance people would be able With the Cold War over, a real debate about the to keep its provisions straight. Then, when the first U.S. world role is needed. Instead we witness a Gresham's law congressional opposition arose, White House officials of politics: Counterfeit partisan posturing displaces real policy began saying that everything was negotiable except for debate. No wonder Americans have learned to hate politics.< universal coverage. This meant open season. V Now almost every major chairman of a relevant committee ^end adv sun june 26< in the House and Senate has a reform bill most cobbled-together admixtures of buzzwords and loopholes. An example is the "trigger" provision every bill suddenly seems to contain. Rather than an immediate requirement that employers provide health insurance, "trigger" provisions specify that if all Americans do not acquire Adv sun june 26 health coverage five or 10 years down the road, employer At the Stretch on Health Care But What's the Plan? mandates would be imposed. The "trigger" approach is a Gregg Easterbrook is a contributing editor to Newsweek and classic example of the political gimmick of taking credit the Atlantic Monthly. By Gregg Easterbrook= Special to for action today but postponing the hard work into the the Los Angeles Times= future. Anyone remember the Gramm-Rudman bill? Enacted in WASHINGTON As a congressional vote on health-care 1985, reform draws near, it is important to keep Rita's phone it declared with great fanfare that henceforth Congress number in mind. In 1981, when the tax-cut plan proposed by would be compelled to balance the budget but postponed Ronald Reagan was approaching its floor vote, the enactment of balanced budgets into future years. provisions of the bill were changing so frantically that Gramm-Rudman allegedly had "trigger" provisions that members of Congress never saw a printed version of the bill future sessions of Congress would never be able to dodge. before the final vote. Instead they voted yea or nay on a Every one was dodged. sheaf of handwritten pages scrawled down by White House Health-care trigger provisions appear to have about as lobbyists. One page included the notation, "CALL RITA," much actuality as Gramm-Rudman. Because there is zero with a phone number. This historic message was then chance that universal coverage will achieve itself dutifully transcribed into the U.S. Code of Federal spontaneously, either an employer-mandate trigger would be Regulations. After all it had been formally approved by "hard," written in such a way as to be automatic, and Congress. thus would be a dishonest provision, shifting the It turned out the legislators who voted on the 1981 tax accountability to a future Congress and White House; or cut bill not only did not know that it contained Rita's the trigger would be "soft," a Gramm-Rudman-style number, they barely understood any of the provisions: provision written so it can be easily circumvented. chief among them that the law would create the That prominent Democrats such as Sen. Daniel Patrick mega-deficits that have plagued the federal government Moynihan of New York are now speaking kindly of triggers, since. and Clinton has said he will consider them, indicates that This is the gathering dynamic on health-care reform. serious health-care reform is in the process of Hardly anyone can keep the provisions of the various evaporating. In fact at this point it's not even clear managed competition" proposals straight anymore. There just what reform Clinton's bill would achieve, let alone exists considerable danger that when the House what would be achieved by any of the many watered-down and Senate act to restructure the $900 billion health-care alternatives. industry that, at about 14.5 percent of the gross national Clinton's plan, all major Democratic alternatives and product, is larger than the auto and petroleum industries the moderate Republican alternative backed by Sen. John H. combined, many members of Congress will have only the Chafee of Rhode Island ought to be rechristened faintest notion of what is in the bill. ``insurance-reform" bills. All would outlaw the practice Let's see, there's the Clinton plan, the Cooper plan, of health insurers barring coverage for those with the Cooper-Breaux version of the Cooper plan, the Kennedy pre-existing illnesses; make it easy for people who change plan, the Moynihan plan, the Chafee plan and the Dole plan jobs to change plans; make it easy for the self-employed to to cite only the major proposals. These plans call for buy health insurance; impose some version of ``community some version of voluntary mandated, subsidized, rating" where premiums are about the same for all who market-oriented, standardized, individual, subscribe to the same plan, and require standardized trigger-financed, seasonally rotated, regional alliances insurance packages so that consumers could make meaningful (with subsection D attainment zone waivers) for universal price comparisons when they shop polices. coverage (except for those not covered) beginning in the All these are valid reforms whose enactment will 1998-23rd Century time frame. The cost will be precisely benefit consumers. Most are even reforms the approximately $25.95 to $500 billion, although we haven't health-insurance industry knows are needed, but that will yet figured out if that is annually, or per person. only work if realized through uniform national legislation Not only are the provisions of the plans dimly that keeps competition among individual companies equal. understood: They are now changing so fast even policy Beyond that it's not clear what, if any, health-care wonks have difficulty remembering what stipulation is in reform will be accomplished. Clinton has repeatedly and which bill. After all those months of Hillary Rodham rightly said the fact that the United States is the sole Clinton's black-cloaked health-care monks coming to industrial nation without universal health care is an nuanced positions covering minute details, now in the rush outrage, and that he would veto any bill that does not to enact something matters as fundamental as whether create universal health care. But his is the sole employers will be required to pay for health coverage or ``managed competition" bill facing this issue head on. only asked to pay are being revised on an almost daily Sen. Edward M. Kennedy's plan waffles. The Cooper bill, basis. New cost estimates are essentially being pulled out authored by Rep. Jim Cooper D-Tenn pointedly dodges of the air. universal coverage. Moynihan's makes hazy promises about To a certain extent this is a predictable result of revisiting the issue in a decade or so. Further on the nonreform front, Clinton's mandatory 5 regional health alliance requirement (whatever it means; no one has ever understood it) is teetering and may be withdrawn. Some of the plans now call instead for creation of health-purchasing cooperatives, but these sound hauntingly like existing HMOs and PPOs. And the goal of containing health costs the goal that most frightened the entrenched hospital, pharmaceutical and physician interests has, to the pleasure of these groups, been forgotten in the ruckus. Cooper's plan contains some nonbinding mumbo-jumbo about how it would be nice if market forces drove down costs. Clinton's plan is gradually being stripped of what meaningful cost-control measures it once had. The Kennedy, Moynihan, Chafee and other proposals barely mention cost controls.< If what ultimately passes Congress is health-insurance reform plus some vague language about purchasing co-ops, the aftermath for Clinton will be strange. Genuine good would be done by such a bill, particularly for the self-employed and those in the Kafkaesque position of being unable to obtain health insurance because they need it.< Health insurance reform is a long overdue objective that neither Ronald Reagan nor George Bush would have touched with a 10-meter pole. Had the goal going in been health-insurance reform, Clinton would deserve praise for reaching it. But Clinton set for himself the high moral goal of universal coverage, and now may not attain it. This will enable pundits and Clinton's opponents to portray the bill as a defeat.< Voters may end up thinking of the bill as a success for Clinton because the insurance-reform aspects will be a boon to the middle class, particularly anyone who changes jobs or falls ill. Today middle-class complaints about health care turn not on costs or quality but on the problems of obtaining or keeping coverage. These will likely be solved by whatever bill Congress enacts.< To the extent middle-class voters come to feel their health-care complaints have been resolved by Clinton's actions, they will care less about the system's two basic faults the shameful lack of coverage for 15 percent of Americans, and the health-cost spiral that consumes ever-more national wealth.< Meanwhile, the sole bill that does address both universal coverage and the need to control costs the national-health or "single payer" legislation sponsored by Rep. Jim McDermott, D-Wash., now has 91 co-sponsors. This means that despite the continuous impression given in health-care commentary that no sentiment exists in U.S. politics for national health care, nearly a quarter of the House is now on record as favoring this approach.< British-style national health care would be a disaster. But France and Germany have national-health systems that provide universal coverage at a significantly lower percentage of GNP than the U.S. system, with no rationing, no waiting lines, hi-tech care and handsome incomes for doctors. These systems combine that best of market medicine private practice physicians, privately administered insurance pools with national cost controls. National health care can work. It will work someday in the United States: maybe sooner than you think, especially if what is billed as sweeping health-care reform passes in 1994, but fails to address the system's root problems of cost runaway and the uninsured.< V ^End sun adv june 26< 55 senawis present om se By J. Jennings Moss THE WASHINGTON TIMES Poll sees clamor for family doctors A group of moderate senators on the Senate Finance Committee should go to specialists. yesterday unveiled the details of à By Kevin Robbins BCRIPPS HOWARD NEWS SERVICE I The survey found t at 89 per- health care compromise that cent of the respond ents have would rely largely on market re- Americans want more family some kind of health insurance. forms to insure Americans and doctors and a health care system Conducted in April, the bi- control costs but would impose no that makes better use of them, partisan survey confirms the mandates. according to a survey released popular notion that Americans The proposal, crafted over the yesterday by the W.K. Kellogg prefer family doctors to medical past week by four Democrats and Foundation. specialists. They also bestow a three Republicans, is a significant A majority prefers that its tax better image on family doctors shift to the right from both Pres- dollars be used to train more pri- than on specialists ident Clinton's reform proposal mary care providers rather than About a third of the respon- and one originally crafted by Sen. specialists. dents listed "more expertise" John H. Chafee. Mr. Chafee, Rhode "They see a role for both," said and "knowledge in one area" as Island Republican, was a member Celinda Lake, one of two poll- the chief benefits of pecialists. of the moderate group. sters conducting the survey. When asked about fi mily doc- But just as soon as members of "But they want to keep a bal- tors, the largest majority - 20 the group began discussing the ance" favoring the family doc- percent - ranked kno wledge of specifics of the plan, some sen- tor. personal and family medical ators - including some of the Eighty-four percent of the history as the primar benefit. group's own participants raised 1,000 people surveyed said "suc- "On balance, fami y doctors doubts about the $250 billion plan. cessful health care of the fu- come out with a much better im- Sen. Max Baucus, Montana ture" should make more use of age," said Vincent Bre glio, a Re- Democrat and an original member family doctors. Eighty percent publican pollster wi 0 worked of the bipartisan group, withdrew said more use should be made of with Democrat Lake. his participation on Wednesday nurses, while 67 percent said the Recalling the a chetypal because of the direction toward same of "basic health care pro- "Marcus Welby" TV episodes, taxing health care benefits. The viders." Mr. Breglio said Americans are tax would be imposed on the top 40 Only half said more use more likely to enjoy a "consis- percent of health plans in a re- Photo Ross D. Franklin/The Washington Times should be made of medical spe- tent, ongoing relation ship" with gional area. Correspondents reach for a handout after a news conference revealing the new bipartisan health care plan. cialists. family doctors than with spe- The tax, which was included in A majority said more tax cialists. the proposal, "will be passed on by money should go toward the The foundation said that from the insurance companies to the able. As four members from the pay most of the cost of their work- 95 percent of the public covered education and training of family 1982 to 1992, the percentage of middle-class worker who is al- seven-person group briefed the ers' Insurance while Mr. Chafee's by the year 2002. If that target is doctors, nurses and basic health medical students cheosing pri- ready paying exorbitant health in- press about its details, aides to an- original health plan relied on an not reached, then a national health care providers. Thirty-seven mary care had fallen from 36 surance premiums," Mr. Baucus other member Bill Bradley, individual mandate. commission would make recom- percent said more tax money percent to 14 percent said. the lawmaker who floated the orig- Both the Clinton plan and the mendations to Congress to flx the Mr. Chafee, at a packed news inal draft of what the group Chafee plan used the mandate ap- problem. Congress would have to conference at the Capitol, said, "As adopted - distributed a statement proaches to reach what both said act on the recommendations, you know on both sides there are adding a note of caution. were their ultimate goal, to ensure which could be amended. comment on the specifics of the forms, such as prohibiting denial extremists who demand that what "This bill is very much a work that all Americans had health in- Sen. Daniel Patrick Moynihan, proposal but said the bipartisan of coverage for pre-existing condi- they want to be in (a health bill], in progress. Each turn will pro- surance coverage. New York Democrat and chair- activity was "encouraging." tions. and that's why it seems to me the duce a slightly different product. I The bipartisan group had been man of the Finance Committee, "There will be many twists and Expanding the he 11th care tax progress in health care reform in regret this proposal did not do leaning toward including an indi- and Sen. Bob Packwood of Oregon, turns on the road to health care deduction from 25 percent for the the Congress of the United States more to achieve universal cover- vidual mandate, but Mr. Conrad the committee's ranking Republi- reform, but we're confident that self-employed to 100 percent. to date has been chaos." age through a shared responsibil- said that idea "was on its death can, were briefed on the bipartisan the road will lead to the president's Creating two type of benefits Sen. Kent Conrad, North Dakota ity by individuals and employers," bed" by Thursday night. proposal. Also briefed were Ma- bottom line of universal coverage," packages that health plans must Democrat, said the package would Mr. Bradley said. "They realized that there would jority Leader George J. Mitchell she said. offer that would be set by the expand insurance coverage, con- The New Jersey Democrat be no support on the left or right, of Maine and Minority Leader Bob Other elements of the biparti- health commission The first trol costs, protect consumers' added that he hoped "the Finance and you would take it to the floor Dole of Kansas. san plan include: would be a "standard package of choices, preserve quality and em- Committee will strengthen this and there would be a vote to take Mr. Dole said he had not seen all Increasing the cigarette tax comprehensive benefits. The sec- phasize prevention programs. proposal before reporting it out." out the mandate, and it would pass of the details but said the proposal by an estimated $1 a pack, al- ond would be a "basic" package "This has been a serious effort The chief element of the bi- overwhelmingly," he said. "will be helpful to the debate." He though this level could change. that would contain higher cost- with great pressures from both partisan proposal is that it con- Mr. Chafee yesterday said the also reiterated that he and Mr. Providing subsidies to low- sharing or fewer benefits sides, and I think we have achieved tains no requirement on either em- new bipartisan plan should cover Packwood are developing a con- income people who earn up to 240 Allowing those on Medicare to an important breakthrough," Mr. ployers or individuals to purchase about two-thirds of the uninsured sensus Republican plan to offer to percent of the poverty level to help either stay with the traditional fed- Conrad said. health insurance. The cornerstone population, which currently is es- the committee. them buy insurance. Subsidies eral program for the elderly or Just how strong that break- of Mr. Clinton's reform proposal timated at about 37 million people. White House health spokeswo- would be phased in by 2002. giving them the optio n to stay in through is, however, is question- was a mandate on all businesses to The proposal sets a target to get man Lorrie McHugh would not Implementing insurance re- their own private healt plan. The Washi Aton Times SATURDAY, JUNE 25, 1994 1994 'ST ENGLE SATURDAY'S The Washington Times ONY SNOW lintonCare is dead, but ed select audience members to ask tems in America. C don't tell NBC. "To Your Clouds care maven, stormed out of the pre-planned questions. Roughly two-thirds of all employ- event. "It was outrageous what Health," the network's June Michael Thompson, who runs a ers with 500 or more workers they did," she recalled. "We have 21 "town meeting" about small marketing company in finance health coverage for their some serious issues that we're medical industry reform, blew a Springfield, Va., complained about workers, as do 40 percent of all nowhere near settling in this coun- cl ce to reshape the health-care the technique of using tear-jerker establishments with 500 or fewer try - how to moderate spending, debate at a propitious moment. over anecdotes as a way to introduce employees. The network contacted increase access, improve quality. According to USA Today-Gallup stories. "If we're going to set policy no experts to discuss this innova- This broadcast did nothing to help numbers, approval ratings for the by horror stories," he said later, tion. the American pubic understand the president's reform plan have tum- health "we ought to nationalize lawyers, Participants sensed the slant. A choices they have to make. It was bled to 42 percent, while negative since everybody has a horror story consultant who represents large biased - heavily tilted toward responses have jumped to 50 per- about lawyers." organizations that support the pres- Democratic solutions. cent. But NBC grandees, like much of ident chortled: "My people knew "This was a sham as an education More than four-fifths of the the national press, seem to have a the thing was a well-designed setup program for the American public, American people want to keep their reform blind spot when it comes to free- - and they liked it just fine." and NBC ought to be ashamed. present health-care arrangement market alternatives to the status But conservatives in the audi- It was so loaded it was unbeliev- - not surprising, since healers quo. They consider a debate bal- ence raged. John Goodman of the able." have done a better job than Con- anced if it describes different pro- National Center for Policy Analysis The Establishment, including the gress in controlling costs. And the left wing of the polítical spec- posals for federal control. The idea called the event "absolutely awful. network and the Robert Woods NBC's own research shows health trum. Furthermore, the network of private alternatives just doesn't At no point was there any presen- Johnson Foundation (which under- care has slid to third in the list of canceled plans to advertise its sur- seem to occur to them. tation of a conservative or Repub- wrote the show), just doesn't get it. people's priorities- - tied with wel- vey numbers in nationwide news- Malcolm S. Forbes Jr., editor in lican approach to these problems." People distrust government and fare reform, way behind fighting paper ads - perhaps because the chief of Forbes magazine, has craft- Michael Tanner, a scholar with want to take matters such as health crime and strengthening the econ- polls undercut the program's ed a revolutionary self-insurance the Cato Institute, dismissed the care into their own hands. omy. Network statistics also indi- premise that we must do something plan for his company's employees. meeting as a "propaganda fest." He If the network wants to surprise cate that most Americans want no now about health care. The scheme has reduced insurance got to speak briefly but was inter- viewers with fresh programming, it action on the issue this year. Whatever the case, the show costs by more than 40 percent in rupted by Harvard Professor Steffy ought to produce a second special In such circumstances, one looked like a White House produc- three years, and workers report Woolhandler, a cofounder of Physi- - about the story it ignored the first might expect NBC to explore alter- tion. Panels discussed various fewer serious illnesses or sick days cians for a National Health Pro- time around. natives to Mr. Clinton's New Deal- forms of government health care. than before. Mr. Forbes wasn't gram. Her punishment for rude- 1, such as self-insurance, med- Citizens spun tales of woe. Hillary invited to the show. Neither was ness was to get the last word on the ical savings accounts and Rodham Clinton promised that her Patrick Rooney, chairman of the subject. Tony Snow is a Washington-based purchasing cooperatives. But no: one-size-fits-all approach to the Golden Rule Insurance Co., which And mild-mannered Gail Wilen- editorial page columnist for the Just about every inhabitant of the problem would save the unfortu- operates one of the most successful sky, a former Bush administration Detroit News and is nationally syn- hand-picked talk town came from nate. And network anchors prompt- employer-operated health-care sys- official and well-regarded health- dicated GI's Widow Gets Life Rival Health Plan The widow of a guin war soldier was Mon- serced to life in prison without parale yesterday for platting the 1991 murtier of her husband in -R811 in on his insurance pulicy. 7 GOP senators omit universal coverage Tow Call Riggs. 25. who who convicted of First-degrue aurder to Detroit on June 8. Te- By Dena Bunis The group would pay for subsidies by crising the deived Lne mandatory sentence for couspiring TAIF CORRESPONDENT cigarette Lnx by $1 spack cutting Medicare and Mestic- with her brother to kill her husband. Anthony Washington After a week of meetings behind nid spending and imposing a DEW tax on insurance RICES cinsed doors, a group of modernte Republican and company plans with higher-than-nveragr premiums. Prosecutors had argued that Ring- hired her Democratic senature einerged yeaterday with its pro- Aller a briefing 01: the proposal, Muynihan said : prother. Michael Cato. to shoot her husband nosal to overhani the nation health care sytem. had "a Lot of gund new ideas." out he was noncomenit- outside the coupie's Detroit home just dava But the plan doesn't fulfill President Bill Clinton's rel about IL Riter he returned from Sauni Ambia where he Diedge that all Americans be guaranteed medical in- Meinners of the modernte Senate group neknow served Rb a Patriot missile crewinan. surance, and it is not likely to form the busis of the enged that their proposal only pares the way for un:- l'on: Riggs who showed nn emotion during bill the key Finance Committee will begin deliberat. versal CUVCI but Sen. John Breaux (1)-La. said he the original trial, broke down during the sen- tenning hearing. quoting from the Hibie and ing next week. Senate sources said yesterday. didn t believe it would necessarily mean = presidention "It'm a for rese than advertised." one station said of Veln They estimated that their proposal would extend pressung with the judge for every. the plan, diafted by seven senature and released yes. coverage in 3.7 additional 20 aullion Americans An lerday alternoon. "I don't chink it will Dy nt all. estimated 39 million are currently uninsured Elders' Ouster Sought The proposal would revemb the laws under which insurance companes operate, offer subsidies to low. incoine people to encourage them to buy health insur- Eighty-lieven Republicin House members ance. and cream a national health commission to Clinton Assails FLOGHT the resignation of Surgeon General Joy- monitor the progress the country makes toward uni. celyn Elders vesterday. escalating a confiect veral insurance coverage. over Democrate attachs on right-wing Republi- But unlike most Democratic plans and even the bill cans. 'Negativism' introduced lake year by Sen. John Chafee R-R.I. is The Republicans letter to President BUT incomber of the modernite group. yesterday's proposal Clinton cime two Jays after Elders, according THE Area CATED PRINT would Lot require anyone to have health insurance to newspaper accounts. referred to the "un "I am liere in tell you today and through you, the St. Lanis Striking out at his conservative critics Christian religious right" and anded "Welve American people this is the closest. We TO going to come in particular and the media in general President Bill TOU LG be strong 10 take on theme people who src to doing health care reform right in America at any Clinton bitrecty complained cestering that unlair and setting our collinen out in the name of reli- Lime. Sen. David Durenburger (R-Minn.) said AC is negative reports about him are feeding 0 cynical mon. news conference outlining the moderate group plan. :nindaet in America The Intter and not specifically mention chese But aimost immediately, Finance Committee mein- Mentioning conservative malk-snow howe Rush Lim. remarks but they were cated often at a Dews bers committed to universit coverage decried the re- haugh and televangelist Rev. Jerry Felwell by name. conference by Ren. CHIF Stearns (R-Fla., RU- out if not the affort of their fellow Senators Clinton decried "a constant unremitting drumbeat of the of the letter. ,ther inwrankers and spokes- commend the effort but if this is the been they negativism men for conservative Christian organizations have to offer, it only shows we still have lot of work to The American people keep being told that chings do." said Sen. Jay Hockefeller (D.W.Va). an ardent are bad and politicians are corrupt and the system Police Queries Upheld supporter of a comprehensive health care plan. broken It's not true." Clinton said. Fle insisted he Even one of the members of the unoderate group, wasn't criticizing evangelical Christians overnil just Sen. Mill Bradley (D-N said the proposal falls short people who "pul on the mantie of religion and then he Supreme Cannt made it. eanier vesterday saying be hopes the "Finance Committee will lune it toj justify anything they say or do. For police " press criminal suspects into mak- aurengthen this proposal before reporting it. out" Limbnugh shot back on his own talk show a half- incriminating remarks before getting is law. Bradley was particularly concerned that the plan did hour later. yer's help. not include any mandates for coverage. "The gauntlet has been thrown," he wild then pro- The court ruled unanimously that police offi- Senators in the Finance Committee, chaired by Dan- ceeded to play a tape of Clinton's remarks and cirticule cera do not have to stop questioning surpects iel P Moyninan (I)-N.Y.). luve been stymied in their them. "This is not a program of negative possition. who make what may be ambiguous requests for attempt w reach a bipartisen accord on a health care One question that Clinton cited as an example of legal assistance. bill After back-room 3 with the fall committee the media's focus on barl news dealt with stories that **: 9W enforcement officers may continue proved unproductive, the seven senntors broke off in White House staff members and taken towels from questioning unall and unders the suspect clearly in attempt to come up with n middle-nf-the-road plan. ainterooms during their stay aboutd an aircraft carri- requests all attorney." Justice Sandra Day What cmerged memor clumer to the kind of plan er in Europe earlier this month 0 Connor wrom for the court. Senate Minority Leuder Bob Dole (R-Kan.) has been "We're not sure that just the White House SWIT did pushing. and ***** sources suggested that Dole exerted that" Chinton insisted. There were Drwn people. pressure on the Republicins in the splinter group to there were lots of other people on that boat who were Admiral Won't Get Job hold the line on any mandates. Mort observers had not members of the White House NERTH expected the RTOUT to recommend that individuals be "Lock at all the things you |could| ask me about - The Navy withdrew President Bill Clinton's required to buy insurance if at least 96 percent of the and you asked me about that Clinton told his inter- choice for Pacific communder in the wake of American people aid not have insurance by 2002 Ip- viewers. critic over the admiral's handling of a sexual stend the seven proposed that a commission. make Falwell issued a statement inviting Clinton to tape increasment Lase. nonbinding recommendations to Congress if that goal "personal and direct rebutting to run un "Old Time ^ brief statement issued late yesterday by the was not renched. Compel Hour.' which aire On 200 stations nationwide Navy said Adm. Stanley R Arthur. 59. that the anticipated dulay in Sennte confirma- tion of his nomination to be Commander in Chief. U.S. Pacific Command, has the potential 3 creating gap in that key billet." Racial Vein Disparity Seen Sen. David Durenberger (D-Minn.) had threatened Ln place a hold on Arthur's required THE ASSOCIATED PICTS dilate as well as whites. he said. Dilation lulps blood Senate confirmation because of a turual Farass neut case that involved it Navy officer from Allanta - Veins in black people are less flexible get to the heart in times of demand. Minnesota and more difficult to dilate a finding that may kelp High blood pressure affects an estimated G2 million explain why blacks are more likely than whites 3 Americans. and neart disease is the metion's No. 1 suffer from heart disease. researchers mid vesterday. killer. High blood pressure in a najor underlying AIDS Victim's Award One reason for the disparity may lie in the endothe- cause of heart attacks. heart failure, strokes harden. Ha, the flat cells that line the inside of veins and are mg of the atteries and kidney failure. ries. A team of Georgia researchers reported on the A New Jersey unan who gut AIDS from a it is " huge health bazard for all Americans. but is issue its a study presenued in Cleveland nt the Interna- transfurion was awarded $570,000 in the First worse for blucks They have the disease one-third Conai Interdisciplinary Conference on Hypertension successful lawsuit of its kind against the organ. more with than whites, get it earlier in life and suffer in Blacks talum three extablishes blood-screening ston- it far Ingro severely. The findings may enable researchers to develop dards for the nation's blood annks. Researchers uren am why the meial dispariry ex- drugs that treat high blood pressure and heart disense NEWSDAY, SATURDAY, UNF :481 A Gergen County Superior Court jury or. ists, but some believe it may be generic, while others as effectively in blacks as they do in whites. said the dured the American Association of Blood Bonks University of Georgia's Dr. Handall Tackett. Inader of point to environmental (actors. no Thursday to pay William Snyder $405.000 in the study. The DEW study examined portions of veins Laken compensatory damager and an estimated The research represents the first time that veins from the legs of 60 whites and 22 blucks underguing $166,000 in interest Snyder. 67. said he con. were used to study racial differences in high hlood heart bypans surgery. Even when factors such as age tracted the human immunudeficiency virus pressure. said Dr. Elijah Sunders of the University and acx were taken into account, racial differences from 0 blund transfusion following hunrt HUF- of Maryland. . co-founder of the International Society were found in the veins ability to dilate, Tackett said gery its 1384. on Hypertension in Blacks The results were not star- Tackett assid the researchers believe that the racial COMPILED Firm NEWS DISPATENCE Ging but were significant, Saunders said. dispurity may result from differences in the reaction Previous work bad found blacks arteries do not of endothelini cells to certain hormones in the blood. 74 Veto of health care compromise plan hinted PIMOTHY CLIPPORD be separdised By extremists threet b veto any that and Samais committees have $ live - R The compromise declares (MM) either party.' Ben. John does not provide universal taken up health care. Senate universal coverage " its Charge sale. reverage - would and such a Finance is believed to be the goal. But there is no have WASHINGTON The first There WM no official White bill "difficult to sign. place where the bill mest wither" to guarantee. n. if major bi-partisan health care House comment on the pro- Cailing their plas a "main- likely to pace Congress Is 25% coverage is not achieved propossi emerged on Capital possi put together by goven stream proposal." the sens- crafted. by 2002. a commission would Hill vasterder. but the White members on the Senate Fi. tere presented It te Finance Under yesterday's plan, In. be creeted to make recom reuse signated that the com- nance Commission four shatroom Sea. surance reform would wake mendations to Coogression promise - water alms to COV. Democrate and three Resub. Daniel Patrick Maysikan (D- health coverage more ***** new to make more progress. or at least 15% of Americans licans - that its outhors said N.Y.) along with (ther hay sible with subsidies to Isw-in- then a vale would be re by $002 - would face 6 presi- eventually would cover two. Benate leaders. come Americans The plan quired. dential veta. thirds of the currently 35 mil- The 20-member Finance would be linenses with cuts But one oritis said: "It's "This compromise sends & lien unineared. Committee. of W lich the in Medicare and Medicald even sefter than & soft trig. group of seven will form the class message to the Ameri- But sourses disco 10 the signs with 8 #: increase in gor. That Just won't mane " at argent blook. beginn work on tan people that we will not the eigaree tax sad a levy on the White House. We'll have process Insteted that Prest- allow beeith care reform to the plan noxt work. Even deat Clinten - given Ria insurance companies solling to see what Moynihan will though 4 number of House more-expensive teverage. do. Last flight from Haiti a time of desperation Plane can't take 'em all PRINCE Ratu - Hours before American Airlines flight 606 to New York started boarding passengers late resterday, sugar and desperation overtook many of those hoping to catch the plane. For this was the last flight leaving for the United States pending a return of President Joan-Harmand Aristide. The poorest country in the hemisphere has saw - the must levisled. Sill Clin- tos and the world community have drawn the economic 80088 tighter around HALL's Milliary distature. No bigger paychological. blow 12A be imagined in this country than suiting off JUAN GONZALEZ dally air travel between Mare and Miami and New York. . ban which began at midnight. and the restrictions on money transfers which Clinton ordered several weeks age. With , million Huitisns living in the U.S., benning als travel means separat- Lng funilies indefiatiely. Andre Gil, a graff old man wearing 4 while beachall cap, was one of these outside the entranes to use sirport ter- minel serambling to get on yesterday's last Right His brother and cousin la the Broax, whom he heas't seen 5 14 years, sent him 8 ticket pure months ago to he could ge to New York for BA operation on his atting back. "My ticket was for next week, but that's no good. no more planes.' be said, simeet beside himself with ADJUT. "Thay tall me I have no reservations. As ou argued with 88 sirtine agent, 600708 of other Haitians waited is the sweltering heat u standays for & flight they would never eateh A1 surbaide. I smartly dreamed Heltian coupie, their PARTING UN: Delve Richards GRYS goodbye to dousins, Millis Prances, 2. and Seins three children and Jummer piled late Manican, 3. before putting them on last American Airlines fight OUT of Part-su-Price, Helt. the backsest of their wine-colored Mar- Also boardling was Desir Quantion, 11 (f.). redes, jumped angrily into the car and sped off. They bediet been Able get seats "Xy dream can't get their report Dominiess Republican out. cards from school. because we have no Food secure more abundant than ever Among the lucky ones were the Augus- money to say the final tuition." she said. among the street-side venders, electri- time. $ pose family from the village of "Fifty dellars goes nowhers in Halti to cat blockouts are less frequent than last Cavailian in the south. Michou Augustin day. year. The military has area begun pay- managed to get her 87-year-old father on Everywhere. of course, is the tarror of ing the countiess potholes downtown the flight. The mea was volted is a tan the Maiture Army. An especially nasty and clearing the giant pllas of weel federa which sat backward on his soldier in from of the main terminal on. that used to block scores of Intersec. head, a black and gray plastripe BUIS two transe be 110 beating a Hallian-Ameri- time. sizes the big, and 4 purple de lecesly At. can citizen in full view of foreign report- ted around his nach, era. then invisted several of we from the "I don't know was I'll ⑉ them airport to: daring to interview the via. again," said the man, who refused to u.s. W NY, YOU ARE forced to ask. de outward conditions seem to be improving in B country that 18 give his first name, as as pointed to MI- Restrictions on foreign reporters have today more dictatorial and more estre- theu and enother daughter. "T've 1008 suffered 18. means weeks. since threats too mush killing here time 10 go. It's clased in the world's Monomy than over of a U.S. tend investen to restors Aristids before? You AND left with the suspicion - 6M - - M - LABO- more 1981 card day. that this embarge to somehow more eurs. All less my with 16 is Breakiyn, I Even wi the tightened International bluster then reality. haven't was har for a year." embarge, hawever, the espital sacms But his and grandchildren Thes again. It sould be that Heltians. more related than It has brian in years. who are asserieurly fanatical about ser remain behind, and Michou, whose bus- Cars are on the read everywhere and band sise us working is Breakiyn, wor- ear. have just decided to relax and pay gasolias 11 pleatiful - - has even more attention to the World Cup games ries about the many like can't get from dropped III 57 8 gallon from a bigh of B10 in the sext few weeks man the endless his because money transfere IN new - despite the supposed compliance policies! times here and is Washington limited to MO a masts up the neighboring scall La use big Invertise. N.Y. DAILYNEWS 6-25-94 75 6/27/94 Senate Finance Committee announces compromise (EDITORS: BEGIN OPTIONAL TRIM) health-care reform plan By Peter G. Gosselin Boston The measure's authors were almost plaintive in their Globe appeal for support Friday, using an afternoon press WASHINGTON Senate moderates managed to salvage a conference to portray their plan as the last best hope for compromise aimed at averting partisan warfare over health avoiding a kind of legislative Armageddon over health care care Friday, but only after dropping key elements of the later this summer. proposal and papering over deep differences among "On both sides, there are extremists who demand that supporters. what they want" should part of the plan, `and that's why Following a series of frantic, closed-door meetings the progress on health care reform in the Congress to date Thursday night and Friday, moderate leaders announced they has been total chaos," complained Chafee. had agreed to a plan that would provide $250 billion in "Give this mainstream plan a chance," pleaded. subsidies and tax breaks over five years to help uninsured Republican Sen. Dave Durenberger of Minnesota. ``It Americans get health coverage. But the plan would not represents the only opportunity to enact true health require employers or individuals to help pay for it, as reform this year." many health proposals in the current debate would. (END OPTIONAL TRIM) The leaders frankly acknowledged that their proposal But the prospects for the plan remained very much up in stops far short of the goal that President Clinton has the air Friday. Aides to Senate Finance Committee chairman said any compromise must meet: health coverage for all Daniel Moynihan, who had been hoping the Chafee group's Americans. Otherwise, the legislation risks his vetoed. compromise would offer a way out for his deeply divided *Our goal ultimately, of course, is universal panel, said the New York Democrat was canceling plans to coverage. But if that is not able to be achieved, then we begin drafting a health bill Monday and would met seek to cover as many as possible," said Republican Sen. privately with committee members. John H. Chafee of Rhode Island, who was chiefly Meanwhile, one of the group's own members, Democratic responsible for the compromise proposal. Sen. Bill Bradley of New Jersey, issued a statement The plan was immediately damned by faint praise from distancing himself from the very measure he had just all sides. agreed to, and suggesting he might withdraw his support. About the most White House spokesman Jeff Eller could "I regret this proposal did not do more to achieve muster was that ``it is encouraging to see work proceeding universal coverage through a shared responsibility by in 8 bipartisan fashion." individuals and employers," Bradley said. Democratic congressional leaders said they were studying Failure of the Chafee compromise would not necessarily the proposal. spell the end of the health reform drive. Meanwhile, Senate Republican Leader Bob Dole of Kansas In the Senate, Massachusetts Democrat Edward M: Kennedy repeated his threat to offer an alternative, and much more has already pushed a Clinton-like health plan through his conservative, measure. Dole is reportedly furious with Senate Labor and Human Resources Committee, Senate Chafee and other Republicans for working on the Majority Leader George Mitchell of Maine has strongly compromise, fearing Democrats will simply use the idea as hinted he may send the Kennedy bill to the floor next a ticket to bring the health issue to the Senate floor and month in a move that could bring the debate to a sudden, then discard it in favor of a broader plan. partisan head. In the House, two committees, Education and The measure that Chafee outlined Friday represented a Labor and Ways and Means, are moving on health measures, substantial retreat from his own original plan for paving the way for an expected floor vote next month. providing universal coverage, and dropped the one element But collapse of the compromise would be a sharp setback that might have led to full coverage, an ``individual in the search for a bipartisan middle ground on the hugely mandate," or requirement that everyone without health complex health issue, and would increase chances that the insurance after a certain buy it for themselves. issue will be settled by the kind of highly publicized The individual mandate was supposed to replace a congressional showdown that many lawmakers are desperate Clinton proposal for an employer mandate, a requirement to avoid. that American firms pay much of the cost of expanding The compromise itself illustrated how much the health health coverage, that had become a lightning rod for debate has changed since its earlier, more rosy opening business objections to the White House plan. phase last year. But the idea created intolerable political problems for Then, lawmakers and commentators cited as proof that moderate Democrats working with Chafee who feared it would sweeping change was just around the corner the fact that appear they were willing to fix the nation's health Chafee, as a moderate Republican, supported the same goal problems on the backs of workers, rather than of of universal coverage as Democrat Clinton. Many observers businesses. As a result, the group was forced to drop both portrayed the coming debate as mostly a technical dispute ideas and rely on other means of financing the plan. over the best means to an end. The final compromise depends entirely on government Besides Chafee, Durenberger and Bradley, others in the subsidies and health insurance market changes to expand moderate group who endorsed Friday's compromise proposal coverage to the uninsured. About $150 billion of the $250 included Democrats John Breaux of Louisiana, David Boren billion in subsidies over five years would come from cuts of Oklahoma and Kent Conrad of North Dakota, and in the Medicare and Medicaid programs, with the rest being Republican John Danforth of Missouri. raised by a $1-a-pack cigarette tax and a tax on high-cost insurance policies. By contrast, the Clinton plan would rely on the employer mandate and elaborate cost controls, as well as subsidies to extend coverage. Chafee said Friday that the group believes that its proposal would pick up about 20 million of the nation's 37 Newsday: Nominee Breyer could have profited from some million uninsured. Under the compromise, if 95 percent of cases he ruled on By Ana Puga Boston Globe the country is not insured by the vear 2002. a government WASHINGTON Supreme Court nominee Stephen G. commission is required to propose ways for further Breyer had extending coverage. And Congress must consider its ideas, a financial interest in the outcome of toxic waste but not necessarily accept them. liability suits similar to some of the waste cases he 79 HEALTH CARE Financing compromise is good alternative The current health care obstacle facing insurance, three reasons make the "Individ- legislators is the question of who should pay ual mandate" not so onerous. for the coverage President Clinton insists First, the substantial number of busi- all Americans should have. The president nesses now picking up employee health and leading congressional Democrats want costs will likely continue their practice as a employers to pick up the costs, while moder- means of recruiting employees. Second, ates and conservatives in both parties don't individuals with annual incomes as high as want to saddle businesses with a "mandate" $34,000 would receive some federal subsidy to purchase health insurance. to help purchase their insurance. Third, if A new compromise being offered by some employers not now covering employee leading Senate Finance Committee members health costs are required to do so, won't they could break the impasse. Moderate Republi- take the new costs from employee salaries? cans John Chafee, John Danforth and David The move to require individuals to pick Durenberger and centrist Democrats John up insurance costs is not necessarily new. Breaux and Bill Bradley hope to move the The idea has been promoted in the Senate by debate forward by requiring individuals to Republican Chafee of Rhode Island and in purchase health insurance if 95 or 96 per- the House by Democrat Jim Cooper of cent of Americans do not have health insur- Tennessee. ance by the year 2002. But its current significance is that the Actually. the senators contend. that proposal could move the important Finance mandate may never be necessary. Immedi- Committee beyond its deadlock. Yes, some ate reforms such as allowing employees to interest groups are lining up to oppose the transfer their policies from job to job could individual mandate. But the idea is one the sharply increase the number of insured full committee should support when it Americans to the point where no require- reconvenes next week. It gives times for ment need be placed on individuals to pur- other reforms to work, while proposing a chase coverage. financing system that will not seriously Yet if the debate does come down to threaten the small businesses that generate requiring individuals to purchase their own so many American jobs. Dauas Marning news 6/25 90 BC-NC--Hospitals Merger, 300 ASHEVILLE (AP) Regulators' permission to allow a partial merger of two Florida hospitals bodes well for similar plans at Asheville's Memorial Mission and St. Joseph's hospitals, officials say. The U.S. Justice Department last week proclaimed an antitrust breakthrough in the deal involving Morton Plant Hospital and Mease Health Care, two major hospitals near St. Petersburg. Under a proposed consent decree, the two will jointly provide some services, compete on others and share some administrative functions. The decree requires approval by the federal district court in Tampa. The agreement was the first in the health care industry since an antitrust enforcement guidelines were issued by Hillary Clinton and Attorney General Janet Reno last September. The Justice Department is currently monitoring a potential deal between Mission and St. Joseph's for the combination of some services. In March officials of the two hospitals signed a letter of intent to seek a collaboration, and the consulting firm Arthur Andersen was hired to do an analysis of the benefits. ``It is really very close to the blueprint we seem to be headed toward in our collaboration efforts, said John Coli, president and chief operating officer of St. Joseph's Health Services Corp. If they approved it for two hospitals in Florida, why not approve it for two hospitals in Asheville?' Under the agreement, the Florida hospitals may combine medical staffs and form a partnership to provide such things as outpatient care, open-heart surgery, radiology and laboratory services. Mission and St. Joseph's officials have refused to release a copy of the letter of intent stipulating details of their plan. They said releasing the letter would encourage needless speculation'' by employees about what form the collaboration might eventually take. **** filed by:APE-(NC) on 06/26/94 at 17:09EDT **** **** printed by:WHPR(JEL) on 06/27/94 at 08:11EDT **** British Health System Fails Cancer Victims, Critics Say By WILLIAM E. SCHMIDT A ( Special to The New York Times LONDON, June 25 - Armed with mendations last month for broad statistics showing that patients in changes in the treatment, including Britain with certain types of cancer the way patients are referred, so that are more likely to die - and die more patients will be seen by special- sooner - than patients in the United ists trained in cancer care. States or the rest of Western Europe, "The N.H.S. is brilliant when it health advocates are demanding that comes to primary care," said Dr. the national health care system do a Karol Sikora, the director of clinical better job in diagnosing and treating oncology at London's Hammersmith a disease expected to afflict 260,000 Hospital and a member of a 12-mem- new people here this year. ber specialist committee that worked Increasingly outspoken groups of with Dr. Calman. "But when it comes survivors, joined by Britain's top can- cer specialists and largest cancer Continued on Page 6, Column 3 charities, say the Government has failed to spend enough money on can- cer care and train enough specialists. What's more, they argue that Brit- ain's medical establishment and the National Health Service, the 46-year- old Government system that provides most Britons with medical care, sometimes hinder patients from see- ing the best people or receiving the optimum treatment. In the face of growing pressure, Dr. Kenneth Calman, an oncologist and the chief medical officer in the De- partment of Health, published recom- THE NEW YORK TIMES, SUNDAY, JUNE 26, 1994 LTH Tracking Cancer Treatment in Britain Mortality rates Case burden Breast cancer rates Chemotherapy treatment Per 100,000 people per year, New patients seen per year per Per 100,000 people per year. Number of cycles of treatment per 1987-90. oncologist (study published in '91) Figures are adjusted for age. cancer patient. Cancer Britain U.S. Britain 560 Belgium 10.8 Incidence Deaths type Male Fem. Male Fem. Netherlands 250 France 9.9 200 1,021 1,084 27.9 Lung 63.7 21.6 56.9 22.7 U.S. 22.4 Spain 8.0 Colo- 21.5 15.5 17.2 12.0 France 200 rectal Italy 6.8 Spain 200 86- 87 87 Stomach 13.9 6.3 5.3 2.5 Portugual 200 90 90 Germany 6.8 88 90 Prostate 14.4 15.7 Germany 140 Britain U.S. Britain U.S. Britain 3.8 Sources: Cancer Research Campaign, Britain: National Cancer Institute, U.S.; World Health Organization: International Agency for Research on Cancer: Royal College of Radiologoists, Britain; CIE Monitor-Glaxo The New York Times Britain's Health System Faulted for Cancer Treatment took two years, eight different doc- Continued From Page 1 tors and a series of false diagnoses before physicians in Britain finally to cancer, it is very patchy. Some figured out she had Hodgkin's dis- hospitals are world class, but others ease, a form of lymphatic cancer. are far below standard, which means Last spring, Mrs. Miles, who is 35, that for anyone with cancer, it is a bit founded the National Cancer Alli- of a lottery." ance, Britain's first public lobbying group of cancer survivors, because Among most Britons, the N.H.S. is she says she is determined that oth- revered for offering unimpeded ac- ers do not have to go through what cess to quality primary health care, she did. and the system is often cited as a In part because of the faith that model by advocates of health care most Britons place in their Nati reform in the United States. But crit- Health Service, few have a consum- ics say the service is also plagued by er's attitude about medicine, and inefficiency and a lack of resources, many do not question the judgment of leading to long waiting lists for pa- the general practioners whom they tients awaiting elective surgery. go to first for medical care. "So the system favors the well- A report issued last year after a educated, the pushy or the wealthy conference of Britain's cancer chari- who can afford to pay for private concluded: "The U.K. is not treatment,' Mrs. Miles said. "If meeting the cancer challenge. Surviv- not stood up and hollered and de- al rates for some types of cancer are manded answers to questions about far less good than they are in the U.S., my illness, I really believe the th Germany and France. Less than 40 care system would have just let me percent of cancer patients in the U.K. die." are ever referred to cancer special- Jonathan Player for The New York Times Fighting Breast Cancer ists." Many cancer survivors in Britain say the Government fails to spend Inspired by the success of AIDS While Prof. Gordon McVie, the enough money on cancer care and train enough specialists. Becky Miles, groups in lobbying for Government chief scientific officer for the Cancer 35, a survivor who formed a lobbying group in London, said it took two money to fight the disease, British Research Campaign charity says en- women, like women in the United years, eight different doctors and several false diagnoses before physi- vironmental factors cannot wholly be States, are demanding a larger Gov- ruled out - the incidence of lung and cians figured out she had Hodgkin's disease, a form of lymphatic cancer. ernment commitment to combating breast cancer. In a letter to The stomach cancer, for example, are higher in Britain than in the United Times of London earlier this year, States experts agree that the chief Many Britons with Dr. Sikora said as recently as the Lesley Elliott, a woman who said it reason for the differences are cultur- mid-1980's, it was accepted clinical took doctors seven months to diag- al and structural barriers to the de- practice in Britain for doctors not to nose a breast lump as cancer, argued livery of cancer care. cancer lack early, tell patients they had cancer. that as many women are dying of "It still happens today," he said. breast cancer in Britain now as did A recent study by European re- specialized care. 'The doctor will say, 'You have a when her grandmother was alive. searchers suggested that only 6 in 10 cyst, dear, and we'll have to give you "Mortality rates have hardly British women diagnosed with breast some radiation to prevent it from changed," she said. "This is not a cancer will be alive after five years, coming back.' legacy I wish to leave my daughters. compared to nearly 7 in 10 in the rest vival rates among patients who have Critics also point out that Britain Loretta Tinckham of the Cancer- of Europe, and nearly 8 in 10 in the spends only 6 percent of its gross Relief Macmillan Fund, one of Brit- United States. At the same time, the access - and especially early access national product on health care, less ain's four major cancer charities, mortality rate for breast cancer to specialist care, and those who do among British women is higher than not," said Dr. Harmon Eyre, the chief than half the percentage spent annu- published one of Britain's first pam- medical officer for the American ally in the United States. phiets on breast cancer last year. for women in any other Western na- "We reacted to the data, which is tion, even though the incidence of the Cancer Society in Atlanta. Not so long ago, Dr.. Sikora said, appraling." said Mrs. Tinckham, who disease is less than it is in the United people from developing countries States. Shortage of Specialists came to Britain to seek the best possi- argust that the relatively poor prog- As in the United States, cancer is a ble cancer care. "But the best centers nose of many patients is directly Among lung cancer patients, ac- cording to a survey by a Manchester in the third world are actually quite related to inequality in access to spe- major public health challenge in Brit- cialist care. hospital, only 15 to 30 percent of Brit- ain, and will afflict one in every three good, and probably better than small- ish patients with small-cell lung can- people here over the course of their er units in the U.K.," he said, explain- 'Luck of the Draw' cer will survive for two years, com- lifetime. Yet Britain has only 300 can- ing that a patient in New Delhi, for pared with 40 to 50 percent in the rest example, might be better off staying "It is a lottery, the luck of draw, cer specialists for a population of 57 of Western Europe and in the United million people, which is one reason there. depending on where you live," she said. "Some women see specialists States. only 4 in 10 cancer patients ever see a Second Opinions Discouraged who know what they are doing: oth Early Diagnosis specialist. In the United States, by Critics generally say that Britain's ers see general surgeons who comparison, Dr. McVie said, there American cancer experts say the health care system which relies on little about the disease." are about 6,000 cancer specialists for debate in Britain over shortcomings the skill and ability of general practi- She said it was imperative to give a population four times the size of in the nation's strategic approach to tioners to recognize symptoms and patients more choices and improve Britain's. cancer treatment affirms their own then refer patients appropriately - treatment options, while maintaining Dr. McVie said the relatively low conviction that the most successful number of cancer specialists in Brit- has traditionally discouraged second some control over the cost. way to fight the disease is with early opinions and refused patients the op- Researchers in Britain and the ain was a reflection of "cultural" diagnosis and prompt intervention by portunity to choose the specialist or United States say there is a measur- THE NEW YORK TIMES, SUNDAY, JUNE factors, including a "vigorous resist- groups of highly trained specialists. the hospital where they will be treat- able difference in the prognosis ance" not only to the idea of sub- ed. cancer patients who receive care specialization in British medicine but As the United States contemplates Britain's health system did not be- specialist centers and those who dos to the notion that most cancer pa- a comprehensive health care system gin a nationwide breast screening not. of its own, which may by necessity tients can be successfully treated. program for women until the late A recent study in Glasgow demon- have to ration services to save money Matters of Tradition 1980's and it is only recently that strated that men with testicular can- and conserve resources, American cancer charities have inaugurated cer who were treated at a center cancer experts say they want to be "The attitude toward the disease public education campaigns, so wom- staffed by cancer specialists were certain it does not limit patients' ac- has been softer in Britain," he said, en will be alert to the early symptoms more than 2½ times more likely to be cess to the kinds of sophisticated ear- describing a belief among doctors of the disease. alive, five years later, than men who: ly treatment that can be offered only that some kinds of chemotherapy "Even now, patients have no power were treated at one of four other in specialized care centers. treatment, for example, "won't nec- to see the doctors they want, or get hospitals in the city, where doctors 'Experience clearly shows there is essarily do the patient any good, and the treatment they need," said Becky were less likely to follow estable a measurable difference in the sur- may be more trouble than it's worth." Miles, a cancer survivor who said it protocols for treatment. 2/2 110 CONGRESS THE NEW YORK TIMES, SUNDAY, JUNE 26, 1994 Health 5'11 Care Makes Progress on Rocky Path b/ By ADAM CLYMER were not covered by 2002, a commis- nor Special to The New York Times sion should tell Congress how to close WASHINGTON, June 25 - The stage is set for the gap. Through the grinding labors of its The Finance Committee's chair- committees, Congress is on track to debate, but Congress man, Daniel Patrick Moynihan, Dem- a critical deadline of July 4 for ocrat of New York, appeared uncer- drafting national health Insurance remains split on tain today about where he wanted to legislation. But its struggles under- lead the committee this week. He said how difficult reaching agree- memt will be. health coverage. he planned to see how much support the moderates' proposal could com- As one committee after another mand If it was tilted a little more clears - or perhaps just runs strongly toward universal coverage. through - its hurdles, Congress is But It was also clear that he was making progress without coming House Ways and Means Committee consulting the Clinton Administration closer together. The leaders of both met into the afternoon today and Is about whether - and how easily - he parties insist that they want biparti- likely to pass another such bill by should give in to a proposal that plain- san agreement, but they insist even Friday, also without Republican ly falls short of the President's bot- : firmly that the legislation must votes. tom line. It appeared that, in the end, their political bottom line. The The Senate Labor and Human Re- a bill patterned on the proposal of Democrats demand insurance for all sources Committee Is already on Senators John H. Chafee, Republican Americans; the Republicans reject board and the House Energy and of Rhode Island, and John B. Breaux, what many of them concede is the Commerce Committee hopelessly Democrat of Louisiana, and four of only plausible way of getting there, a deadlocked, while the Senate Finance their colleagues would emerge from requirement for employers to pay Committee is still unsettled. the committee, perhaps by the end of most of the cost. One thing seems certain. Nothing the week. ach side thinks that It has the can emerge from that committee That would mean that two commit- ground," Senator Bob Packwood without Republican votes because tees would have acted in each house, tegon, the senior Republican on Senator David L. Boren, one of its 11 setting the stage for a floor debate. enate Finance Committee, said Democrats, has all but switched par- It has been clear for weeks that "Politics mixes up in It. If tles on this Issue. He has said he will getting the bills out of committee CS was not involved, I think we not vote for a bill that some of the before the Fourth of July vacation get together." committee's nine Republicans sup- was about the minimum that Demo- Associated Press politics is involved, and, except port, effectively giving the Republi- cratic leaders could settle for. Even If Representative Barbara B. Kennelly, Democrat of B. Rangel, Democrat of New York, yesterday on Senate Finance Committee, cans his proxy. the Finance Committee does not quite Connecticut, talking with Representatives William J. Capitol Hill at a meeting of the House Ways and have been hardly any efforts at A centrist group of Senators on the finish by the start of the one-week ration. committee suggested a way out on recess, It could move soon enough for Coyne, left, Democrat of Pennsylvania, and Charles Means Committee on the health care overhaul. Action on Several Fronts Friday with a proposal that calls for leaders to start patching the bills changes in Insurance laws to make together to get measures debated by Thursday, with no Republicans coverage more widely available and the full House and full Senate this ate, the 56 Democratic Senators, even versal coverage. He said requiring up with a group of six, "We started in favor, the House Education subsidies for low-income people. But summer. if united, are 4 short of the number employers to pay most of their work- with eight people who philosophically Labor Committee voted out a bill it would not promise to provide all Widespread Praise needed to force a vote. ers' insurance cost was a "tax on were tilting in the same direction." generous in its benefits than Americans with health Insurance. It On all sides, politicians praised the As Mr. Packwood said, politics is a jobs." He said it would cost "one dent Clinton's proposal. The says that if 95 percent of Americans million jobs." Even on an Issue that seemed sim- efforts of the Finance Committee major factor. Republican uncertainty moderates as a hopeful indicator, about a filibuster results from a fear ple to the group, like malpractice even If they were unhappy with their of being seen as obstructionist, but as Tempers Grow Short litigation, he said, "everybody agreed NAPSHOT product. "The moderate bill yester- the President encounters other trou- The atmosphere is increasingly Ir- only on the label on the box - medi- day is forward movement," the bles, Republicans have been Increas- ritable. Senator Bob Dole of Kansas, cal malpractice reform - and when Where Coverage Comes From House majority leader, Representa- ingly sharp in their attacks on his the Republican leader, bristles when you open the box, there are wide tive Richard A. Gephardt of Missouri, plan. Hillary Rodham Clinton argues, as divergences of opinion" over details. said today. "Obviously It is not uni- Democrats say the passage of she did before him in a television Senator George J. Mitchell of Types of health care coverage among the United States population. versal coverage, but obviously they health care legislation would be a program Tuesday night, that Con- Maine, the majority leader, echoed are trying to act." major boost for their election pros- gress has given Itself a better health Mr. Chafee's view. With all the atten- Total with private health Insurance 70% He added, "When you've got Re- pects. Representative Vic Fazio of Insurance deal - with employers tion on a central issue like employer EMPLOYER COVERAGE publicans and Democrats sitting in California, chairman of their House paying most of the cost - than It payments, he warned, it Is easy to rooms and negotiating, it means to campaign committee, urged his col- offers the people. forget that it is "only one of a whole me that there's some pretty great leagues to portray Republicans as At a Finance Committee meeting series, a large number of interlocking desire to get some significant thing "sticking it to the middle class" by later in the week, Mr. Dole com- measures, each of which is difficult Total with public health Insurance done in health care." being unwilling to require employers plained about Mrs. Clinton's tactics and complex." But the Chafee-Breaux group, in to foot the bill. and proposed a step that would stifle Includes Medicare, Medicaid and coverage the end, commanded the allegiance of Against that background, Presi- her argument: ending Federal contri- But he said he was encouraged, for the armed services and veterans just six Senators, and the Finance dent Clinton, in his weekly radio ad- butions to Insurance for members of despite the issue's "obvious complex- Committee is one of the most colle- dress, warned Congress against Congress, the President and the No health Insurance ity and controversy," and despite the gial settings in Congress. There re- "half-hearted" measures "that White House staff. Although some fact that it Is "very easy to block 15% main very deep divisions, not exclu- would not provide coverage to all Democrats shared his annoyance at things in our system and very hard to sively on party lines, that keep the families." A senior Administration Mrs. Clinton's anti-Congress mes- get things done." eventual fate of legislation uncertain. aide said the President was not refer- sage, the idea was dropped after Mr. The Democrats have majorities in ring in particular to the Chafee- Moynihan said, "I can't afford it. Note: Percentages do not total 100 because some Individuals are covered both houses, but they are far from Breaux proposal. Even without partisanship and bad by more than one source. solid in favor of requiring employers Responding for the Republicans, temper, the task of passing health to pay for Insurance. While it is not Representative H. James Saxton of care legislation would be daunting. Source: Employee Benefits Research Institute clear that Republicans H d filibus- New Jersey ham red on the means Mr. Chafee recalled today that al- ter a Democratic measure in the Sen- Mr. Clinton is seeking to achieve uni- th his compromise effort ended Amid Cries of/Politicking, a Widely Endorsed Plan Dies THE NEW YORK TIMES, SUNDAY, JUNE 26, 1994 month, blocked it in votes strictly Governor Chiles said another spe- By PETER APPLEBOME along party lines. Special to The New York Times Business liked the cial session is possible. Republicans "The anomaly of this is it's totally say voters are more afraid of a bad TALLAHASSEE, Fla., June 24 - A upside down," Governor Chiles said. attempt by government to fix health legislative deadlock that killed a 'Chiles, a Democrat, is going to uti- widely watched health care plan here Democratic plan, care than they are clamoring for a lize Federal cost savings to insure good health care plan. In a Florida is raising two questions that could working people, with no new taxes and no mandates. That should be a but Republicans Opinion Poll conducted this month by determine the fate of health care The New York Times Regional News- legislation in Washington as well: Republican utopia. There is no group, How much did election-year partisan blocked it. papers, health care ranked fourth as none, nada, that is opposed to our plan an important issue for voters, behind politics dominate the process, and except the Republicans, who are crime, education and immigration. how much do the voters really care against it totally for politics." Only 15 percent of respondents about health care? Gov. Lawton Chiles and other Dem- Democrats' Lament "The starting point of the politics ranked it among the two most impor- tant issues. Still, 85 percent agreed ocratic leaders are saying that Re- Lieut. Gov. Buddy MacKay con- was Governor Chiles's re-election ef- publicans, including Republicans in fort," said State Senator Locke Burt, there was a health care crisis in the tended that state Republicans op- Washington, leaned on Republican posed it to hurt Governor Chiles in his a Republican on the committee that United States. state senators to block the proposed killed the proposal. "Both Lawton Chiles and Bill Clin- bid for re-election this fall and that health care plan, which had broad national Republicans did not want Indeed, political experts here say ton have found themselves with their backing. Florida Democrats to be able to pass that the Democratic effort was a hands wrapped tightly around a polit- Republicans have derided the clumsy one, with a noticeably weak ical issue that has come to be the a plan that would steal the thunder claim that Senator Bob Dole, the mi- lobbying effort by supporters, and centerpiece of their political ambi- from national Republicans, whose nority leader, and other national Re- emerging health care plan would that Governor Chiles called the ses- tions, and virtually only 10 to 15 per- publicans worked to kill Governor have many similar features. sion without determining whether he cent of the American people give two Chiles's plan. They say it was a deep- In Washington this week, Governor had the votes to get his bill through. hoots in Hell about it," Mr. Slade said. But State Representative Ben ly flawed plan that many supporters Chiles told Democratic senators that Dismayed Conservatives Graber, a doctor and the Democrat did not understand. Democrats have he had private assurances from sev- Still, even many conservative who helped write the bill, said that presented no proof that Republicans eral Republican state senators that groups were disappointed by the pro- politics dominated the process and outside the state played a role. they would vote for his plan. He said gram's failure. "The real irony of this that voters will not look kindly on a But whether it was because of na- they caved in under pressure from is that our plan that we supported purely political effort to kill the bill. tional or local politics, it is clear that the Republican National Committee here is very similar to what the Re- "Although the moderate Democrats the effort to pass a health care plan and Senator Dole. publicans nationally are saying is the and moderate Republicans could here became mired in gut-level elec- State and national Republicans, in- conservative alternative to the Clin- have sat down and worked it out, the tion-year politics. cluding a spokesman for Senator ton plan," said Jim Brainerd, general politics of this year took over," he Florida's plan gained the backing Dole, deny any national Republican counsel for the Florida Chamber of said. "This is a good bill, and its of a broad coalition of groups, from role in Florida. Tom Slade, the chair- Commerce. failure is going to hurt people." unions to businesses. It used cost sav- man of the state Republican Party, ings projected to come from enrolling said that "there's not a thread of Medicaid recipients in managed care truth" to Governor Chiles's allega- plans to provide premium discounts tions. to uninsured residents with income Republicans' Critique levels up to 250 percent of the Federal poverty level. That means an Income Florida Republicans say the Chiles of as much as $37,000 a year for a plan relied entirely on speculative family of four. savings and depended too heavily on a flawed agreement with the Federal Democrats said. the plan would Government They contend that Gov- have helped insure about a million of ernor Chiles is blaming Republicans the 2.7 million Floridians who are to cover up his political ineptitude. unable to buy health insurance. The "Chiles is blaming everybody, but Federal Government would have he needs to blame himself," said paid for 56 percent of the costs State Senator Ander Crenshaw, who through Medicaid savings, with the is seeking the Republican nomination rest coming from the state, the par- to challenge Governor Chiles in No- ticipants and voluntary employer vember. "The reason that session contributions. was a disaster was that the more Many pro-business groups, such as people found out about the Chiles the Florida Chamber of Commerce, health care plan, the less they liked supported the plan as a free-market it." approach that would not have re- Other Republicans say that if poli- quired businesses to pay. But Senate tics did rule the process, it was the Republicans, in a general session in politics of Democrats desperate to April and a special session this pass a bill. Health Care Horror Stories Critics labeled them horror stories, and they healthy or sick, at identical rates. That is fine, but were. On Tuesday night, NBC presented a two-hour unless there is a parallel obligation for all individ- news special on health reform that began by focus- uals, healthy families will not buy coverage until ing on the human disasters caused by a system that someone gets sick. Premiums will thus rise drasti- denies families the guarantee of adequate health cally for everyone else. The way around this prob- coverage. lem is universal coverage. Rick Reckoway works hard as an electrician. There is room to disagree about tactics. Mr. When his 12-year-old son was born with respiratory Clinton would impose an employer mandate, requir- and cardiac problems, he thought he did not have a ing employers to pay most of the cost of the policies financial worry because he had bought family cov- chosen by workers. That makes sense because it erage. Mr. Reckoway discovered that his insurance would build upon the system that already provides benefits were capped at $100,000, leaving him coverage to most Americans. It is also feasible $700,000 in debt. He played by all the right rules, and because, with time to adjust and the help of Federal found himself impoverished. subsidies, companies would be able to avoid mas- Cathi and Perry Thoorsell both work. Yet they sive layoffs by passing along the costs to workers in do not have $7,000 for health insurance for them- the form of lower wage hikes. selves and their two children. When Cathi suffered a Yet furious opposition by small employers has difficult pregnancy, they were hit by whopping bills bottled up the idea in the Senate Finance Committee and went $30,000 in debt. Their lives are haunted by the threat of more medical bills they cannot afford. - a crucial battleground because its membership And they have abandoned any thought of having a mirrors that of the full Senate. A. group of moder- third child. ates on the committee - led by John Breaux, These horror stories, some opponents of reform Democrat of Louisiana, and John Chafee, Republi- say, slander the overall excellence of U.S. health can of Rhode Island - put together a measure that care. But the issue is coverage, not quality. The avoids an employer mandate. Some of their ideas system is riddled with holes through which tens of are sound, primarily a provision to tax lavish health millions fall - forcing them to scrounge to get by care policies as a way of driving consumers toward with no insurance or inadequate insurance. Though cost-effective plans. But their plan fails to lock in the vast majority of Americans say they are happy universal coverage now or in the future. with their health care, families like the Reckoways Universal coverage can be delayed to give and Thoorsells are the tip of a large problem - a businesses time to adjust to voluntary market re- problem that has no place in a wealthy country. forms. The idea can even be dropped until, say, five President Clinton has it right: Universal cover- or more years from now when it would automatical- age is needed for humanitarian reasons, and eco- ly kick in if voluntary reforms did not achieve nomic reasons as well. Without it, health care universal coverage. But universal coverage cannot markets will not work properly. Most reform bills be denied unless the country wants to tolerate the would require insurers to sell to all applicants, spectacle of millions of Reckaways and Thoorsells. THE NEW YORK TIMES, SUNDAY, JUNE 20, 1994 Unnecessary Nuclear Relics The Pentagon says it does not want more B-2 restoration and other work at military bases that bombers. The Energy Department does not want a are being closed. new nuclear reactor. But there are interested par- The B-2 is wasteful, but the new nuclear reactor ties in the private sector and in Congress who want is downright wrong. It was originally designed as a one or the other or both. By denying funds this week, breeder reactor, which produces more plutonium the Senate can stop these superfluous programs in than it consumes. At a time when the world is their tracks. worried about nuclear proliferation and cannot The B-2 bomber was designed to penetrate keep track of the tons of plutonium it already has, Soviet air defenses and drop nuclear bombs on producing more of this critical ingredient in bombs targets that U.S. missiles missed. That mission is is perverse. extinct. The B-2 is now being touted as a convention- Financing the Integral Fast Reactor would al bomber, at an exorbitant $870 million a copy. The send the wrong signal to Japan and others who are Pentagon already has 20 B-2's, and an ample num- planning to produce more plutonium to fuel nuclear ber of other bombers, to carry out that new mission. power plants. Energy Secretary Hazel O'Leary, Yet B-2 backers want to spend $150 million to who wants to terminate the program, put it well: keep the plane's production line warm. Senator Carl "We cannot credibly urge that others not use tech- Levin has a better way to spend the money: use it to nologies for separating and using plutonium if we make up a shortfall in funding for environmental are pursuing those same technologies ourselves." Smarter, and Fairer, About Drug Crime Beneath the din of tough-on-crime shouting in tives Henry Hyde of Illínois and Bill McCollum of the White House and Congress, a quiet strain of Florida endorse retroactivity. Attorney General sober reason has begun to emerge in the fight Janet Reno hangs back, even though she was among against drugs. Both the House and Senate have the first in Washington to denounce the rigid mini- voted to ease mandatory minimum sentences for mum sentences. Her own Justice Department found certain low-level drug offenders. last year that as many as 16,000 Federal prisoners That refreshing step recognizes that while the are in the small-time drug offender category. The mules and messengers of drug operations must be House bill would spring only a fraction of that punished, it is dumb and unfair to inflict mandatory number by reducing five-year minimums to two minimum sentences of 5 and 10 years. Both cham- years - if prisoners' criminal records include only bers would remove mandatory terms for minor minor previous offenses and the Justice Depart- drug violators. The House would apply the more ment does not accuse them of being ringleaders. flexible rules retroactively to release between 1,600 Minor offenders need punishment, but existing and 4,000 inmates needlessly cramming Federal sentencing guidelines can do the job. Otherwise, prisons. these inmates will occupy beds needed for more Senate-House conferees can adopt the House's dangerous crime leaders and force new prison retroactive leniency without losing any political construction, eating up funds for police and crime points. Certified crime warriors like Representa- prevention. The House has the right version. THE NEW YORK TIMES, SUNDAY, JUNE 26, 1994 17 THE WASHINGTON POST SUNDAY. JUNE 26. 1994 No Mandate Moynihan Health Plan In Moynihan Is Not Quite Universal Health Plan HEALTH, From A1 But Moynihan has warned Clinton Draft of Bill Envisions that Congress will not pass a bill with that mandatory provision, and Covering 95 Percent many Republicans, conservative Democrats and uncommitted mem- bers who object to it have been Of Americans by 2000 watching the Finance Committee closely as a bellwether of what ulti- mately can garner a majority on the By Dana Priest Washington Post Staff Writer AI floor of both chambers. The committee will begin public discussions of the health care issue A health care reform bill being drawn up by Senate Finance Com- this week in hopes of voting out a mittee Chairman Daniel Patrick package before the July 4 congres- sional recess. Moynihan's plan, Moynihan (D-N.Y.) would rely on known as the "chairman's mark" will economic incentives, new insurance be the official vehicle for the discus- regulations and government subsi- sion, although the committee also dies for the poor to provide insur- will consider a compromise plan pro- ance coverage to 95 percent of posed Friday by a "rump group" of Americans by the turn of the centu- committee senators. There is con- ry, according to a draft of the pro- siderable overlap between the two posal. plans. Under the Moynihan plan, which Initial reaction to Moynihan's pro- congressional sources said will be posal appeared positive, and some proposed to the committee Monday in a closed-door session, neither em- ployers nor individuals would be re- quired to buy health insurance. But "It sounds if the 95 percent target is not reached by 2000, a national commis- extremely sion would recommend new, manda- tory measures to Congress. Special promising. It sounds provisions in the bill would make it difficult, but not impossible, for Con- like we're on the gress to reject the recommenda- tions. ame wavelength Financing and other provisions still are under discussion and com- -he's focusing on mittee chief of staff Lawrence O'Donnell Jr. said last night that achieving the Moynihan, "Has made no decisions." The draft includes proposed new obtainable." taxes on cigarettes, guns, ammuni- -Sen. John H. Chafee tion, certain insurance premiums and a 1 percent payroll tax on firms committee members said yesterday with more than 500 employees. they believed it has a good chance of A draft of Moynihan's 139-page breaking the deadlock. proposal was obtained by The Wash- "It sounds extremely promising," ington Post. In many ways, its intro- said Sen. John H. Chafee (R-R.I.), duction will mark a new phase in the the leader of the rump group. "It health care reform debate, finally sounds like we're on the same wave- pinning down the mercurial chair- length-he's focusing on achieving man of what is arguably the most in- the obtainable." fluential committee in Congress on "Senator Moynihan is making a the health care question. serious effort to lay before the com- The Finance Committee, which mittee something they will consider has a history of bipartisanship. has "credible," said Sheila Burke, chief of been deadlocked for months over staff for Minority Leader Robert J. how or whether to finance what Dole (R-Kan.), who is also a commit- President Clinton has said is his bot- stee member. "Dole will see this as a tom line for a health care plan- serious effort to reach out to Repub- health insurance for all Americans. licans." Two of the five congressional A White House official, briefed by committees with jurisdiction over a reporter on elements of the Moy- health care-one in the House and nihan proposal, said, "the concepts one in the Senate-already have sound interesting and seem to be adopted plans to pay for universal moving in the right direction." The coverage by requiring employers to official said it would be impossible to buy insurance for their workers- comment further without having an the so-called employer mandate that impportunity to review the complete is part of Clinton's original health plan. care proposal. See HEALTH, A22, Col. 1 1/2 Coleman Shows he Grea est Potential For Gains in Senate Race, Poll Indicates "He is not a spectacular senator. He is not POLL, From A1 a brain surgeon," said Robert B. McKinney, percent of Democrats interviewed favored room for growth, his best hope may lie in a 39, a lawyer in Louisa County in central Vir- North. and another 8 percent were backing ginia. Nonetheless, McKinney said, "I still Coleman. close four-way race in which less than 35 percent is needed to win. feel he is a hard-working and competent poli- Robb's lead would be substantially larger Although Coleman may be best positioned tician." if Wilder were not in the race. Wilder, the to pick up supporters, he also has the softest North supporters are far more enthusias- nation's first black governor, currently support of the four: Fewer than a third of tic about their candidate. More than six out claims 56 percent of the black vote, while Coleman's advocates said they strongly back of 10 strongly support their choice, com- Robb received the support of 34 percent. pared with four out of 10 Robb backers. Robb is the second choice of an overwhelm- him. "I feel he's probably the best candidate," North is collecting dividends from the un- ing number of black voters surveyed. About Marie Toshiko Clarke, 25, a suburban relenting travel schedule he has followed in one out of six voters in Virginia is black. Richmond homemaker. "But I don't know the last two years, crisscrossing Virginia to Wilder "pulls for the black community," whether voting for him would be a wasted speak on behalf of state and local candidates. said Latawnya Peterson. 21, a physician's as- vote." Lately, he's been campaigning for hinself, at sistant in Hopewell. Coleman also is the most popular "second every chicken fry, crab fest and pig roast in "As an African American, 1 feel like he has choice"-named by 26 percent-an impor- sight. an understanding of some of the social consideration if one of the candidates "I have had the opportunity to hear him needs," said Marguerite Murray. 37, who su- drops out. He also benefits if some voters de- speak, and I am pretty much on-line with ev- pervises a residential mental health program cide their first choice can't win and go look- erything he says," said Walter Lindsay, a 20- in Charlottesville. think he does have an ing for an alternative. Both Robb and Wilder year-old student from Giles County on the ear for listening and some compassion were the second choice of 21 percent, while West Virginia border, sounding a familiar re- about what the people are facing. He has North was the second choice of only one out frain of North backers. a connection with some people. of 10: The Bible-quoting North also is being re- Among white voters, Robb has 36 percent Those statistics combine to present a. warded for his hard-line antiabortion stance and Wilder has 9 percent. Robb's lead is monumental challenge, and opportunity, for and his call for Christian-based family values. much narrower when it comes to North, who each of the candidates and their consultants. The survey found that among those white has 31 percent support among white voters. By November, they are likely to have shared evangelicals who said they were deeply in- Many people expressed ambivalence in the most costly, and perhaps one of the volved in their church-about 20 percent of about the candidates. most negative, U.S. Senate campaigns in the the electorate-the former White House "I don't think he's an ideal candidate, but if I country's history. had to choose between the two, I would choose Each of the campaigns tried yesterday to military aide is favored by 45 percent. Robb Robb over North," said Brian P. Menard, a 29- put the best light on the survey. won support from 28 percent; 12 percent year-old law student at the University of Vir- Robb spokesman Bert Rohrer said the poll back Coleman; and 4 percent favor Wilder. ginia. "While I won't put Charles Robb's lack of "confirms what we've been saying. It looks Even among North supporters who aren't integrity in the same category as Oliver North. good, but we are taking nothing for granted. sure he did the right thing in the Iran-contra clearly he has shown to me at least a lack of It's going to be a long, difficult campaign." affair, there is a feeling, as Roy Eugene Phil- discretion and a lack of good taste." "Any challenger who is within 10 points of potts Jr., of Martinsville, put it, that "he was Kimberly Rilma, a recent high school an incumbent five months out has to be just following orders from the higher-ups." graduate from Hampton who described her- pleased," said North spokesman Mark Mer- "He's a war hero," said James R. Glenn, self as moderate Republican, said: "Honestly, ritt. Recalling that in last year's gubernatori- 64, a farmer from Nickelsville in Southwest I feel that Oliver North is a crook. And I feel al race, in which the Republican nominee- Virginia. "I think [the arms-for-hostages that Charles Robb is a crook, also, but I think and eventual winner-badly trailed the trade] was done under orders and that the he's a productive crook." Democrat at the start of the summer, Mer- news media set him up." Even though the candidates don't satisfy ritt said, "George Allen would have given his North's support isn't limited to the Chris- everyone, interest in the race is high.-With right arm for these numbers." tian Right. Susan P. Jones, a, 29-year-old the election more than four months away, "It's clear voters are looking for an alter- homemaker from Standardsville, is attracted nearly three out of four voters said they're native to Robb and that North is not it," said to his campaign because of his opposition to already closely following the race. Coleman campaign manager Anson Franklin. gun control. Overall, 56 percent of those interviewed "The most remarkable and consistent find- "I think they are taking too many rights said they were satisfied with the candidates ings in the early polls is the unacceptable away," Jones said. "They are going about gun running. In December, before Coleman and quotient [of the other three], especially after control the wrong way. The criminal can al- Wilder entered the race. an equally large Robb and North spent millions to get their ways get a gun, but your average citizen can't majority were dissatisfied with the candi- nominations." go buy a gun now without it being a hassle." dates in the field. Wilder campaign manager Glenn David- On the other hand, North has yet to at- A total of 1,000 randomly selected regis- son, noting that an earlier poll by another or- tract many Democratic defectors. Only 4 tered voters were interviewed by telephone ganization showed the race much closer, June 19-23. Margin of sampling error for the said: "It's difficult for us to put our confi- overall results is plus or minus 3 percentage dence in either poll. And as the governor points. likes to say, the only poll that counts is the one that's taken on Election Day." Senior polling analyst Sharon Warden Robb is running best among women, older contributed to this report. voters, independents and political moder- ates. And according to extended interviews by poll takers with 40 of the respondents, Robb is benefiting from a forgiving electorate, low- ered expectations and opponents who often are viewed even less favorably. Nearly everyone interviewed was aware THE WASHINGTON POST of Robb's personal problems, which began SUNDAY. 11 during his term as governor in the 1980s. 26. 1994 He attended parties with drug users in Vir- ginia Beach and acknowledged marital indis- cretions. "He had such great promise. How sad that he didn't live up to it," said Frances Richard- son, 77, of Falls Church, who is more dis- heartened than she is angry with Robb. "I think he could have gone on and been a good senator and maybe even run for president some time. But he blew it." 35 2/2 "Clinton, in his weekly radio ad- But at the heart of the bill is a reli- ress yesterday, continued an ongo- drumbeat of White House insis- ance on a "managed competition" ap- once on universal coverage. "We've proach to reform, including changes Card a lot about measures lately in the rules insurance companies Vitit wouldn't provide coverage to all must follow, a standard benefit pack- THE WASHINGTON POST "families," he said. "But, make no mis- age and the ability of small firms and take, measures that are halfhearted individuals to pool their purchasing d, at best, guarantee that things power and bargain with insurers for SUNDAY, 26. 1994 Stay only about as good as they are better rates. now; the poor would get health care, In committee hearings, Moynihan Mare wealthy would get health care, has shown a preference for letting the middle class would get it some- the private market fixes work before times and not get it sometimes." allowing the government to get in- Moynihan, who was out of Wash- volved. On more than one occasion ington yesterday, could not be he has revisited the government's reached. His staff did not return failure to accurately predict the cost elephone calls. of the Medicare program for the el- The employer mandate has been derly. Government actuaries pre- proved by the Senate Labor and dicted when it was first enacted in fiman Resources Committee and 1965 that Medicare would cost $9 House Education and Labor billion in 1990. It cost the govern- committee, and is believed to have ment $106 billion in 1990. enough support to pass in the House "Over the last quarter of a centu- ry we have all been wrong" in pre- Ways and Means Committee, which dicting the true cost of entitlement is still debating its bill. programs, Moynihan told First Lady But the House Energy and Com- Hillary Rodham Clinton when she THE MOYNIHAN COMPROMISE merce Committee is deadlocked on testified before the Finance Commit- the issue, and many members do not tee in October. Following are the key provisions of the health reform bill propo favor it. Major elements of the busi- by Finance Committee Chairman Daniel Patrick Moynihan (D-N.) community have mounted an unprecedented district-by-district WHO PAYS grass-roots and media campaign to Voluntary. No requirement that employers or individuals buy lobby against it. insurance. On the other side, labor unions, consumer and senior citizens groups, There are government subsidies for low-wage firms that pay 8 health professionals and elements of percent of their workers' insurance cost. the insurance industry favor the em- Small businesses that pay at least 50 percent of their workers' ployer mandate to pay for what they health costs can enroll in the existing Federal Employee Health agree with Clinton is the bottom line Benefits Program. of an acceptable plan-one that pro- Full government subsidies phased in for low-income people. vides universal coverage. Employers must offer at least three health plans, including a Finding a middle ground that is fee-for-service plan. acceptable to enough members on both sides of the issue is the ultimate UNIVERSAL COVERAGE of whether the legislation will If 95 percent of all Americans do not have insurance by 2000, tl pass. a National Health Care Commission would recommend ways to Moynihan, according to congres- achieve that goal. If Congress did nothing, the recommendations sional sources, believes he has found would take effect. If Congress substituted other measures, it WOU acceptable middle ground by pro- have to vote on them by the specified deadline-helped by fast-t viding a mechanism to achieve uni- procedures. If it wanted to reject the recommendations, it would r versal coverage-redefined as 95 to hold a full debate and vote to do so before the deadline. percent of the population-that is BENEFITS flexible and still allows Congress a way around compulsory insurance All insurance plans would have to offer a standard package of payments by employers or individu- health benefits equivalent to the Blue Cross/Blue Shield Standa als. Option plan available to federal employees, currently worth abo The plan would give a new nation- $4,800 for an annual family policy. al commission-a seven-member There would be annual limits on out-of-pocket exper inclu body nominated by the president and co-payments, deductibles and coinsurance. approved by the Senate-authority A "catastrophic" option with a deductible of at least $5,000 to determine why more people are would also be available. not insured and the flexibility to tai- lor a remedy. It may turn out, propo- COST CONTROLS nents of the proposal argue, that Annual insurance premium targets would be set. If exc led. there is some unforeseen problem National Health Cost Commission would recommend to Congre that an employer or individual man- ways to meet targets. Congress must vote on recommendations date would not fix. Congressional fast-track procedures. ability to reject the recommenda- Controls against deficit spending would be imposed, automat tions would be limited. reducing subsidies if government health spending increased the The Moynihan plan contains sev- deficit, unless Congress finds some other way to eliminate the eral incentives for employers to vol- deficit spending. untarily provide coverage for their INSURANCE MARKET REFORMS workers. It would offer subsidies, for example, to employers of low-wage No termination or nonrenewal of coverage, except for workers, but only if the employers nonpayment or fraud. voluntarily pay 80 percent of their No exclusion from coverage of a preexisting condition for mo workers' insurance costs. than six months from the date of enrollment. Unlike Clinton's plan, and the ma- Insurers would be required to "community rate" with limited jor congressional variations of it, variations for geography, family size and age. Moynihan's proposal also stops short of government-imposed controls on Voluntary insurance purchasing cooperatives would be availa for individuals and for firms with fewer than 500 workers. increases in the price of insurance premiums. Instead, it would set an- MEDICAID AND MEDICARE nual targets for such increases and Most Medicaid recipients treated like other low-income peop give a new National Health Cost Provisions to facilitate enrollment of Medicare recipients in + Commission authority to recom- and other certified managed care arrangements. mend ways to reduce costs, such as scaling-back the standard benefit FINANCING package or imposing premium ceil- Money for subsidies would come from Medicare and Medica ings. Congress would have to vote savings, a tax on cigarettes, cigars, guns, ammunition, insurers on the recommendations using fast- a 1 percent tax on firms with more than 500 employees. track provisions with limited debate. 37 2/2 THE WASHINGTON POST SUNDAY. 26. 1994 Carter's Call From N. Korea CARTER, From A1 Looms Large lated states out of its ambition to join the select ranks of nations posses- sing nuclear weapons. Concession to Ex-President The key to this abrupt policy shift, according to several participants in Created Opening for U.S. the White House meeting and many others familiar with the events, was Washington's decision to seize a By R. Jeffrey Smith small North Korean concession to and Ann Devroy Carter and try to enlarge it. Washington Post Staff Writers That meant taking Kim's limited President Clinton and his top nation- and somewhat vague pledge to Cart- al security aides were well into the sec- er, and transforming it into a more ond hour of discussing a plan to build concrete and slightly wider North Ko- up U.S. military forces in South Korea rean promise to put on hold its most when a secretary interrupted to say worrisome nuclear activities. Gallucci Jimmy Carter was on the phone. wrote a one-page letter Monday to his The former president was calling June North Korean counterpart, Vice For- 16 from the capital of North Korea, eign Minister Kang Sok Ju, saying where he had met with president Kim Il Washington would enter talks if Kang Sung-the man who ordered the 1950 confirmed Washington's interpreta- tion of Kim's statement to Carter. invasion that started the Korean. War. A ant Secretary of State Robert L. "We didn't have a good message Gallucci hurriedly left the White House [from North Korea]-we made it up" Cabinet room to take the call about by turning North Korea's offer into 10:30 a.m., idling the discussion. something that provided an opening Gallucci returned 30 minutes later for negotiations, one official said. The and diplomatic sanctions against decision was to "frame our answer [to with a startling message: Carter would North Korea faced tough opposition Carter's public statement] in terms of shortly appear live on Cable News No from China, and had at best lukewarm what we wanted to hear," another work to convey what the former presi- support from Russia, Japan and South official said. dent considered a dramatic break- Korea. Kim had pledged to Carter that through in the long-standing dispute Moreover, the significance of the North Korea would leave international over North Korea's suspected develop- coming Geneva talks remains an open inspectors in place at North Korea's ment of nuclear weapons. question. If North Korea is bent on Yongbyon nuclear complex, and freeze Vice President Gore, Secretary of building a nuclear arsenal, its involve- its accumulation of plutonium if Wash- Defense William J. Perry, Secretary of ment in new diplomacy will eventually ington entered high-level talks. Pluto- State Warren Christopher and the oth- be seen as a clever but devious move. nium is a key ingredient of nuclear ers filed into a cramped, adjoining of- arms. This offer had been made be- By playing a good host to a former fice, equipped with a television set, to fore. U.S. president, the country was able watch Carter. They were flabbergast- to derail the U.S. drive for sanctions. In response to the Gallucci letter, ed when the former president de- however, Washington obtained North And, as some congressional critics scribed Kim's promises as a "very posi- Korean promises not to refuel the have emphasized, one of North Ko- tive step" and urged the administration Yongbyon atomic reactor and specifi- rea's principal promises, not to repro- to withdraw a two-day-old proposal for cally not to conduct more reprocess- cess used fuel to make plutonium, has mild sanctions against North Korea. ing of used nuclear fuel to make pluto- no immediate effect. That's because "It looked as if we were contracting nium. The United States also obtained the fuel is so radioactive, or "hot," that out our foreign policy, like we were by- a less tangible but critical piedge by it cannot be reprocessed anyway for standers and had totally lost con- North Korea to maintain "the continu- awhile while it is cooled in a storage trol of it," a White House official later ity of safeguards" at the nuclear pond. If North Korea wants to, it can recalled. site-a phrase Washington internets find a reason to withdraw from the For many in the room, nothing to mean that the inspector do talks in several months and have seemed new in what Kim reportedly whatever they please. enough plutonium by the end of the had said. But after the shock and frus- The United States granted North year for four to five nuclear weapons. tration had waned, with Go urging Korea the diplomatic talks that the Such an outcome would make everyone to set aside their emotions, communist nation strongly desires, Carter and the Clinton administra- Clinton and other officials cleared their which North Korea hopes will demon- tion look like dupes. afternoon schedules and held a two- strate that it plays an important role If on the other hand the new talks hour discussion that sharply altered the in world affairs. The talks, between succeed in shutting off the North direction of U.S. policy on Korea. Gallucci and Kang, are scheduled to Korean nuclear effort, the Clinton Having begun the day in a grim begin in Geneva on July 8 or 11. administration's decision to seize the council of war-discussing sending Administration officials likened diplomatic opening provided by Cart- new planes, ships and troops to South their strategy to the one that Attor- er's awkward visit will be seen as a Korea for a possible horrible conflict- ney General Robert F. Kennedy had master stroke that brought the Ko- the senior officials had by mid-after- advised during the 1962 Cuban mis- rean peninsula back from the brink noon switched to a new embrace of di- sile crisis. Then, Moscow made a of another conflict. plomacy. promising but unsatisfactory offer to If the man calling from North Ko- After quick consultations with key settle the crisis that Washington in- rea in the middle of the White House U.S. allies and lawmakers, the military terpreted to mean what it wanted. meeting had been any other of the buildup plans were put on hold, so To be sure, the administration was many Americans who have gone there Wa ington could again try to talk one making the best of a difficult situation. recently. the White House could have of the world's most xenophobic and iso- Its drive for United Nations economic ignored him. But an ex-president of See CARTER, A10, Col. 1 12 THE WASHINGTON POST SUNDAY, JUNE 26. 1994 Doctors Score Victories In Battle on Health Bill AMA-Approved Provisions Advance on Hill By Spencer Rich other services for an illness that an Washington Post Staff Writer HMO could treat by less costly methods. In the struggle over a new health In a "pure" HMO, the patient system, doctors have won some ma- must use only the accepted doctors. jor congressional battles in recent To succeed, the HMOs contend they weeks. must be able to exclude wasteful The aim, in the view of the Ameri- doctors. can Medical Association, is to pre- Jost says a new "point of service" vent HMOs and other insurers from requirement approved by the Ways imposing undue constraints on physi- cians' freedom to practice good and Means Committee Thursday medicine and patients' right to night on an amendment by Rep. Bill choose a doctor. Brewster (D-Okla.) would "gut" the AMA President Lonnie R. Bris- "ability of HMOs to manage care." tow charged recently that to control It requires all HMOs to allow any costs, insurers are increasingly leav- patient at any time to use any doctor ing doctors and patients with less outside the HMO's panel of doctors, control over their health treatment with the HMO required to pay part decisions and are setting up rules of the fee. "Anyone could go out to that make it difficult for doctors to any specialist and get a procedure, exercise their medical judgment. test or operation whether we think Elements of what the AMA calls he needs it or not. the "Patient Protection Act" but crit- The effect is to turn every HMO ics have labeled largely a doctor-pro- into an old-style fee-for-service tection act have been incorporated plan," Jost said. Many HMOs, do of- in three major health bills moving fer plans that have an option of this through Congress. Other AMA-fa- type, at a premium that reflects the vored provisions that HMOs contend added cost to the HMO, she added, could severely damage their opera- but for quality care at the lowest tions have been adopted by the price, it is essential for HMOs to re- House Ways and Means Committee. tain the HMO-doctors-only option. Diana Jost, vice president of the The Ways and Means Committee Group Health Association of Ameri- also approved, 20 to 17, an amend- ca, an HMO umbrella group, said, ment by Rep. William J. Jefferson "These provisions go straight to the (D-La.) requiring every HMO (ex- heart of what makes an HMO an HMO, and destroy our ability to pro- cept those using salaried doctors and Kaiser and HIP of New York) to ac- vide high-quality care at lower costs." cept as part of its doctor network The disputed issues include the any doctor willing to accept its fee right of HMOs to hire and fire doc- schedule. tors, to allow their patients to use Jost said that if this "any-willing- only the doctors deemed able to pro- provider" requirement is absolute- vide good service without waste, and and would apply even in cases where to set treatment rules. the HMO does not need any more Prepaid HMOs (health mainte- doctors-it would wreck an HMO's nance organizations) such as Kaiser, ability to choose only the most effi- which provide all services needed for cient doctors. But House aides said a fixed annual fee, historically have the Jefferson amendment applies on- kept their costs lower than fee-for- ly to unfilled slots. service policies. What is clearly driving this dis- They do this in part by managing pute, said a House staffer, is public the care they provide to see a pa- fear that people will be unable to tient does not wander from one doc- choose their doctors. "The freedom- tor to another. repeating tests or ob- of-choice argument has gone over taining surgery, hospitalization or big and people are worried about it." Robb Says He'll Ask Clinton to Help in Campaign By Peter Baker But facing a four-way race in country, I suspect. It's very in the party expected Reilly to side Washington Post Staff Writer which a third of the vote may be much on his radar screen. I'm not with Wilder, she appeared today enough to win, Robb is targeting going to run away from him at all." wearing a Robb button and declar- CHARLOTTESVILLE, June his appeal to more liberal party loy- By wrapping himself in the Clin- ing herself in his camp. 25-Sen. Charles S. Robb (D-Va.) alists who support Clinton, accord- ton cloak, however, Robb feeds in- "Chuck won fair and square," she plans to invite President Clinton to ing to analysts. to the strategy of Republican Oli- said of this month's Democratic campaign with him in Virginia this "I know it energizes our friends ver L. North, who regularly attacks primary. But she acknowledged fall, a move that could help shore on the other side, but I look for- Robb as a rubber stamp for the that endorsing him "was the most up his Democratic base but also ward to working with and running president's liberal social and tax difficult decision I ever had to THE WASHINGTON POST make it easier for Republicans to with SUNDAY. JUNE 26. 1994 a very able and dedicated policies. make. I mean, I love Doug Wilder. I paint him as a Clinton clone. and hard-working president of the Robb's appearance before the think he'd make a wonderful sena- In any other year, appearing United States," Robb told a meet- central committee prompted a dis- tor." arm-in-arm with Clinton could be a ing of the state party's central play of party unity for the incum- Hoping to prevent many defec- mistake for a Democratic candidate committee today. bent. The audience of 200 passed a tions, party Chairman Mark R. in this generally conservative state, In an interview after his speech, resolution supporting his reelection Warner sternly warned those who which went for Republican George Robb said he had spoken to Clin- and gave him repeated standing plan to support Wilder to quit their Bush in 1992 and, according to ton about his reelection campaign ovations. party posts immediately. polls, thinks even less of the presi- several times in the last week. "At Among those on hand was Mame "We're going to expect them to dent today. some point I expect that he will be Reilly, a member of the Democrat- do the honorable thing and resign," As recently as last fall, guberna- making an appearance," Robb ic National Committee and a long- he told the crowd. torial nominee Mary Sue Terry said. time confidant of former governor Although most stood to applaud pointedly did not invite Clinton to "Each time, he's talked about it, L. Douglas Wilder, who has bolted Warner's admonition, about one- Virginia and repudiated some of his and he's following the race as from the party to run against Robb third of the crowd remained seated policies. closely as any other race in the as an independent. Although many and silent. 69 MARY McGRORY Good Soldier Sam McGRORY, From C1 papers, where lobbyists sit grimly sizing up their prey Immediately, the bickering Democrats fell in line, the incident-"insignificant, a footnote," he said. At a and where Republicans offer amendment after giving chairman Gibbons a run of straight party-line votes caucus scheduled to last into the night, Democrats own-and had to back up when the Congressional Budget amendment to a bill they have announced they will vote that set Democratic leader Richard Gephardt to praising promised it would never happen again. Office could not do the arithmetic until mid-July, long against. them for "doing a great job in a tough situation." Gibbons says it is fitting that the lower House prod the after the deadline he had set had passed. The Democrats were slogging along when they But if Grandy could give, he could also take away. lordly Senate into action. "All the really big Last week it was Gibbons's turn for the standing O. He suddenly got a break. A Republican blurted out the There followed one of those episodes that makes health gave the meeting of Democratic whips a report about his programs-Social Security, Medicare, Fair Housing. worst-kept secret in town: His party's leaders, despite care so confusing and the outcome hard to predict. committee's progress on the bill that Bill Clinton says he have originated in the House. They always put on the much protest that they really wanted health care reform, Grandy introduced an amendment calling for hearing aids has to have. Colleagues had been reminded that the better show over there [in the Senate], but we do the were behind the scenes urging members to sabotage it. for poor children. Rostenkowski, who sometimes forgets modest chairman had been one of the brave warriors at Rep. Fred Grandy, a moderate Republican from lowa and he is no longer chairman, reared up and reminded Grandy heavy lifting." Normandy. He jumped with his unit on D-Day. The members of the Ways and Means Committee, who like co-sponsor of the Cooper bill, told the world that Minority that Ways and Means has a pay-as-you-go rule-no He likes being (acting) chairman even better than he him, led the applause. Whip Newt Gingrich had given him his "marching orders" proposals without funding provisions. Grandy retreated. thought he would. He thinks he's up to it. Gibbons is surrounded by a large staff of professionals not to cooperate in any changes that might improve the But 24 hours later, he was back with the hearing aids and "I think I am trained for it," he said. That is what made on the committee, many of whom mean Rostenkowski bill and its chances for passage. a one-half-of-1-percent reduction in insurance subsidies us do so well in Normandy, the immense amount of when they refer to "the chairman." He presides at long, "We now have a leadership that preempts policy with to pay for them. He peeled off six Democrats, who voted training. You tend to do automatically what other people grueling sessions in a hearing room the size of an airplane politics." Grandy said in a sound bite that was music to against his funding scheme but for his proposal. Was this have to pause and think about. You listen, decide, try to hangar, where people are constantly darting about with Democraticiears. the beginning of the end of discipline? Gibbons dismisses lead." THE ASHINGTON POST MIN. 26. 1991 MARY McGRORY Good Soldier Sam NE OF THE FEW genuinely happy Democrats on Capitol Hill is 74-year-old Sam Gibbons of Florida. He is living a dream come true. After 25 years of yearning, he has become acting chairman of the House Ways and Means Committee. When Dan Rostenkowski was indicted, the gavel passed to Gibbons, an unassuming man whose ears stick out and whose eyes water and whose philosophy is that of the infantryman: one step at a time. He knows that colleagues in both chambers think he is dreaming when he says that a health care bill will come out of committee next week. pass the House, go to the Senate soon after and land in a House-Senate conference that will give the Clintons most of what they want. They think the euphoria he feels at being in charge at last is affecting his judgment. With health care, you never know. Two months ago, George Mitchell went to a Democratic retreat and brought his fellow senators to their feet, cheering his fight talk on his swan-song push for health care. The spotlight then swiveled to Jim Cooper. youthful author of an alternative bill that roused Hillary Clinton's ire, then to Senate Finance Committee Chairman Pat Moynihan, who told the president there was no way to get employer mandates. He announced the need for speed, promised a bill of his See McGRORY, C3, Col. 1 Mary McGrory is a Washington Post columnist. NCTON POST SUNDAY, JUNE 26, 1994 C7 William J. Bennett Credit the Christian Right I have been an ally of the conserva- standpoint of politics and religion. the self; and does not endorse unfet- tive Christian political movement for And some of the "Christian right" are tered freedom. Christianity is about the last decade. If the portrait now guilty of overheated, offensive and right and wrong. And politics is, too. being painted of it were anything reckless statements. But every politi- ("It is the cardinal issue of goodness € to being true, I would have long cal movement has extremists who do or badness in the life of the polis ago dissociated myself from it. But in not represent the movement as a which always engages the attention of fact, Christians active in politics are whole. What is fundamentally unfair is any state that concerns itself to se- now on the receiving end of an ex- the attempt to take the fringe ele- cure good laws," according to traordinary campaign of bias and prej- ment of this (or any) movement and Aristotle.) udice. argue that it is central and defining. Many Christians assume that the Consider a few recent examples. The vast majority of conservative Democratic Congressional Campaign charges leveled against them are Christians are promoting a responsi- Committee Chairman Vic Fazio la- based on a misunderstanding of-the ble (and mainstream) political agenda. beled conservative Christians the fundamental aims of their political What do they seek? Things like safe "fire-breathing Christian radical movement. It may be that the critics streets, good schools, strong families, understand all too well the aims-the right." Texas Gov. Ann Richards calls nonintrusive government and commu- moral aims-of the movement. And them "hatemongers." The Anti-Defa- nities where people care for one an- that is what gives offense. mation League published a book ac- other. Good things all. And not, one cusing the "religious right" of bringing A cultural divide exists in this na- would think, particularly controver- "a rhetoric of fear, suspicion and even tion. Where we can bridge the di- sial or "divisive." hatred" to cultural disagreements. A vide-where liberals and consérva- During the last three decades a lot recent New York Times editorial re- tives can find common ground-we has gone wrong in America. Our soci- ferred to conservative Christians as should. Where we cannot, we should ety is far more violent and vulgar than "sir er," "retrograde" and "exclu- engage in a robust, spirited, civilized it used to be. We have experienced sionist." debate. But people of goodwill should enormous increases in violent crime, This is not political discourse. It is not allow this vital national debate to out-of-wedlock births, abortions, di- argument by invective. It is worth be sidetracked by mudslingers. vorces, suicides, child abuse and wel- reflecting on how liberals and the Our political culture has sunk to the fare dependency. The answer to mainstream media would respond if point where people who have time- much of what ails us is spiritual and similar things were said by conser- honored religious beliefs that inform moral regeneration. Yet some liberals vatives about, say, homosexuals. Or would have us believe that the great- their politics now become the object feminists. Or blacks. Or Jews. Or of scorn and ridicule. On the issues, est threat to our Republic are people virtually any group actively engaged the "religious right" now stand where with strong religious convictions who in politics except conservative evan- most Americans stood 30 years ago. are actively involved in politics. This gelical Christians. Such criticisms The irony is that the critics of the is nonsense. would of course unleash, and rightful- "Christian right" are often guilty. of The attempt to discredit the con- ly so, a tidal wave of criticism and the things they profess to be offended servative Christian movement is an condemnation. But when it comes to by: intolerance, mean-spiritedness, di- attempt by some to discredit its un- Christians, apparently it is open sea- visiveness and even bigotry. derlying philosophy. Christianity son. makes normative claims; stands The writer, a former secretary of There are inherent dangers in po- against moral relativism; is the anti- education, is co-director of Empower liticizing religious faith-from the thesis of the modern age's worship of America. 63 Harry and Louise Get Queasy Die Harder: A Clinton Health Plan Conservatives Will Love By Robert Hirschfeld I n a calculated effort to attract conservative support for his health care proposal, President Clinton today announced new provi- sions including a tough stance on heart treatment he referred to as "three strokes and you're out-pa- tient." The policy would actually broadly apply to any serious ailment requir- ONLY ing intensive care. Citing the need to cut medical costs, Clinton explained that the government can no longer afford to pay for those who need continuing medical care. "We simply don't have the money for the hangers-on," the president stated in the White House press room. He was wearing a dark blue suit with pleated cuffs complemented by a crisp canary yellow tie and black Ox- fords. Clinton also proposed a five-day waiting period for all surgery to al- low for a background check by a team of government bureaucrats to ascertain whether cheaper alterna- tive procedures would be appropri- ate, such as blood-letting. During this time patients would be heavily sedated to alleviate any discomfort they may feel when informed of how much of the surgery's cost will have to come out of their own pockets un- der the new guidelines. The president expressed new flexibility toward his previous insis- BY ROB SHEPPERSON FOR THE WASHINGTON POST tence on universal coverage, which has met resistance in Congress. the healthy. Businesses shouldn't be han thought a scaled-back version Clinton indicated that he would be forced to divert profit to prop up the consisting of bandages and aspirin willing to accept coverage just for weak, the feeble and a bunch of had a better chance of passage. earth now and allow the other plan- mealy-mouthed hypochondriacs," he Opposition to the Clinton plan is ets in the universe to be phased in stated gruffly. also being fueled by the influence of over a prescribed amount of time. Concerns about funding for the the insurance industry's "Harry and. The reaction on Capitol Hill was plan were raised by a revised report Louise" TV campaign. In the latest swift and not what the president from the Congressional Budget Of- ad, the couple who spend their lei- may have hoped for. Senate Minori- fice. Contrary to its previous esti- sure time reading the Clinton pro-- ty Leader Bob Dole said it wasn't mates for revenues generated by posal are shown sterilizing a Ginsu enough to head off a stalemate in cigarette taxes, the latest figures knife set with a do-it-yourself sur- Congress. "We have to face the fact project a decline by nearly one-half. gery book in supposed preparation that health care assistance perpetu- A CBO researcher explained that for the enactment of the plan. The ates illness. We have allowed whole they had forgotten to factor in the filming of the spot, which took place generations of Americans to develop shortened life expectancy for smok- in Los Angeles, was evidently inter- a dependency on the government for ers. A tobacco industry spokesman rupted when the actors fled the stu- this. It has caused people to lose disputed that assumption and assert- dio in order to wave to OJ. Simpson their incentive to work toward stay- ed that it is increased taxes that as he drove by on an adjacent free- ing healthy," Dole explained before a causes death. way. group of reporters gathered outside. Perhaps the most serious setback One influential senator, who asked not to be identified, requested ano- A dding to the grim outlook for to the president's efforts for health action on reform, Sen. Daniel care reform came unexpectedly from nymity and spoke off the record, was Patrick Moynihan, appearing former President Jimmy Carter, who: even more critical. "We have got to on "Beat the Press," said that even appeared to belie the White House: stop pussy-footing around with re- with the new provisions, the presi- contention of urgency for passage. Af- form. Health care should only be for dent's plan is so lavish and overly ter meeting privately with Republican generous that it's nearly as expen- opponents to the plan, Carter ap- Satirist Robert Hirschfeld is a sive as the health care program peared on CNN and announced that freelance television producer. members of Congress have. Moyni- the health care crisis is over. 66 George F. Will Good Limits, State Limits The Supreme Court, which last week agreed to rule Constitution, nor prohibited by it to the States, are on the constitutionality of state-imposed limits on the reserved to the States respectively, or to the people"), number of terms members of the U.S. House and that the states cannot add qualifications. And they say Senate can serve, sits across the street from the term limits constitute a fourth qualification. But wait. Capitol. So when the justices consider the Arkansas Fifteen states have passed term-limits laws. Up to Supreme Court's ruling that that state's term-limit law seven more may pass them this fall. The courts denying is unconstitutional, nine pairs of eyebrows may be the constitutionality of state-imposed limits make much raised concerning the crucial four sentences: of a manifestly inapplicable case, the one concerning "If there is one watchword for representation of the the late Rep. Adam Clayton Powell of New York. various states in Congress, it is uniformity. Federal In it the Supreme Court ruled that one house of legislators speak to national issues that affect the citizens Congress, when exercising its power to "judge" the of every state. Additional age restrictions, residency qualifications of members, unconstitutionally adds to requirements, or sundry experience criteria established the enumerated three qualifications if it excludes a duly by the states would cause variances in this uniformity and elected member because of his behavior. But this case lead to an imbalance among the states with respect to is irrelevant to the question of state powers to regulate who can sit in Congress. This is precisely what we believe elections. the drafters of the U.S. Constitution intended to avoid." What is relevant is the history that the Arkansas Well. The second sentence is refuted by a glance at the court ignored. As the Supreme Court noted 20 years federal budget or the workings of a congressional office. ago, states have evolved comprehensive and complex- And even were the second sentence true, the first and different-codes regulating not only the time, sentence is false, the third is an opaque non sequitur, and place and manner of elections but also "the selection the fourth is disproved by what was done contemporaneous and qualification of candidates." States began doing so with the drafting of the Constitution, and subsequently. immediately after ratifying the Constitution. They Regarding the second sentence, the justices surely know wrote laws requiring, for example, candidates to be what transpires across the street. The Founders' under- property holders and-the Constitution is silent on standing of federalism-Congress would concern itself only this-to live in the district they wish to represent. with truly national issues; states would do most of the Did the Framers mean to prohibit states from doing legislating regarding domestic matters-bears no resem- what states immediately did? Not likely. The Framers blance to today's practice. Today senators and representa- knew how to prohibit state actions when they wanted to tives occasionally speak to truly national issues, but most (which, being believers in federalism, they rarely did). devote most of their time to the parochial business of And the most important Framer, Madison, was elected benefits for their state or district, and constituency service. to Congress under a Virginia law stipulating the qualifi- The Arkansas court did not, because it could not, cite cation that candidates must be freeholders. the Constitution's text, or the Constitutional Convention In modern times millions of Americans have been debates or the states' ratification debates to prove that disqualified from running for Congress by "little Hatch "uniformity" among the states in regulating elections is a acts" by which some states prohibit public employees fundamental constitutional value. And the Arkansas court from being candidates. These and many other state was arbitrary and murky in asserting that uniformity is laws restricting ballot access (to persons who win supremely important because "imbalance among the primaries, or otherwise demonstrate support, or have a states"-whatever that might mean-is bad. party affiliation, and so on) have passed constitutional Opponents of term limits say the three qualifications muster. for federal legislators enumerated in the Constitu- "Uniformity" has never existed regarding states' tion-age, citizenship, state residency-are not mini- regulations of candidacies for the national legislature. mal but exclusive. They say, based on nothing the Furthermore, it is an aspiration antithetical to the spirit Framers said, and in disregard of the 10th Amendment of federalism, the revival of which is an ancillary benefit ("The powers not delegated to the United States by the of the term-limits movement. 65 6/26/94 lies not in more talk from the president and his advisers by moderate Republicans and Democrats on the Senate which tends to confuse and alarm the public but less, Finance Committee, that was unveiled this week but fell according to former White House press secretary Marlin short of meeting the president's bottom-line demand on Fitzwater. `The problem is every time he tries to show coverage. people he knows the subject, he defeats his own purpose," The much-discussed compromise would require neither said Fitzwater, who was spokesman for Presidents Bush and employers nor individuals to buy health insurance but Reagan. "He should know enough to be careful not to say would rely on market reforms, tax breaks and vouchers for too much." the poor to achieve coverage for 95 percent of Americans Whether the crisis of the day is in Pyongyang or by the year 2002. Sarajevo or Kigali, the president should explain American ``Half measures, quick fixes, things that sound better interests in an easily understood form and refrain from than they actually will work will only make matters musing aloud about complex, fast-changing international worse," the president said. ``Make no mistake, measures crises, Fitzwater said. that are halfhearted would, at best, guarantee that things "In the absence of policy, too often your stay only about as good as they are now communications are swept up in response to questions and the poor would get health care, the wealthy would get they always relate to action and threats," he said. ``All health care and the middle class would get it sometimes. we've seen is either (Vice President) Gore or the "We have to help middle-class Americans whose president making threats of one kind or another. My advice economic success is the key to America's prosperity know to them would be to settle on two or three brief points that they will always have health security, even if they that make a case for our policy and, whatever the have to change jobs or if they lose their jobs," he said. question, repeat those points and reassure the public His remarks came as the House Ways and Means Committee (that) they are staying on top of the issue." held an unusual Saturday session in an attempt to finish work on its modified version of Clinton's plan by the end (Optional add end) of this week, before Congress leaves on its Fourth of July break. Following Fitzwater's advice might have spared Clinton Acting mainly along party lines, the panel beat back a embarrassment over the last year as he has been forced to series of Republican attempts to modify the bill, retreat from threats and evolving policies around the rejecting a proposal to make prescription drug coverage globe: optional for Medicare beneficiaries. Had Clinton not promised vociferously to revoke China's "We are making very substantial progress on this most-favored-nation trading privileges if Beijing did not legislation,`` said Rep. Sam Gibbons, D-Fla., acting improve its human rights record, he would not have had to chairman of the committee. But Gibbons said the sheepishly back down a year later. controversial topic of cost containment would be taken up If he had not threatened Haiti's coup leaders with when the panel resumed its mark-up sessions on Tuesday. military action, he would not have had to face the The president, noting that 15 percent of the U.S. ignominy of weeks of inaction while the Haitian generals population lacks health insurance, said even those who are consolidated their power and did great harm to their now covered cannot be sure they will be protecter against enemies. medical costs in the future. If he had not noisily brandished the sanctions weapon against North Korea and hinted at the possibility of war (Begin optional trim) on the Korean peninsula, he would not have had to explain how Carter's brief visit to Pyongyang could produce ``Actually, not all Americans face this kind of risk," ``hopeful signs" that the crisis might be ended quickly Clinton added in a message apparently aimed at the and peacefully. lawmakers who are considering health care reform. One senior White House official said Clinton aides ``Members of Congress, along with the president and all understood from the beginning of his presidential campaign federal government employees we have a great deal right that Clinton's habit of thinking aloud would be a major now. challenge. "Now I believe every working American deserves these We hoped at first that all of you, the press and same benefits and that same guarantee," Clinton said, Washington in general, would adapt to his style and appealing to his listeners to tell members of Congress understand that he likes to try out ideas in public," the that they share his belief. official said. "But we got over that hope pretty quickly." (End optional trim) The heart of Clinton's plan mandating employers to pay 80 percent of health care costs was assailed by Rep. H. James Saxton, R-N.J., as a job-killing, wage-cutting provision that was unacceptable to the American people. ``Mr. President, it's not that the American people are Clinton Denounces Half Measures on Health Reform unwilling or unable to understand your plan," Saxton said (Washn) in a Republican response to the president's radio talk. By William J. Eaton= (c) 1994, Los Angeles Times= ``It is that the American people have rejected your big-government, high-tax approach." WASHINGTON President Clinton said Saturday he hoped to (Optional Add End) provide all working Americans with the same ``great deal" on health insurance that he shares with The GOP spokesman argued that Congress should pass more members of Congress and other federal employees. limited legislation to bar denial of health insurance In his weekly radio address, the president stood firmly coverage for pre-existing conditions, to reform medical behind his renewed call for universal coverage and malpractice laws and to allow smaller firms to pool risks denounced "halfhearted measures" that he said would not that would lower their insurance costs. assure medical insurance protection for all families. Clinton clearly was referring to a new proposal, backed Los Angeles Times first-edition Page 1 for Sunday, June 26, 1994: Much Talk, Little Substance Mark Clinton Foreign Policy Top of page: (Washn) By John M. Broder= (c) 1994, Los Angeles Times= Col 1: When voters in 1988 agreed to slap an additional 25-cents-a-pack tax on cigarettes, they also launched an WASHINGTON Late last month, in the aftermath of yet unprecedented state-wide experiment in persuading another administration foreign policy embarrassment the California smokers to kick their nicotine habit. Using abrupt reversal over linking trade with China to human the new tax in the cause of public health, the state's rights improvements there President Clinton said there tobacco control program has set out to ban tobacco. was nothing wrong with his foreign policy that better communication could not solve. Col 2: Southern California's role in the gay rights Clinton acknowledged in a recent interview with the Los revolution. Angeles Times that his inability to articulate his administration's foreign policy goals "is not inspiring Cols 3-5: Russia was critical to liberating Berlin in people's confidence in me." He said that, if he were World War II, but now that post-Cold War occupation forces better able to communicate his goals, Americans would be are going home, the Russians are not invited to celebrate more comfortable with his policies. with the other Allies. (With art.) (GERMANY-RUSSIANS, So in recent weeks, the White House has hired a new moved.) foreign policy spokesman, begun regular high-level communications strategy meetings and put the president on Col 6: President Clinton holds firm to his demand that display more often to demonstrate his grasp of foreign health care reform include universal coverage, as the affairs. House Ways and Means Committee continues its deliberations But while Clinton may believe that failure to on a health care bill. (HEALTH, moved.) communicate is at fault, others see a more troubling problem the tendency to communicate more while having Above fold: less to say. Clinton's new expansiveness has exposed the sometimes Col 2: Taco Bell's decision to keep its 1,000 tortuous path that his thinking takes to arrive at foreign headquarters jobs in Southern California rather than flee policy decisions. Many outside observers and some senior to Texas is being heralded as an important corporate White House aides believe Clinton would be more endorsement of a new, smarter and more business-friendly convincing if he would reserve comment on foreign affairs California. until after he has made up his mind what to do. Despite recent attempts to improve the presentation of Cols 3-4: With less than a week to prepare for O.J. administration policy, the dispute with North Korea has Simpson's preliminary hearing, prosecutors hunker down to been marked by crossed signals, mixed messages, empty sift through evidence and set their strategies for the threats and the unusual spectacle of a current and a unanticipated ``mini-trial" in which a judge will rule former president at odds over American policy. whether there is probable cause to believe the former The performance is reminiscent of earlier foreign football superstar murdered his ex-wife and her friend. policy troubles in Bosnia-Herzegovina, Somalia, Haiti and (SIMPSON-TIMES, moved.) China in which Clinton and his advisers talked tough but did not follow through with forceful action. Below fold: As he did with Bosnia last year, Clinton talked about putting together an international coalition to punish Col 4: At the Iowa Republican Party's 1996 presidential North Korea before he had done the groundwork with straw poll, the delegates cast just over 26 percent of the American allies. Both attempts at concerted international ballots for Senate Minority Leader Bob action failed. Dole. (GOP-TIMES, moved.) White House aides, concerned that Clinton had not clearly spelled out American interests in Korea and the Bottom of page: administration's policy for dealing with North Korea's nuclear ambitions, persuaded the president to disrupt his Cols 1-2: For some of the most emotionally gripping schedule and make an unplanned appearance in the White scenes in the rapidly unfolding drama of O.J. Simpson, the House briefing room last week. man at center stage has been Robert L. Shapiro, an Clinton gave a rather long talk on why Americans should attorney known as a discreet advocate who is particularly care about what happens in Korea and explained that he was deft at damage control. (SIMPSON-SHAPIRO, moved.) trying to put together an international coalition to thwart North Korea's efforts to produce nuclear weapons. Cols 5-6: Los Angeles Mayor Richard Riordan, who But within a day, his effort to rally U.S. allies to pledged during his campaign to separate his substantial impose sanctions against North Korea was undercut by business holdings from any official actions, helped win former President Carter's statement that sanctions would approval last year for a rail project that has brought be counterproductive and should not be part of American hundreds of thousands of dollars to a company in which he policy. holds a major stake. Clinton appeared in the briefing room again Wednesday to announce the good news" that North Korea had agreed Sent: 10:30 p.m. EDT. For questions, call (800) to freeze its nuclear programs while Washington and 283-NEWS, ext. 77832. Pyongyang engage in high-level talks. But the president acknowledged that North Korea may not be sincere and said Los Angeles Times-Washington Post News Service= he would reassess American policy again if Pyongyang reneges on its promises to open its nuclear facilities to inspection. The answer to Clinton's communications difficulties 75 The Washington Times SUNDAY, JUNE 26, 1994 PETE DU PONT ark Twain concluded that bind the rest of us. M that "There is no dis- tinctly native criminal Rosty, Workplace safety rules, civil rights acts, sexual harassment poli- class except Congress." cies, minimum wage laws, union With Rep. Dan Rostenkowski's indictment on 17 criminal counts, Congress rules, Equal Employment Oppor- tunity Commission regulations, the American people may be ready handicapped discrimination pro- to believe it. and the hibitions, the Family Leave Act - I was elected to the House of all apply to us, but not to them. Representatives in 1970 and served Once newly elected congress- three terms. Congress was, of men arrive in Washington, secure course, partisan and political in every action it took. It also had sig- rule of law in the knowledge that the election rules will see 98 percent of them nificant corruption problems even re-elected for life, and see they are them Three of the five subcommit- response to the Rostenkowski above the law in some areas, they tee shairmen with whom I worked indictment - "health care is more soon come to believe they are above would later serve time in jail. Rep. important than any one person" - the law in others. Jim Wright, Texas Democrat, the suggests that if one is politically To put it bluntly, if congressmen Majority Leader, would become correct on the issues, 17-count can avoid workplace health and speaker of the House and resign in indictments don't matter much. safety rules in their offices, sexual- disgrace. Since 1970, 24 members The problem in Congress is ly harass the women on their staffs, of Congress have been convicted of twofold: The corruption of holding and discriminate against minori- various crimes and served prison power for too long, and the tempta- ties and the handicapped in hiring, sentences. Nearly two dozen more tion of congressmen exempt from what's a few thousand dollars from have pleaded guilty, plea bargained, some laws to believe they are the till? or religned to avoid prosecution. exempt from all laws. What it is, of course, is a breach Rep. James Burke of Massachu- "Power tends to corrupt, and of trust that is undermining the setts when asked how he could vote absolute power corrupts absolute- entire structure of representative for every spending increase and ly." The truth of Lord Acton's apho- government. against every tax increase to pay for rism is seen in the absolute cor- The endless corruptions will not them, replied, "You think this place ruption of a Congress controlled by end until we - the people - make is on the level?" Mr. Burke was talk- one party for 40 years. Closed rules, it crystal clear to them - the con- ing politics then. We are talking forbidding floor corruption now and the place is amendments to hardly on the level. legislation, Within the last few years we have were in the MIKETIONPON seen the House Bank Scandal, 1970s a rarity. involving dozens of members of Now 79 percent Congress kiting checks, and the of the bills con- House Post Office scandal, which sidered in the has already resulted in eight House are employees pleading guilty to drug under closed or embezzlement charges. The rules. Twice the "Keating Five" S&L scandal House, on party revealed equivalent corruption in line votes, the Senate. refused to even Now comes Mr. Rostenkowski, investigate the Illinois Democrat, another power- very Post Office ful committee chairman, indicted scandal that for warnming more than $500,000 dethroned Mr. Dan Rostenkowski from he people through phantom Rostenkowski. employees on the payroll, private Rep. Henry Gonzales, Texas Demo- gressmen - that we expect higher gifts paid for with public monies, crat, chairman of the House Bank- ethical standards. Term limits using House stamp vouchers to ing Committee, directed the Reso- would send that message. So would obtain cash for personal use, etc., lution Trust Corp. and the Office of adoption of a bill by Rep. Christo- etc. Thrift Supervision not to supply to pher Shays, Connecticut Republi- Congress has lost its moral com- Rep. Jim Leach, Iowa Republican, can, to apply all the laws of the land pass, but is it because we are elect- public documents that should be to congressmen. But those are com- ing crooks to public office or turn- available to every member of the plex things to accomplish. Throw- ing citizens into crooks once they Congress. Fearful for their budgets, ing the rascals out is easy, and each get to Washington? the two agencies are so far com- of us has an opportunity to do so on be fair, the problem is not just plying. Nov. 8. in the Congress. President Richard But the nub of the problem is Nixon's "I am not a crook" was not this: Since congressmen by their the best phrase to inspire a nation own votes are exempt from the Pete du Pont, former governor of to high standards of public morali- workplace laws governing the rest Delaware, is policy chairman for ty. "I didn't inhale" isn't much bet- of us, they have come to believe the National Center for Policy ter. The Clinton administration's they also are above the ethical laws Analysis. 87 The Washington Times SUNDAY, JUNE 26, 1994 WALTER MEARS enerations of con- G gressional seniority will be erased by retirements and elec- Term limits and turnover on a quickening roll tions before the Supreme Court ity and senility. But it was more whether that's the only route, or Arkansas court held that the state While those legal arguments are of congressional powers and per decides whether state-imposed than 40 years before the issue took whether the states can impose the could not add limited tenure to the being heard and settled, here will and with the sagging confider term limits are constitutional. hold, and states began to vote in lim- limits they've already adopted. qualifications set by the Constitu- be another display of political mus- ratings that show up in the pu¹ But changing faces won't blunt its on their own officeholders and, The decision will come in 1995, tion for service in Congress, age 25 cle in a movement whose sponsors opinion polls. the campaign for legal ceilings on often, on congressional terms. on an appeal from an Arkansas for the House, 30 for the Senate, say career members of Congress The odds are that where to tenure in the House and Senate. The Supreme Court never has Supreme Court ruling that over- U.S. citizenship, and residence in lose touch with everyday America. limits go on the Nov. 8 ballot, the The aim of that movement is to ruled on the question of whether turned state-set term limits. The the state represented. That meshes with voter re entment be approved - to apply later change attitudes states have that Congress that is changing marl as well, so new- power. When the ly right now. comers will know There'll be another term limits push There are 117 first-term Hot the limits when began it was ©1992 The Grand Rapid Press members in this Congress, incl they get to the crowd of newcomers with an implied assumption that STANTS ing two Republicans who have Capitol and won't next year; 50 are won special elections to Demo think of Congress they did not, tic seats, both as supporters of " as a career. guaranteed even before since the first limits. Fifteen states proposal was to There'll be another crowd now have the con- the off-year elections, set a 12-year newcomers next year; 50 are gu gressional term ceiling, two anteed even before the off-y limits that are at 48 by retirements, terms in the elections, 48 by retirements, no issue in the nearly half to seek Senate or six in ly half to seek other offices; two Supreme Court the House, by primary defeats. Among case and by the time it is decided, other offices; two by amending the retirees are more than 20 memb: Constitution. whose seniority had made the at least seven primary defeats. That's the chairmen of committees and SI more are likely to hard way. There committees. One had been the have joined them. Among the retirees are still are such since 1941. Limits are a pop- more than 20 proposals pend- ing, which is are next to RAID! The off-year elections will ad- ular cause; once on the ballot, they members whose how they'll unstoppable. seniority had made take two-thirds Waal that turnover; incumbents won per cent of their races last time. remain. It would that was down a bit, and their of return could slip again. In Utah, where majorities of the them chairmen of That adds up to a House will a referendum House and Sen- majority well within any term lim campaign is under way, a poll committees and ate, unattainable including the six-year ceiling even if sponsors Arkansas law would set. showed 3-to-1 subcommittees. could get the Nine senators are retiring support for term amendments there will be major changes in limits, although cleared for lineup there, too, with elections sponsors acknowledge the vote action, to send an amendment to the year for 34 seats. count would be closer than that. states for ratification. The sentiment is typical. The limit the advocates point to, The idea has been around for a two terms for a president, was set QW on Walter R. Mears is vice presid while. Harry S. Truman once said by constitutional amendment in and columnist for the Associ that term limits would cure two ter- 1951. Press. rible diseases in Congress, senior- Now the court will decide DOLLARS CENTS Gains for Tobacco in Health Care Fight Raising 1 X on Tobacco Current Federal taxes on tobacco products, and what they would be under various proposals to raise those taxes. State taxes on tobacco are not included. For example, state taxes on cigarettes typically Cigarette Industry and Allies in Congress Aim for Lower Tax Rise add an additional 20 to 30 cents to the price of a pack. CIGARETTES PIPE TOBACCO CHEWING TOBACCO a swing vote on the Ways and Means bers of Congress said, the pivotal By NEIL A. LEWIS Committee. factor has been the unified front of KEY Per pack Per 1.5-ounce pouch Per 3-ounce pouch Special to The New York Times The President had proposed a 75- the tobacco-state members. And at WASHINGTON, June 24 - Within cent-a-pack increase on cigarettes, the heart of that strategy is Mr. $0.24 $0.06 $0.02 days after President Clinton's speech which are now taxed at 24 cents a Payne, an affable, 47-year-old Demo- CLINTON $0.99 $1.23 $2.36 last fall outlining his health care pro- pack by the Federal Government, crat who has represented the south- posal, tobacco-state members of Con- and equivalent increases on other to- ern tier of Virginia, known as South- $2.00* $2.81 $5.52 gress and tobacco companies mobi- lized to battle one of the plan's princi- bacco products. The White House es- side, since 1988. Southside is second timated the revenue from the tax only to eastern North Carolina in pro- HOUSE WAYS 95 $0.39 $0.10 $0.04 pal elements: a sharp increase in increases at $10 billion, and predicted ducing flue-cured tobacco, which is AND MEANS tobacco taxes. used for cigarettes, Mr. Payne said. 99 $0.69 $0.18 $0.07 an additional health dividend in that As the health care plan moves through a crucial period this month, it the increases would discourage many As the Ways and Means Committee considered the health care plan, Mr. "Some members have proposed a $1 increase to the current tax. tWould phase in higher taxes between 1995 and 1999. Is apparent that their efforts have people from smoking. Payne found himself in the politically won some Important victories. Al- enviable situation of discovering that Source: American Cancer Society But in a vote last week, the Ways though the industry has failed to elim- and Means Committee opted for a his fellow Democrats needed his vote The Nev. York Times inate tax increases altogether, pros- lower tax Increase of 45 cents a pack, to give them a working majority. pects for a steep rise in tobacco taxes a rise that would not be fully phased "I made it very clear to people on have faded in the Ways and Means the Ways and Means Committee that Representative Benjamin L. Car- that he needed their votes if he hoped 45 cents a pack, phased in over six Committee, which, as the House tax- this was not an abstract issue to me din, a Maryland Democrat who is a to produce a health care bill. years. The amendment was part of a writing panel, is expected to have and the people in my district," said member of the Ways and Means package of several other changes in- enormous influence on the issue. Mr. Payne, whose constituents in- "The message at the meeting was, A likely swing vote Committee, called Mr. Payne highly 'Don't assume we won't be there tended to win votes for the health The success on the legislative front clude nearly 5,000 tobacco growers. skilled at exploiting his position. when you need us,' said a senior care plan. comes as the tobacco industry has been strongly challenged by Govern- on a House panel The Vital '20th Vote' "He's.a very good legislator who Rostenkowski aide who recalled the knew that he could drive a hard bar- Tobacco Industry's Role meeting. "And they also made it ment regulators who are trying to Mr. Payne became known as "the gain," Mr. Cardin said. "And he did clear they would move as a bloc." Mr. Payne said the tobacco compa- restrict smoking, and even talking plays a key role. 20th vote," the committee member so. He said very early, 'Look, this is ny lobbylats have been important in about regulating the nicotine in tobac- whose support was imperative to win what I need.' Within short order, the proposed providing information to use as am- CO as a drug. In this two-front war the a majority on a committee with 38 increase in the cigarette tax was re- munition in the legislative battle. industry's well-placed allies in Con- members. Mr. Cardin said that his Virginia duced to 60 cents a pack in the com- Representative Gerald D. Kleczka, gress have kept one flank, the tax "I never wanted to destroy health colleague also made it plain that he mittee's draft. a Wisconsin Democrat who 13 a mem- issue, relatively secure. in until the end of the century. Other care reform," he said. But he also spoke not just for himself on tobacco "Rostenkowski considered the to- ber of the Ways and Means Commit- tobacco products would have only said he could not vote for health care tax and health care, but also for more bacco tax one of the variables he tee, said that while the tobacco com- Two-Tlered Approach modest increases. Most states add 20 legislation if it contained steep tobac- than 20 other members of the House. could deal with In forming a majority panies had influenced the issue by The campaign against tobacco tax to 30 cents a pack to the 24 cents that CO taxes. In March, major tobacco compa- for health care," said one Democratic orchestrating a campaign to have increases has deftly combined two now goes to the Federal Government. Mr. Payne's resolve to fight the nies like R. J. Reynolds and Philip member of the committee. For him, smokers telephone and write to Con- approaches. First, the tobacco com- The Finance Committee, which is tobacco tax was stiffened last Octo- Morris gave their workers the day off this was part of the process of round- gressional offices, "the main players panies brought growers and tobacco considering the tax portion of health ber after a confrontation with Hillary and brought more than 15,000 of them ing up needed votes." in this fight right now are the mem- factory workers to Washington to put care legislation in the Senate, has. Rodham Clinton, who led the group to Washington to demonstrate A few weeks ago, when Mr. Rosten- bers themselves." a human face on the the industry. pegged the tax increase at $1.76 a that devised the White House plan. against the proposed tax Increase and kowski was forced to relinquish the The tobacco industry has also Second, House members from to- pack and has been preoccupled with to lobby members of Congress. The chairmanship of the committee after made itself felt through hefty cam- bacco-growing states combined to de- other elements of the health plan. But When Mrs. Clinton appeared before same month, 22 members of the he was Indicted on felony corruption paign donations to the members of liver a blunt message to Congression- a bipartisan group of senators on the the Ways and Means Committee, Mr. House met with Representative Dan charges, the tobacco caucus met with the committee. al leaders: Unless increases in the committee today proposed pegging Payne said he was troubled by "the Rostenkowski, the Chicago Democrat his successor, Representative Sam In 1993, the 13 political ac Ion com- tobacco tax are held to modest levels, the tax Increase at $1 a pack. unfairness" of having tobacco bear who was then chairman of Ways and M. Gibbons of Florida, to press the mittees readily identified with the they would vote as a bloc against the Whatever tax increase the Senate the burden of the costs. Mrs. Clinton Means Committee. argument with the acting chairman. tobacco Industry contributed more final health care plan that emerges ends up with will have to be recon- praised him for his loyalty to his At the time, some committee mem- 'When we changed chairmen we than $130,000 to members of the Ways on the floor of the House. ciled with that of the House, which is constituents, but then added firmly, bers had succeeded In raising the reinforced the message again," Mr. and Means Committee, acc ording to Reinforcing that ultimatum was likely to reflect the level sought by "There will be a tobacco tax to pay tobacco tax to $1.25 in the draft bill. Payne said of that meeting. the Center for Responsive Politics. the fact that one of the tobacco-state the Ways and Means Committee. for this legislation." But the delegation, led by Represent- Last week, in a 24-to-14 vote along That was about about twice as much members, Representative Lewis F. While the lobbying effort by the Maybe, but it will probably not be ative Charlie Rose, a North Carolina party lines, the committee approved as they had contributed in the elec- Payne Jr. of Virginia, was likely to be companies has been important, mem- as large as Mrs. Clinton had hoped. Democrat, told Mr. Rostenkowski the proposed cigarette tax Increase of tion cycle two years earlier THE NEW YORK TIMES, SATURDAY, JUNE 25, 1994 HEALTHY CONCERN FIRST LADY Hillary Rodham Clinton and House Majority Leader Richard Gephardt of Missouri meet at health care reform seminar yesterday in the n's capital. It was sponsored by HealthRIGHT, a nonprofit coalition of organizar supporting the Clintons' health care reform program. WS Health-Care -2-: Congress Toying With Alternatives Those costs won't disappear, however. As big companies shed them, insurance premiums for smaller employers will be forced up. This probably will lead more of them to stop offering insurance, to limit coverage for workers' families or to rely more on part-timers and temporary workers who often don't get health insurance. Already, the fraction of adults who work but have no public or private health insurance has risen to 17.5% in 1992 from 15.3% in 1988, the Census Bureau says. And employment is growing fastest in industries that tend not to offer health insurance. Today, many who lack insurance still get health care if they get sick enough, either through federal or local government programs or through charity. But as employers squeeze the health system harder and the number of uninsured grows, free care probably will be harder to find, and the quality is likely to deteriorate. And the government's costs, from the Medicaid program for the poor to emergency rooms at municipal hospitals, will climb. "Supermarkets don't go out and give free food to poor people. They can't afford to. They'd go out of business,' says Harvard health economist David Cutler. "That's the danger of making the health market real competitive without bringing people in." So most of the pending health-reform plans would spend tens of billions of dollars a year so low-income families or their employers can afford insurance. Coming up with such funding without a broad-based tax is tough. So Congress is toying with lower-cost alternatives that would subsidize insurance for some, but not all, of the 39 million who lack it. The plan crafted last week by Senate Finance Committee moderates would offer subsidies to the poorest Americans, and gradually move up the income ladder. By 2002, subsidies would be available to families of four with incomes of $34,500 (in today's dollars). So far, Bill and Hillary Clinton reject such a step toward the goal of universal coverage. Despite advice from moderates like counselor David Gergen, Treasury Secretary Lloyd Bentsen and economic adviser Robert Rubin, the Clintons want a guarantee that the goal will be achieved -- even if that demand means no health-reform bill at all this year. Some Clinton advisers argue he can pin the blame on Republicans; others fear he and other Democrats will suffer the wrath of voters disgusted with gridlock. But the social and economic consequences of once again retreating from far-reaching reform are clear: more uninsured Americans and higher costs for the government. (END) DOW JONES NEWS 06-27-94 6 41 AM **** filed by:TAPE(--) on 06/27/94 at 06:48EDT **** **** printed by: WHPR (JEL) on 06/27/94 at 08:09EDT **** IN DEALING WITH CONGRESS, CLINTON PLAYS DOWN DETAILS ON HEALTH STRATEGY By ROBERT PEAR 1994 N.Y. Times News Service WASHINGTON - Even though the battle over health care has moved into a critical time of striking deals and compromises, President Clinton and his administration have deliberately avoided detailed negotiations with Congress, preferring to give only technical assistance'' while affirming the general goal of universal coverage. That is partly by design and partly by default. For the president, it is clearly a tactical choice. Clinton loves to discuss the intricacies of health policy, but his statements over the last two weeks have been disciplined, sticking to broad themes and goals. Hillary Rodham Clinton has taken much the same approach. But below that level, some of the disengagement is less calculated. With a few exceptions, the administration's health experts do not have the political expertise or authority to negotiate with Congress. The senior officials who do have the political experience and acumen know little about the details of health policy, by their own account. Clinton's legislative strategy puzzles some members of Congress, who say the White House should negotiate over the substance of legislation. But it pleases others, who do not want the White House to interfere. Rep. Pete Stark, the California Democrat who heads the Ways and Means Subcommittee on Health, is one of the latter. ``I give the administration high marks, he said. I feared they would meddle in our work. But another California Democrat, Rep. Lynn Schenk, who has a crucial swing vote on the Energy and Commerce Committee, said: I haven't heard from a soul in the administration in months. Maybe they lost my phone number. Sen. John B. Breaux, D-La., argued for more administration involvement. It's not enough just to sit back and say, `Let Congress do its will, he said. In the last week, the administration has encouraged bipartisan efforts in the Senate Finance Committee and has urged Congress to keep up the momentum on health care. The administration's strategy was described by Harold M. Ickes, deputy chief of staff at the White House, in an interview: ``We have not been dickering with Congress. We let the committee chairmen do the work they need to do to get bills out of their committees. We provide technical assistance, computer runs, statistical data. We can discuss the implications of various options, but we will not say whether one is better than another.' Ickes noted that three committees in the House and two in the Senate had been trying to write health care bills. For us to be bargaining against ourselves with five different committees would be self-defeating, he said. In interviews, Clinton officials and members of Congress said the administration had encountered difficulty in three areas: - Some members of President Clinton's team of sub-Cabinet officials, including some experts on health policy, are eager to provide more guidance to Congress, but they have generally been forbidden to do so because decision making is concentrated in the White House. - The administration was overly optimistic in assessing congressional support for major elements of the president's original health care plan and set unrealistic deadlines. Lawmakers say they have received mixed signals about the administration's willingness to compromise, with Mrs. Clinton usually expressing less flexibility than the president. - The Democratic National Committee had ambitious plans to sway votes in Congress by orchestrating a groundswell of support for the president's plan with television commercials and grass-roots lobbyists, but that effort fell short. Richard F. Celeste, the former governor of Ohio who spent eight months supervising the Democratic effort to drum up support, said: Originally there was an expectation that there would be a big national campaign. But there was a substantial recalibration as people realized that resources were limited and time was limited. `Our campaign was diffuse because we had an issue so big and complicated, we couldn't characterize it easily, Celeste said. He left the campaign a few months ago and returned to Ohio. There is still some resentment in Congress over the secrecy employed by the administration when it drafted the president's health plan last year with the help of more than 500 advisers. The White House aide who supervised that process, Ira C. Magaziner, has no significant role in dealing with Congress now. Many elements of the president's bill, including one that would have required most people to get health insurance through purchasing cooperatives known as alliances, have sunk from view on Capitol Hill. `We have not tried to defend every tiny piece of the bill except in the initial hearings, said Donna E. Shalala, the secretary of health and human services. We have narrowed down what is of fundamental importance. In an interview, Shalala defended the administration's tactics, saying: Anybody who argues we should give Congress more guidance doesn't know much about Congress. It is a separate branch of government. One must respect that. But members of Congress, including Democrats who want to help the White House, say the administration's lobbying has suffered from a lack of coordination. They also say that only one White House official combines a detailed knowledge of health policy with a feel for the politics of the issue. That official, Jack Lew, worked for Thomas P. O'Neill Jr. when he was speaker of the house in the 1980s. In dealing with Congress, the administration has focused on congressional leaders and committee chairmen. It has not made much effort to lobby backbenchers in the House, even if they sit on major committees with authority over the legislation. In their public remarks, Mr. and Mrs. Clinton try to avoid the jargon and details of the health care debate - issues like employer mandates, triggers and community rating of insurance premiums - so they can emphasize universal coverage. Sara Rosenbaum, a lawyer who specializes in health care at George Washington University and who supervised the process of turning policy decisions into health legislation for Clinton, said, ``The president is doing exactly what presidents should do: defining his bottom line, what's needed to preserve the fundamental integrity of this legislation. But Ms. Rosenbaum, a longtime adviser to Mrs. Clinton, said Cabinet officials were perhaps being underused. People at the White House have held them back because this is a centralized operation, she said. ``The White House has felt strongly that all decision making should rest at the White House. That may have slowed down the legislative process because the White House is a small place, too small to cope with that amount of decision making, and does not always have the expertise to give guidance to Congress. -END-OF-AUTOBREAK(1) -AUTOBREAK (2) -FOLLOWS **** filed by: on 06/27/94 at 02:03EDT **** **** printed by: WHPR (JEL) on 06/27/94 at 08:10EDT **** HEALTH INDUSTRY IS CHANGING ITSELF AHEAD OF REFORM WAVE OF CONSOLIDATIONS Concerns Arise as Huge Deals Link Providers and Buyers in U.S. Medical System Al By MILT FREUDENHEIM A wave of mergers and alliances is Continued From Page Al transforming the nation's trillion-dol- lar health care system. Without wait- groups. For example, employers in ing for the outcome of the Congres- dozens of areas, from Long Island to sional health debate, providers of San Francisco, have formed alliances medical care - including hospitals, to buy medical care for their work- physician groups and nursing homes ers, the better to negotiate satisfac- - are joining to form bigger and tory deals with the growing medical bigger networks. networks. Some of the combinations are being But what does it mean when both put together by hospitals, like the providers and purchasers of health $1.08 billion deal in which the coun- care coalesce, when a system in try's largest for-profit hospital chain, which total spending is expected to Columbia/HCA Healthcare, agreed to exceed $1 trillion this year is increas- buy the largest chain of surgery cen- ingly controlled by large entities? ters, Medical Care America, last For the patient, care could improve month. Another such combination is as the growing medical networks in- New York Hospital's regional alli- vest in sophisticated computerized ance with seven other nonprofit hos- systems that analyze the care re- pitals, two nursing homes and four ceived by their many thousands of walk-in clinics, all of which send their patients and find ways to improve it. THE NEW YORK TIMES, MONDAY; JUNE 27. 1994 most complicated cases to the big The systems could also save money Upper East Side hospital. for patients and their insurers by Other deals are being struck by identifying the kinds of treatments physicians, who have been abandon- that do little good. ing solo practices to join medical "The quality of care will inevitably improve as we begin to gather these groups and now fear that even those people under the same roof," said Jon groups are not strong enough. One Glaudemann, a vice president of Aet- example: Mullikin Medical Enter- na Health Plans, one of the largest prises, owned by 200 physicians in medical networks. Southern California, is acquiring the 'Who Will Discipline Those Guys?' practices of other medical groups But the consolidation, taken to the around the state. It is also negotiating extreme, could also cause problems. an alliance with a West Coast hospital "If two or three health care compa- chain under which the hospitals nies have sewn up all the doctors and would lower their fees for patients the hospitals and the health system admitted by Mullikin doctors. gets oligopolized, who will discipline Insurance companies and health those guys?" said Uwe E. Reinhardt, maintenance organizations are also a Princeton University health econo- racing to form larger medical net- mist. works, signing up hospitals and "The trouble with oligopolies, where there are only a few buyers groups of doctors and sometimes and sellers, is that they become very even joining with each other. Two sloppy," he added. For example, he weeks ago, Metropolitan Life Insur- said, doctors will say that managed- ance and Travelers announced a joint care companies raise prices and keep venture that will provide health in- the difference. Some California insur- surance for 13 million people nation- ers already allot only 70 cents of wide; the companies hope that many every premium dollar for health of these people will receive their care care. "The rest they keep," he said. through the new venture's medical And unlike other industries, Profes- networks. And FHP International and sor Reinhardt warned, the health Takecare, two California-based care business may not have outside competitors to push it to improve H.M.O.'s, recently combined to cover itself, the way, say, Japanese car 1.6 million people in eight Western makers pushed Detroit to improve its states. performance. The goal of all these combinations The poor may also suffer, as is to become large enough to offer the groups of employers insuring many comprehensive and conveniently people in a community gain the size available services and the reasonable to negotiate harder with hospitals and prices needed to assure a steady flow reduce the subsidies for patients of patients from the increasingly de- without health coverage, said Bruce C. Vladeck, who directs the Govern- manding groups that buy medical ment's Medicare and Medicaid pro- care. grams. Those buyers are themselves join- ing in larger and more powerful Fewer Hospitals, Fewer Workers Other potential losers include Continued on Page D4, Column 3 many people in the medical business, like nurses and other hospital em- ployees, who would lose their jobs as The Missing Voice: Clinton the industry consolidated and elimi- As Congress strives to produce health care proposals by week's end, President Clinton and his Ad- ministration are deliberately avoid- ing detailed negotiations. Page A12. THE ogether THE BIGGEST DEALS ACQUIRED VALUE (billion) Merck (drug) Medco Containment $ 6.6 (managed care drug distributor) biggeri Columbia (hospital) HCA 5.7 Columbia Galen Health Care 3.2 SmithKline Beecham (drug) Diversified Pharmaceutical 2.3 (managed care drug marketer) FHP (H.M.O.) Takecare 1.1 Columbia* Medical Care America 1.1 (surgical centers) Healthtrust (hospital) Epic Holdings 1.0 Health Net (H.M.O.) Qual Med 0.7 T2 (home care) - Merger Curaflex, Healthinfusion, Medisys 0.5 United Healthcare (H.M.O.) Ramsay-HMO 0.5 'Pending Source: Irving Levin Associates The New York Times nated, for example, the 250,000 under- TO be sure, the fragmented health to close half of their remaining beds." used hospital beds, 30 percent of the care industry is still a long way from total. At least 15 percent of the 5,500 the concentration of an industry like Among the most visible players in-- community hospitals may close, Gov- automobiles. But in some places, the the consolidation of the health care ernment officials say. The endan- consolidation has been striking. business is the Columbia/HCA gered-species list may also include In the Minneapolis-St. Paul area, Healthcare Corporation. The giant thousands of "surplus" physician for example, 1.7 million people - 70 hospital chain has already assembled specialists who could not find a place percent of the total - are now mem- the leading medical care network in in any of the medical networks being bers of just three big health mainte- 10 Sun Belt markets - Miami, Tam- formed. nance organizations, each of which pa, the Florida panhandle; Atlanta, Finally, several hundred small in- owns its own medical facilities. Each Richmond, Nashville, Dallas, Hous- surance companies and many region- of the H.M.O.'s is the product of merg- ton, El Paso, and Louisville, Ky. - al health maintenance organizations er after merger. according to Richard L. Scott, chief are at risk. "Even among the largest The Path of Consolidation executive. insurance companies, who will sur- vive is in doubt," said Kevin Moley, a For doctors and their patients, the consolidation has meant frequent Investor-owned hospital chains like former senior health policy maker in the Bush Administration. change. Take Dr. Eric Anderson, a Columbia are also buying venerable Minneapolis internist. His longtime nonprofit community hospitals and The consolidation trend is most evi- patients have followed him as he closing some of them. Other nonprofit dent in places where managed health care is strong, like Minneapolis-St. moved from a neighborhood one-man hospitals have formed managed-care ventures and alliances with Blue office that was affiliated with several Cross and Blue Shield associations in hospitals to a larger hospital-owned system that in turn will be absorbed Philadelphia, Kansas City, Mo., and a number of states. The hope is that next month by an even larger health care network called Allina. Seventy-one percent of 1,200 hospi- bigger will mean Allina and the two other big health tals recently surveyed by Deloitte & networks, Health Partners and Blue Touche, the accounting and consult- better, cheaper and Cross, compete for the business of ing firm, said they were joining an two employer groups. One concen- integrated system that included other trates the buying power of the largest hospitals, outpatient units or physi- busier. 25 companies; the other represents cian group practices. In the survey, small businesses. released last week, one-third of the hospitals said they had acquired or Badgered by the large buyers, the were acquiring physician practices. Paul and Southern California. But big H.M.O.'s have held the line on even in New York, 47 of 57 hospitals prices this year. Indeed, the state Some other traditions are crum- surveyed in March had already announced on Friday that Allina had bling in medicine as doctors abandon joined local hospital networks or sys- reduced its insurance rates for state their one-person offices to join group tems. The survey, by the Greater employees by 25 percent. practices. And some physicians stand New York Hospital Association, re- to profit. For example, many prima- corded ties among hospitals and with "We're in the middle of a major ry-care doctors are selling their prac- nursing homes, neighborhood health cost war," said George Halvorsen, tices to hospitals or insurance compa- centers, home health programs and chief executive of Health Partners. nies for hundreds of thousands of physician groups. "The hospitals have announced plans dollars. THE NEW YORK TIMES. MONDAY, JUNE 27. 1994 2 A12 THE NEW YORK TIMES Key Voice IN BRIEF Is Missing The Debate Over Health Care On Health DEVELOPMENTS LAST WEEK This is the last week before the July 4 recess, the informal deadline five Congressional committees with jurisdiction on health matters set White House Lets for producing their proposals for national health insurance They must act by then - or soon after that if the full House and Senate Others Negotiate are to complete work on the legislation before Congress adjourns for the fall election campaign. IN THE SENATE By ROBERT PEAR Special 10 The New York Times LABOR COMMITTEE With 10 Democrats and one Republican voting WASHINGTON, June 26 - Even in favor, the committee has approved a proposal much like President though the battle over health care has Clinton's health plan. moved into a critical time of striking deals and compromises, President FINANCE COMMITTEE A bipartisan group of committee members Clinton and his Administration have worked last week to come up with a bill that they say would lead to berately avoided detailed negotia- tions with Congress, preferring to universal coverage but without requiring employers to pay for give only "technical assistance" workers' coverage. Members of the group considered a plan while affirming the general goal of requiring that uninsured people pay for their own insurance, but the THE new YORK TIMES, MONDAY; JUNE 199, universal coverage. idea provoked such outrage they dropped it, leaving a plan based That is partly by design and partly largely on new insurance regulation changes and promises of by default. Congressional action if too many Americans remained uninsured. For the President, it is clearly a tactical choice. Mr. Clinton loves to discuss the intricacies of health poli- IN THE HOUSE cy, but his statements over the last EDUCATION AND LABOR Generally considered a liberal committee, two weeks have been disciplined, sticking to broad themes and goals. on Thursday it approved a variation on the Clinton plan more Hillary Rodham Clinton has taken generous than the President's proposal. much the same approach. But below that level, some of the WAYS AND MEANS The committee worked through Saturday on its variation of the Clinton plan. In an interview, Dr. Shalala de- disengagement is less calculated. fended the Administration's tactics, With a few exceptions, the Adminis- ENERGY AND COMMERCE Under Representative John D. Dingell, the saying: "Anybody who argues we tration's health experts do not have should give Congress more guidance the political expertise or authority to Michigan Democrat who has long favored health reform, the negotiate with Congress. The senior committee had been expected to lead the battle. Instead, it is doesn't know much about Congress. It is a separate branch of Govern- officials who do have the political deadlocked over Mr. Dingell's variant of the Clinton plan. ment. One must respect that." experience and acumen know little about the details of health policy, by AT THE WHITE HOUSE Asking for Help their own account. But members of Congress, includ- Mixed Reception Hillary Rodham Clinton made forays to Capitol Hill to test the waters ing Democrats who want to help the and gave speeches to supporters to keep morale up. White House, say the Administra- Mr. Clinton's legislative strategy tion's lobbying has suffered from a puzzles some members of Congress, WHAT TO EXPECT THIS WEEK lack of coordination. who say the White House should nego- They also say that only one White tiate over the substance of legislation. House official combines a detai But it pleases others, who do not want Today the Senate Finance Committee takes up the moderates' plan. knowledge of health policy with a feel the White House to interfere. The committee seems likely to approve some version of it. for the politics of the issue. That Representative Pete Stark, the Cal- The House Ways and Means Committee still faces several official, Jack Lew, worked for Thom- ifornia Democrat who heads the as P. O'Neill Jr. when he was Speaker Ways and Means Subcommittee on contentious issues, including holding down costs. Representative of the House in the 1980's. Health, is one of the latter. "I give the Sam Gibbons, the Florida Democrat who heads the committee, says In dealing with Congress, the Ad- Administration high marks," he said. the panel will produce a bill for the full House by week's end ministration has focused on Congres- red they would meddle in our sional leaders and committee chair- work." men. It has not made much effort to But another California Democrat, Representative Lynn Schenk, who team of sub-Cabinet officials, includ- The New York Times lobby other members, even if they sit has a crucial swing vote on the Ener- ing experts on health policy. Some There is still some resentment in on major committees with authority gy and Commerce Committee, said: are eager to provide more guidance Congress over the secrecy employed over the legislation. haven't heard from a soul in the to Congress, but they have generally by the Administration when it drafted In their public remarks, Mr. and Administration in months. Maybe been forbidden to do so because deci- Mrs. Clinton try to avoid the jargon they lost my phone number." sion making is concentrated in the and details of the health care debate Senator John B. Breaux, Democrat White House. - issues like employer mandates, of Louisiana, argued for more Admin- 9The Administration was overly optimistic in assessing Congressional Clinton has yet to triggers and community rating of in- istration involvement. "It's not surance premiums - so they can enough just to sit back and say, 'Let support for major elements of the Congress do its will,' he said. jump into the emphasize universal coverage. President's original health care plan In the last week, the Administra- and set unrealistic deadlines. Law- Sara Rosenbaum, a lawyer who tion has encouraged bipartisan ef- makers say they have received Congressional fray specializes in health care at George forts in the Senate Finance Commit- mixed signals about the Administra- Washington University and who su- tee and has urged Congress to keep tion's willingness to compromise, with Mrs. Clinton usually expressing on health care. pervised the process of turning policy up the momentum on health care. decisions into health legislation for The Administration's strategy was less flexibility than the President. Mr. Clinton, said, "The Presi is described by Harold M. Ickes, deputy 9The Democratic National Com- doing exactly what Presidents should chief of staff at the White House, in an mittee had ambitious plans to sway do: defining his bottom line, what's interview: "We have not been dicker- votes in Congress by orchestrating a the President's health plan last year needed to preserve the fundamental ing with Congress. We let the commit- groundswell of support for the Presi- with the help of more than 500 advis- integrity of this legislation." tee chairmen do the work they need dent's plan with television commer- cials and grass-roots lobbyists, but ers. The White House aide who super- But Ms. Rosenbaum, a longtime to do to get bills out of their commit- adviser to Mrs. Clinton, said Cabinet that effort fell short. vised that process, Ira C. Magaziner, tees. We provide technical assistance, has no significant role in dealing with officials were perhaps being under- computer runs, statistical data. We Richard F. Celeste, the former Congress now. used. can discuss the implications of vari- Governor of Ohio who spent eight Many elements of the President's ous options, but we will not say wheth- months supervising the Democratic "People at the White House have bill, including one that would have held them back because this is a er one is better than another.' effort to drum up support, said: required most people to get health Mr. Ickes noted that three commit- "Originally there was an expectation centralized operation," she said. insurance through purchasing co- tees in the House and two in the that there would be a big national "The White House has felt strongly operatives known as alliances, have Senate had been trying to write campaign. But there was a substan- that all decision making should rest sunk from view on Capitol Hill. th care bills. "For us to be bar- tial recalibration as people realized at the White House. That may have "We have not tried to defend every gaining against ourselves with five that resources were limited and time slowed down the legislative process tiny piece of the bill except in the different committees would be self- was limited. because the White House is a small initial hearings," said Donna E. Sha- defeating," he said. "Our campaign was diffuse be- place, too small to cope with that lala, the Secretary of Health and Hu- In interviews, Clinton officials and cause we had an issue so big and amount of decision making, and di man Services. "We have narrowed members of Congress made these complicated, we couldn't character- not always have the expertise to give down what is of fundamental impor- points about the Administration's ize it easily," Mr. Celeste said. He left guidance to Congress." tance." dealings on health care: the campaign a few months ago and 9The President has assembled a returned to Ohio. Bradley Takes Shot On Health Care Helps Shape an Alternative Plan By TODD S. PURDUM move ahead," Mr. Bradley said with coverage. Specialto The New York Times pointed understatement in an interview In that sense, he lost. But by lending his WASHINGTON, June 26 - Since he on Friday, effectively acknowledging that heft to the effort of John H. Chafee, Re- first awed Princeton basketball fans by if he did not speak up, it would soon be 100 publican of Rhode Island, and John sinking over-the-shoulder shots with his late to have an effect on one of the most Breaux, Democrat of Louisiana - fellow back to the basket 30 years ago, William important issues of the day. members of the Finance Committee who Warren Bradley has usually had an un- Four years ago, voters angry at his re- had been working on the issue much long- canny sense of where he is. Where he put fusal to take a stand on Gov. Jim Florio's er - Mr. Bradley may have helped jump- himself last week was right in the middle tax increases - then the hottest topic of start a fragile process with a backhanded of one of the biggest legislative issues in the day nearly turned the Senator out move his Princeton coaches might have his 16 years in the United States Senate. of office, and he has since spoken out in- called a "hope pass.' Until then, it was not clear that this creasingly on topics from race relations "Bradley's play has just one somewhat game would include the senior Democrat- to trade policy to crime. unsound aspect, and it is the result of his ic Senator from New Jersey, who suf- His health plan set a goal of covering 95 fered a soul-searing near-defeat for his percent of Americans by 2002, through subsidies for low- and moderate-income Continued on Page B5 seat in 1990 and sat out the 1992 Presiden- people financed by taxing high-cost insur- tial race. This year, while speaking out on ers, and it relied ultimately on making other issues, he had been mostly on the workers pay for insurance if their em- bench in the rancorous debate over re- ployers would not. shaping the nation's health care system. His stance took his colleagues by sur- Then, beginning Monday, Mr. Bradley prise, and drew the scorn of some Con- broke with his President, announcing that gressional liberals, unions and consumer THE TIMES, MONDAY, JUNE 27. he could not support forcing employers to groups, who saw it as a sellout of the mid- pay for health insurance. He then re- die class and real reform, while others shaped and absorbed as his own an alter- saw it as an acceptable way to keep the native plan aimed at assuring universal bill alive. By week's end, the centrist coverage that had been percolating group had rejected requiring either work- among several centrist Democrats and ers or employers to buy insurance and Republicans trying to hammer a compro- Mr. Bradley had distanced himself from mise bill out of the stalemated Senate Fi- its proposal, which is now a likely compo- nance Committee. nent of the full committee's bill, saying he "I thought that this was the moment to wanted to do more to assure universal After Quiet Start, Bradley Jumps Into Health Care Fray could loom disproportionately large little new, but consistent with the way Continued From Page B1 - which he tracked so closely that he in subsequent debate. lots of Democrats feel they have to even took the highly unusual step of But Mr. Bradley's move was con- define themselves on this issue. The walking over to the House side of the mania for throwing the ball to his sistent with his behavior since his middle class feels put upon, and I Capitol to lobby members there - teammates: he can't seem to resist near loss to Christine Todd Whitman think Bradley would like to make and a 1992 bill to reshape the Califor- throwing a certain number of passes four years ago freed him, he says, to certain that he is someone who is nia water system, in which he helped that are based on nothing but theory speak out more, and Bill Clinton's seen as recognizing the costs and preserve provisions for environmen- and e," John McPhee wrote in his victory relieved him of the endless burdens on middle-class people." tal and wildlife protections in the face famous 1965 profile in The New York- speculation about what his every act A common criticism of Mr. Brad- of strong agricultural lobbying. er of Mr. Bradley's Princeton years. meant for his presidential ambitions, "They happen, usually, when some- since he will be 51 next month and ley is that he is a better talker than In his last campaign, Mr. Bradley thing has gone just a bit wrong." everyone now assumes he cannot doer, that he fizzled as a prospect for spent more than $12 million and won Sometimes, the writer added, "a hope have any until at least 2000. the presidency, and some of his Sen- just 50 percent of the vote to Mrs. pass goes flying into the crowd, but "After 1990 I came to speak as ate colleagues complain that his aloof Whitman's 47 percent. So far, he has most of the time they hit the receiver much from my heart as from my 6-foot-5-inch presence can create the just a couple hundred thousand dol- right in the hand, and a gasp comes mind, right?" he said, ending his sen- impression that he thinks he is smart- lars in his campaign treasury, but from several thousand people." tence with the friendly interrogative er than they are (and sometimes, of asked if he will run for re-election in course, he is). For all his fame as a he uses where other politicians might 1996, he replies, "Uh, I have abso- Taking His Best Shot star of the Knicks (whose retired No. say "you know." lutely.' He says he has held off major In the tortured progress of health This year alone, Mr. Bradley has 24 hung above the podium at the fund-raising, both in the belief that he Democratic National Convention at legislation, of course, things have accused the White House of "gratu- does not have to spend so much and gone more than a bit awry from the itous brinksmanship" in its get-tough Madison Square Garden in 1992), he that he can raise enough in the next Democrats' viewpoint, and Mr. Brad- trade policy with Japan, argued that can be standoffish with reporters and two years. ley, a Rhodes Scholar expert on tax human rights in China could best be not much of a glad-hander in public. policy and, along with the Finance promoted by active trade engage- "Well, I'm certainly not smarter The Senator said he is less con- Committee chairman, Daniel Patrick ment rather than a rigid withholding than a lot of Senators.' he said as he cerned about what the White House Moynihan, one of the Senate's deeper of trade benefits, and warned that the gulped down a cup of coffee and a or his colleagues think of his views thinkers, seemed to be taking his best election-year omnibus crime bill coconut doughnut before heading to a than how they act on them. shot. (which he supported) should not be meeting in Senator Chafee's office. "I "I'm interested in what they do at His maneuver put him in an unac- seen as an easy solution to increasing don't know what to say about that. I the end of the day on the issue that I customed spot, since he is known far violence. just try to come to work every day spoke out about," he said. "I think to for tactical dealing than for end- Such independence has sometimes and call it like I see it" be silent is not to give your best to / mulling things over in his own prompted the White House to wonder His biggest legislative achieve- your own party and your own Presi- mind, after which he announces his about the depth of Mr. Bradley's ments are the Tax Reform Act of 1986 dent." views, however they tend to fit politi- friendship, though he has generally cally. been one of the President's most reli- Indeed, in the interview he ex- able supporters in Congress. Asked pr 1 some puzzlement at why re- last week if Mr. Bradley's move on quiring employers to pay the bulk of health care had been surprising, Correction: Cuomo Is Quoted on I.T.A. ith care costs had become such an George Stephanopoulos, the senior anathema. He also said he thought presidential adviser, smiled slightly Because of a mechanical error, an of politics and business as usual in employers and workers must share and said, "Not particularly." article yesterday about Peter E. government. the costs, and would not rule out Stangl's role as chairman of the Met- forcing employers to pay for health 'Down-to-Earth Agenda' ropolitan Transportation Authority A second affected passage should care if such a measure managed by David P. Rebovich, a professor of had three lines out of place in some have read: some miracle to make it to the Senate politics at Rider University in Law- editions, scrambling two passages. The Governor is as adroit as the floor. renceville, N.J., said Mr. Bradley's The first passage, in which the Gover- Houston Rockets' Hakeem Olajuwon At a meeting last Thursday, a coali- speaking out on health care reflected nor expresses irritation at the is in positioning himself for a re- tion of groups representing labor, lib- the growing emphasis he has placed M.T.A.'s lack of political restraints, bound. This is how he described the erals and the elderly complained to on domestic concerns since a series should have read: lineup in the L.I.R.R. negotiations: Mr. Bradley that the centrists' pro- of speeches on race relations in which p he warned - before the Los Angeles "I am not insulated from the pub- "Stangl speaks for the M.T.A.," and did not meet the test of univer- sal coverage, and that his support for lic," Mr. Cuomo said shortly after Edward Yule Jr., general chairman riots - of the potential for outrage taking office in 1983. "They'll get me of the 2,300-member United Trans- eventually requiring people not other- created by situations like the Rodney wise covered to buy their own insur- King beating. four years from now. Authorities are portation Union, "speaks for organ- ance was onerous. When he, said his insulated." ized labor.' "This is part of a move toward a more domestic and down-to-earth The usual justification for authori- "I was there," he declared, "as a concern was to keep the process mov- ties, of course, is precisely that: to third party, speaking as a woman ing, they countered that if such a bill agenda," Mr. Rebovich said. "The came out of the Finance Committee it neoconservatism of his position is a accomplish things beyond the reach from Suffolk, as a man from Nas- sau." forced up. This probably will lead more of The Outlook them to stop offering insurance, to limit coverage for workers' families or to rely more on part-timers and temporary workers Health-Care Inaction who often don't get health insurance. Al- ready. the fraction of adults who work but Can Carry a High Cost have no public or private health insurance has risen to 17.5% in 1992 from 15.3% in 1988, the Census Bureau says. And employment is WASHINGTON growing fastest in industries that tend not to offer health insurance. When it comes to health-care re Today, many who lack insurance still get form, the credo of the cautious on health care if they get sick enough, either Capitol Hill is: First, do no harm. What through federal or local government pro- some overlook is that doing nothing can grams or through charity. But as employers cause harm, too. squeeze the health system harder and the Maneuvering in Congress may yet pro- duce a compromise that President Clinton More Uninsured Workers accepts. But the persistence of partisan Percentage of all U.S. workers without any bickering. the hard line the White House is private or public health insurance taking and genuine disagreement over fun- 19% damental issues raise the odds that no major health reform will be enacted this year. One 18 enemy of far-reaching reform is the growing level of comfort with doing nothing, or 17 nearly nothing. "The reason negotiations are so impossible in health care is that 16 everyone's second choice is the status quo," says Deborah Steelman, a health lobbyist 15 and former Reagan budget official. In some quarters, the prospect of nothing 14 much coming out of Congress this year is 1988 '89 98 '91 92 met with little more than a shrug. "Competi- Source Census Bureau, Employee Benefit Research institute tive forces are reducing the increases in health-care costs dramatically,' says Edgar number of uninsured grows. free care proba- Woolard, DuPont's chief executive. "It's bly will be harder to find, and the quality is already happening." If more big companies likely to deteriorate. And the government's get health-care cost-control religion and costs, from the Medicaid program for the state experiments proliferate, perhaps the poor to emergency rooms at municipal hos- health-care system will begin to heal itself. pitals, will climb. THE WALL STREET JOURNAL MONDAY, JUNE 27, 1994 But big employers' success in slow- "Supermarkets don't go out and give ing their own health-care spending may free food to poor people. They can't also foster an unjustified complacency. afford to. They'd go out of business," If all the players in the health system says Harvard health economist David continue to do what is in their self-inter- Cutler. "That's the danger of making est under the current law, more Ameri- the [health] market real competitive cans are likely to be without any health without bringing people in." So most of insurance. And even if corporate the pending health-reform plans would health-care spending slows, govern- spend tens of billions of dollars a year ment health spending probably will con- S0 low-income families or their em- tinue to climb rapidly, with worrisome ployers can afford insurance. implications for the deficit. Coming up with such funding without a For years, employers not only have broad-based tax is tough. So Congress is picked up the health-insurance tab for their toying with lower-cost alternatives that own workers, but also have helped finance would subsidize insurance for some, but not care for those without insurance and for all, of the 39 million who lack it. The plan those covered by Medicaid and Medicare, crafted last week by Senate Finance Com- which pay less than the full cost. "The cost mittee moderates would offer subsidies to shifting has been borne by people who the poorest Americans, and gradually move volunteered to pay," says Walter Maher. up the income ladder. By 2002. subsidies health-care strategist for Chrysler Corp. would be available to families of four with The volunteers with the deepest pockets. incomes of $34.500 (in today's dollars). So the big companies, are pulling out. By using far, Bill and Hillary Clinton reject such a their clout with health-care providers to step toward the goal of universal coverage. demand lower costs, big employers help Despite advice from moderates like coun- squeeze out inefficiencies. But they also stop selor David Gergen, Treasury Secretary helping hospitals care for those with no Lloyd Bentsen and economic adviser Robert insurance or with government insurance. Rubin, the Clintons want a guarantee that Those costs won't disappear, however. the goal will be achieved - even if that As big companies shed them, insurance demand means no health-reform bill at all premiums for smaller employers will be this year. Some Clinton advisers argue he can pin the blame on Republicans: others fear he and other Democrats will suffer the wrath of voters disgusted with gridlock. But the social and economic consequences of once again retreating from far-reaching reform are clear: more uninsured Americans and higher costs for the government. -DAVID WESSEL 63 Senators Focus For individuals at 150% of poverty. for example, the vouchers would be worth Continued From Page A3 votes, or better than a third of the commit- On How to Fund ábout 65% of the cost of their premiums. For those at 200% of poverty. the voucher tee. Among the Republicans. Missouri Sen. share falls to 30%. To stretch available John Danforth was described as adamant resources and make coverage affordable. in opposing any type of assessment on Health Reform preliminary estimates assume the initial employers. But the most conservative premiums can be kept in the range of $1,800 influence, perhaps, was from the Demo- cratic side-Oklahoma Sen. David Boren. to $2.100 annually for an individual. But Finance Panel Is Assessing these costs could double for families, and The drift right reflects the strong influ- working-class households earning between ence of business, and a major question now $23,000 and $35,000 may still find insurance is whether the committee can summon U.S. Costs in Absence unaffordable, given the declining subsi- support for the tax provisions needed to Of Employer Mandate dies in their income brackets. pay for the subsidies. Critics of the em- ployer mandate argue that it is itself an The vouchers would dovetail with ex- inefficient means to finance reform be- panded tax deductions to help cover the cause it requires subsidies to ease the By DAVID ROGERS Gost of health insurance, but these are burden on small companies. But in an Staff Reporter of THE WALL STREET JOURNAL much less valuable to families in lower tax election year, the alternative of a direct WASHINGTON - The Senate Finance brackets. Self-employed persons, many tax on business will be a hard sell. Committee. having all but abandoned the with higher incomes, would benefit, and The administration had hoped to avoid employer-based financing of President there may be pressure from liberals to such a fight by claiming huge savings from Clinton's health-reform plan, now must phase in the deductions more slowly or the cost-containment provisions in its plan. confront the huge government cost of change the tax provision to a credit for But here too, the White House must give expanding coverage without a large contri- working families. ground as the insurance industry has bution from business. In announcing their proposal Friday. mounted a strong lobbying campaign to moderates left themselves considerable overturn proposed controls on private A compromise plan put forward by centrists on the panel would commit more flexibility on these deductions, but re- insurance plans. than $246 billion over a five-year period, cent estimates indicate that even a more Mr. Moynihan has never hidden his and even this could be inadequate to fund scaled-back version could cost as much as skepticism about the premium caps pro- the subsidies needed to achieve the stated $40 billion over five years, leaving about posed by the administration, and Demo- goal of providing health insurance to 95% $200 billion in the plan for the vouchers. If crats on the House Ways and Means of Americans by 2002. the savings from Medicaid - a program Committee are plainly divided on the is- already aimed at the are subtracted, sue. The panel, which worked into the The same budget relies on nearly the proposal provides about $150 billion in weekend, hopes to complete action on $56 billion in Medicaid savings that pose a new resources to expand health care for its own health-care bill before the July problem for states like New York, home of lower-income families. And more than half Fourth recess, but acting Chairman Sam the Finance Committee chairman, Sen. of these funds would in fact come from Gibbons (D., Fla.) cut off votes on a Daniel Patrick Moynihan. And in addition nearly $78 billion in savings from Medi- standby cost-control plan until party cau- to a new tax on high-cost health-insurance care, the health program for the elderly. cuses this week. plans. the package includes a $1-a-pack In contrast with the finance panel, increase in cigarette taxes - more than Despite its misgivings, the Clinton the Ways and Means bill depends heavily double the level accepted SO far by the administration is wary of doing any- on mandated contributions from business. House Ways and Means Committee. thing now that would jeopardize the But to preserve this provision, Mr. Gibbons chances of advancing a health-care bill in Chairman Moynihan has delayed any already has had to give ground on tobacco the Finance Committee. And though labor decision until after a meeting this after- taxes and insurance-market changes. In a interests appeared to play a role in pulling noon of committee members. But even series of tradeoffs, the committee agreed two Democrats. Sens. Bill Bradley of New before release of the compromise plan last to give more flexibility in setting rates for Jersey and Max Baucus of Montana, away Friday, the clear drift in his panel was companies with more than 100 employees. from the proposed compromise last week, away from the administration's require- In addition, the bill was restructured to union leaders also want to give the reform ment that all employers help pay for their again allow companies with between 50 effort more time. workers' insurance. and 100 workers to participate in a pro- The finance panel's centrist faction. posed Medicare-like program for small The high costs underscore the un- including Sens. Bradley and Baucus, in- businesses that can't get private coverage certainty of the whole endeavor. An esti- cludes eight Republican and Democratic for their workers. mated 39 million people are now unin- Please Turn to Page A8, Column 4 -Mary Agnes Carey contributed to this sured, and Congressional Budget Office article. figures indicate nearly three-quarters could qualify for some subsidy under the plan put forward by moderates. A proposed system of vouchers would cover the full cost of insurance premiums for those be- Ibw poverty, about 15 million persons, and this subsidy would be gradually phased out until reaching 240% of the poverty level. THE WALL STREET JOURNAL MONDAY, JUNE 27, 1994 64 Touchy time for health reform Moynihan offers his plan today By Jessica Lee USA TODAY Health-reform legislation en- ters a delicate stage today as the Senate Finance Committee gets its first look at a bill that promises health coverage for all Americans, without making employers pay for it. Sen. Daniel Patrick Moyni- han, D-N.Y., the committee chairman, unveils his official outline for financing health re- FOLL form with a combination of taxes and savings in Medicare and Medicaid. Moynihan's proposal over- shadows a bipartisan plan de- By Shayna Brennan, AP veloped last week by Sen. John EXTRA HOURS: Reps. J.J. Pickle, D-Texas, left, Dan Rostenkowski, D-111. and acting House Ways Chafee, R-R.I., and five other and Means Chairman Sam Gibbons listen to discussion during a rare weekend committee meeting. finance panel members. Both plans share Clinton's ward in his committee, and we composition - 11 Democrats, Hillary Rodham Clinton meet goal of universal coverage but are encouraged to see the pro- nine Republicans - reflects today with leaders of medical reject his device for guarantee- cess move forward," she said. that of the full Senate. schools and teaching hospitals. ing it - a requirement that Moynihan's financing in- Republicans' strength on the Moynihan, who's running for employers pay 80% of their cludes a $2-a-pack cigarette tax finance panel gives them the re-election this year, has a workers' insurance premiums. (up from 24 cents) and a 1.75% best shot they're likely to have number of influential medical Moynihan's plan aims for tax on all insurance premiums. to influence the health-reform centers in his state. 95% of Americans to have Meanwhile, Senate Republi- financing legislation that goes Last week, Dole rejected the health insurance by the year can leader Robert Dole, R- to the Senate floor. Chafee proposal as one that 2000 after new regulations Kan., argued for cautious On the other side of the aisle, "has too many taxes for me" make insurance more accessi- health-reform action as some some Democrats are less con- and probably would not win ble and affordable. Democrats pushed for moving cerned with details. support among a majority of If the goal isn't reached, a ahead without GOP backing. Sen. Tom Daschle, D-S.D., is Republicans. commission would set specific "Let's get it right," Dole in- urging Moynihan to pass a bill He says he'll write his own steps to achieve it. sisted in a TV interview on C- and send it to the floor - plan with Sen. Bob Packwood, The steps would take effect SPAN. "I think we can do a lot where the Democratic major- R-Ore., ranking Republican on automatically unless Congress of things this year, but if we try ity can rewrite it to the presi- the Finance panel, and prom- voted them down. to take the whole loaf, it may dent's liking and pass it, with or ises it will be one most Republi- White House economics ad- be that no health-care bill without Republican votes, cans can support. viser Robert Rubin stressed passes this year." while the public looks on. "That would be straight Sunday that Clinton stands by Dole's argument comes at The "employer mandate" along partisan lines," Pack- his insistence on universal the start of a week when both Clinton proposes has been ap- wood says. health-insurance coverage as the tax-writing Finance Com- proved by two committees - Such a bill, he says, risks sti- "an integral part" of his overall mittee and its counterpart, the the Senate Labor and Human fling bipartisan efforts and economic strategy. House Ways and Means Com- Resources panel and the House could end in passage of a weak- Health-reform spokeswom- mittee, will be immersed in Education and Labor panel. ly supported law that gets re- an Lorrie McHugh said Clinton writing outlines of the health- Backers of Clinton's employ- vised every couple of years. is flexible on the route to uni- reform legislation to be voted er mandate also are expected "Unfortunately," Packwood versal health coverage but not on by each chamber. to hold sway in the Ways and says, "it may end up that Dole on the destination. Many senators look to the Fi- Means Committee, where all and (Senate Majority Leader "Chairman Moynihan is try- nance Committee for political tax bills originate. George) Mitchell end up writ- ing to move the process for- guidance because the panel's The president and first lady ing" the health-reform bill. USA TODAY MONDAY, JUNE 27, 1994 85 Chafee stakes out middle ground By Judi Hasson regulations imposed by the government. USA TODAY "It is a centrist effort," says Chafee, 72. "On both sides there are extremists who Sen. John Chafee is known on Capitol demand that what they want be it, and Hill as a bridge-builder and a longtime that's why it seems to me the progress in health-care crusader. health-care reform in the Congress of the Last week, those traits merged as the United States to date has been total chaos." Rhode Island Republican forged a health- Sen. David Durenberger, R-Minn., part of care reform compromise among fence-sit- Chafee's small group of Democrats and ters on the Senate Finance Committee who Republicans who came up with the plan, oppose requiring employers to pay for says it was Chafee's persistence that their workers' insurance. brought about the compromise some law- Chafee's plan - which drops the most makers hope will break the Senate logjam. controversial part of President Clinton's "I give John Chafee the credit for all of proposal, the so-called employer mandate it," Durenberger says. - is attracting the attention of Sen. Daniel But Clinton allies say the Chafee com- Patrick Moynihan, D-N.Y., the Finance promise is no plan at all because it doesn't Committee chairman. Today Moynihan is guarantee coverage for everyone. expected to introduce his own version of Says the Consumers Union's Bob Car- reform, without a mandate of any sort. olla: "We're appalled. It's legislative gim- "There is no point in coming out with mickry at its worst. The mainstream is ac- something no one is for," says Chafee. tually selling consumers down the river." Decades before Clinton put health re- Ron Pollack, spokesman for Families form at the top of the national agenda, it USA TODAY USA, a liberal consumer group, calls the was on Chafee's. As governor, he worked plan "Chafee minus." He says Chafee and in the 1960s to provide prenatal care for " other moderate Republicans were pres- women who couldn't pay for it and to pro- sured by hard-line Republicans, including vide health insurance for the elderly be- fore Congress passed Medicare in 1965. There is no point in coming out Senate Minority Leader Robert Dole, R- Kan., not to come up with a workable plan. Three years ago, he began meeting with with something no one is for. "It is clearly a hard-line Republican par- GOP senators weekly to educate them " ty position to try to do what they can to dis- about the nation's health-care problems. rupt and frustrate any attempt to get some- Now Chafee has pulled together a small - Sen. John Chafee, R-R.I. thing through," Pollack says. bipartisan group to stake out a centrist po- Chafee is mindful that whatever bill sition on the finance panel. passes must have overwhelming support. That's the committee responsible for de- ance. But the individual mandate fell flat. Otherwise, it will be attacked, revised and ciding how things will be paid for, and "There was no constituency for it," Cha- weakened over time. many believe it is where the health-care fee says. "The right was against it. The left "If you pass it 56-44, that means 44 sena- plan ultimately will be crafted, because it was against it." tors are going to be going around the coun- reflects the makeup of the Senate. In its place is a compromise designed to try saying what a lousy bill it is," Chafee Gone from Chafee's plan is any talk of a attract committee moderates like David warns. "It's not beyond the realm of possi- mandate. After Clinton proposed requiring Boren, D-Okla., who wouldn't go for a man- bility that the whole thing will collapse." employers to pay at least 80% of workers' date under any circumstances, and John Chafee hopes there will be reform this premiums in order to achieve universal Breaux, D-La., who argues competition in year, but says there are unrealistic expec- coverage, Chafee had countered with a the marketplace and insurance reforms tations about what Congress can do: "I'm plan to require individuals to buy insur- can be used to drive down prices without not as optimistic as I was six months ago." Clinton, Chafee plans compared MEDICAID UNIVERSAL COVERAGE BENEFITS Chafee: Medicaid patients Chafee: If 95% of all Ameri- Chafee: National board could be folded into private in- cans don't have insurance by would establish two benefit surance, but welfare recipients 2002, national board would rec- packages: one based on Blue would keep their extra health Cross-Blue Shield standard op- benefits. ommend ways to achieve uni- tion under federal employees Clinton: Same. versal coverage. Congress would have to act on the recom- plan, and one lower-premium mendations but would not have plan with higher copayments MEDICARE to follow them. and deductibles, fewer benefits. Chafee: Elderty could opt to Clinton: Mandatory cover- Coverage would include doctor enroll in community plans to gain age of all Americans by 1998 bills, hospital stays, emergen- prescription drug coverage, oth- through employer, individual and cies, mental illness, substance er benefits. government payments. abuse, prescription drugs for Clinton: States could opt to those under 65. fold elderly into new system. MANDATES Clinton: Congress would specify minimum benefits avail- TAX DEDUCTIONS Chafee: No mandate on em- able to all, including doctor bills, ployer or individual to buy insur- hospital stays, emergencies, Chafee: Expanded tax ance. Vouchers to help low-in- mental illness and substance breaks: All individuals could de- come families buy insurance. abuse, prescription drugs for all, duct 100% of insurance costs. USA MONDAY, JUNE 27, 1994 Voluntary purchasing pools for some long-term care at home (Currently, only self-employed individuals and small business- and adult day-care. may deduct only 25%.) es with 100 or fewer employees; Clinton: Same. communitywide rates, adjusted FINANCING for age. Insurance market re- forms to make coverage more Chafee: Cigarette tax in- Moynihan plan affordable and available, includ- crease from 24 cents to $1.24. Expected: Won't require individ- ing guaranteed renewal and no Savings in Medicare, Medicaid. uals or employers to pay insur- denial of coverage for existing New tax on high-cost health ance. Would rely on new insur- conditions. plans. All state and local govern- ance rules: Renewal would be Clinton: Employers must ment workers would pay 1.45% required, denial of coverage for pay 80% of workers' premiums. Medicare payroll tax. existing conditions would be Subsidies for small, low-wage Clinton: Cigarette tax in- banned. If that doesn't result in firms and low-income individ- crease from 24 cents to 99 universal coverage, a national uals. Insurance plans offered cents. Savings in Medicare, Me- board would make recommen- through mandatory purchasing dicaid. 1% payroll tax on self-in- dations to take effect unless re- pools. Companies with 5,000 or sured companies. jected by Congress. more workers could remain self- insured, would still pay 80% or more. Same insurance reforms. 86 Moderate health plan may be placebo Bid to please all, to find but have done little to reach plans - will continue to raise plan and remain unified behind it. - is in reality very small. strenuous opposition from a ma- Other Republicans cited politi- "Will the middle hold? That is jority of Republicans. won't fly on Hill cal problems they could have if a the issue," said Rep. Rick Boucher But Democrats will have the small group of their members of Virginia, a conservative Demo- most problems with the proposal broke ranks. "Why should we crat who differs with the majority because it fails to meet President share the pain with the Democrats By J. Jennings Moss of his party on health care. Clinton's bottom line: It does not that they will feel" at the polls, said THE WASHINGTON TIMES That middle will be tested this guarantee that by a specific date Rep. Dick Armey of Texas, chair- week when the Finance Commit- every American will have insur- The compromise health plan man of the House Republican Con- tee takes up the proposal unveiled ance coverage. ference. crafted by moderates on the Sen- Friday by four Democrats and "You cannot pass through this ate Finance Committee last week three Republicans on the panel. House of Representatives an op- Rep. Al Swift, Washington is a good example of what happens The plan makes no guarantee tion [for Congress to do something Democrat, agreed that Republi- when lawmakers from the politi- that every American would have in the future]. We have to have uni- cans are better off politically by cal middle meet behind closed health insurance in the near fu- versal coverage by a date certain," sticking together. "Whether or not doors to develop policy. [the Senate Finance moderate ture but sets a target to have 95 said Rep. Mike Synar, Oklahoma The plan borrows ideas from Democrat and one of the presi- plan] creates any new problems percent covered by 2002 through Democrats and Republicans. It the use of insurance reforms and dent's health care cheerleaders. for us, I don't know," Mr. Swift said. punts on the other measures. If the nation fails "It leaves us pretty much with the Republicans know any health contentious is- same splinters we've always had so NEWS to meet the goal, a commission will bill with a strictly GOP stamp has sue of insurance we don't have any more political ANALYSIS recommend solutions to Congress, no chance of passage, but it could mandates. It and lawmakers will be forced to problems, we've still got the old be a good political document on would protect consider them but not bound to en- ones. It's the Republicans with the which to challenge Democrats. Americans from losing their in- act any changes. "I'm not adverse to the notion new problems." surance. It would reach to cover 95 Lawmakers from both parties that the election might tell us The moderates who negotiated percent of the public. anticipated the proposal would something about what the Amer- the compromise understand more But it most likely would not pass contain a mandate on individuals ican people want." said Sen. Pete V. than most the delicate nature from in Congress. to buy insurance if other reforms Domenici, New Mexico Republi- both a political and policy view- Liberals will blast the plan be- did not work in the future. The can. point of the tradeoffs involved. cause it does not have an automatic individual mandate is not an ap- Mr. Domenici said the feeling "From the standpoint of myself device to force businesses to pro- pealing concept for either side, al- among many Republicans was and, I think, probably other people vide insurance coverage. Conser- though for different reasons. that they would have preferred not as well, we're nervous nervous vatives will balk at the new taxes By dropping mandates entirely, to see the moderate GOP members about unintended results, nervous imposed and are likely to say it is the moderate lawmakers made it negotiating with like-minded that in attempting to do something still a big-government solution. more attractive to conservatives, Democrats. Instead, they wanted good, we do something bad," said The middle ground that place although other items - such as a to let Senate Minority Leader Bob Sen. John C. Danforth, Missouri both sides profess a sincere desire tax on the more expensive health Dole work out a GOP concensus Republican. And he is almost certain to be- come the second president, after Troubled Jimmy Carter, to visit black Af- rica. Speculation is centering around a trip early next year. In his speech today, Mr. Clinton Africa is expected to describe a new era of possibilities for U.S. policy on Africa. Gone is the Cold War in which fascinates African states lined up on the U.S. or Soviet side. And gone is the hated apartheid system, now that South Africa has a multiracial Clinton elected government. Already, the administration has sponsored a conference - last month in Atlanta - on South Afri- ca's political and economic devel- By Julia Malone opment. MONDAY, JUNE 27, 1994 The Washington Times COX NEWS SERVICE This week's conference with It's far more than a passing about 150 academicians, relief fancy, say President Clinton's workers, business leaders, and aides. lawmakers is billed as an attempt The president, who today will to gather fresh ideas on how to address the unprecedented two- help Africa. day White House conference on The United States "has two Africa that opened yesterday, has stark options," President Nelson Mandela of South Africa said in a quite simply fallen in love with that populous, troubled continent. videotaped message on the confer- To be sure, he has yet to overhaul ence's opening day. "On the one U.S. foreign policy toward Africa. hand, to succumb to the pessimism Critics score him for shortchang- of the false perception that Africa ing the continent on aid, for bun- is on a permanent decline," or gling the Somalia aid mission and "take the cudgels and become a for indecisiveness on the Rwanda leading partner" in the revival of massacres. the continent. The White House conference it- Mr. Clinton's focus on the sub- self almost became a public rela- ject inspires both hope and skepti- tions calamity. White House aides cism. neglected to invite the Congres- "I'm looking at previous admin- sional Black Caucus, long a istrations," said Melvin Foote, ex- staunch defender of Africa aid, un- ecutive director of the advocacy til the last minute. group Constituency for Africa, a None of this could dampen Mr. participant in the conference. "We Clinton's abiding fascination with didn't have this kind of opportu- Africa, say aides. At the drop of nity to talk to the president about the hat, he can tick off the names Africa." of successive regimes in remote Even so, Mr. Foote has been dis- African states. satisfied with the Clinton adminis- When Atlantic Monthly pub- tration until now. "He's been lished Robert D. Kaplan's article caught up in his campaign prom- "The Coming Anarchy" in Febru- ise to focus on the domestic ary, Mr. Clinton pored over it, agenda," Mr. Foote said, adding scribbling furiously on the mar- that there's "a lack of talent" on gins to rebut the bleak future it the foreign policy team. predicted for Africa. 115 Dear co eagt e' e ers wir VO By Keith Glover Education was the most popular of the Congress" on issues impor- CONGRESSIONAL QUARTERLY topic in the year ending June 2, tant to his constituents, and he with letters about President Clin- says he owes his success in two Dozens of letters pour into con- ton coming in a close second. high-profile victories in part to gressional offices each day, but Other popular topics included that tool. lawmakers pay particular atten- health care, the environment, the Mr. Mica distributed a series of tion to one stack of mail: letters military and the North American letters when he and other junior from their colleagues. Free Trade Agreement. lawmakers sought to abolish four Rep. Timothy Penny. Minnesota Some members compile their House committees just days after Democrat, says he has found the own information for the letters. he took office. The panels were letters to be even more effective Others reprint news articles or abolished two months later. than floor speeches that are often editorials that make their point. He turned to the "Dear Col- delivered to a near-empty House Rep. Bill Zeliff, New Hampshire league" strategy again when try- chamber. He has used them to Republican, distributed a pointed ing to head off a House vote on seek support for proposals to cut "Dear Colleague" letter June 14 elevating the Environmental Pro- annual spending bills and for other that was intended to garner sup- tection Agency to Cabinet level, deficit-reduction measures. port for a special House session on and he succeeded again. "Around here, you can go to the spending cuts. "I actually had people sit me floor and give a speech and maybe In the letter, Mr. Zeliff, who is down and say, 'Can you explain this 20 members will hear the speech," sponsoring legislation to require a little bit better? I got your let- he says. "A 'Dear Colleague' letter such a session, warns members of ter,' "Mr. Mica said of the response MONDAY, JUNE 27. The Washington Times gets you into 435 offices. And it's the possible consequences of not to his EPA letters. amazing how many members will signing a petition to force a floor "Dear Colleague" letters are come up and say, 'Hey, I got your vote on the bill: "The people back also popular among more senior letter.' home will undoubtedly decide that members. "I walk in here in the Marwan Burgan, president of a you did not want to force the lead- morning and the first thing I'll computer service called Congres- ership to let Congress cut wasteful do is grab the 'Dear Colleagues' sional Connection, has been track- government spending now." and read them and see what the ing the use of "Dear Colleague" Rep. John Mica, a freshman Re- issues are," says Rep. Dick Armey. letters. More than 5,400 of the let- publican from Florida's 7th Dis- The Texas Republican has sent 126 ters have been distributed in the trict, is one of the most prolific such letters in the past year, put- last year on topics ranging from writers of "Dear Colleague" let- ting him easily atop the list of taxation and deficit reduction to ters. those who send the most. abortion and civil rights, accord- He says he uses the letters as "a ing to Burgan. tool to try to tweak the conscience Distributed by Scripps Howard. IRS to hire 5,000 in revenue push By Ruth Larson IRS agents from the bill. THE WASHINGTON TIMES Sen. Richard C. Shelby, Ala- bama Democrat, supported Mr. Taxpayers beware: The Internal Grassley's amendment. "I believe Revenue Service is about to put this is a back-ended way of once 5,000 more enforcement agents on again putting it to the American the beat to make sure you pay up. taxpayer without any assurance The Treasury Appropriations that taxpayers will be protected bill passed by the Senate last week from undertrained or overzealous Sen. Charles Grassley fears the gives $405 million each year to the tax collectors," he said during results of hiring thousands of new IRS to beef up taxpayer compli- floor debate. IRS agents to increase revenues. ance, at a cost of $2.025 billion over Maureen Gilman, legislative di- five years. The House passed a rector for the National Treasury gress gave the IRS $115 million to similar bill earlier this month. Employees Union, said the bill in- increase its compliance staff, but This way, the IRS hopes to in- cluded a provision that the new it will actually spend only about crease government revenues by IRS employees would be trained in $17 million of that on compliance. nearly $9.2 billion over the next protecting taxpayers. "We don't The rest will help pay for a $219 five years - without a tax in- want our employees out harassing million funding shortfall in labor crease. It was unclear, though, people, so we have no problem costs. whether the increased revenue with them being properly trained," Another criticism of the IRS en- projections take into account the she said. forcement strategy is that it cost of hiring the extra agents to An IRS spokesman refused to comes at a time when the rest of crack down on unreported income, comment on any of the provisions the government is under orders to increase the number of tax audits contained in the legislation. trim its ranks. "The federal gov- and collect more delinquent taxes. About 900 of the positions will ernment will never be reinvented Opponents of the plan, like Sen. be filled by reassigning IRS staff when we allow agencies like the Charles E. Grassley, Iowa Repub- members from other tasks, ac- IRS to add massive numbers of lican, fear the "tender mercies of cording to a General Accounting new employees," Mr. Sepp said. the IRS" will get out of hand with Office report in April that said the The IRS maintains that the ex- so many agents bent on increasing remaining 4,100 agents would be tra agents do not represent a net revenues. new hires. increase in its work force, because National Taxpayers Union The GAO appears to have it has already saved 3,612 full-time spokesman Pete Sepp agrees. doubts about the wisdom of the equivalent positions by moderniz- "The worst thing about this appro- move. In response to questions ing technology and improving ef- priation is that it puts the IRS un- from Mr. Grassley, the GAO said, ficiency. Beyond that, the agency der enormous pressure to show in- "There are steps IRS could take to plans to cut 2,544 additional posi- creased revenues. That pressure generate additional revenues by tions, its share of the administra- will inevitably lead to many unin- using existing staff differently and tion's proposal to cut nearly tended but still very serious viola- more efficiently," such as contact- 273,000 federal workers. tions of taxpayers' rights." ing delinquent taxpayers by tele- But the IRS' own figures show Earlier this year, the Senate had phone earlier in the process. its staff grew by more than 30,000 agreed to funding increases for The GAO also noted that the IRS between 1983 and 1993 as the enforcement only if they were tied had steadily cut its enforcement agency expanded to handle more to additional taxpayer safeguards. staff since 1988, despite Congress' than 200 million tax returns. But the safeguards provision was repeated funding increases for en- "This is not reinventing govern- removed during a conference forcement. The money was appar- ment," Mr. Shelby said. "This is committee with the House. Mr. ently used to pay for funding reinventing new ways to increase Grassley tried unsuccessfully last shortfalls in other programs. the size and the cost of the federal week to eliminate the additional This year, for example, Con- government." Dropping GOP's pro-life plank means betraying its grass-roots activists In a June 20 column ("Should writes Miss Charen, "of squishiness waivers on the right to life, will it Republicans remain the right-to- on the pro-life question." hasten the day when abortion is life party?"), Mona Charen writes, But it's not absurd at all. They are banished from our society or move "Realists understand that battle squishes. us closer to permanently tabling [over the right to life of unborn Bill Kristol is sometimes the issue in favor of the forces of babies] has been lost. The election described as a Republican strate- death? of Bill Clinton has postponed the gist. OK. What, then, is the strate- Mr. Weigel, no doubt, has other day when the courts would reverse gic goal of his effort to play realpoli- things to attend to as a "renowned themselves on Roe vs. Wade." tik with the lives of unborn babies? Catholic scholar," and neither Mona "The Human Life Amendment Who is the target of Mr. Kristol's Charen nor Bill Kristol need to walk idea is dated," she adds. offensive? Whose influence is he point for pro-life. If they find that Therefore, she endorses Bill trying to curtail in GOP politics? Is the Human Life Amendment is Kristol's and George Weigel's effort he trying to contain Massachusetts morally indefensible, politically to trash the Reagan pro-life plank Gov. Bill Weld and Ann Stone, pres- embarrassing or otherwise unwor- and move the party left on abortion ident of Republicans for Choice, or thy of the Republican Party, they - while taking exception to Bay the grass-roots activists, who won can fall back into the ranks and let Buchanan's vigorous defense of the democratic election as delegates others carry on the fight. GOP platform and criticism of Mr. to the 1992 convention and who Kristol and Mr. Weigel. adopted the pro-life plank? Not SO TERENCE P. JEFFREY "It is absurd to accuse Mr. Weigel, long ago, both major parties in Executive Director a renowned Catholic scholar, and America were pro-life. Now there The American Cause Mr. Kristol, a staunch pro-lifer," is one pro-life party. If that party McLean Rear-guard action on health care reform V A 11 that opponents of massive government control be harangued for killing "reform" just when it was in health care need to know about the work of in their very grasp. the Senate Finance Committee "rump group" But the work of the rump group is likely to be of moderates is that Hillary Rodham Clinton and superseded today as Finance chairman Moynihan Senate majority leader George Mitchell think it is introduces to his committee a new version of his promising. This would be like hearing that Kim Il- "mark" - that is his basic version of a bill. Report- sung was perfectly happy with some new set of ed to be similar in many respects to the rump group's nuclear monitoring requirements and eager to sign legislation, the moderate Senators are already mak- on the dotted line - one would have to assume that ing noises about falling into line behind the chairman. something was very, very wrong with the deal. From the reports, however, Mr. Moynihan's mark "Incredibly hopeful," says Mr. Mitchell of the is a particularly bad piece of legislation. The key pro- rumpsters, five Democrats and three Republicans visions are said to be the creation of a National Health who have cobbled together a health reform plan they Care Commission and a National Health Cost Com- hope will squeak through the Finance Committee. mission, each with broad near-legislative powers. "I'm encouraged by what I hear is a very substan- Members of each commission would be named by tive discussion," said Mrs. Rodham Clinton, before the president and subject to Senate confirmation. The the group presented their plan on Friday. Mrs. Clin- first commission would be charged with finding new ton's comments are the most interesting, given that solutions to the health care problem should, in the it was she who earlier this week forced her husband, year 2000, less than 95 percent of the population have the titular president, into an ironclad veto threat health coverage. The body would not get to propose MONDAY, JUNE 27, 1994 The Washington Times against any plan that didn't achieve universal health new taxes and other mandates, but their "recom- insurance coverage. So it is hard to imagine that the mendations" would automatically become law if rump group's version of reform can be seen as Congress did not vote the provisions down within a much of a threat to the first couple's more radical prescribed length of time. concept of health legislation. For example, over the Once again lawmakers look to winkle themselves weekend the president continued to rail against any out of a jam by tossing away their lawmaking compromise plan that would fall short of his vision authority. Last time we checked, the Constitution of insurance for all. "Make no mistake: measures said that it was the job of Congress to levy all taxes. that are half-hearted would, at best, guarantee that But now Mr. Moynihan is going to propose that a things stay only about as good as they are now," said commission of unelected presidential appointees be the president. "The poor would get health care, the given that power. How convenient. And dangerous. wealthy would get health care, the middle class The constitution provided that elected officials would get it sometimes and not get it sometimes." would be responsible for taxation for the explicit After the comments, Mr. Clinton's spokesman Dee purpose of making taxation difficult. Just wait and Dee Myers assured one and all that the president see what happens once that little difficulty has was not referring to the work of the rump group. been removed. But why not? The rump group doesn't mandate Not that we haven't already seen this scenario play universal coverage, so one would think it would be out thousands of times. The vast growth of the fed- the object of the Clintons' ire. But they are letting it eral government has been achieved in the last 50 have an uncontested run for now for two main rea- years primarily by the transfer of legislative author- sons. The first is that the president needs to have an ity from the Congress to the bureaucracy. We are gov- out, should the rump's compromise be the best he can erned now, not by laws made by our elected repre- get. If it is, he'll be able to sign the bill and claim he sentatives, but primarily by rules and regulations is fulfilling his promises - "I always said that this drawn up by the hundreds of thousands by an army compromise met my goal of universal coverage," Mr. of unelected officials. When these rules ruin lives and Clinton will be able to say, even though of course the livelihoods, it isn't Congress that gets the blame, it is legislation would do no such thing. the bureaucrats, and our representatives get to enjoy The second is that the rump group's action has the non-controversial role of fix-it men, plastering helped to break what was shaping up as a deadlock constituent service band-aids on the wounded. in the Finance Committee. The Clintons and Mr. It was just a matter of time before lawmakers Mitchell know good and well that they just need to would try to opt out of the tough choices demanded keep the legislative process going, get a bill to the by health care legislation by handing the job over to floor and play with it there. Even if the Senate pro- bureaucrats (whom Justice Scalia has devastating- duces a mild and somewhat conservative bill, the ly taken to calling the "junior varsity Congress"). It House can be expected to have produced a liberal is hard to see why lawmakers want to be lawmakers behemoth, chock full of mandates and price controls. if whenever it comes time to make law they ask some- Their hope is that once in conference committee, the one else to do it for them. One might get the impres- big-government provisions will prevail. At that point, sion that our representatives want to enjoy the plea- the only defense Senate moderates and conservatives sures and perks of power without enduring its would have would be to vote down or filibuster the responsibilities. King Lear tried to engineer for him- final bill. This could prove to be too much for many self just that sort of arrangement, /and it should be Republicans and conservative Democrats who would remembered that it all ended rather badly. 133 from Boston GIODE rage 1 R.I's Chafee may rescue Clinton's command a rifle company in Korea. A sense of hoblesse oblige 17116 t) retugh all of his political health plan dealings. His ability to survive, however. is another matter. state like Rhode Island. A political centr ist in a GOP By Peter G. Gosselin that has veered sharply rightward. he has been Globe Staff ejected from party leadership positions for his WASHINGTON - Sen. John H. Chafee makes a liberal apostasy. most unlikely political infighter. He seems so The combination of these political strands can fundamentally decent - as even his most vehement produce dizzying results. During a recent visit home, crities will admit - that it's hard to imagine he has Chafee was cheered for defending a Medicaid much fight to him. program that provides money for Rhode Island's But the Rhode Island Republican is in the disabled against White House efforts to cut it. But biggest battle of his political life, and that of less than a year earlier, he was assailed for helping Democrat Bill Clinton's as well. With & key to kill the administration's economic scimulus plan congressional committee on which Charge sits all but that would have provided money for Rhode Island paralyzed by partisan divisions. the 71-year-old communities like Warwick, where his son, Lincoln. to former Marine captain suddenly looks like the man mayor. to save at least a semblance of the 46-year-old "Chafee was born into a difficult political habitat president's biggest initiative - health reform. and has learned to thrive. He had to; I mean he grew Led by Chafee, a group of centrist lawmakers. up in a family that railed against Roosevelt in a state Republicans and Democrats, have worked out a deal that loved him," said John E. Mulligan, a reporter that would salvage some elements of Clinton's health for the Providence Journal-Buletin who has covered live. the lawmaker for almost two decades. If it becomes the blueprint for compromise, the Some see signs of the instinet for political measure will represent a huge step back for both survival in Chafee's embrace of health reform. Clinton and Chafee, who had proposed a much more At the time he first became involved in the issue sweeping plan. But there was a growing sense over in the early 1990s. local polls showed his popularity the weekend that only such a retreat can save the beginning to slowly but steadily erode. And until health reform campaign, which otherwise seems Clinton's presidential victory, many Chafee staffers headed for a crackup in the Senate Finance thought that the lawmaker's 1994 Democratic Senate Committee. challenger might be Ira C. Magaziner. then a "He's clearly the bridge if there's going to he any Providence business consultant engaged in a highly compromise on health in the Senate," said Robert publicized study of health care in the state and now Boston Blendon, chairman of the health policy and Clinton's chief health policy adviser. reanagement department at the Harvard School of But if politics played a role in his decision to get Public School. involved. Chafee has since pursued the health 'ssue Globe "The Finance Committee can't get a health care with a doggedness that has exhausted even bis bill without him," added Lawrence O'Donnell, chief closest allies and an abandon that might cost him aide to Democratic committee chairman Daniel politically. Patrick Moynihan of New York. Moynihan aides As chairman of a GOP task force. he has cajoled were said to be working over the weekend on a plan colleagues considerably more conservative than that adopted many elements of the Chafee himself into signing onto at least three different compromise. approaches to reform in recent years: a 1991 Such a man-in-the-middle role did not come to package of tax incentives, beefed-up preventive care Chafee by happenstance. In some sense, he has and malpractice changes; a 1992 measure to set up spent his whole career preparing for it. by operating insurance-buying cooperatives similar to those just as he is now doing - at the rocky margin subsequently included in the Clinton plan: and, most between the two political parties. recently. an elaborate proposal with the same end ad A pay-as-you-go Republican, he nonetheless the president's - insurance coverage for all supports the kind of big-government social programs Americans - but different means. that remain wildly popular in an old-line Democratic Originally. Chafee won praise for his efforts from fellow Republicans. But Senate GOP leader Bob In virtually every fight of his political career he has Dole, Republican of Kansas, is now trying to been the beneficiary of a splintered opposition and a underent him, apparently fearful a Chafee tough-minded campaign plan. compromise could open the way for a Clinton victory Richard Licht, Chafee's 1988 Democratic vival, on health, something Dole seems intent on blocking. said that the Republican lawmaker ran a clean but The compromise illustrates the kind of political extremely aggressive race. Licht said that he had chances Chafee seems ready to take for reform. Like worried Chafee might use the fact Licht, like then- the Clinton plan, the Chafee proposal would be Vice President Dan Quavle, had spent the Vietnam partially financed by deep cuts in Medicare, the War stateside in the National Guard, but be did not. government health insurance progam for the elderly. "He said. "The National Guard is honorable service' But unlike Clinton's, it wouldn't promise Medicare and left it at that." Licht remembered. recipients any new benefits in return. That's quite a Of course, that didn't stop Chafee from attacking risk for a politician from a state with the fourth- Licht at every turn. "He put my record in absolutely highest percentage of elderly people in the nation. the most negative light," Licht said. The Republican Chafee has turned such risk-taking into lawmaker's likely Democratic rival this year. Rhode something of a personal and political trademark. He Island State Rep. Linda Kushner, got a taste of the is remembered in Rhode Island for calling for a state same medicine last week when she attacked Chafee income tax during his bid for a fourth term as for owning drug stocks while engaged in the health governor in 1968. The idea lost him the election, but debate only to find herself the target of a Chafee his Democratic successor was forced to enact the counterattack that she too owned drug stocks. very same tax, earning Chafee the reputation as a Chafee will almost certainly employ similar truth-teller. techniques in the health fight of the coming days and At least in part, his ability to take such unpopular will surely use the fact the battle has moved to the stands is the product of his Brahmin background; he familiar terrain at the margin between the parties. is a member of one of Rhode Island's Five Families, But he may press with even greater-than-usual a group of Yankee clans that exercise considerable tenacity, according to observers like Blendon, the influence over the small state. It was reinforced by Harvard professor. That's because what's at stake, military service; he was a Marine at Guadacanal and said Blendon, is Chafee's "legacy, the mark he leaves Okinawa and, as if that weren't enough, went back to on America." It is a prize that can make a tough infighter even tougher. 138 6/27/94 ^Abortion issue complicates efforts at health-care reform< If Republicans opt out, Clinton will be depending By Elaine S. Povich< Chicago Tribune< on the 256 House Democrats to pass his plan. Since 218 votes WASHINGTON If the debate over health-care are required for a majority, the Democrats cannot afford to reform isn't emotional enough, just add the deeply divisive lose all of the 98 who voted to keep the Hyde amendment.< issue of abortion.< ``It is a problem and one that could be a serious Three congressional committees last week either problem for health-care reform," said Rep. Richard Durbin, passed health-care bills that provide a full range of D-III., one of the 98.< ``reproductive services," including government-financed Durbin, who believes in access to abortion but is abortions, or voted on amendments to do so.< troubled by having the federal government pay for it, says the The Senate Finance Committee, which begins issue is more complex than has been articulated so far by debating a health-care plan Monday, has yet to reach a congressional committees.< consensus. The committee's indecision is more representative "I'm frustrated by the lack of options on this issue," of the Congress as a whole, since it is more moderate than any he said.< of the other committees.< Durbin noted companies now providing insurance Abortion rights activists insist that abortion services that covers abortion services get to deduct the cost of that be covered in any national health-care program, because more insurance from their taxes. That fact, he said, already than two-thirds of private insurance policies and 80 percent of constitutes an indirect government subsidy of abortion.< health maintenance organizations now cover the procedure.< While no compromise strategy has yet emerged, But opponents balk at using any taxpayer money to and both sides are holding to their steadfast positions, it cover abortions, even if most Americans still would get their appears an accommodation will have to be made, especially to insurance through private means. Many poorer and satisfy Democrats like Durbin whose votes are crucial to middle-class Americans would have part of the insurance cost passage of health-care legislation.< subsidized by the government, and that's where abortion foes Conversely, Democratic leaders face a serious draw the line.< problem with abortion rights advocates if abortion services are "Whatever emerges must provide immunization for removed from the health-care bill. The question may come the millions of pro-lifers who don't want their tax dollars down to whether abortion rights supporters or abortion paying for abortions," said Rep. Henry Hyde, R-Ill., author of opponents hold more votes for a Democratic bill.< the Hyde amendment, which prohibits federal funds going for "There are those who are saying there is going to abortions.< be a big fight if it's included," said Rep. Nita Lowey, D-N.Y. Currently, the government will not pay for `What we are saying is that there's going to be a big fight if abortions for Medicaid recipients except in cases of rape and it's taken out."< incest or when the woman's life is at risk.< (EDITORS: STORY CAN TRIM HERE)< In his health proposal, President Clinton calls for The House Ways and Means Committee and the coverage of abortion and other pregnancy-related services, and House Education and Labor Committee both voted last week so far, congressional committees have agreed to keep to preserve abortion services in their health bills, and the ``reproductive services" in plans moving through Congress. But Senate Labor and Human Resources Committee did likewise.< the issue could tie up the House and Senate when the bills A group of Republicans and Democrats on the reach the floor next month.< Senate Finance Committee drew up yet another version of Labor Secretary Robert Reich said the health-care reform, but left the issue of abortion open.< administration is not worried about abortion becoming a Republicans threaten to keep abortion provisions crunch issue in health care because the "basic package simply out of the panel's bill, but the committee is likely to follow the tracks the basic package in Fortune 500 (health insurance) lead of the House committees and preserve abortion rights.< plans."< He acknowledged, however, that some members of the House and Senate who are opposed to abortion ``want to ^FBI director to travel to Europe to discuss wave of talk about the question."< organized crime< (EDITORS: NEXT 2 GRAFS OPTIONAL)< By Thom Shanker< Chicago Tribune< But Reich could be showing the same kind of BERLIN Nuclear gangsters from the old U.S.S.R. naivete that got abortion rights supporters in trouble in the Narco-conglomerates spanning Colombia, Italy and Russia. House last July 1. Then, those supporters failed to estimate the Hate groups in Germany linked by computer to U.S. racists, depth of the House's opposition to having federal money pay starting a cyber-Nazi network.< for abortions and lost 255-178 on a vote to scrap the Hyde These 21st-century threats already are taken so amendment.< seriously by American law enforcement that FBI Director Before the vote, there was a shouting match Louis Freeh travels to Europe this week to discuss an between Hyde and Rep. Cardiss Collins, D-III., after he organized crime spree that he fears will ``threaten the integrity insinuated that she was out of touch with the abortion views of of governments."< her own constituents, notably black ministers. The two patched Freeh warns that the `greatest national security things up in a few days.< threat" to the United States comes from nuclear gangsters: The (END OPTIONAL TRIM)< possibility that working warheads or plutonium needed to The top House Democratic leadership, which is make them will be stolen amid the economic chaos that itself divided over abortion, didn't participate actively in the replaced communism in the former Soviet republics.< debate. Many newer House members of both parties simply "There are several cases of highly enriched nuclear assumed that with 114 freshmen and a doubling of the number materials missing," Freeh said. ``We cannot take a chance that of women from previous years, the vote to allow federal terrorists might steal a nuclear weapon and then use it against funding of abortions would be all but automatic.< a nation, any nation."< On that day, 98 Democrats voted to continue the A major goal of Freeh's nine-nation fact-finding prohibition against the government routinely paying for mission is sharing information on nuclear stockpiles. The FBI abortions. If all the House Republicans were to now spurn a also will offer training for east European police battling health-care reform bill, which is now considered likely, some criminals in a new, free-market environment.< of those 98 will be needed to pass Democratic-sponsored Freeh's 10-day tour, which begins Tuesday in health legislation.< Berlin, includes all the organized crime capitals of post-Cold 148 2nd victory for Clinton health plan By Jessica Lee and Judi Hasson care. Republicans will ensure the rich erage premiums. Another idea, to tax USA TODAY package gets more scrutiny. employers who don't insure their The House panel also defeated at- workers, was taken off the agenda. The House Education and Labor tempts to strip most abortion cover- Still, Sen. John Chafee, R-R.I, said Committee approved a health bill age from the benefits. That issue, too, he expects the group to present a fin- promising insurance for everyone will remain contentious. ished plan to Finance Committee Thursday, becoming the second con- Meanwhile, four Democrats and leaders today. gressional panel to ratify President three Republicans spent the day be- But Senate Republican leader Rob- Clinton's key health-care goal. hind closed doors trying to fashion a ert Dole, R-Kan., planning to intro- Clinton, noting that the Senate La- bill with enough coverage to be called duce his own bill, said the moderates' bor Committee had passed a similar universal without ordering employers plan apparently relies too heavily on bill, said, "They have broken the or individuals to pay for it. taxes to win many Republican votes. chokehold of special interests, and by Some points were in flux, but par- Sen. David Durenberger, R-Minn., choosing to cover everyone, have ticipants confirmed details: If 95% of called the Chafee group's bid the Sen- stood up instead for millions of hard- Americans didn't have health insur- ate's last shot at bipartisan reform. working middle-class Americans." ance by 2002, a commission would Republicans' "objective is health- Keeping options open, the House recommend a plan for achieving uni- care reform, and the president's is panel also narrowly approved a Cana- versal coverage. Congress would have universal coverage," he said. If Cha- dian-style bill that would replace pri- to approve It within six months. fee's bid fails, he predicted, Senate vate insurance premiums with payroll If Congress failed to act, the bill Democrats will try to pass a bill with taxes to pay medical bills. would require individuals to buy their 51 votes, only one Republican. That The panel's version of the Clinton own health insurance. would let Democrats campaign as bill requires employers to pay for in- Financing remains in dispute. health reformers but let Republicans surance, has subsidies for small firms One proposal is to tax top-dollar in- blame them for the taxes involved. and expands coverage for women's surance policies at 25% to 35% of the By Tim Dillon, USA TODAY health, mental illness and adult dental difference between their cost and av- LOBBY: Hillary Rodham Clinton addresses Today's debate, 10A health-reform backers on Capitol Hill. USA TODAY 6-24-94 PHOTOCOPY PRESERVATION Lawmakers' Health Coverage Isn't So Generous By Hilary Stout Staff Reporter of The Wall Street Journal WASHINGTON -- For President Clinton and his allies on health care, it has become the one sure-fire applause line: Give every American what Congress gets. "You say it and the audience goes crazy," says Families USA foundation's Arnold Bennett, a member of the team helping the administration craft its health-care message. Hillary Rodham Clinton uses it in virtually every speech she gives. Just this week a group of Democratic senators, including Labor and Human Resources Committee Chairman Edward Kennedy of Massachusetts, called a news conference to demand that the general public get the coverage that "members of Congress have arranged for themselves.' Sen. Harris Wofford, the Pennsylvania Democrat who won his seat in 1992 by stressing health care and faces a stiff re-election fight this year, is circulating a petition demanding a bill that offers "every Pennsylvanian and every American the same kind of guaranteed coverage and choice of private health plans that members of Congress get." But while focusing on Congress's benefits may be a stroke of political brilliance, the prospect of actually getting what Congress gets might not please large numbers of Americans, including some of the most vigorous supporters of the president's health-care bill. The federal employees package isn't as generous as most union health plans, or the programs of many Fortune 500 companies. For example, many of the policies available to federal employees don't include substance-abuse benefits or preventive dental care. However, Congress's benefits package would be an improvement for a vast number of Americans, particularly many employees of small and midsize businesses and, of course, the estimated 39 million people with no health insurance. still, the federal government's share of the premium isn't as generous as most unions and many big employers -- or, for that matter, the 80% share the White House would like employers to bear. And as far as the scope of the benefits and the patient cost-sharing requirements, Congress's plan isn't nearly as comprehensive as Medicaid, the federal-state health program for low-income people. What lawmakers -- and indeed all federal employees, including the president -- get is the opportunity to enroll in one of an array of health-care plans, each offering a comprehensive package of medical benefits, with the premium paid in part by their employer: the taxpayers. In the Washington area, members of Congress can choose from among nearly 30 health plans, including 14 health-maintenance organizations and seven "fee-forservice" plans, which pay at least part of the bill for visits to the doctor or hospital of the patient's choice. The benefits in each plan vary, but generally include hospital and emergency services, doctor visits, lab tests, prescription drugs and some dental care. Depending on the policy, coverage may include children's immunizations and some nursing-home benefits. Unlike much of the general public, Congress is also free of some of the onerous insurance-industry practices that shut some people out of the market. Under the Federal Employee Health Benefits Program, no health plan can drop or refuse to enroll a government employee or dependent because of a medical condition. But as far as cost-sharing goes, Congress isn't getting quite the ride that many working Americans do. According to the Office of Personnel Management, which runs the federal benefits program, the government pays on average 72% of employee health premiums, and no more than 75%. But for some policies the share is far less. (END) DOW JONES NEWS 06-24-94 6 32 AM **** filed by: : TAPE (--) on 06/24/94 at 06:26EDT **** **** printed by : WHPR (JEL) on 06/24/94 at 08:01EDT **** BC-CLINTON-CRABFEAST CLINTONS HOST CRAB FEAST FOR CONGRESS WASHINGTON, June 23 (Reuter) - With the fate of their health care reform plan uncertain on Capitol Hill, President Clinton and first lady Hillary Rodham Clinton hosted hundreds of members of Congress and their families and aides at a crab feast Thursday night. The president told the crowd of about 900 gathered under a huge white tent on the White House South Lawn that he wanted the second annual event to be fun, relaxing, non-political, which is almost impossible in Washington. The president, dressed in a green plaid shirt and tan pants, spoke briefly but spent most of the evening posing for pictures with lawmakers and their friends and aides. The first lady wore a casual, purple dress Lawmakers and their families, many dressed casually in the muggy, rainy evening, dined on crab salad, marinated tomatoes, cole slaw, herbed potato salad, hard-shell crabs, Rockfish with lump crab stuffing, barbecued chicken, corn on the cob and baked beans. Country music star Trisha Yearwood performed during the three-hour event, as did a Marine band called Country Currents. Several lawmakers laughed when asked if they thought the White House believes the way to their health care votes was through their stomachs. I think you should take a special note of all the fish and the salad and the chicken and the fruit, which clearly must be a good omen for health care, because it's good for you, joked Representative Ron Wyden, an Oregon Democrat and Clinton supporter. Representative Michael Bilirakis, a Florida Republican who is advancing a market-oriented plan that does not guarantee universal coverage, responded more seriously, saying of lawmakers, I think they re more concerned with how their constituents are going to look at this in November But Senator Donald Riegle, a Michigan Democrat, took a joking shot at the feast, saying of lawmakers, There's going to be a lot of people that are going to need health care after they try to digest this dinner. REUTER **** filed by: RB on 06/23/94 at 22:39EDT **** **** printed by: WHPR (JEL) on 06/24/94 at 08:04EDT **** BC-House-Panel-Passes- AUTOBREAK (2) It has been deadlocked over how to pay for President Clinton's goal of guaranteeing health coverage to all Americans, with conservative Democrats and Republicans balking at the president's proposal to require business to pay 80% of the cost of worker health coverage. Chafee's group of moderates is floating a plan that would seek to expand health coverage by passing measures to make insurance more affordable. If that failed to sufficiently reduce the number of uninsured over a specified period of time, individuals could be required to buy health insurance. Dole, who sits on Finance, distanced himself from the group, saying he hopes to offer his own compromise package. I think we're closer together than we think, Dole told reporters. I'm going to try to put something together that would attract most Republicans and some Democrats. As you know, he said, everything around here is timing. Business Supporters Meanwhile today, representatives of about 50 major businesses, including Chrysler, IBM and McDonnell Douglas, met with Democratic congressional leaders and Health and Human Services Secretary Donna Shalala to underscore their support for the president's plan, including the requirement to make employers pay 80% of the cost of their workers' health-insurance costs. These companies currently pay for their employees' health care and end up footing part of the expense for those companies, big and small, which do not offer coverage. We need health care reform now -- this year, said Walter Maher, Chrysler's director of legislative affairs. The longer we wait, the worse things will get. And Hillary Rodham Clinton attended a Capitol Hill rally in support of health-care reform hosted by Arthur Fleming, who served as secretary of Health, Education and Welfare during the Eisenhower administration. Fleming said, We are in the closing days of one of the greatest crusades this nation has ever witnessed. Clinton reaffirmed the administration's insistence on universal health insurance, saying no other reform will work if we don't achieve universal coverage. " --Paul Heldman and Tom Ferraro in Washington 202 434-1800/mk/ba/mfr/ (For more information on health care; NI HCP, HEA; on insurance: NI INS; on the Clinton administration: NI EXE; on Congress: NI CNG) -0- (BBN) Jun/23/94 21:15 EOS (BBN) Jun/23/94 21:15 86 **** filed by:BB-F(--) on 06/23/94 at 21:24EDT **** **** printed by:WHPR(JEL) on 06/24/94 at 08:05EDT **** ABROAD AT HOME BY ANTHONY LEWIS: ISSUE OR SOLUTION? 1994 N.Y. Times News Service BOSTON - Something strange is happening in Washington, something to confound the skeptics and the cynics. Congress is showing signs that it may actually pass a meaningful form of compromise health-care legislation. I was a skeptic myself. Health care is so complicated a problem, involving SO many legitimate and powerful interests in this large and diverse country, that getting anything serious past all the roadblocks in Congress seemed to me unlikely. Moreover, polls showed that the issue was way down on the list of public concerns. President Clinton and Hillary Rodham Clinton deserve credit - much more than they have been getting - for moving reform this far. They made some mistakes, notably the secrecy imposed on the early health meetings. But they have educated the country on why we, like all other industrialized societies, need national measures to assure us medical care. The credit due is the greater because leading Republicans chose to make health care reform a partisan issue. They demonized the Clinton proposal as they demonized the Clintons, saying falsely that the plan would mean more Big Government and bureaucracy. (Bureaucracy is what we increasingly have now, with doctors having to get the approval of an insurance company clerk to give a patient a test or refer her to a specialist.) Now some moderate Republicans in the Senate have broken with their bitter-end colleagues and joined centrist Democrats in trying to draft compromise legislation. They have created a real possibility of getting a bill out of the crucial Senate Finance Committee. I like all of them, Bob Dole, the Senate minority leader, said of those moderates. But we've got a party to think of In other words, better an issue than a solution. But I doubt that all-out partisanship - the Newt Gingrich, Phil Gramm view - is going to prevail and prevent compromise on health reform. I doubt that Bob Dole himself will take that position in the end. The reason is simple. Too many American families know that they may be one paycheck away from no health insurance. They know that if they change jobs, they may not be able to get new insurance because they have a prior medical condition. or their insurance carrier may have terminated their policy because they have been sick. Some far-right Republicans tried out the line that the country did not need health care reform. That did not go down with the public. The experience may suggest to Dole and others that blocking reform is not good politics. If the compromise efforts finally succeed, the legislation will plainly remove some present evils. Insurance companies will have to offer standard policies to all, at community rates, regardless of individuals' medical condition. Those covered will be able to keep their insurance no matter how sick they get or how much they move. If they are poor, a subsidy will help them pay for insurance. The business world succeeded in making employer mandates'' sound bad, so the bill will not require companies to pay for most of their workers' insurance. That is a curious result, for it rejects the conservative approach of sticking with the way most Americans get their health insurance now. And making health care an aspect of employment would be a vital incentive to move people out of welfare. Whether any compromise will work in practice without employer mandates and some other features of the Clinton proposal will depend on the details. For example, how will the legislation make sure that, in a voluntary'' system, healthy young people do not go uninsured, thereby raising rates for everyone else? The universal coverage envisioned in the Clinton plan would deal with that problem. The ideas being discussed by such senators as Democrat Bill Bradley of New Jersey and Republican John Chafee of Rhode Island would aim at covering 95 percent of Americans by the year 2002, when individuals would be required to get insurance. A commission would monitor the plan and suggest other ways to increase coverage. Gradualism on an issue this complex is a good thing. If Congress faces the reality. real problems of health insurance, there will be time to adjust hopes to 23:43 EDT JUNE 23, 1994 **** filed by:NYT-(--) on 06/23/94 at 23:47EDT **** **** printed by:WHPR (JEL) on 06/24/94 at 08:03EDT **** HEALTH COALITION STRONGLY OPPOSES COMPROMISE PLAN Continued From Page Al plans. Capitol Hill today, Hillary Rodham SENATE MOVE UNDER FIRE The Senate moderates are strug- Clinton did not mention the Finance gling to broker a compromise that Committee proposal. Instead, she can budge a committee polarized for stuck to a broad thematic message: months over the so-called employer Labor and Civic Groups Vow what she described as a need for mandate: the requirement in the universal coverage. Clinton bill that businesses pay most to Fight Any Bill That Puts "No other reform in our health of the cost of their workers' insur- care system will work if we do not ance, a provision that is anathema to Burden on Individuals achieve guaranteed universal cover- Republicans and many conservative Democrats. age," she said. Mrs. Clinton also reiterated the Ad- At the same time, the moderates By ROBIN TONER ministration's argument that it is are trying to assure universal cover- middle-class Americans who are age, which is considered the bottom Special to The New York Times most at risk if universal coverage is line for the Administration and most WASHINGTON, June 23 - A broad dropped from any health care bill. Democrats. As a result, they have coalition of labor, civic and consumer "If you are rich enough," she said, been discussing a complicated plan groups mounted a counterattack to- jabbing the air and leaning into her that would set a goal of covering 95 lectern, "you will have health insur- percent of Americans by the year day against the compromise national ance. If you are poor enough, you will 2002. If the goal was not met, a com- health insurance plan emerging in have health insurance. It's the people mission overseeing implementation the Senate Finance Committee. in the middle, the vast majority, who of the plan would make a recommen- The opponents announced that they are either losing it and are among the dation on how to achieve it. would fight any bill that might ulti- now 40 million uninsured or who are In the absence of further action, a mately put a new requirement on one job, one divorce, one accident, one so-called individual mandate would individuals - rather than their em- illness away from losing their insur- go into effect, requiring those individ- ployers - to purchase health insur- ance." uals who do not receive insurance ance. through their employer to purchase Two Bills Gain in House their own. Such a requirement would neither achieve universal coverage nor pro- In a day of frenetic activity on Senator Kent Conrad, a North Da- health care, another milestone was kota Democrat who is a member of vide adequate assistance to the unin- achieved for the cause, albeit one that the moderate group, said, "That sured middle-income people who, un- had been widely expected. The quite would be a very small slice of the der the plan, might eventually have liberal House Education and Labor American population." to buy coverage, said the coalition, Committee passed both a version of Another Senator among the moder- known as the Health Care Reform -Mr. Clinton's health plan and a bill ates, John Breaux, Democrat of Loui- Project. that would create a system of nation- siana, said today that the plan under That provision is believed to be a al health insurance financed entirely discussion would offer substantial central feature of the plan being de- by taxes. subsidies to help people purchase veloped by seven moderate Republi- Mr. Clinton said the House action their own insurance. Moreover, Mr. cans and Democrats on the Finance "sends a clear signal to the American Breaux said, he does not believe that people that Congress is well on its the individual mandate would ever Committee. The compromise plan is -way to making health care history kick in, since, he said, insurance and widely viewed as the best chance of this year" and that Congress could market changes would bring about 95 breaking the committee's stalemate "break the choke hold of special in- percent coverage. And one aide close' over health insurance. But one of the terests." to the talks said there would be no moderates stressed tonight that it The committee vote means that real penalty on those who did not was very much in a state of flux. health legislation has now made it purchase insurance. In a letter to the Finance Commit- through two of the five major Con- Still, many groups long active in tee, the Health Care Reform Project gressional committees responsible the health care struggle see the legis- said, "We strongly urge you to reject for acting on it: Labor and Human lative process taking an increasingly Resources in the Senate, Education conservative turn in the Finance this approach or any others that fail and Labor in the House. Committee. And today, they chose to to meet the test of guaranteeing all But in the Senate, the Finance Com- draw their line in the sand. Americans affordable, comprehen- mittee is embarking on formal ses- The Health Care Reform Project sive coverage." sions of debate and voting next week declared firm opposition to any pro- That was a formidable political with results that are still very hard to posal that relies on an individual statement to Democrats inasmuch as predict. And in the House, the Energy mandate, arguing that it would give the coalition's 56 member organiza- and Commerce Committee is consid- many profitable employers "a free tions include important constituen- ered hopelessly deadlocked. ride," pose a heavy burden on middle- cies for health care restructuring, The fifth committee, House Ways income people and fail to guarantee including the American Association and Means, continued its painstaking universal coverage. of Retired Persons, the A.F.L.-C.I.O. way through a bill today, and its and the Catholic Health Association chairman, Representative Sam Gib- bons of Florida, said that if the work of the United States. was not finished by the Fourth of July 1994 The White House today tried to recess, he would hold the committee maintain official silence on the com- in session. 24, promise proposal, which was worked In a telling moment that under- on into the evening behind closed scored the struggle on health care, Mr. Gibbons said: "I am constantly JUNE doors. The Administration appears to be trying to encourage movement in having to seek to hold together the 20 the Finance Committee, which has votes I need for passage. Believe me, been deadlocked for months, but to that is not a simple task." PRIDAY, maintain distance from a plan vehe- Full Plan Due Today mently opposed by some traditional Much of the attention, however, supporters of the Democratic Party. was focused on the rump group from the Senate Finance Committee, TIMES, Behind this careful show of neutral- which is expected to present its plan ity is the calculation of Administra- to the full committee on Friday. "We tion allies that the plan can be fixed haven't nailed it down," one member later, as it moves to the full Senate, YORK of that group, Senator John C. Dan- where the leadership is expected to forth, said as a meeting of the com- produce an amalgam of the Finance mittee broke up tonight. "We're NEW bill and a more generous measure, sleeping on it." closer to President Clinton's original It is a measure of how volatile the proposal, which was passed earlier health care struggle is right now that THE this month by the Senate Labor and so much reaction was provoked by Human Resources Committee. sketchy reports of the rump group's In an appearance at a rally on Paul Hosefros/The New York Times Senator George Mitchell, left, and Hillary Rodham Clinton at a health care rally on Capitol Hill yesterday. AI HealthRIGHT Paul Hosefros/The New York Time Senator George Mitchell, left, and Hillary Rodham Clinton at a health care rally on Capitol Hill yesterday. NYT Emerging Plan Is Still Costly, Still Complex By ROBERT PEAR will have a strong incentive to say at the Brookings Institution, ex- Special to The New York Times they have coverage even if they do plained: "If subsidies are limited to WASHINGTON, June 23 - The not. very low-income people, you don't health care proposal being developed TAXES The proposal under discussion solve the problem of the uninsured. If within the Senate Finance Committee in the Finance Committee would im- subsidies are not so limited, they be- relies on changes in insurance regula- pose a new Federal tax on "high-cost come very expensive, and it will be tions, taxes on some businesses, sub- health insurance plans." But tax law- attractive for employers to drop cov- sidies to low-income people and a yers say it is very difficult to meas- erage. Employers will ask why they provision that could require people to ure the cost and value of health bene- should pay for health insurance if the buy insurance if they did not get it fits. Costs vary with the age of the Government will pay for it." through their employers. The pro- worker, family size, place of resi- The proposal being developed in posal, like President Clinton's plan, is dence and other factors. Medical care the Senate Finance Committee would technically complicated, difficult to for older blue-collar workers in high- provide subsidies to people with in- administer and expensive, health pol- risk industries like mining is more comes 2.4 times the official poverty icy experts said today. expensive than care for young white- level. For a family of four, the income The new proposal, devised by con- collar workers in safe, clean indus- ceiling would be $35,433 a year. servative Democrats and moderate tries like data processing. Republicans, calls for Federal regu- The new taxes would almost surely A Touchy Trigger lation of health insurance practices be passed on to consumers, econo- and other changes to make insurance mists say. Moreover, a tax on high- The proposal to require people to more available. If more than 5 per- cost plans would often be a tax on buy health insurance if coverage does cent of Americans - about 12 million traditional fee-for-service medicine, not reach a specified goal is known as people - still lacked coverage in the which tends to be more expensive a trigger. year 2002, an independent agency than health maintenance organiza- Richard I. Smith, director of health would recommend further steps that tions. Such organizations provide Congress could take to provide cover- policy at the Association of Private care for a fixed monthly premium but Pension and Welfare Plans, a trade age for them. often limit the patients' choices of If Congress did not act within six doctors. group composed mainly of Fortune 500 companies, said: "In all likeli- months of receiving those recommen- dations, an "individual mandate" SUBSIDIES Insurance for a family hood, the triggers would be pulled. would go into effect, requiring people can cost $4,000 or $6,000 a year, and if Voluntary efforts are unlikely to get to buy insurance for themselves. The subsidies were not large enough, peo- coverage up to 95 percent, unless the Government would subsidize premi- ple would be unable to afford it. How- subsidies are extremely generous ums for people with low and moder- ever, if the subsidies were generous, and hence expensive." ate incomes. The subsidies would be they would be expensive for the Gov- One purpose of the changes in regu- financed, in part, by taxing the insur- ernment. It is not clear that backers lations contained in the proposal is to ance benefits offered by the most of the new proposal are willing to make insurance more affordable for generous employers. spend the amounts needed. small businesses. But there is no Concerns about the proposal fall Further, if the Government offers guarantee such a result would occur. into several areas. substantial subsidies but does not Mr. Wiener, a health policy specialist require employers to buy insurance COUNTING THE UNINSURED No one at the Brookings Institution, said, "If for workers, it creates a strong incen- has a reliable way of counting the you reform the health insurance mar- tive for employers to drop coverage people who have no health insurance. ket so that everyone can get cover- The Census Bureau does an annual they now provide, specialists say. age, many sick and disabled people That would raise the cost of the subsi- survey, but it is flawed because peo- will come into the insurance pool, dies even further because more peo- ple surveyed often do not distinguish raising the price." If premiums rise, ple would need them. between being without coverage at a healthy young people may drop their specific time and being without it for How Much Is Too Much? coverage. an entire year. Marilyn Moon, a senior fellow at The Cost for Small Business Moreover, health policy specialists the Urban Institute, said, "The suc- say, if people are required to carry cess of this proposal will rise or fall health insurance and there are penal- on the generosity of the subsidies." William S. Custer, research direc- ties to enforce that requirement, they Joshua M. Wiener, a senior fellow tor of the Employee Benefit Research Institute, a nonpartisan organization whose members include businesses and labor unions, said, "Premiums may go up for small employers who already have insurance if you put them in a pool with nonworkers and Medicaid recipients," who tend to have higher health care costs. President Clinton's proposal would require employers to pay at least 80 percent of the cost of health insur- ance for their workers. Employees THE NEW YORK TIMES, FRIDAY, JUNE 24, 1994 would pay a maximum of 20 percent. The Finance Committee group would not require employers to pay any- thing; the employees' share could be much more than 20 percent, and the cost of Government subsidies could grow accordingly. Subsidies under the Clinton plan would cost more than $100 billion a year. Under the proposal emerging from the Finance Committee, the subsidies would presumably be more expensive because employers would contribute less. 8 Blind Eye Now, Eyeing Victory Later Democrats Tolerate Proposal Making Workers Pay Premiums By ADAM CLYMER from their workers, pay for health ing together" and trying to pass what Special to The New York Times insurance, than to leave it to the they had put forward, he said. workers alone. WASHINGTON, June 23 - The A Temporary Evil? sudden emergence of a health insur- Beyond the Committee But the relatively restrained level ance proposal that ultimately relies But the Democratic hopes are not of criticism from Congressional on making people pay for their own yet supported by any vote counts. Democrats - unlike the angry and policies has given the Administration Nobody knows how the Senate would vocal attacks from outside organiza- and its allies a nasty choice between vote today, and of course it is even tions - shows that most of them principle and legislative harder to know how the Senate will believe the centrists' plan is little progress. vote in a couple of months. more than a necessary if ugly step News The idea of making And there is no reason to think it toward making a law, and an idea Analysis working people, not their will be easy for Mr. Mitchell, Mr. with little staying power. "Enough bosses, responsible for staying power to get to the floor," paying for health insur- said Senator Max Baucus of Montana, ance is an idea Democrats cannot who dropped out of the centrist group embrace with any passion. which had once included eight sena- But the still unfolding proposal, by To get any health tors. a seven-person group led by Senator In the House, where fear of betray- John H. Chafee, Republican of Rhode bill out of the al by the Senate is endemic, there was Island, seems to be the only hope of little grumbling. Highly placed Con- getting any kind of bill at all out of the Finance Committee, gressional aides said their bosses sluggish Senate Finance Committee. would worry if they thought the plan So pragmatism dictates an Adminis- tration response of tolerance, or si- leaders swallow might be adopted, but for now seemed willing to rely on Mr. Mitchell to put a lence or, "We haven't seen the details different proposition before the Sen- so we can't comment." some bile. ate. The majority leader has said he Maintaining that noncommittal would work with Mr. Kennedy and stance requires a restraint this White with Senator Daniel Patrick Moyni- House has not always been able to han of New York, chairman of the maintain. But the pressure on the Kennedy and Mr. Daschle to assem- Finance Committee, to decide just Administration right now is not as ble a Senate majority for making what combination of the bills backed intense as it is on the plan's advo- employers pay for insurance. When by their committees should go before cates, especially Mr. Chafee and the John Breaux of Louisiana, one of the the Senate. other two Republicans, Dave Duren- four Democrats in the group of seven In the Administration, while there berger of Minnesota and John C. Dan- behind the new proposal, said Mr. was plainly some anxiety about what forth of Missouri. Kennedy could never get a Senate the unfinished amendment would Criticizing Their Own majority for the bill his committee contain, the general view was that the Some of their fellow Republicans produced, he was not boasting idly. sooner it could get through the Fi- accuse them of selling out by giving Another of the group, Senator Kent nance Committee, the better. Conrad of North Dakota, argued that They argue that once the issue is the Democrats a one-day excursion ticket, valid only for one trip out of their proposal, while it may seem debated on the floor of Congress, as it the Finance Committee. They say awkward, is the only kind of measure never has been before, then the that on the Senate floor, Democrats that the entire Senate, like its Fi- American public will see the merits will brush the plan aside and push for nance Committee, would be able to of their approach and persuade Con- making employers pay the bulk of gress to vote that way. However, this agree on. is about the fourth moment in the their workers' coverage, as other Congressional committees have done. "Whatever we do, it cannot just be history of this legislation when the a ticket out of the Finance Commit- "They think they are above poli- Administration anticipated a surge of tee," said Mr. Danforth. "It would tics," another Republican said scorn- public opinion on its side. It has been have to be a group of senators stick- disappointed the other times. fully. In fact, the hostile Republicans are perfectly right about the hopes of the Democrats backing proposals simi- lar to the Clinton plan, like Senators George J. Mitchell of Maine, the ma- Hawaii Governor Signs Gay Marriage Ban jority leader; Edward M. Kennedy of Massachusetts, chairman of the La- bor and Human Resources Commit- HONOLULU, June 23 (AP) - The show a "compelling interest" for re- tee, and Thomas F. Daschle of South Governor of Hawaii has signed a bill taining it, a very tough legal standard Dakota, co-chairman of the Senate banning same-sex marriages, a to meet. Democratic Policy Committee. measure lawmakers approved after The case, brought by three homo- Mr. Daschle, a Finance Committee the state Supreme Court ruled that sexuals who had been denied mar- member, said he would be willing to existing prohibitions on homosexual riage licenses, was sent back to a vote for for the emerging plan. "I matrimony may be unconstitutional. lower court for further consideration. may not be excited about it," he said, The bill signed by Gov. John Wai- A rehearing is scheduled for April "but it's a meaningful contribution hee 3d on Wednesday says the ruling 1995. and it keep the process going." encroached on the Legislature's law- The new law, while denying mar- He and the others want to see the making function and infringed on the riage for same-sex couples, also sets proposal emerge from the Finance separation of powers of the respec- up a commission to examine extend- Committee onto the Senate floor. tive branches of state government. ing marriage benefits to them. Clearly, they think that once the issue The court ruled in May 1993 that is debated there that they can suc- the ban was "presumed to be uncon- cessfully argue that it is better policy stitutional" because it was sexual dis- SHOW A CHILD THE STARS: to have employers, with some help crimination, unless the state could SUPPORT THE FRESH AIR FUND THE NEW YORK TIMES, FRIDAY, JUNE 24, 1994 On My Mind Abroad at Home A. M. ROSENTHAL ANTHONY LEWIS Journalists The Issue But I doubt that all-out partisan- or peddlers? ship - the Newt Gingrich, Phil Gramm view - is going to prevail Remember Attica. land prevent compromise on health Press and H Or reform. I doubt that Bob Dole him If will take that position in the end. The reason is simple. Too many Simpson printing damaging information that:- we say we know, but really don't? Solution? American families know that they may be one paycheck away from no Don't we realize that police and health insurance. They know that if prosecutors often use the press 19, they change jobs, they may not be Among the scores of millions of make a case against the accused? able to get new insurance because BOSTON Americans who watched the Simpson They would not bother if they did not 1. they have a prior medical condition. Something strange is happening in Or their insurance carrier may have story play out on TV and read about it believe that it would have impact in Washington, something to confound in the papers were every reporter, the courtroom. terminated their policy because they In 1971 New York State police gave the skeptics and the cynics. Congress have been sick. commentator, editor and publisher in the country. a wildly exaggerated kill22 is showing signs that it of may actually account Some far-right Republicans tried ings by rioting prisoners Attical pass a meaningful form of at compro- out the line that the country did not Since the first day, a sizable num- mise health-care ber of them have been raising and The New York Times bought it, and IW legislation. need health care reform. That did not was an editor involved. "Remember^ I was a skeptic myself. Health care go down with the public. The experi- answering questions about the mean- ing of the case - what we learned Attica" became my annoying sloganU is so complicated a problem, involv- ence may suggest to Senator Dole around the newsroom and is still table ing so many legitimate and powerful about our social, sexual and moral and others that blocking reform is not tooed on my mind. interests in this large and diverse good politics. manners, beliefs and customs. One part of the follow-up has been This is written after hearing the 911, country, that getting anything serious If the compromise efforts fi ly truly important. Maybe wife-beaters tapes of 0. Simpson's rage and past all the roadblocks in Congress succeed, the legislation will plainly Nicole Simpson's terror. Those tapes seemed to me unlikely. Moreover, will never again feel quite so secure. remove some present evils. Insur- Maybe judges will not be as quick to are fact, not rumor. A jury will decide, polls showed that the issue was way ance companies will have to offer whether this wife-beater became that down on the list of public concerns. give them a "sentence" that amounts standard policies to all, at community killer. President Clinton and Hillary Rod- to a knowing wink. rates, regardless of individuals' Most of the rest has been the usual I am sick of cotton-candy justice ham Clinton deserve credit - much ical condition. Those covered will be as in the case of the two louts in more than they have been getting - socioblather - journalists interview- able to keep their insurance no mat- California who killed their parents for moving reform this far. They ing other journalists or reaching out ter how sick they get or how much for a specialist to say something, any- and have managed to escape convic- made some mistakes, notably the se- they move. If they are poor, a subsidy thing, preferably about the discovery tion. What's more, it was the report- crecy imposed on the early health will help them pay for insurance. ing of Dominick Dunne that con- meetings. But they have educated the The business world succeeded m that not all athletes may be heroes. vinced me of their viciousness and country on why we, like all other Popcorn - no harm done unless you making "employer mandates" sound mistake it for real food for the mind. guilt - reporting, long, painstaking industrialized societies, need national bad, so the bill will not require com- But as we while away our time reporting, not pickup garbage-ped- measures to assure us medical care. panies to pay for most of their work- dling. The credit due is the greater be- ers' insurance. That is a curious re- waiting for the trial, the press might ask what questions the case raises My concern in the Simpson case is cause leading Republicans chose to sult, for it rejects the conservative about ourselves. not just for the accused's rights but make health care reform a partisan approach of sticking with the way Are we journalists or garbage col- for journalism, whose cleanliness and issue. They demonized the Clinton most Americans get their health in- lectors? éthics are important to the country. proposal as they demonized the Clin- surance now. And making health care If some other journal or broadcast In this, TV has a tougher job than tons, saying falsely that the plan an aspect of employment would be a distributes unverified rumors - the press. In the Simpson case, TV was at would mean more Big Government vital incentive to move people out of its best and worst. The much-mocked welfare. equivalent of journalistic garbage do we just pick it up and peddle it long coverage of the "chase" was Whether any compromise will exactly what TV should do - show ourselves? work in practice without employer life live. Do we care anymore about sourc- Republicans mandates and some other features of TV could not do much to prevent ing and double-checking, and that the Clinton proposal will depend on just passing on the biased out-of-court stuff? If so, why was so much of the demonize the details. trial put on by police and prosecutor. material aired and printed simply For example, how will the legisla- That was part of live coverage. But picked up from some other station or health-care tion make sure that, in a "voluntary" TV allowed flocks of reporters and paper, which itself had shown no system, healthy young people do not stringers to regurgitate, unchecked proof? reform. go uninsured, thereby raising rates and unevaluated, rumors shoveled up Is it excuse enough that somebody for everyone else? The universal cov- hot off the street. else did it first and competition is erage envisioned in the Clinton plan Print journalism had more think- competition? Is that all we believe, or would deal with that problem. ing time. But the thinking has to start were taught, or remember about and bureaucracy. (Bureaucracy is The ideas being discussed by such long before a big story breaks journalism? Or is competition raised what we increasingly have now, with senators as Democrat Bill Bradley of developing a set of beliefs and prac- to a religion simply as excuse for our doctors having to get the approval of New Jersey and Republican John tices within the staff about sourcing, own lust or advancement? checking, deciding about responsibil- an insurance company clerk to give a Chafee of Rhode Island would aim at Do we still recognize any ethical ity to the accused and the craft. patient a test or refer her to a special- covering 95 percent of Americans by press obligation not to imply guilt ist.) the year 2002, when individuals would That is the payback the press can before the accused is convicted? Now some moderate Republicans be required to get insurance. A com- give to the Constitution and country In the courtroom during a trial that in the Senate have broken with their mission would monitor the plan and for the First Amendment not-im- becomes a legal mandate for judge bitter-end colleagues and joined cen-: suggest other ways to increase cover- posed by law, but due and decent. and jury. Outside, anybody else has a We should stop asking what the trist Democrats in trying to draft right to make up his own mind. But public thinks of us and worry about compromise legislation. They have Gradualism on an issue this com- journalists - as people who have created a real possibility of getting a Nex is a good thing. If Congress faces what we think of ourselves. Remem- bill out of the crucial Senate Finance the real protected nationwide megaphone put problems of health insur- ber Attica, into our hands by the Constitution Committee. ance, there will be time to adjust aren't we obliged to exercise some "I like all of them," Bob Dole, the hopes to reality. restraint, forgive the word, before Senate minority leader, said of those moderates. "But we've got a party to think of." In other words, better an issue than a solution. THE NEW YORK TIMES, FRIDAY, JUNE 24, 1994 7,7 Health Bill Cleared for "Don't force us to pay for abortion if we don't HEALTH, From A1 want it," Klink said. But Marge Roukema (R-N.J.), Floor Votes Patsy Mink (D-Hawaii) and others said 65 percent any plan, and some Democrats on the House Ways of women are now covered for abortion in their and Means Committee began to complain yesterday that their panel was producing a bill that would be existing health plans and the Klink amendment too radical to pass the House. would wipe out that coverage. But Many Disputes The House Education and Labor Committee bill Klink, Roemer, Dale E. Kildee (Mich.), Austin provides health insurance to all Americans to pay J. Murphy (Pa.) and Scotty Baeslar (Kentucky) Remain, Clouding for doctor and hospital bills, prescription drugs, were the only Democrats to vote for the Klink mental health and substance abuse coverage and amendment. Roukema, Susan Molinari (N.Y.) and Prospects This Year some dental benefits. About 80 percent of the Michael N. Castle (Del.) were the only Republi- AI cost would be paid for by employers, 20 percent cans opposing Klink. by workers. The poor and small businesses would On the final vote on the modified Clinton bill, all By Spencer Rich and Dana Priest receive government subsidies to help pay their Democrats backed the bill except Baeslar and Rob- Washington Post Staff Writers costs. ert E. Andrews (N.J.). On the "single-payer" bill, 22 The committee "has brought us one step closer In a victory for the president, the Democrats voted in favor, while Democrats Baeslar, to achieving our goal of universal coverage- House Education and Labor Com- Andrews, Roemer, Kildee, Karan English (Ariz.) and guaranteed private insurance for every American mittee approved a modified Clinton that can never be taken away," Clinton said. Ted Strickland (Ohio) joined the 15 Republicans in health bill yesterday that provides But the committee's senior Republican, William opposition. health insurance for all Americans F. Goodling (Pa.), said the bill adds burdensome In the Senate, the "rump group" of three Republi- and compels employers to pay 80 government mandates, more bureaucracy and will cans and five Democrats attempting to write a com- percent of the premiums for their increase the federal deficit $120 billion over five promise plan that could pass the Finance Committee workers. years, about $50 billion more than the original made a pact to stick together during the public com- "Today for the first time ever, Clinton bill. mittee deliberations next week. They also are work- a committee in each house of Con- There isn't a chance in Hell that this plan can ing on a contingency plan they could offer en bloc if gress has reported a bill that guaran- pass the Congress of the United States," Rep. one or more of them feel they are under unbearable tees universal coverage," President Steve Gunderson (R-Wis.) said recently. pressure to break from the group, members said. Clinton said, referring to a similar After approving the modified Clinton bill, the The group, led by Sens. John H. Chafee (R-R.I.) bill passed by the Senate Labor and Education and Labor Committee also reported to and John Breaux (D-La.), has become the best hope Human Resources Committee three the floor "without recommendation" a Canadian- for finding a middle ground in the panel, which is weeks ago. style government-run health insurance plan fi- stuck on the issue of how or whether to finance uni- The president said the House Ed- nanced by taxes. The vote was 22 to 21, with six versal coverage, the bottom-line goal for Clinton. ucation and Labor Committee had Democrats joining 15 Republicans in opposition. But already Minority Leader Robert J. Dole (R- broken the "chokehold" of special in- Backers of the so-called "single-payer" bill had Kan.) has promised to come up with a more conser- terests, but deadlocks in two other threatened to oppose the Clinton measure unless vative alternative. The Chafee group's plan is con- committees, and increasing difficul- their plan was also reported and given a chance siderably scaled-down from a bill Chafee proposed ties in a third, suggested that health for an airing and vote on the floor. last year, and which Dole co-sponsored. care reform this year is far from a While reporting a bill without recommendation The Finance Committee's counterpart in the sure thing. does not carry the weight of a full committee en- House, the Ways and Means panel, began to show The Education and Labor Com- dorsement, Rep. George Miller (D-Calif.) said, stress yesterday. Some members said the acting mittee, one of the most liberal com- "The important thing is that it qualifies it to go be- chairman, Sam Gibbons (D-Fla), was trying to craft a mittees in Congress, approved its fore the full House where it will be one of only bill that too closely mirrors the liberal Ways and comprehensive bill, 26 to 17, with- three" major health bills under consideration. "It Means subcommittee bill passed several months ago. out Republican support and with the willkeep it in the mix," said Sara Nichols of Public "He's too much in control," said Rep. Barbara defection of two Democrats. Citizen, a supporter of the,single-payer measure. B. Kennelly (D-Conn.) who said she was frustrat- The victory guaranteed that Dem- Before approving the modified Clinton bill, the ed that one of her amendments to exempt large ocratic leaders in both chambers can committee defeated, 25 to 16, an effort by Rep. companies from government cost control meas- bring the president's bill to the floor. Ron Klink (D-Pa.) to forbid health insurance poli- ures did not get a full airing. "Every time you try But the Senate Finance Committee cies from paying for abortion, except where the to do an amendment that makes the private mar- is deadlocked as a "rump group" of pregnancy resulted from rape or incest or endan- ket work, it gets shot down," she said. moderate Republicans and Democrats gered the life of the mother. The vote was 25 to In the private caucus meetings, Gibbons is try- struggles to craft a centrist plan they 16. Klink, Timothy J. Roemer (D-Ind.) and others ing to get a 20-vote majority on each amendment hope could pass the panel. The House argued that since all Americans would be required before going into public session. Energy and Commerce Committee al- to buy the health policies provided by the bill, Gibbons recognized the difficulty he is having so is stymied, lacking a majority for mandatory inclusion of coverage for abortion with such paper-thin margins for the major parts would require people to finance a procedure they of the bill when he took the dais at 4:30 p.m. and find morally repugnant. explained why the committee was beginning its public work so late in the day. "I'm constantly trying to hold together 20 votes," he said. "When you only have two votes to spare, it takes a long time to reach a consensus." That was all the sign of vulnerability the Republi- cans needed. "And if you can't get 20 votes for your FRIDAY. JUNE 24. 1994 THE WASHINGTON POST bill," said Rep. Bill Thomas (R-Calif.). Republicans stand ready to vote for a reasonable bill." 30 Health Form and Re-Form O N ALTERNATE days for the next few needs in the Senate, he weakens his position- weeks-sometimes the same day-you're costs himself votes that he also badly needs-in going to read that health care reform is the House. He's stuck with repeating the mantra, hopelessly bogged down or finally making some that he will only accept a plan that leads to progress; that the Democrats-or was it the universal coverage. It's a strong enough position Republicans?-are newly united/in disarray; that if he sticks to it, but not very lively. the president or chairman of the Senate Finance Committee or Bob Dole, or someone, is getting In the Senate, it appears that the most serious either, good or bad marks, most likely for exer- work is now being done by a group of middle-road- cising or failing to exercise the proper leadership; ers on the Finance Committee, members of both and that the elderly are (a) off the reservation. parties. They're trying to produce a compromise (b) back on or (c) split right down the middle that the president will accept or, at any rate, not because of the latest change in the terms of a denounce and that can still pass the Senate. Atten- drug benefit that will or won't be phased in by the tion has mostly centered on the benefits package. In year 2010. the name of increasing coverage, who would get It will all be true, if not on the day you read it what and how would it be financed? then likely as not within a day or two thereafter; We say again that, hard as this may seem, it's just wait. It's not the fault of the journalism but in the easy part. Congress knows all too well how to the nature of the process, now reaching a partic- ularly complicated stage, that the journalism now construct new benefit programs. The hard thing seeks to record. You need to read, but you also to achieve is cost containment. It's also the more need to preserve a sense of detachment for a important of the two great goals of reform: it's while. Give them a couple of weeks; then the above all the rising cost of care that is driving alternatives may be much clearer. people out of the system in the first place-cost- For better or worse, the administration has ing them coverage. The measure of these bills gotten- itself into a position where, while it is has to be much more than just the percentage of obviously a major player, it can't play. If the the population they would likely cover and what president tries to work out the compromise he further steps would be triggered if they failed. Metro's Platform Dispute M ETRO OFFICIALS are in a dispute with officials are requesting more time to test the the federal government involving the materials. But federal officials respond that it's a edges of the rapid rail system's plat- matter of complying-as other urban transit forms. To the outrage of some organizations systems are-with the Americans with Disabili- representing visually impaired riders. Metro is ties Act regulation. fighting a federal order to install new warning edges. Transportation Secretary Federico Pena We don't know who's right about the best has told Metro to remove the white granite edges, but the concerns of Metro general manag- platform edges in use for 18 years and to replace er Lawrence G. Reuter do not strike us as either them with wider strips of brightly colored rubber callous or stubborn. Mr. Reuter notes that Metro with raised bumps. Metro officials argue that the has the best safety record of any transit property new edges create new problems-people could in the country. Even at that, he says, Metro is trip on them. They have proposed a widening and willing to consider any changes "as long as retexturing of the existing granite to make it improvement for one group does not result in a more easily detected by disabled riders. reduction of safety for others." Before spending Still other organizations representing the visu- large amounts of precious federal, state, District ally impaired share Metro's concerns about the and regional money to make a change. why not safety of the bumpy strips. The transit system allow closer study? FRIDAY. JUNE 24. 1994 THE WASHINGTON POST Panel in House Frustrated by Business Continued From Page A2 scribed state reimbursement schedule for Stiff opposition from business remains a major problem for the administration. providers, but they would be permitted to Despite appeals from the president this maintain their own health-care delivery Approves a Bill week, Democrats are frustrated by their system as many do today. inability to win more support or weaken Committee debate this week over the On Health Care business's grip on the GOP. standard health benefits package some- At a Capitol breakfast yesterday de- times has had the atmosphere of an auc- signed to energize business support, tion, with the Congressional Budget Office Health and Human Services Secretary calling in estimates of the cost of bids Donna Shalala emphasized the need to to add such items as chiropractic services Ambitious Measure Faces curb rising health expenditures and the or hearing aids for young children. The shifting of costs from people who don't new prescription-drug benefit set off skir- Pressures to Cut Back, have insurance to those with insurance, mishes pitting such large companies as Big Opposition on Floor which imposes a burden on many em- Pfizer Inc. and Merck & Co. against ployers. But when she appeared later at a each other and bringing former Demo- news conference with South Dakota Sen. cratic aides and members of the committee By DAVID ROGERS Thomas Daschle, a member of the Demo- tolobby on each side. The retail druggists, Staff Reporter of THE WALL STREET JOURNAL cratic leadership, the two were joined with grass-roots membership in law- largely by familiar faces from older, heavy makers' districts, proved one of the most WASHINGTON-Th House Education industries-like auto and steel-and other powerful lobbies, even though its lead and Labor Committee approved an ambi- champion, Rep. Bill Brewster (D., Okla), a tious health-care reform bill that would interests that have won concessions from require employers to help pay for their the administration. former pharmacist, is almost certain to workers' insurance, and would expand on Speaking on behalf of small business, vote against the underlying bill. benefit levels promised by the Clinton for example, was the National Association Ways and Means Democrats have filed of Retail Druggists, which has won a series at least two dozen potential amendments to administration. The 26-17 vote represents a liberal of victories this week in the House Ways the revenue section of the bill, which may high-water mark in the prolonged health- and Means Committee regarding the pric- come up for debate this weekend. Some ing of drugs under a new federal prescrip- amendments would add to taxes on tobacco tion-drug benefit. And the list of "compa- and ammunition, but others seek conces- What Congress Receives nies" at the breakfast included Amtrak, sions in the form of expanded tax credits or For President Clinton, it has become the the passenger rail system that depends on exemptions for segments of the health- one surefire applause line: Give every American the kind of health coverage federal subsidies, and an array of Wash- care industry. that Congress gets. But the prospect of ington lobbying firms with political ties to No less than Geraldine Ferraro, the actually getting what Congress gets Democrats. former congresswoman and Democratic might not please large numbers of Former Ways and Means Committee vice presidential nominee, has made calls Americans. Article on page A12. Chairman Dan Rostenkowski (D., III.) of- on behalf of a group health insurance firm ten spoke of the need to find "some care debate. But the bill faces major in New York. And Hank Gutman, who was cheerleaders" from business while he was opposition on the House floor, and is sure staff director of the Joint Committee on crafting his early version of a health-care to be overtaken by pressures to cut back on Taxation until early this year, is represent- bill. And Rep. Sam Gibbons (D., Fla.), who the administration's reform agenda. ing Par Pharmaceutical Inc., a New York- took over the chair after Mr. Rosten- Even as the House committee acted, based generic-drug company. The generic- kowski's indictment on corruption charges moderates on the Senate Finance Commit- drug industry is seeking to reverse an last month, has followed much the same tee struggled to complete negotiations on a Internal Revenue Service ruling that would path with concessions to tobacco and compromise plan that anticipates provid- curb their ability to benefit from the insurance interests. ing much lower benefits in order to research and development tax credit. In action yesterday, Rep. Jim McDer- stretch funds available to subsidize cover- mott (D., Wash.), a strong advocate of a Pressed by Rep. Gibbons to complete age for lower-income families. government-run, single-payer health sys- action by the July Fourth congressional Easier on Employers tem, conceded he lacked the votes to recession, the Ways and Means Committee Sen. John Chafee (R., R.I.), who has overturn a partial exemption backed by the worked into the night yesterday. The panel taken a lead role for the Finance Commit- committee leadership for multistate corpo- narrowly approved an amendment that tee moderates, said the group hopes to rations with more than 5,000 workers. If a would force most health plans to accept present the outlines of its plan to the state should adopt a single-payer system in any doctor, hospital or other provider who committee leadership as early as today. the future, the bill would require these agrees to the plans' rates and other operat- Unlike the Education and Labor bill, the large corporations to conform to the pre- ing terms. The committee also approved compromise avoids the most burdensome Please Turn to Page A12, Column 5 on a voice vote another amendment aimed requirements the Clinton plan would im- at widening patient choice. It would re- quire all managed-care networks to allow pose on employers, and instead relies on a more voluntary system of market reforms patients to go to doctors outside of the and subsidies to be financed by added network provided they pay a slightly higher fee. taxes and savings from the Medicare and Medicaid programs. -Mary Agnes Carey and Hilary Stout contributed to this article. The goal would be to provide about 95% of Americans some insurance by the year 2002. Although this stops short of the White House's standard of universal coverage, the moderate bloc is seen as the adminis- tration's best hope of breaking the current stalemate in the Finance panel. "The idea is to move, not stand pat," said Finance Committee Chairman Daniel Patrick Moynihan (D., N.Y.), who ex- pressed encouragement last night. While divisions remain, the moderates- by their numbers and ideas - have already helped define the political framework for the committee debate. And rather than being a THE WALL STREET JOURNAL FRIDAY, JUNE 24, 1994 "rump" group, the bloc of seven or eight Republican and Democratic senators is closer to a majority than any of the rival camps on the left or right. To maximize the number of people who would have insurance, while operating with limited funds, senators are discussing a set of benefits packages that would be more modest than proposed by the presi- dent. One would be about 25% below the standard level, and would serve chiefly to protect families against large out-of-pocket expenditures or catastrophic costs. The plan also would delay and phase in Republican-backed proposals to expand certain tax deductions for health expendi- tures by individuals. But small-business interests have lobbied successfully against a Democratic-backed proposed "free- rider" assessment on employers who fail, even in the future, to make any contribu- tion to their workers' insurance. 70 THE WALL STREET JOURNAL FRIDAY, JUNE 24, 1994 POLITICS & POLICY A Look at Lawmakers' Medical Plans Suggests Congress's Health Coverage Isn't So Generous By HILARY STOUT 75%. But for some policies the share Staff Reporter of THE WALL STREET JOURNAL What Congress Gets is far less. WASHINGTON- President Clinton For example, the government's share and his allies on health care, it has become Highlights of the Blue Cross/Blue Shield of a family policy for a Blue Cross/Blue the one sure-fire applause line: Give every Standard Option Plan, one popular health plan Shield "high option" fee-for-service plan is American what Congress gets. in the Federal Employee Health Benefits $306.41 a month, or less than half; the "You say it and the audience goes Program employee pays $343.24. For a Blue Cross crazy," says Families USA foundation's $200 standard option plan - which has higher Annual deductible Arnold Bennett, a member of the team deductibles and generally pays 75% of helping the administration craft its health- Annual Inpatient $250 most doctor bills instead of 80% - the care message. hospital deductible government pays $303.77 for a family Hillary Rodham Clinton uses it in Out-of-pocket limit $3,250 plan and the employee pays $101.25. virtually every speech she gives. Just Lawmakers Are Flustered this week a group of Democratic senators, Inpatient hospitalization 100% coverage including Labor and Human Resources The political thrust and parry over Doctor services 75% Committee Chairman Edward Kennedy of the "what Congress gets" argument flus- Massachusetts, called a news conference Outpatient hospital 75% ters some Republicans. For instance, to demand that the general public get the services House Minority Whip Newt Gingrich, a coverage that "members of Congress have staunch foe of the president's health-care Prescription drugs $50 deductible, arranged for themselves." Sen. Harris proposals, was taken aback on NBC's then 60% coverage Wofford, the Pennsylvania Democrat who "Meet the Press" Sunday when a reporter won his seat in 1992 by stressing health Total premium $405.02 per month asked him, "Why can't the average citizen care and faces a stiff re-election fight this have the same health-care plan that Con- Member's share $101.25 year, is circulating a petition demanding a gressman Gingrich has?" The Georgia bill that offers "every Pennsylvanian and Government share $303.77 Republican replied, "I have a Blue Cross every American the same kind of guaran- plan that I pay for every month. I think it's about $400." teed coverage and choice of private health plans that members of Congress get.' get is the opportunity to enroll in one of an Not exactly. The total monthly pre- Package Isn't That Great array of health-care plans, each offering a mium for the standard-option Blue Cross But while focusing on Congress's bene- comprehensive package of medical bene- plan Mr. Gingrich and his family are enrolled in is just over $400. But on Monday fits may be a stroke of political brilliance, fits, with the premium paid in part by the prospect of actually getting what Con- their employer: the taxpayers. a spokesman for Mr. Gingrich said the congressman only pays about $100 a gress gets might not please large numbers Choice of 30 Plans month. The government picks up the re- of Americans, including some of the most In the Washington area, members maining $300. vigorous supporters of the president's of Congress can choose from among nearly Among other things, Republicans are health-care bill. 30 health plans, including 14 health-main- especially irked that Democrats seldom The federal employees package isn't as tenance organizations and seven "fee-for- mention that the president gets the same generous as most union health plans, or service" plans, which pay at least part of benefits as lawmakers. (The Clintons have the programs of many Fortune 500 compa- the bill for visits to the doctor or hospital of the same plan Rep. Gingrich has.) Senate nies. For example, many of the policies the patient's choice. The benefits in each Minority Leader Robert Dole of Kansas available to federal employees don't in- plan vary, but generally include hos- this week denounced the argument as a clude substance-abuse benefits or preven- pital and emergency services, doctor "cheap shot," and said he plans to propose tive dental care. visits, lab tests, prescription drugs and that the president and members of Con- However, Congress's benefits package some dental care. Depending on the policy, gress pay their entire premium costs them- would be an improvement for a vast coverage may include children's immuni- selves. Democratic Sen. Wofford, though, number of Americans, particularly many zations and some nursing-home benefits. has already gone him one-up: He says he = employees of small and midsize businesses Unlike much of the general public, pay the full cost of his health insurance and, of course, the estimated 39 million Congress is also free of some of the until Congress passes coverage for all, and people with no health insurance. Still, the onerous insurance-industry practices that is challenging his GOP opponent. Pennsyl- federal government's share of the pre- shut some people out of the market. Under vania Rep. Rick Santorum, to do the mium isn't as generous as most unions and the Federal Employee Health Benefits Pro same. many big employers - or, for that matter, gram, no health plan can drop or refuse to In addition, the president's allies are the 80% share the White House would like enroll a government employee or depen- already planning a sequel to the "what employers to bear. And as far as the scope dent because of a medical condition. Congress gets" line, says Mr. Bennett of of the benefits and the patient cost-sharing But as far as cost-sharing goes, Con- Families USA. If moderate and conserva- requirements, Congress's plan isn't nearly gress isn't getting quite the ride that many tive lawmakers continue to tout a bill that as comprehensive as Medicaid, the fed- working Americans do. According to the would cover 91% of the American popula- eral-state health program for low-income Office of Personnel Management, which tion as a worthy achievement, he says, the people. runs the federal benefits program. the retort will be: "Which nine senators What lawmakers - and indeed all fed- government pays on average 72% of em- intend to give up their health insur- eral employees, including the president- ployee health premiums, and no more than ance?" 71 2nd victory for Clinton health plan By Jessica Lee and Judi Hasson care. Republicans will ensure the rich erage premiums. Another idea, to tax USA TODAY package gets more scrutiny. employers who don't insure their The House panel also defeated at- workers, was taken off the agenda. The House Education and Labor tempts to strip most abortion cover- Still, Sen. John Chafee, R-R.I., said Committee approved a health bill age from the benefits. That issue, too, he expects the group to present a fin- promising insurance for everyone will remain contentious. Ished plan to Finance Committee Thursday, becoming the second con- Meanwhile, four Democrats and leaders today. gressional panel to ratify President three Republicans spent the day be- But Senate Republican leader Rob- Clinton's key health-care goal. hind closed doors trying to fashion a ert Dole, R-Kan., planning to intro- Clinton, noting that the Senate La- bill with enough coverage to be called duce his own bill, said the moderates' bor Committee had passed a similar universal without ordering employers plan apparently relies too heavily on bill, said, "They have broken the or individuals to pay for IL taxes to win many Republican votes. chokehold of special interests, and by Details were in flux, but partici- Sen. David Durenberger, R-Minn., choosing to cover everyone, have pants confirmed key details: If 95% of called the Chafee group's bid the Sen- stood up instead for millions of hard- Americans didn't have health Insur- ate's last shot at bipartisan reform. working middle-class Americans." ance by 2002, a commission would Republicans' "objective is health- Keeping options open, the House recommend a plan for achieving uni- care reform, and the president's is panel also narrowly approved a Cana- versal coverage, and Congress would universal coverage," he said. If Cha- dian-style bill that would replace pri- have to act within six months. fee's bid falls, he predicted. Senate vate Insurance premiums with payroll If Congress failed to act, the bill Democrats will try to pass a bill with taxes to pay medical bills. would require individuals to buy their 51 votes, only one Republican. That The panel's version of the Clinton own health insurance. would let Democrats campaign as bill requires employers to pay for In- Financing remains in dispute. health reformers but let Republicans surance, has subsidies for small firms One proposal is to tax top-dollar in- blame them for the taxes involved. and expands coverage for women's surance policies at 25% to 35% of the health, mental Illness and adult dental difference between their cost and av- Today's debate, 10A Births-welfare link is disputed By Margaret L Usdansky have looked into whether out-of-wedlock child- USA TODAY Many on welfare bearing is higher in states with generous welfare benefits than in those with smaller payments. Welfare benefits aren't the main reason out-of- started families early Higher payments had no effect on whether black wedlock births are rising, 76 leading poverty ex- women have children outside of marriage, the perts argued Thursday, as the controversy over Children on welfare, Ald to Families with studies found. and the effect on white unmarried welfare reform and illegitimacy heated up. Dependent Children, are more likely to have women was small or non-existent "Welfare may be on the list of explanations, but young mothers, who are more likely to be Welfare can't be the main factor in rising out-of- it's way down the list," social psychologist Kristin unmarried than older women. Mothers' wedlock births, said Northwestern University Moore said at a press conference. ages, when they first gave birth: economist Rebecca Blank, because illegitimacy The statement came as the Clinton administra- AFDC recipients All mothers has risen while the real value of welfare benefits tion defended its welfare plan, sent to Congress 9.1% has dropped, from $900 in AFDC payments and this week, against conservatives who want a plan Under 16 2.9% food stamps for the average woman with three that cuts off all welfare benefits to young. unmar- 23.0% children in 1970 to $700 in 1990. ried mothers. 16-17 10.3% More relaxed attitudes towards sex, poor job op- One conservative group, Empower America, 26.2% portunities and increasing acceptance of single began running radio ads this week attacking Clin- 18-19 18.7% parenthood had more effect on the rise of illegiti- ton's plan as "cynical and deceptive." Thursday, macy, the academics said. Out-of-wedlock birth 33.7% Health Secretary Donna Shalala fired back, saying 20-24 are rising among middle-class women, too. 43.6% the conservative's proposals were "un-American" The researchers said they support welfare re- and would "create a generation of children who 25-29 6.7% form. but they sharply criticized cutting off wel- 19.6% will grow up on the streets." fare benefits for young. unmarried mothers. 30+ 1.3% Such plans would cut off a lifeline to very poor The Clinton plan would limit women born after 0.5% children and amount to "a drastic social experi- 1971 to just two years of benefits, then require them to find a job. Although states could deny ad- Source: Census Bureau TODAY ment," said University of Michigan economist Sheldon Danziger. ditional benefits to women who have more chil- three out of 10 births today. About half of women But American Enterprise Institute lawyer Doug iren while on welfare. unmarried mothers receiving Aid to Families with Dependent Chil- Besharov attacked the researcher's conclusions. wouldn't automatically lose aid. dren are unmarried; a majority were teen-agers at "The research is quite ambiguous," Besharov said. Out-of-wedlock births have soared in recent the time of their first birth. "Whether or not welfare causes illegitimacy, it years, rising from 10.7% of all births in 1970 to Thursday, the researchers said many studies does nothing do discourage it." FRIDAY. 24. 1994 USA TODAY JUNE 2nd victory for Clinton health plan By Jessica Lee and Judi Hasson care. Republicans will ensure the rich erage premiums. Another Idea, to tax USA TODAY package gets more scrutiny. employers who don't insure their The House panel also defeated at- workers, was taken off the agenda. The House Education and Labor tempts to strip most abortion cover- Still, Sen. John Chafee, R-R.I., said Committee approved a health bill age from the benefits. That issue, too, he expects the group to present a fin- promising insurance for everyone will remain contentious. ished plan to Finance Committee Thursday, becoming the second con- Meanwhile, four Democrats and leaders today. gressional panel to ratify President three Republicans spent the day be- But Senate Republican leader Rob- Clinton's key health-care goal. hind closed doors trying to fashion a ert Dole, R-Kan, planning to intro- Clinton, noting that the Senate La- bill with enough coverage to be called duce his own bill, said the moderates' bor Committee had passed a similar universal without ordering employers plan apparently relies too heavily on bill, said, "They have broken the or individuals to pay for it. taxes to win many Republican votes. chokehold of special interests, and by Some points were in flux, but par- Sen. David Durenberger, R-Minn., choosing to cover everyone, have ticipants confirmed details: If 95% of called the Chafee group's bid the Sen- stood up instead for millions of hard- Americans didn't have health Insur- ate's last shot at bipartisan reform. working middle-class Americans." ance by 2002, a commission would Republicans' "objective is health- Keeping options open, the House recommend a plan for achieving uni- care reform, and the president's is panel also narrowly approved a Cana- versal coverage. Congress would have universal coverage," he said. If Cha- dian-style bill that would replace pri- to approve it within six months. fee's bid fails, he predicted, Senate vate insurance premiums with payroll If Congress failed to act, the bill Democrats will try to pass a bill with taxes to pay medical bills. would require individuals to buy their 51 votes, only one Republican. That The panel's version of the Clinton own health insurance. would let Democrats campaign as bill requires employers to pay for in- Financing remains in dispute. health reformers but let Republicans surance, has subsidies for small firms One proposal is to tax top-dollar in- blame them for the taxes involved. By Tim Dillon, USA TODAY and expands coverage for women's surance policies at 25% to 35% of the LOBBY: Hillary Rodham Clinton addresses health, mental illness and adult dental difference between their cost and av- Today's debate, 10A health-reform backers on Capitol Hill. USA TODAY 6-24-94 Today's debate: HEALTH Keep up the push for real health-care reform Millions of Ameri- OUR VIEW could choose to ignore the mandate, or it cans are denied ba- could simply fail to fund the subsidies. It sic primary care. That's has done that before. If so, the reform would fail to attain the Intolerable. goals that have put it at the top of the na- tion's political agenda. Somewhere toward the misty-murky Still, the deal has undeniable political middle of the health-care debate stands - merit. As a bipartisan proposal from the in- or, more aptly, sits - the Rump Group. fluential Finance Committee, it may well It is a coalition of moderate senators, all move the debate to the full Senate. members of the powerful Senate Finance That's a crucial service, for even if in- Committee, and their complete, some type of reform that moves work on a health-care- us toward health care for all is needed. reform compromise More than 38 million Americans still lack may well offer the best health insurance at any moment. hope for meaningful Reform Such high levels of uninsurance are un- action on health reform FRIDAY, JUNE 24, 1994 USA TODAY acceptable twice over. In this nation, no this year. Their plan is simple. $ one should be denied basic health care. S M And no one should pay outrageous prices Enact market reforms in order to cover the cost of somebody to make insurance elsc's unreimbursed care. more available. Then, That is, in part, why President Clinton if fewer than 95% of all Americans remain introduced his health-reform legislation uninsured by 2002, impose an "individual last fall. His plan, however, requires em- mandate" requiring all consumers to buy ployers to provide insurance for their work- insurance. Subsidies for the near-poor - ers, a strategy that is bitterly opposed by those earning up to 240% of poverty level conscrvatives. They are wrong, but they - would be financed by taxing those who have neverthcless managed to force the re- get better-than-basic insurance benefits. form process to a grinding near-stop. The compromise is useful but risky. Time is running out for this year, and the For the first eight years, it won't provide next Congress may be even more ambiva- universal coverage, and thus it cannot as- lent. So even if the latest compromise plan sure health-care costs will be brought under is incomplete, its bipartisan character control. During that time, if private sector promises to help drive the debatc forward. pressures fail, national health spending Other proposals lack that quality, and could double, exceeding $2 trillion. And without it, you can kiss real health reform's millions would remain uncovered. Rump goodbye. Moreover, there's no guarantee Congress will obey its own 2002 deadline. Congress Congress & health care, 8A No need for this 'reform' Impact of they got there. President Clinton is asking OPPOSING VIEW many of legislators and the American people to trust him on this one. these proposed cures would be Though the people seeking to foist a far worse than the disease. massive federal intrusion into the U.S. economy clearly have no idea what they By Armstrong Williams are about, it is at least clear that any rushed Health care is showing some vital signs overhaul of this magnitude could be a ca- as Congress rushes to pass legislation be- tastrophe that we can never unmake. It would institute a national health board fore the fall elections. Before inflicting that would make medical decisions for in- widespread damage for political gains, Congress should remember the principal dividual Americans and their doctors, and axiom of medicine: first, do no harm. it would devastate a struggling economy. Passage of a rushed package this summer Businesses will cut jobs, wages or both to out of the current chaos on Capitol Hill compensate for the increased expenses they would be an unmitigated disaster for our will incur under almost any form of federal health care. economy and our medicine. Think you're confused about health A study by the state of California esti- care? Members of Congress and their staffs mates job losses due to employer mandates don't know any more than you do. There is alone at up to 3.8 million jobs. Wage earn- ers and small businesses will be hardest hit. no plan. The federal Office of Technology Assess- The rest of the costs will be borne by con- ment has determined that it is impossible sumers who will no longer be assured a choice of doctor or even treatment. to even make a "reasonable guess" about the costs of the various loose concepts The medical system does not need a floating around. hasty and radical overhaul. Public support The Clinton administration's advocates for the "Hillary plan" has dwindled to 33%. of change have never presented anything Let the monstrous plans percolating in the like a detailed implementation program or legislative committees die there, for the health of all Americans. specific cost estimates for their plan. Nor have they detailed how they plan to cover Armstrong Williams is a Washington busi- the costs. They have offered only a bottom- nessman, writer, radio talk-show host and edi- line net figure with no evidence for how tor of The Right Side newsletter. 98 6/24/94 Los Angeles Times first-edition House Panel Approves Health Care Plan Similiar to Page 1 for Friday, June 24, 1994: Clinton's (Washn) By Karen Tumulty and William J. Eaton= (c) 1994, Los Angeles Times= Top of page: WASHINGTON President Clinton's beleaguered effort to overhaul the nation's health care system took a step Col 1: La Mamma is the same dominant figure in Italy forward in Congress Thursday, when the House Education and today that she was in Caesar's time, but she is raising Labor Committee became the first committee in the House to fewer "bambini" than ever, and her changing role is approve a health plan that closely resembles the forcing a social revolution in a country that is running administration's. out of children. (ITALY-BIRTHRATE, will move overnight). Elsewhere on Capitol Hill, however, the fate of health legislation remained in question. In the Senate, a Cols 2-4: Photo of developments in Rwanda. (refers to bipartisan group of moderate Finance Committee members story inside). encountered stiff resistance from both the left and the right as they attempted to fashion a bill that carries the Cols 5-6: Giving President Clinton's health care plan a threat of imposing a government requirement that uninsured needed boost, the House Education and Labor Committee individuals buy health coverage. becomes the first committee in the House to approve a Passage of a bill similar to Clinton's was never in health reform plan that closely resembles the question in the Education and Labor Committee, the most administration's. (HEALTH-TIMES, moved). liberal of the three House panels considering health legislation. Indeed, it also narrowly approved Thursday Above fold: the most radical of the health care options before Congress: a Canadian-style, government-financed health Cols 2-3: Top law enforcement officials huddle in the care system known as ``single payer." District Attorney's office as a grand jury convenes for a But the committee's 27-17 vote in favor of a plan that fifth day to hear witnesses in the murder case against hews to Clinton's goal of guaranteeing coverage for every O.J. Simpson. (SIMPSON-TIMES, moved). American nonetheless marked a milestone and assured that health legislation can reach the House floor. The vote, Col 4: Both men and women are flooding domestic generally along party lines with two Democrats defecting, violence hotlines as a result of news coverage surrounding followed similar action earlier this month by the Senate the O.J. Simpson case. (SIMPSON-HOTLINE, moved). Labor and Human Resources Committee. Col 6: A top cigarette company executive rejects (Begin optional trim) allegations by Food and Drug Administration Commissioner David A. Kessler that the company concealed efforts to "With today's action, for the first time ever, a develop a high-nicotine form of tobacco. (TOBACCO-TIMES, committee in each house of Congress has reported a bill moved). that guarantees universal coverage," Clinton said in a statement issued by the White House after the vote. ``They Below fold: have broken the chokehold of special interests, and, by choosing to cover everyone, have stood up instead for Col 3: Senior officials at the Treasury Department and millions of hard-working middle class Americans." the White House have been told by their attorneys that Added Chairman William Ford, D-Mich.: "It's going to they do not expect special counsel Robert B. Fiske Jr. to be on the floor in a matter of weeks. Everyone's going seek any criminal indictments against them for their to get the chance to put up or shut up." controversial meetings linked to the Whitewater scandal. The Education and Labor Committee bill is significantly (WHITEWATER-TIMES, moved). more generous than Clinton's. Over five years, it would add an extra $30 billion in health benefits and subsidies Cols 5-6: Los Angeles Raiders agree to reamin in the for the poor and small businesses. Coliseum for the 1994 season. (End optional trim) Bottom of page: Meanwhile, the Ways and Means Committee plodded Cols 1-2: With no warning and after claiming that through actress Faye Dunaway would be an apt fit to replace Glenn a series of minor amendments to its health bill, but Close as the star of the Andrew Lloyd Webber musical acting Chairman Sam Gibbons, D-Fla., called the lawmakers Sunset Boulevard," the composer's Really Useful Company into unusual weekend sessions in a drive to finish work by announces that the show will close in Los Angeles this next Tuesday. Sunday because Dunaway cannot meet the musical demands of So far, with a single exception, the Ways and Means the role. (with art). (SUNSET, moved). panel has kept to its chairman's call to match spending on benefits with new revenues to pay for them. The biggest Cols 5-6: Feature on permits to carry a concealed challenge ahead appears to be the financing provisions, weapon in Los Angeles County. coming up for votes early next week. The third House committee considering health Sent: 10:25 p.m. EDT. For questions, call (800) legislation Energy and Commerce appears hopelessly 283-NEWS, ext. 77832. deadlocked, and unable to even begin producing legislation. Los Angeles Times-Washington Post News Service= Ultimately, House leaders will have the task of melding the committee bills into a single piece of legislation that they hope to bring to a vote this summer. Many in the House are watching the Senate and specifically its Finance Committee with a wary eye. They are reluctant to take a dangerous political stand on health care until they are confident that the Senate will 99 6/24/94 not undercut them by insisting on something more Resolution Trust Corp. to the Justice Department that conservative. named President Clinton's 1984 gubernatorial campaign as a Hopes for a compromise in the Finance Committee are possible beneficiary of criminal acts at a failed Arkansas riding on the group of moderates, who say they are close thrift. to agreement. Their plan would first put into place a set But administration sources say they are increasingly of changes in insurance practices that are aimed at making confident that Fiske will conclude that portion of his health coverage more affordable. investigation without seeking any criminal charges against Presumably, those measures alone would expand the current or former officials of the Clinton administration. number of people who have health coverage now roughly 85 Although administration sources stress that they have not percent of all Americans. But if 95 percent of the public been given any information by Fiske's office on the status did not have coverage by the year 2002, a so-called of his investigation, they say that attorneys hired by ``individual mandate" would kick in, forcing people to administration officials who have been subpoened and buy health coverage, just as state law now requires them investigated by Fiske are now certain that Fiske will not to buy insurance for their cars. move against them. The moderates' approach is an effort to reach Clinton's "Based upon my understanding and assessment of what is goal of universal coverage without his proposal to require going on, I don't see the basis for any criminal businesses to pay for 80 percent of their workers' indictments," said Steven Tabackman, an attorney who insurance. That has proven the single most controversial represents Jack Devore, the former chief spokesman for the provision of the Clinton plan, with business groups Treasury Department who testified about his involvement warning that the additional cost would force many small before the Whitewater grand jury earlier this year. firms to lay off workers or shut down entirely. The Treasury Department became embroiled in the However, it is far from certain that there would be any Whitewater controversy because of the administration's more support for a bill that could force middle-class inability to name someone to run the RTC on a permanent families to spend thousands of dollars a year on health basis. In the interim, deputy Treasury Secretary Roger coverage. Moreover, it is unclear whether such a Altman became acting RTC chairman last year, and other requirement could be enforced. senior Treasury aides helped him work on RTC issues on an ad-hoc basis. The duality of their roles as Clinton (Optional add end) political appointees and running an independent regulatory agency raised questions about their actions after they Poor and low-income people would receive government held a series of meetings with White House officials to subsidies to help them afford the coverage. However, discuss the Whitewater case. paying for those subsidies could mean hundreds of billions in new taxes. (Begin optional trim) Conservatives already had expressed opposition to the individual mandate. On Thursday, liberal groups chimed in Fiske has been moving to conclude the Washington as well. portion of his investigation first in order to allow The Senate Finance Committee is moving toward Congress to begin hearings this summer on the controversy. abandoning millions of American health care consumers," The Arkansas portion of his probe covering the origins of said Robert Carolla, legislative counsel to the Consumers the controversy including the Clintons' investment in the Union. Whitewater real estate development and the failure of a In a letter to each member of the Finance Committee, Little Rock, Ark., thrift owned by their Whitewater the Health Care Reform Project a coalition of 56 partner is likely to take much longer. organizations that support the president's plan also said Separately, the White House said it would comply with a that it opposes the alternative being crafted by the request by the Senate Banking Committee for moderates. Whitewater-related documents, which the committee wants in We strongly urge you to reject this approach or any preparation for the start of Whitewater hearings, probably others that fail to meet the test of guaranteeing all in late July. Presidential spokeswoman Dee Dee Myers said Americans affordable comprehensive coverage," the groups the White House received a letter Wednesday night from wrote. Senate Banking Committee Chairman Donald Riegle, D-Mich., and Sen. Alfonse D'Amato, R-N.Y., the ranking Republican on the panel, asking for documents already turned over by the White House to Fiske. The committee said in a statement that it wants documents from current and former officials Administration Officials Not Expecting Whitewater at the White House and other agencies, who may have had Indictments(Washn) By James Risen= (c) 1994, Los some involvement in the Washington aspects of the Angeles Times= Whitewater case. WASHINGTON Senior officials at the Treasury Department ``It was not a subpoena. Just a letter," said Myers. and the White House have been told by their personal `We will cooperate." attorneys that they do not expect special counsel Robert Fiske to seek any criminal indictments against them for (End optional trim) their controversial meetings linked to the Whitewater scandal. The growing sense that no indictments will be Fiske is said to be close to completing the first phase forthcoming from Fiske has had a positive effect both at of his Whitewater investigation, focusing both on the the White House and the Treasury Department, and has suicide of White House deputy counsel Vincent Foster Jr. helped heal wounds between officials in the two buildings and the way in which administration officials responded to the news of a Whitewater-related criminal referral by Indeed, the pressure from the scandal this spring had federal regulators. led to a quiet round of finger-pointing about news leaks That aspect of the probe will focus in part on a series among White House aides and Treasury staffers. And it of meetings between Treasury and White House officials in seemed to make officials on both sides wary of informal the fall of 1993 and early in 1994 to discuss how to conversations and spur-of-the-moment meetings. respond to a criminal referral from investigators at the Now, Treasury Secretary Lloyd Bentsen believes that his $100 Hawaii Massachusetts Oregon Washington Under a 1974 employers In 1 became the first state Enacted its own "play or In 1 enacted guaranteed must pay at 50 percent to enact a or man in 1 In 1 I, the universal coverage, of their employees health mandate requiring employers effective date was delayed requiring all employers to insurance premium. The to either provide private until 1995, and in 1993 it was contribute at least 50 percent requirement doesn't include coverage directly to their delayed again to March 1997 of the premium charged by dependents or part-time employees or make payments for firms with 26 or more the lowest-price health plan in workers. to a public fund. In 1991, the workers and to January 1998 an area beginning in 1997. implementation date was put for firms with 25 workers or off to 1995 due to concerns less. about the economy and a changed political climate. Gov. William Weld will propose repeal of the mandate later this year. Employers block efforts by states to mandate health care payments By Karen Riley THE WASHINGTON TIMES STATES Massachusetts Gov. They call themselves the States That From page B8 William Weld has Couldn't Wait - states that have en- acted some form of health care reform said he will propose a these state examples show how ahead of any federal action. hard it will be to get a federal em- repeal of the mandate A few officials from some of these ployer mandate. states recently came to Capitol Hill to "It's extremely difficult, no this year. give a pep talk to Democratic law- doubt about it," he said. makers who have been frustrated by But observers point out that the lack of progress on a federal health there are special problems at the mandate, seems even further from bill. state level that don't exist nation- universal coverage. In separate meetings with House ally. Its play-or-pay mandate cleared and Senate members, the state offi- States are skittish about passing the legislature in 1988 with little cials told them not to yield to intense laws viewed as contributing to a scrutiny because lawmakers business opposition to achieving uni- bad business climate; critics insist wanted to give Gov. Michael Du- versal health care coverage by requir- employer-mandated programs kakis, the Democratic candidate ing employers to pay their workers' would create such problems. for president, an issue to run on. health insurance premiums. And a federal law bars states Ms. Buell, who is co-chairman Voting for employer-mandated in- from regulating self-funded of the Massachusetts legislature's surance, in which employers are the health plans, which are carried by Joint Standing Committee on payers of health insurance premiums, a majority of companies. Thus, for Health Care, said the potential is not tantamount to political suicide, state mandates to be effective, ramifications weren't immedi- the officials said. states must get a waiver from fed- ately apparent. Moreover, the plan "We got re-elected anyway," state eral law; such legislation is on hold was backed by major employers Rep. Carmen Buell, Massachusetts pending national reform. because they believed it would re- Democrat, recalled saying in meetings History suggests that "passing duce their own health care costs with the House Democratic Caucus a bill doesn't guarantee that debate by shifting the coverage of some and the Senate Democratic Policy is over," said Jim Weidman, a dependents. Committee, congressional Democrats' spokesman for the National Feder- But in the next few years the two chief policy-making arms. ation of Independent Business state's economy soured rapidly, But as enthusiatic as the state of- (NFIB), the main organized oppo- and legislators decided that it ficials are, the realitv is that none of nent of the mandate at the state wasn't the time to push ahead with the states has implemented laws that level. the mandate, she said. And big would force employers to foot much of Consider the case of Oregon. business decided to oppose the the bill for health insurance. The Oregon legislature enacted mandate, fearing it would discour- In the past eight years, the employer a plan in 1989 for achieving univer- age business formation and eco- mandate has been enacted in three tra- sal coverage based on "play or nomic growth. ditionally liberal states: Massachu- pay" rules for employers. Compa- The reform law had set 1992 as setts, Oregon and Washington. nies were required to play along the effective date for the mandate. A glance at those three shows how and pay their workers' premiums In 1991, Massachusetts law- difficult it is to achieve reforms that or pay into a public fund that makers voted to postpone the im- include the mandate. would finance coverage for their plementation until 1995 after re- Oregon has twice delayed the date employees. jecting a repeal of the reform. when employers must begin insuring When the bill passed, Demo- Massachusetts Gov. William their workers. crats controlled the government, Weld has said he will propose a Massachusetts has never imple- and business was devoting most repeal of the mandate this year, mented its health reform plan and is its attention to a fight over a pro- and that proposal may prevail. likely to kill it this year. posal to raise the minimum wage. The history of the employer In Washington state, reform based "It was a mistake," said Fred mandate in Washington state has on an employer mandate passed last Van Natta, a lobbyist with the Or- been shorter. year largely because Democrats had egon State Homebuilders Associ- Rep. Dennis Dellwo, a Demo- taken control of the Statehouse. ation. crat who heads the House Health Health reform measures have been But Republicans took over the Care Committee, said the state's introduced in nearly every other state state House of Representatives in comprehensive proposal for guar- in the past few years but have not been 1991, and business focused on the anteeing universal health cover- accepted. mandate. Business interests tried age was approved last year largely Hawaii has had an employer man- to repeal the mandate but settled because of Democratic control of date since 1974. But health reform ob- for a postponement of the effective both houses and the governor's of- servers say that happened too long ago date from 1992 to 1995. Last year, fice. in a state isolated from the mainland to they won a delay until March 1997 Even then, intense business lob- offer much of a lesson for the current for companies with 26 or more bying forced lawmakers to scale national debate. workers and to January 1998 for back the benefit package and re- Dick Merritt, the director of George firms with fewer employees. duce the amount companies would Washington University's intergovern- "It's been as volatile out here have to pay, he said. The proposal mental health policy project, said politically as it has been in Wash- went from requiring companies to ington, D.C.," said Barney Speith, pay 80 percent of their employees' see STATES, page B9 executive vice president of Blue premiums to 50 percent. Cross and Blue Shield of Oregon. This year, as the possible effects A factor in the delay was that of the law have seeped in, business some specifics of the plan had not opposition to the mandate has been worked out by a health care risen, said Carolyn Logue, direc- commission. These included such FRIDAY, tor of the Washington state office things as what would be in the of the National Federation of Inde- benefit package and what relief pendent Business. would be available for small, mar- "We've got a lot of scared people Times ginal companies. right now," she said, adding that Public sentiment on the man- some lawmakers are rethinking date may be tested in Oregon this their votes. "We're talking to legis- fall because the architect of Or- lators who are going, 'Oh, my gosh, egon's health plan, Dr. John Kitz- what did I vote for?' haber, former president of the Mr. Dellwo disagrees about the Senate, is the Democratic candi- political impact. "People almost date for governor. unanimously believe there's need Massachusetts, which once The for a change in health care. It's not claimed bragging rights as the developing into a campaign e," first $ : to e reform with a he "I have no oppo yet." Hillary In what was described as a stant kowtowing to accommodate happens. "Eventually, there will rhetorical removal of the gloves, political and personal needs. be enough of us that we'll just Foley: 'No vacancy "Evenings are a treadmill of Bob Dole slammed Hillary say, 'Enough of this stuff.' But it'll receptions and fund-raising Roll Call reports that House Rodham Clinton for taking a take a while," said Rep. Patricia events. The leader's personal po- "C shot" at Congress to win Schroeder, Colorado Democrat. Speaker Thomas S. Foley is at- litical agenda must usually tempting in a series of intimate support for the Clinton health march in lockstep with the party dinners to squash rumors he will care plan. The Los Angeles Times said line, however ill-plotted and tortu- The Carter mission not be a candidate for party that in a closed session of the Fi- ous it may be In contrast to other former leader in the next Congress. nance Committee on Wednesday, "The vote for majority leader, presidents, Jimmy Carter's ef- As he dines with small groups the angry Senate minority leader set for next January, is a pitiless forts as a troubleshooter seem of House Democrats, however, and public judgment of each can- : so far as to ask the panel to "particularly selfless," wrote col- two potential successors - Ma- take the extraordinary step of didate's worth by his peers. It is umnists Jack Germond and Jules jority Leader Richard A. Gep- not a race for the weak-kneed." publicly criticizing the first lady." Witcover. hardt and Rep. Charlie Rose of His North Korean visit may North Carolina - are seeking fa- Mrs. Clinton had said on a tele- vision program Tuesday night Limits loves Rosty have moved everyone back a bit vor with a new crop of freshman from military confrontation. "If members. that it is "only fair" that Amer- U.S. Term Limits is so happy 8 should have health care so, he will have demonstrated Both men are contacting about the indictment of Rep. Dan be ts "as good as those en- once again why he may be Democratic candidates in open- Rostenkowski that it issued a better remembered for his time seat races or likely-pickup dis- joyed by members of Congress." Rosty poster, the National Jour- The Kansas Republican was after leaving the White House tricts. In keeping with tradition, nal reported. "incensed" because he felt Mrs. than for his time in it." they do not mention the The former head of the Ways Clinton was trying to exploit pub- Meanwhile, the administra- speakership. Instead, each offers and Means Committee is "our lic dissatisfaction with Congress tion's shift from chagrin to cau- help with fund-raising and re- 1994 poster child for term limits," tious optimism over the talks search. and because the congressional said Ronald Nehring, the group's In his dinners Mr. Foley quells plan is the same one that covers only underscores a public per- director of congressional affairs. ception of drift in the Clinton talk he will become secretary of President and Mrs. Clinton and U.S. Term Limits will distribute all other federal employees. conduct of foreign policy gener- state or an ambassador, Roll Call some 100,000 copies of the poster, ally, the two men wrote. said. Some observers think Mr. The Times' Karen Tumulty which features "Rosty, the Post- Rose is angling to replace GOP said, "The new, more personal man" on a mock postage stamp. Sen. Jesse Helms, who is not ex- tone in the health care debate re- The National Journal adds that Futures pected to run in 1996. flects the make-or-break point the organization's efforts are at- that the deliberations have In Missouri, state Rep. Steve tracting attention. reached, as well as lawmakers' Carroll, considered among the Pundit Leno It so vigorously supported win- front-runners in the crowded sensitivity to the low regard the ning Republicans in special elec- public now has for Congress." field seeking the Democratic NBC's Jay Leno on "the big tions in Oklahoma and Kentucky Senate nomination, dropped out story" in Washington: "We've fi- that the Democratic Congres- minutes before deadline and filed nally got a president with a for- Today's quote sional Campaign Committee has for a state Senate seat. eign policy, willing to stand up on "I don't know what would have complained to the FEC. principle and confront the North Koreans, I think it's great happened had I not met with Kim Hollywood "But enough about Jimmy Il-sung," Jimmy Carter said in a Today's quote II CNN interview. One of the insights from the Carter." "Everybody in town is trying to Common Cause report on Presi- Of course there are extremely Feel your pain? figure out where Bob Dole is [on dent Clinton's raising of "soft conservative candidates this year, health care]," Sen. Dave Duren- money" despite pledges of re- but their agendas seem more Singapore may yet pay dearly berger, Minnesota Republican form was the degree to which the economic than social, he said. "To for rapping Michael Fay - the and health care moderate, told White House has tapped the en- the extent that the religious right cost of feeding President Clinton. the Wall Street Journal. tertainment industry. is having a dramatic impact on Word from the White House is "Just because it's good for Re- Show biz trails only the finan- the political scene, my impres- that he will visit the caning capi- publicans doesn't mean it's good cial industry and organized labor sion is that it is on intraparty tal in November legislation But if we had as a soft-money contributor to matters and in local elections. The honor of a presidential Bob Dole [on our side], we'd add Democrats, said the Los Angeles "Many Democratic attacks visit - in conjunction with his 12 people." Times. Over a 21-month period, it do come awfully close to reli- trip to Indonesia and Australia gave more than $2.6 million. gious intolerance, however." may seem at odds with threats Acquittal Among the contributors: Time of diplomatic retribution for the Warner Inc., $508,333; Walt Dis- Loves veggies Fay caning, but there's prece- A former Pennsylvania state ney Co., $250,000; recording pro- senator was acquitted of charges ducer David Geffen, $220,000; Hillary Rodham Clinton said President Bush went there he illegally opened voting ma- Sony Corp., $175,000; director her husband gets "a bad rap" with smiles on despite chines and absentee ballots. Seven Spielberg, $100,000; actor when it comes to food: Sure, he Singapore's refusal to abide by William G. Stinson, 50, had Chevy Chase, $35,000. likes to eat, but it's not just junk his administration's intercession been stripped of his office be- The law permits corporations, food. to lift censorship sanctions on the cause of fraud by his campaign labor unions and individuals to "My husband has good eating Asian Wall Street Journal and in the Nov. 2 special election. make unlimited "soft" donations habits," the first lady said as she other U.S.-related publications. This week he was cleared of re- to the national parties for "party participated in front of the White lated charges by a judge who building" while limiting direct House in a ceremony denoting Clinton zaps GOP heard the case without a jury. contributions to candidates for Fruit and Vegetable Month. A former Stinson aide pleaded federal office. "He really does love fresh President Clinton has accused guilty Monday to absentee-ballot fruits and vegetables He's not Republicans of trying to divide fraud, and a second aide awaits trial on election violations. Re- The Christian right a big sweet eater or any of that," the American people with a "cul- she said in a tone that was de- tural war" over moral, racial and publican Bruce Marks sued after In Roll Call, analyst Charles E. scribed as playfully defensive. ethnic issues. election results showed him los- Cook says the "validity" of the "He got a little bit of a bad rap, I The president sounded the ing to Mr. Stinson by 461 votes. Democratic attack on the reli- think." 1 e in partisan speeches at A federal judge said the Stin- gious political activists may be a "He's got good [eating] habits, two Democratic fund-raisers that son campaign had coerced, in- "little dubious": and they include fresh fruit and netted $3.5 million for party ac- timidated and deceived voters "I've met with plenty of vegatables - and broccoli," she tivities - and drew criticism into casting absentee ballots, an candidates from both parties over said in a swipe at former Presi- from campaign finance reform option restricted by law to voters the last 18 months, and I've seen dent Bush, who banned the vege- groups. unable to make it to the polls. very few that I would describe as table from his White House. He said Republicans believe very closely associated with the She was asked to say what food they can pick up seats in Con- in the fall elections by pro- Potty parity redux 'religious right' - even though a Mr. Clinton likes best. "Well, g large number of conservative everything," she said, smiling moting cynicism, bombarding Mark Z. Barabak of Copley candidates will receive support broadly. Americans with negativism and News Service noted in his report from such forces." focusing on "process and conflict on the gains women have made in ins of substantive product." Congress that bathroom avail- Watch out, Rush Kennedy organizes He also seemed to be lashing ability remains a point of consid- erable annoyance. The Chicago Sun-Times re- Facing his toughest re-election out at conservative Republican ever, Sen. Edward M. Kennedy is talk radio shows like that of con- Men's facilities are just off the ports that Ross Perot is launching a new career as a talk- organizing an early attack on his vative Rush Limbaugh for House floor. Female members bi ng divisiveness. must leave the chamber, cross a show host and commentator for likely GOP opponent, Mitt Rom- Tribune Radio Networks. Starting ney. hallway and hike into the re- Oct. 1, the Texas billionaire will The Boston Globe reports that The leaders'job cesses of the speaker's office, a host a live, weekly call-in show. campaign insiders say the strat- journey that takes several min- In its account of the "subterra- utes, Mr. Barabak reported. The deal also calls for Perot to egy is dictated by a flurry of ag- This inequity is a matter of deliver commentary pieces five gressive reporting and the antici- " struggle between Sen. Tom Daschle and Sen. Jim Sasser to or six days a week. pation of being the target of a $1 persistent grumbling, but nothing become the next Senate majority Dan Fabian, general manager million advertising campaign. of WGN radio in Chicago, said: The Globe added: "At 62, Ken- leader, the New York Times re- "If it is purely issues and politi- nedy must also allay concerns ported "the ugly truth": The job is anything but pleasant. cally oriented, there will be those that he's no longer up to the job he has held since 1963. A cam- "The chamber's 99 other sen- who polarize. But if the format ators, any of whom can bring allows his wit, charm and insight paign scrap with Romney is one way to show he is still vigorous lawmaking to a halt, demand con- to come through, it's impossible and engaged, said one source." not to be ingratiated by him." The Washing Ci 00 FRIDAY. JUNE 24, 1994 124

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    "ocrText": "FOIA Number: 2006-0810-F (2)\nFOIA\nMARKER\nThis is not a textual record. This is used as an\nadministrative marker by the William J. Clinton\nPresidential Library Staff.\nCollection/Record Group:\nClinton Presidential Records\nSubgroup/Office of Origin:\nFirst Lady's Office\nSeries/Staff Member:\nFirst Lady's Press Office\nSubseries:\nPress Office Clippings 1993 - 1994\nOA/ID Number:\n6128\nFolderID:\nFolder Title:\n[HEALTH CARE CLIPS: JUNE 1994-JULY 1994] [4]\nStack:\nRow:\nSection:\nShelf:\nPosition:\nS\n61\n3\n4\n3\nTHE PATIENT'S ADVOCATE\nBY MARILYN MOON\nHealth Reform and You\nQ.\nI'm very concerned about possible higher taxes as\nPRESERVATION\nPHOTOCOPY\na result of health plans being offered by President\nIt is difficult to know\nClinton and others. These plans are going to be\nfunded with a tobacco tax. At the same time, the\nfederal health officials are trying to cut the number\nwhether the proposed\nof Americans who smoke and some folks even talk\nabout having tobacco banned. It seems like a case of\nrevenue sources will be\nhaving your cake and eating it too. Are we going to\nget stuck with a lot of other heavier taxes when the\ntobacco tax doesn't provide the needed revenues?\nsufficient.\nA. One of the effects of a tobacco tax will likely\nbe to discourage smoking, but the estimates of\nMany states do not have the resources to cover\nhow much revenue would be raised take a\nall their citizens without federal government\nreduction in smoking into account. The 75-cent\nsupport. If such help is not part of this approach,\ntax on each pack proposed by Clinton would\nnot all states would participate. But if there is some\nraise about $10 billion to $11 billion each year.\nfederal support, would the federal government\nBy itself, this tax is certainly not enough to\nchoose just a few states for an experiment? In\npay for comprehensive health care reform. The\neither case, this would result in disparities in\nvarious plans also assume other ways to finance\ncoverage across the United States. Moreover,\nexpanded coverage, including savings from\nstates need to worry about companies' relocating if\ncutting Medicare and reducing or eliminating\nstate taxes were raised. That is less of a problem\nthe Medicaid program. Other ways that some\nfor the United States as a whole. But despite these\nplans finance reform include requiring that\nproblems, if national health care reform fails to\nemployers contribute to health insurance and\npass, a number of states are likely to move on their\nlimiting the extent to which insurance benefits\nown to change the health care system.\ncan be deducted from taxable income. Like you,\nmany people fear that additional revenue\nsources may also be needed, especially if costs\nUnder the proposed health plans pending in\nof health care continue to rise in the future.\nthe Congress, how will part-time and hourly\nComprehensive reform legislation would be\nemployees be covered?\ncomplicated, and it is difficult to know with\nA.\nThe Clinton proposal, with its employer\ncertainty whether the revenue sources that have\nmandate, would require employers to pay on a\nbeen proposed will be sufficient, especially after\nprorated basis for part-time and hourly workers as\nthe program has been in place for a few years.\nlong as they work more than 10 hours a week. The\nsingle-payer approach sponsored by Rep. Jim\nQ.\nHave policy makers considered evaluating\nMcDermott (D-Wash.) would cover everyone\nseveral of the plans by having different states try\nregardless of employment status and pay for the\npublic system through payroll and income taxes.\n6-28-94\nthem out? This way, they could give different\nplans a chance to see which one or ones could\nThe other major proposals would either require\nwork best, and implement the best plan for the\ncountry.\noptional, and these plans would make insurance the\nresponsibility of individuals. Employers under these\nA.\nOne of the suggestions for compromise on\nHEALTH MAGAZINE\nWASHINGTON POST\nindividuals to purchase insurance or leave coverage\nplans would be free to help pay the premiums, but\nhealth care reform is to give states a great deal\nthey would have no increased incentives to expand\nof latitude in designing reform. Many of the\ntheir current efforts. Low-income individuals under\nexisting proposals already allow some state\nall the plans would receive some type of subsidy to\nflexibility. There are, however, several\nhelp in the purchase of insurance, but the details\nproblems with allowing more flexibility, many of\nvary. The more generous these subsidies, the\nthem surrounding the issue of who would pay.\nmore expensive the proposal.\nWASHINGTON\no you have a question about President Clinton's health proposal or about\nD\nthe other bills in Congress? The Washington Post free telephone\ninformation service takes questions from readers about how the plan could\naffect them. Call POSTHASTE at 202-334-9000 on Я touch-tone phone and\nenter category code 8500 (in Prince William County, 703-690-4110). Health\neconomist Marilyn Moon of the Urban Institute provides answers in this column\nbased on information from the White House, Congress and other sources. While she\ncannot answer all questions or give personal advice, she will answer a range of\ninquiries.\nTHE PATIENT'\nBY MARILYN MOON\nHealth Reform and You\nQ.\nI'm very concerned about possible higher taxes as\na result of health plans being offered by President\nIt is difficult to know\nClinton and others. These plans are going to be\nfunded with a tobacco tax. At the same time, the\nfederal health officials are trying to cut the number\nwhether the proposed\nof Americans who smoke and some folks even talk\nabout having tobacco banned. It seems like a case of\nrevenue sources will be\nhaving your cake and eating it too. Are we going to\nget stuck with a lot of other heavier taxes when the\ntobacco tax doesn' it provide the needed revenues?\nsufficient.\nA. One of the effects of a tobacco tax will likely\nbe to discourage smoking, but the estimates of\nMany states do not have the resources to cover\nhow much revenue would be raised take a\nall their citizens without federal government\nreduction in smoking into account. The 75-cent\nsupport. If such help is not part of this approach,\ntax on each pack proposed by Clinton would\nnot all states would participate. But if there is some\nraise about $10 billion to $11 billion each year.\nfederal support, would the federal government\nPRESERVATION\nBy itself, this tax is certainly not enough to\nchoose just a few states for an experiment? In\nPHOTOCOPY\npay for comprehensive health care reform. The\neither case, this would result in disparities in\nvarious plans also assume other ways to finance\ncoverage across the United States. Moreover,\nexpanded coverage, including savings from\nstates need to worry about companies' relocating if\ncutting Medicare and reducing or eliminating\nstate taxes were raised. That is less of a problem\nthe Medicaid program. Other ways that some\nfor the United States as a whole. But despite these\nplans finance reform include requiring that\nproblems, if national health care reform fails to\nemployers contribute to health insurance and\npass, a number of states are likely to move on their\nlimiting the extent to which insurance benefits\nown to change the health care system.\ncan be deducted from taxable income. Like you,\nmany people fear that additional revenue\nsources may also be needed, especially if costs\nQ.\nUnder the proposed health plans pending in\nof health care continue to rise in the future.\nthe Congress, how will part-time and hourly\nComprehensive reform legislation would be\nemployees be covered?\ncomplicated, and it is difficult to know with\nA. The Clinton proposal, with its employer\ncertainty whether the revenue sources that have\nmandate, would require employers to pay on a\nbeen proposed will be sufficient, especially after\nprorated basis for part-time and hourly workers as\nthe program has been in place for a few years.\nlong as they work more than 10 hours a week. The\nsingle-payer approach sponsored by Rep. Jim\n&\nHave policy makers considered evaluating\nMcDermott (D-Wash.) would cover everyone\nseveral of the plans by having different states try\nregardless of employment status and pay for the\nthem out? This way, they could give different\npublic system through payroll and income taxes.\nplans a chance to see which one or ones could\nThe other major proposals would either require\nwork best, and implement the best plan for the\nindividuals to purchase insurance or leave coverage\ncountry.\noptional, and these plans would make insurance the\nresponsibility of individuals. Employers under these\nA. One of the suggestions for compromise on\nplans would be free to help pay the premiums, but\nhealth care reform is to give states a great deal\nthey would have no increased incentives to expand\nof latitude in designing reform. Many of the\ntheir current efforts. Low-income individuals under\nexisting proposals already allow some state\nall the plans would receive some type of subsidy to\nflexibility. There are, however, several\nhelp in the purchase of insurance, but the details\nproblems with allowing more flexibility, many of\nvary. The more generous these subsidies, the\nthem surrounding the issue of who would pay.\nmore expensive the proposal.\n0 you have a question about President Clinton's health proposal or about\nD\nthe other bills in Congress? The Washington Post free telephone\ninformation service takes questions from readers about how the plan could\naffect them. Call POSTHASTE at 202-334-9000 on a touch-tone phone and\nenter category code 8500 (in Prince William County, 703-690-4110). Health\neconomist Marilyn Moon of the Urban Institute provides answers in this column\nbased on information from the White House, Congress and other sources. While she\ncannot answer all questions or give personal advice, she will answer a range of\ninquiries.\nPM-Relying on Leon, Bjt, 720\nPanetta: A Persistent, Tough Insider Who Alienates Few\nWith PM-White House-Shakeup Bjt\nAP Photo WX103\nBy ALAN FRAM= Associated Press Writer=\nWASHINGTON (AP) When President Clinton needed a punchline last March\nduring a dinner thrown by the Washington press corps, he used Leon Panetta\nliterally.\nIt says right here that someday we'll all die, sighed Hillary Rodham\nClinton in a parody the first couple had taped of the insurance industry's\nHarry and Louise ads attacking the Clintons' health-care plan.\nHis jaw dropping, Clinton responded, Even Leon Panetta?'\nThe president picked the amiable congressional veteran for the punchline\nof the joke because of Panetta's refusal to wither under the intense political\nfire of the administration's first year, when he served as director of the\nOffice of Management and Budget. Now, for that attribute and others, Clinton\nhas chosen Panetta again, this time as his chief of staff.\nThe owlish, broad-shouldered Panetta, who turned 56 today, comes to his\nnew job after 16 years as a California congressman and nearly 18 months as\nClinton's budget director. He replaces Clinton's boyhood friend, Mack McLarty,\nwho was seen as too gentle for the election-year crunch that awaits health\ncare, the crime bill and some of the president's other top legislative\npriorities.\nAsked to list Panetta's qualities, lawmakers and others describe\na man who seems custom-made for the difficult job of Clinton's gatekeeper:\nOrganized. Experienced. Loves process. Knows how to say no. Understands\nissues and Congress. Popular with the press.\nIn the Capitol, Panetta's ascension Monday was greeted with uniform glee\nby fellow Democrats and with respect by Republicans.\nWhat Leon brings with him is a good knowledge of the workings of\nCongress, how to work with it and get around pitfalls, said Rep. Charles\nStenholm, D-Texas, a conservative who sometimes clashed with Panetta when\nboth were on the House Budget Committee. He's very fair. He listens. \"\nLeon knows Washington and knows Congress better than anybody in the\ncurrent White House team, said House Minority Whip Newt Gingrich, R-Ga. ``He\nbrings a level-headed, cheerful persistence that will be helpful to the\npresident.'\nBefore coming to Congress, Panetta was a Republican and director of the\nCivil Rights Office in President Nixon's Department of Health, Education and\nWelfare. Panetta was fired in 1970 after he complained that the agency was not\naggressive enough; he became a Democrat soon afterward.\nPanetta's ready, cackling laugh and the ubiquitous thick looseleaf books\ntucked under his arms were his trademarks in the halls of the House.\nThere, he persistently ranted about the need to attack burgeoning federal\ndeficits for years before Ross Perot dragged the issue into the spotlight of\nthe last presidential campaign. On a subject that can be eye-glazingly dull,\nhe was able to deliver passionate speeches on the need to cut red ink, his\nvoice loud and his face bulging with emotion.\nKnown as a master of the minutiae of the $1.5 trillion federal budget,\nPanetta was a major player in the 1990 budget summit with President Bush that\nyielded a $500 billion deficit-reduction package of taxes and spending cuts.\nAs White House budget chief, he helped guide Clinton's similar deficit-cutting\nplan to enactment last year.\nIn both those episodes, he was seen by some liberal Democrats as, if\nanything, too eager to reduce the deficit at the expense of cherished social\nprograms. During the marathon 1990 budget summit with Bush, he seemed more\nwilling than some other Democratic participants to strike a compromise with\nthe administration.\nIt is that willingness to reach out that persuaded many Republicans that\nPanetta was a fair, dedicated lawmaker.\nHe's never been one you leave negotiations with feeling angry and\nthinking he's less than a straight shooter, \" said Sen. Pete Domenici of New\nMexico, ranking Republican on the Senate Budget Committee. But that doesn't\nmean he's not tough.\nBut some Republicans haven't forgiven Panetta's departure from the GOP.\nOthers also recall the 1984 House commission Panetta headed that awarded a\ndisputed Indiana congressional race to the Democratic candidate.\nThis is the big leagues, and when hardball is called for, Leon will go\nmore than to the wall, \" said Rep. Jerry Lewis, R-Calif.\nAnd it is that quality that Clinton will be able to rely on during these\nnext, crucial months his presidency faces.\n****\nfiled by: APE- (--)\non 06/28/94 at 00:01EDT ****\n**** printed by: WHPR (JEL) on 06/28/94 at 08:17EDT ****\nPM-Digest Briefs, 1106\nEds: This package does not contain the following items from the News Digest:\nPM-Korea-Nuclear.\nWASHINGTON (AP) The daunting demands on President Clinton's new chief of\nstaff range from smoothing out ragged White House operations to advancing\nadministration priorities such as health care and welfare reform.\nBudget Director Leon Panetta says he'll be settling into a job he calls\nthe toughest in town by mid-July. At the same time current chief of staff Mack\nMcLarty, among the last of the Arkansans Clinton brought to his inner circle,\nwill take on his new role as counselor to his boyhood friend.\nWhat's happening is, we're now looking at a very large legislative\nagenda, Panetta, a former California congressman, said Monday night on\nCNN's Larry King Live. I have that kind of experience. I know the\nplayers. I know the arena\nWith McLarty sitting beside him, he added: The feeling was, this is the\nbest time that Mack become what he really is, which is\na close adviser of the president\n=\nWASHINGTON (AP) When President Clinton needed a punchline last March\nduring a dinner thrown by the Washington press corps, he used Leon Panetta\nliterally.\nIt says right here that someday we'll all die, sighed Hillary Rodham\nClinton in a parody the first couple had taped of the insurance industry's\nHarry and Louise ads attacking the Clintons' health-care plan.\nHis jaw dropping, Clinton responded, Even Leon Panetta?'\nThe president picked the amiable congressional veteran for the punchline\nof the joke because of Panetta's refusal to wither under the intense political\nfire of the administration's first year, when he served as director of the\nOffice of Management and Budget. Now, for that attribute and others, Clinton\nhas chosen Panetta again, this time as his chief of staff.\n=\nWASHINGTON (AP) With key committee votes approaching in both houses,\nSenate Republicans are circulating a scaled-down alternative to President\nClinton's health reform bill that relies on tax breaks for workers and federal\nsubsidies for the poor to expand coverage to the uninsured.\nIn contrast to Clinton's bill, the GOP draft contains no requirement for\nuniversal coverage and is stripped of the administration's proposal for\nemployers to finance insurance for their workers.\nIt also drops the tobacco tax hike the administration and many lawmakers\nfavor to pay for expanded health care. Financing would come from $100 billion\nin savings from Medicaid and Medicare over five years.\nLike virtually all proposals under discussion, the GOP draft calls for\nchanges to make it tougher for insurance companies to deny coverage to those\nseeking it.\n=\nUNDATED For all the shuddering on Wall Street, the plunging dollar isn't\nlikely to cause much pain on Main Street.\nAt the beginning of the year, one dollar was worth about 113 Japanese yen.\nBy Monday the dollar's worth had fallen roughly 12 percent to a postwar low of\n99.93 yen before rallying slightly to close at 100.35 yen on the Tokyo foreign\nexchange market today. The dollar is also down 10 percent from its high this\nyear vs. the German mark, Europe's strongest currency.\nIn theory, the dollar's decline weakens U.S. purchasing power because it\ntakes more dollars to buy the same amount of imported goods. It also can mean\nhigher prices and inflation.\nOne old economic formula says that a 10 percent decline in the dollar's\nvalue translates into a 1 percent rise in consumer prices over 1 to 1&1/2\nyears.\n=\nLOS ANGELES (AP) Defense attorneys and prosecutors are asking\na judge for access to evidence that could either link O.J. Simpson to a bloody\ncrime scene or help exonerate him.\nSimpson, 46, has pleaded innocent to murdering his ex-wife and her friend,\nRonald Goldman. Their stabbed and slashed bodies were found outside Nicole\nBrown Simpson's condominium on June 12. Simpson has been jailed without bail\nsince June 17.\nOn Monday, Ms. Simpson's father disputed a coroner's report that said she\nwas on the phone at 11 p.m. the night she was killed. A defense lawyer had\nsaid the timing of the call bolstered Simpson's alibi.\nA judge scheduled a hearing today to decide whether to give defense\nlawyers access to blood samples and other evidence, and whether prosecutors\ncan take a sample of Simpson's hair. Simpson was to attend the hearing.\n=\nWASHINGTON (AP) Pregnant women in Iowa, newborns in Tennessee,\na 67-year-old leukemia patient in Boston different people in different\ncircumstances, they and hundreds of others became Cold War guinea pigs.\nThey all were used in the government's search to learn more about how\nradiation affects the human body, according to new information made public by\nthe Energy Department.\nThe department disclosed on Monday that a review of more than 11,000\ndocuments unearthed at least 48 new experiments in which perhaps as many as\n1,200 people were subjected to radiation exposure, often with no evidence of\nconsent.\nThe additional human radiation tests were among stacks of documents made\npublic by the department on its nuclear program as evidence of what Energy\nSecretary Hazel O'Leary called a new era of openness in the once-secretive\nagency.\n=\nWASHINGTON (AP) Federal regulators are considering tougher requirements\non TV stations to boost the number of educational programs for young viewers.\nThey also want to make sure that shows such as `The Jetsons'' and Leave\nIt to Beaver'' don't show up again as ``educational'' programs.\nThe Federal Communications Commission is collecting recommendations today\nfrom broadcast networks, program producers and watchdog groups at its first\nhearing in 10 years on the state of children's television.\nThe commission is considering whether it should adopt a definition of what\nconstitutes an educational program and require stations to air a set amount of\neducational programs for children every week.\n=\nPORT-AU-PRINCE, Haiti (AP) The interception of 1,330 Haitians on the high\nseas has stunned U.S. officials and taxed America's ability to handle the\nrefugees.\nThe Haitians picked up Monday, combined with 786 Haitians apprehended over\nthe weekend, nearly equal the 2,239 intercepted in all of 1993.\nThe surge, which is expected to continue, could dramatically increase\npressure on the Clinton administration to quickly resolve Haiti's festering\npolitical crisis.\nU.S. Coast Guard officials, who stationed about 15 cutters and patrol\ncraft off Haiti after the new policy was announced, hinted the new Clinton\npolicy caused the refugee tide.\n**** filed by:APE-(--) on 06/28/94 at 05:33EDT ****\n**** printed by: WHPR (JEL) on 06/28/94 at 08:17EDT ****\nbc-sun-editorial a0843\n(bal) (ATTN: Editorial Page editors)\nHealth Reform: Who Pays?\n(c) 1994, The Baltimore Sun= The following editorial appeared in Monday's\nBaltimore Sun:\nSenate moderates pushing health care reform that puts the emphasis on\nindividuals, not employers, in purchasing insurance may be on to something.\nThe fact is that in the end it will always be individuals not employers, not\nthe government who have to pay the doctor (and the hospital and the\npharmacist and the insurance peddler).\nWhen you have an employer mandate, as Bill and Hillary Clinton\npropose, the cost is ostensibly covered by the boss. But employees inevitably\nfeel the impact in the form of smaller paychecks.\nWhat the debate on Capitol Hill is really all about is cost shifting of\nsomehow finding a way to force healthy, reasonably well-off people to help pay\nthe bills of the sick and the less fortunate.\nThe nation's poor already are covered by Medicaid, the elderly by\nMedicare. But the nation's jerry-built health care system too often fails to\ncover lower-income people who are self-employed or working for employers who\ndo not provide insurance. And why? Because insurance companies tend to deny\ncoverage to those with pre-existing conditions and refuse customers the right\nto carry their coverage from job to job. Because healthy citizens or the\nmillions of employees used to having their medical insurance extracted\ntax-free from their paychecks don't really want a change. Because there is so\nmuch red tape involved in medical billing that billions of dollars go to\nadministration rather than health care.\nA year ago remember? health care reform was widely regarded as a cause\nwhose time had come. But then came the details, and from them emanated so many\ndevils that today the whole reform movement could collapse. Republicans who\nonce were guarded or cautiously supportive of health reform now seem more\nemboldened to oppose the Clintons outright.\nPerhaps this can be blamed on the secretive way in which Clinton concocted\na vastly complicated 1, 300-page bill. Perhaps it can be attributed to a\nsmall-business lobby that cranked out the Harry and Louise'' commercials\nwithout ever quite informing the public that employers providing health care\nwere carrying the water of their deadbeat competitors.\nBe that as it may, the focus now is on proposals before the Senate Finance\nCommittee that would throw out employer mandates'' and substitute them with\ninsurance reforms, subsidies for the working poor'' paid for through tobacco\nand payroll taxes and vague prospects for taking further action perhaps even\nindividual mandates'' if more than 5 percent of the population remains\nuncovered at century's end.\nAs many holes can be picked in this approach as in the Clinton proposal or\nits variations. But if it is theoretically correct that the individual is the\nend source of health dollars, then bipartisan proposals in Senate Finance\ndeserve a fair hearing. The alternative, as even the Clintons are starting to\nsuspect, could be nothing at all.\nDistributed by the Los Angeles Times-Washington Post News Service=\n**** filed by:LAWP(-- on 06/28/94 at 02:43EDT ****\n**** printed by: WHPR (JEL) on 06/28/94 at 08:17EDT ****\nbc-MA-Beth-Israel-Pres\nTO STATE AND MEDICAL EDITORS:\nBETH ISRAEL HOSPITAL PRESIDENT DR. MITCHELL T. RABKIN PARTICIPATES IN\nWHITE HOUSE HEALTH CARE MEETING IN SUPPORT OF CLINTON HEALTH PLAN\nBOSTON, June 27 /PRNewswire/ -- Beth Israel Hospital President Dr.\nMitchell T. Rabkin today met with President Clinton, First Lady Hillary\nRodham Clinton, and Vice President Al Gore at the White House, and spoke on\nbehalf of medical academic leaders nationwide who support the Clinton/Kennedy\nhealth care bill.\nOver 70 chief executive officers of teaching hospitals and deans of\nmedical schools attended the meeting which was held in the East Room of the\nWhite House this morning at 11:30 a.m. followed by a press conference on the\nNorth Lawn of the White House.\nDr. Rabkin's remarks follow:\nRemarks by Mitchell T. Rabkin, MD\nPresident and Chief Executive Officer\nBoston's Beth Israel Hospital\nand\nProfessor of Medicine, Harvard Medical School, Boston\nat the White House, Washington, DC\nMonday, 27 June, 1994\n\"Thank you, Mrs. Clinton, and members of the White House staff, for making\nthis meeting possible on behalf of my colleagues. Those assembled here and\nothers unable to attend are leaders of America's top medical schools and\nteaching hospitals, concerned with the future of health care in America -- its\nquality, availability, financing, and its critical role in the health and\nfuture success of this nation.\n\"In some respects, today's gathering is an outgrowth of a productive\nmeeting in Boston a couple of months ago in which President Clinton, Senator\nTed Kennedy and others reaffirmed the critical importance of both universal\ncoverage and also support for the special functions of teaching and research\nin academic medical institutions. Their strong commitment has encouraged this\nlarger and nationally representative group to speak out today as individuals,\nfirmly and positively, on the primacy of these issues -- universal coverage;\nsupport for the teaching and training of tomorrow's doctors, nurses and other\nhealth care providers; and support for the research that uncovers new\nknowledge to understand and fight disease, disability, and poor health.\n\"As the debate heats up over health care reform, and as they wrongly imply\nin the TV commercial that there is some link between universal coverage and\nrationing, it becomes important for Harry and Louise to understand that\nrationing exists today, with 39 million of our citizens uninsured, many of\nthem working Americans and their dependents, and millions more in working\nfamilies this year who will lose their coverage through job loss, new illness,\nor other personal threats. True health care reform should eliminate that\nrationing, and that is precisely what universal coverage does. Without\nguaranteed health care coverage for everyone, each of us is insecure, each of\nus stands on the threshold of medical poverty. With universal coverage, no\none is rationed out of the system.\n\"As the debate mounts, our task is to share these insights with the people\nwe serve back at home -- all the people. They are the interests we represent;\ntheir health and welfare and their concerns must shape the outcome. Their\nvoices must be heard. We are pleased to join with President and Mrs. Clinton\nin standing up to be counted for the health of all America.\n\"Now, it is my pleasure to introduce the distinguished Dr. William Peck,\nDean of the Washington University School of Medicine, St. Louis, Missouri.'\n(Remarks by Dr. Peck)\nNOTE: More than 70 teaching hospital CEOs and medical school deans\nattended the White House meeting at the invitation of President Clinton and\nHillary Rodham Clinton.\nFor further information, contact:\nJ. Antony Lloyd, Vice President Corporate Communications\nBoston's Beth Israel Hospital,\n330 Brookline Avenue, Boston, MA 02215\nInternet Address: tlloydbih.harvard.edu\n-0-\n6/27/94\n/CONTACT: Chris Hickey of Beth Israel Hospital, 617-735-4431/ CO: Beth\nIsrael Hospital ST: Massachusetts IN: HEA SU:\nCM -- NE021 -- 2408\n06-27-94 18:08 EDT\n**** filed by:PR-F(--) on 06/27/94 at 18:14EDT ****\n**** printed by:WHPR(JEL) on 06/28/94 at 08:19EDT ****\nClintons push health reform plan\nWASHINGTON, June 27 (UPI) Battling moves on Capitol Hill to limit the\nscope of health care coverage, President Clinton asked medical school deans\nand heads of academic health centers Monday to personally call their\ncongressmen on behalf of universal access.\nAt a White House ceremony to trumpet support for his plan from the leaders\nof prestigious research centers nationwide, Clinton urged lawmakers now\ncrafting alternatives to put politics behind and put health care first.\nThis surely is not a political issue, Clinton said in launching a\nfervent appeal for help from the group. If we can get beyond the politics to\nthe reality, we can prevail here.\nAnd I want you to do that. You can do that.\nClinton spoke with an eye to efforts now underway in the key Senate\nFinance Committee and other panels to craft legislation that would limit\ncoverage to just 95 percent of Americans.\nHaving renewed his VOW to veto any bill that comes to him with less than\nuniversal coverage, Clinton returned to the White House bully pulpit to try to\nturn up the pressure on lawmakers.\nPointing to the influence of those gathered in the East Room, noting that\nnearly every congressman has a research institution or medical center in his\nhome state, Clinton said, I ask you to commit to make\na personal contact and a personal appeal to every member of the Congress from\nyour state to put politics aside and put the health care of the American\npeople first.\nIf we could have people of both parties bring to the deliberations of\nthe law in Congress less politics and more concern for health care\nwe would\npass a bill in this session of Congress, with bipartisan support, that\nguarantees health care to all Americans.\nFirst lady Hillary Rodham Clinton, who has visited many of the\ninstitutions represented in the room, said each was here today to uniformly\nsupport universal coverage because in the absence of universal coverage,\nevery other mission\nis at risk for the future.\nAnd Dr. Mitch Rabkin, president of the Beth Israel Hospital in Boston,\nrailed back at the health industry's widely aired Harry and Louise'' ads\nattacking the Clinton proposal for rationing health care.\nIt becomes important for Harry and Louise to understand that rationing\nexists today, Rabkin said. True health care reform should eliminate that\nrationing That is what universal coverage does.\nClinton added: The suggestion that somehow we don't have rationing today\nand we will have it if this passes is, to put it mildly, a stretch of\nreality.\n**** filed by: UPI- (us) on 06/27/94 at 13:24EDT ****\n**** printed by: WHPR (JEL) on 06/28/94 at 08:20EDT ****\nHE NEGOTIATIONS\nMoynihan Is Expected to Seek Employer Health Payments\nBy ADAM CLYMER\nSpecial 10 The York\nWASHINGTON, June 27 - Senator\nDaniel Patrick Moynihan will ask the\nenate Finance Committee on Tues-\niay to vote for a national health in-\nsurance proposal that would ulti-\nmately require employers to pay\nmost of the insurance costs for their\nworkers, a Senate aide said tonight.\nThe New York Democrat expects\nthe issue to come to a vote on Wednes-\nday and is not sure of the outcome,\nthe aide said. Republicans on the\ncommittee maintain that anything re-\nTHER\nRER\nDear\nquiring employers to pay will be de-\nCARE\nfeated.\nMr. Moynihan's proposal thrusts\nthe Finance Committee, whose ideo-\nSenate as a whole, back into the cen-\ner of the health care debate. A vic-\nHEALTH\nHIGH\nlogical balance reflects that of the\ntory in the Finance Committee would\nbe a dramatic message that victory\nin the Senate is likely, which in turn\nwould shore up the courage of ner-\nvous Democrats in the House.\nThe committee, which has always\nclaimed the central role on health\nissues, had looked increasingly mar-\nTHE\nginal until now, apparently waiting on\nthe sidelines until three other com-\nmittees took up their own legislation\nAs the Senate Finance Committee met privately on health care yesterday, Becky Ogle of the Consortium of\nbefore even scheduling its first vote.\nCitizens with Disabilities waited outside, her wheelchair displaying her support for the Clinton plan.\nConsistent With Clinton\nThe proposal backs away from\nwhere they will have to propose an\nployers to \"share responsibility,\" as\nPresident Clinton's call for immedi-\nplan, which has no requirements for\namendment to take it out.\nthe Administration puts it, for the\nate employer responsibility, a posi-\nemployers or individuals to buy in-\nWith 11 Democrats and 9 Republi-\ncosts of health insurance.\nsurance.\ntion Mr. Moynihan had supported -\ncans on the committee, Mr. Moynihan\nMr. Moynihan's proposal will re-\nalthough he acknowledged it would be\nUnder the original Breaux pro-\ncould lose one Democrat and still\nplace one which he announced earlier\nvery hard to pass. But the plan is\nposal, national health insurance ef-\nprevail on such an amendment with a\nthis month but never put before the\nformulated in a way that makes it\ntie vote. But he would still need 11\nforts would begin with steps, on which\ncommittee. That plan hewed more\nlikely all employers would be re-\nthere is little disagreement, that\nvotes to approve the bill, something\nclsoely to Mr. Clinton's proposal, but\nquired to pay for insurance within\nwould make insurance easier to buy\nhe hopes the committee can do by the\nhad no significant support in the com-\nfive years. It is therefore consistent\nand harder to cancel.\nend of the week.\nmittee.\nwith Mr. Clinton's demand that all\nBut these measures did not sub-\nEven if he loses, the aide explained,\nWhat he will announce tomorrow is\nAmericans be provided health insur-\nthe Republicans, and particularly\nstantially raise the percentage of\nclosely patterned on a proposal made\nance.\nAmericans with health insurance,\nSenator Bob Dole of Kansas, the Re-\nlast month by Senator John Breaux, a\nBy putting the requirement in his\npublican leader, will be forced to vote\nthere would be an automatic require-\nLouisiana Democrat who is frequent-\nnew proposal, Mr. Moynihan will also\nagainst what Democrats can charac-\nment for employers to start paying,\nly a swing vote on the committee. But\nput the Republicans in a position\nwhich is known as an \"employer\nterize as a proposal to require em-\nMr. Breaux has since come out for a\nmandate.\"\nFor example, if firms with 100,or\nmore employers, who now employ 6)\npercent of the nation's work force, did\nnot increase their percentage of CO\nerage from the current 89 percent\nworkers and their dependents to 96\npercent, then all employers in that\ncategory would have to insure their\nworkers.\nSlower, and slightly less universal\nrequirements would be imposed on\nsmaller companies.\nThe uncertain air that hung over\nthe Finance Committee's efforts was\nevident early this afternoon as Demo-\ncrats met at the Capitol to discuss\nwhat they thought Mr. Moynihar\nshould propose, reporters gathered\noutside and tourists waited nearby\nTHE NEW YORK TIMES, TUESDAY, JUNE 28. 1994\nfor admission to the Senate gallery.\nMr. Moynihan later emerged to say\nthat he hoped the committee could\nfinish work on a bill this week. When a\nreporter asked if it would work into\nnext week's scheduled Congressional\nvacation, he said, \"We're not that\nkind of a committee.\"\nWays and Means Tussle\nIn the House, the Ways and Means\nCommittee struggled over its version\nof the bill, putting off decisions\nhow to control costs but arguing for\nnearly 15 minutes over the design and\ninformation to be printed on the na-\ntional health card all Americans\nwould receive under the bill.\nAt one point, Representative Bill\nThomas, Republican of California,\nsuggested printing 202-456-1414 on-the\ncard. \"For anyone who doesn't know\nthe number, that's the White House,'\nhe explained. His proposal was re-\njected.\n9\nTHE DETAILS\nStudy Sees Problems in Subsidies to Help the Poor Buy Insurance\nBy ROBERT PEAR\nreduced at the very moment when the\nnumbers of people in middle-income\nChafee proposal and 95 cents under\nSpecial to The New York Times\nneed was greatest, in recessions, as\nfamilies. On the other hand, it says, if\nthe Cooper proposal.\nWASHINGTON, June 27 - A new\nthe numbers of poor and unemployed\nTaking issue with\nthe subsidies decline sharply as earn-\nstudy finds serious, unsuspected\npeople rose.\nings rise, they may discourage people\nPut another way, such a family\nproblems with many proposals for\nGovernment subsidies to help peo-\na crucial part of\nfrom trying to earn more, especially\nwould keep 24 cents of each additional\nthe Federal Government to help low-\nple buy insurance have been in health\npeople with incomes between the pov-\ndollar earned under the Clinton pro-\nincome people buy private health in-\nplans proposed by President Clinton;\nerty level and twice that amount\nposal, but only 5 cents of each addi-\nsurance by subsidizing their premi-\nRepresentative Jim Cooper, Demo-\nplans to overhaul\n($15,000 to $30,000 a year for a family\ntional dollar under the Cooper pro-\nums.\ncrat of Tennessee; Senator John H.\nof four). In other words they would\nposal.\nChafee, Republican of Rhode Island,\nhealth insurance.\nlose their benefits and be subjected to\nSuch subsidies are a feature of\nand Senator Edward M. Kennedy,\nmore taxes as well.\nThe Use of Overtime\nmost of the health insurance bills\nDemocrat of Massachusetts. Spend-\nbeing considered in Congress. Subsi-\ning on such subsidies would be sub-\nject to limits set by Congress. None of\nGradual Phasing Down Urged\nSuch high marginal tax rates could\ndies have been suggested as a way to\neasily discourage extra work effort\nmake sure that all Americans obtain\nthe proposals would increase the\nage without jeopardizing poor work-\ners. The workers would continue re-\nbecause people would keep relatively\nhealth insurance, with or without a\nspending limits in time of recession.\nPeople just above the poverty level\nrequirement that employers contrib-\nceiving similar coverage, with their\nlittle of their additional earnings, the\nalready pay a high \"tax\" on addition-\nreport says.\nute to the cost of workers' coverage.\nOn Providing Subsidies\npremiums fully paid by the public\nal earnings because they may lose\nsubsidy system.\"\nBut the study, issued today by the\nfood stamps, tax credits and other\nMr. Greenstein- said that an em-\nMoreover, it says, \"Firms that em-\nbenefits as their incomes rise.\nployer mandate could also have some\nCenter on Budget and Policy Priori-\nRobert Greenstein, director of the\nties, a nonpartisan research institute,\nCenter on Budget and Policy Priori-\nploy large numbers of low-income\nunintended effects. For example, he\nsays that if subsidies are not careful-\nties, said the cost of subsidies would\nworkers would be able to make them-\nThus, the study concludes: \"Low-\nsaid, it would create incentives for\nly designed they will discourage peo-\nbe much higher if there was no re-\nselves and their employees better off\nincome subsidies should be phased\ncompanies to make greater use of\nquirement for employers to pay any\nby terminating health coverage and\ndown very gradually. Otherwise, in-\novertime by full-time workers, rather\nple from working and may encourage\ncompanies to drop health insurance\nof the premiums for their workers.\nconverting some or all of the savings\ncentives to work will be weakened toc\nthan hiring additional employees.\nthey now provide to employees.\nBut, he observed, in the absence of an\ninto higher wages or other employee\nmuch.\"\nUse of overtime does not increase\nemployer mandate, companies would\nbenefits.\"\nA family of four is classified as\nhealth care premium costs, while hir-\nMoreover, the study, which looked\nhave \"powerful incentives\" to drop\nMr. Cooper defended his proposal,\npoor by the Government if it had cash\ning new employees would do so,\" he\nsaid.\nat all proposals, says there are seri-\ncoverage for their employees and to\nsaying, \"It is essential that health\nincome less than $14,764 in 1993. For\nous problems in plans to limit the\nshift costs to the Government, which\ncare reform include subsidies to\neach additional dollar earned, the re-\nThe study by the Center on Budget\namount the Government could spend\nwould subsidize the premiums.\nmake coverage affordable for low-\nport says, a family of four that has\nand Policy Priorities examines the\non subsidies in any year: \"they make\nincome people.\"\nincome 25 percent above the poverty\neffects of subsidies on people at dif-\nno adjustment for recessions.'\nDescribing what would happen\nlevel and receives food stamps would\nferent income levels. The work of the\nwithout an employer mandate, Mr.\nThe study says that the proposed\nlose a total of 76 cents under the\ncenter was assisted by a grant of\nTo stay within the spending limits,\nGreenstein said the study found:\nsubsidies will become extremely ex-\nClinton proposal, 78 cents under the\n$20,000 from the Henry J. Kaiser\nthe study says, subsidies would be\n\"Employers could terminate cover-\npensive if they are available to large\nKennedy proposal, 90 cents under the\nFamily Foundation.\nTHE NEW YORK TIMES, TUESDAY, JUNE 28, 1994\nPoll Finds Public Losing Confidence\nin Clinton, Economy\nHealth Proposal Flags, but Key Points Have Strong Support\npresident's bottom-line issue-a\nBy David S. Broder\nguarantee of universal health insur-\nand Richard Morin\nWashington Post Staff Writers\nance coverage.\nSays nearly as clearly-72 per-\nOn the eve of President Clinton's\ncent to 27 percent-that employers\ndecision to shake up his staff,in-\nshould be required to provide that\ncreasing numbers of Americans said\ninsurance for their full-time work-\nClinton was a mistake-prone leader\ners, as in the Clinton plan.\nlacking in decisiveness and losing his\nSupports, 61 percent to 37 per-\nsense of the real problems facing\ncent, charging people more for plans\nfamilies, according to the latest\nthat provide a choice of doctors than\nWashington Post-ABC News poll.\nthose with assigned doctors. Clinton\nAlthough Clinton's overall approv-\nmaintains his plan would provide\nal rating held steady from a month\nfree choice for all.\nearlier at 50 percent, the new poll\nWere it left to the public, there\nconfirms that the president has lost\nwould also be federal price controls\nground with the public since the be-\non doctors, hospitals and drugs. Ful-\nginning of the year on a broad vari-\nly 75 percent of those polled support\nety of issues. The poll also found an\nthat, but none of the major plans in-\nupsurge in concern about the state\ncluding Clinton's is proposing direct\nof the economy.\ncontrols-which are fiercely op-\nOpinion on the overall Clinton\nPRESIDENT CLINTON\nposed by the health care providers.\nhealth care plan is increasingly nega-\nseen as lacking decisiveness\nOn the downside for Clinton,\ntive, but those polled say the presi-\nthose polled:\ndent is right in seeking a major over-\nnated by reports that the dollar was\nVoice increasing opposition when\nhaul of the system to require\ndropping against the Japanese yen\nasked about \"Clinton's health care\nemployers to pay most of the bills\nand the German mark.\nplan.\" Disapproval of the plan has\nfor everyone's health insurance. If\nAs a result, Clinton's approval\nmore than doubled since its intro-\nthose polled had their way, however,\nscores on handling the economy,\nduction last September, reaching a\nabortion would be dropped from the\nwhich had been in positive territory\nnew high of 53 percent in this poll.\nbasic benefits package in the plan.\nfrom December through May,\nOnly 42 percent approve of it,\nClinton's overall approval score is\ndipped to 46 percent approval and\nmatching the previous low.\n8 or 9 percentage points below\n48 percent disapproval in the latest\nwhere it had stabilized in the first\nDisplay a similar but slower ero-\npoll.\nsion of support when the Clinton\nthree months of 1994. His disap-\nEconomic anxiety was highest in\nproval is at 44 percent.\nplan is compared to the present sys-\nthe West and his economic perfor-\nBut 55 percent said Clinton is not\ntem. The percentage thinking the\nmance scores were notably low\na strong and decisive leader, up from\nplan better than what now exists has\nthere and in the South, and among\n44 percent in January. Now there\ndropped from 64 percent last Sep-\nwomen, working-class and poor peo-\nare three people who think he makes\ntember to 49 percent now; those\nple.\nmore mistakes than the average\nsaying it would be worse have in-\nAmong independents, approval of\npresident for every two who say he\ncreased from 17 percent to 41 per-\nClinton's economic performance\nmakes fewer.\ncent.\ndropped 10 points to 37 percent be-\nWhat has been a pillar of support\nThese negative trends clearly\ntween January and June.\nfor Clinton-his empathy for aver-\nthreaten Clinton's effort to put pub-\nCrime continues as the overriding\nage Americans-is suffering ero-\nlic pressure on Congress to enact his\nconcern with the economy edging\nsion. In January, 55 percent said he\nplan. Still, only 22 percent of those\nhealth care on the voters' priority\nunderstands problems of people like\nlist for Clinton and Congress. Nei-\npolled say Congress should reject it\nthemselves and 39 percent said he\nther Clinton nor Congress earns\nentirely. A stable 70 percent have\ndoes not. Now the numbers are 52\npublic approval for their current\nbeen saying for months they prefer\npercent yes and 46 percent no.\nhandling of health care, but the pub-\nto see something passed with minor\nThat may be related to increasing\nlic expresses slightly more confi-\nor major changes. Elsewhere, the\nworries about the economy. Despite\ndence in the lawmakers than in Clin-\npoll has little in the way of good\nseveral months of low inflation and\nton-44 percent to 36 percent-to\nnews for the president. The inter-\nincreasing employment, economic\ndo the job right.\nviewees are almost evenly split on\nconfidence is lower than it was last\nPublic attitudes toward health\nwhether he is an old-style, tax-and-\nwinter. In January and February, the\ncare remain a confusing and some-\nspend Democrat (44 percent) or a\nnumber of people who saw the econ-\ntimes contradictory mixture.\nnew-style Democrat careful with the\nomy improving exceeded, by 9 or 10\nOn the positive side for what Clin-\npublic money (49 percent).\npercentage points, the number who\nton is trying to persuade Congress\nAlmost three out of five of those\nsaw it declining. Now, 42 percent\nto do, the public:\npolied say the changes he is seeking\nsay it is getting worse and 39 per-\nSays, 58 percent to 38 percent,\nare mainly the right ones. But in a\ncent, better.\nthat the system needs a major over-\n1996 trial heat between Clinton and\nThe survey of 1,531 people was\nhaul, not just a good tuneup.\nan unnamed Republican challenger,\ntaken last Thursday through Sun-\nAgrees, by an overwhelming 78\nClinton can barely deadlock-36\nday, when economic news was domi-\npercent to 20 percent, with the\npercent to 39 percent.\nTUESDAY. JUNE 28. 1994 THE WASHINGTON POST\n35\nA12 TUESDAY, JUNE 28, 1994\nMoynihan\npackage of economic incentives,\nnew insurance regulation and gov-\nernment subsidies for the poor in\nA4 TUESDAY. JUNE 28. 1994\nHolds Back\nhopes of ensuring coverage of 95\npercent of Americans by the year\n2000. If the 95 percent target were\nTODAY IN CONGRESS\nHealth Plan\nnot reached, mandatory measures\nwould not be automatic, but would\nSENATE\nbe studied by a new, national com-\nMeets at 9 a.m.\nmission.\nCommittees:\nThe commission then would\nAppropriations-9 a.m. Interior subc\nBy Dana Priest\nmeets to mark up H.R. 4602, its FY95\nWashington Post Staff Writer\nmake recommendations to Con-\napprops. S-128, Capitol.\ngress to achieve the coverage goal.\nAppropriations-1 a.m. Meets to\nSenate Finance Committee Chair-\nmark up H.R. 4602. S-128, Cap.\nSpecial provisions in the bill would\nEnergy & Natural Resources-9:30\nman Daniel Patrick Moynihan (D-\nmake it difficult, but not impossible,\na.m. Energy research & development\nN.Y.) postponed release of his health\nfor Congress to reject the recom-\nsubc. hearing. 366 Dirksen Office Bldg.\ncare plan yesterday, indicating he\nEnergy & Natural Resources-2:30\nmendations.\np.m. Water & power subc. hearing. 366\nstill was making final decisions about\nThe Finance Committee is one of\nDOB.\nits shape and would release it today.\nEnvironment & Public Works-10\n28, 1994 THE POST\nfive congressional committees that\nAt a closed session of committee\na.m. Hearing on Superfund Reform Act\nare trying to pass health reform\nof 1994. Treasury Sec. Lloyd Bentsen;\nDemocrats this morning, members\nplans this session. Those plans\nEPA Administrator Carol Browner. 406\nagain discussed whether to fashion a\nDOB.\nwould be melded by the House and\nbill that finances universal coverage\nForeign Relations-10 a.m.\nby a certain date-President Clin-\nSenate leadership into bills for de-\nConvention on Regulating Fishing\nbate on the House and Senate\nVessels on High Seas hearing. 419 DOB.\nton's bottom line for health care re-\nForeign Relations-2 p.m. Western\nfloors.\nform-and how to pay for it.\nHemisphere & Peace Corps affairs subc.\nFinance is considered the most\nHearing on U.S. policy toward Haiti. 419\nMembers who attended the meet-\nDOB\ninfluential of the five committees\ning. said Moynihan appeared to be\nGovernmental Affairs-10 a.m.\nleaning toward allowing the commit-\nbecause it most closely reflects the\nHearing on delinquent criminal debt.\nmakeup of the Senate as a whole\n342 DOB.\ntee to vote on a measure, sponsored\nJudiciary-10 a.m. Constitution subc.\nby:Sen. John Breaux (D-La.), that\nand has a reputation for bipartisan\nhearing on implementation of Hate\ncompromise.\nCrime Statistics Act. 226 DOB.\nwould trigger a requirement that\nSelect Intelligence-4 p.m., closed.\nemployers pay for their workers'\nLate yesterday, Moynihan met\nHearing on intelligence matters. 219\nhealth insurance if voluntary meas-\nwith Treasury Secretary Lloyd\nHart Office Bldg.\nures failed to reduce the number of\nBentsen and Leon E. Panetta, the\nConferees-2 p.m. Legislative approps.\nfor FY95. H-301. Cap.\nuninsured. But there was a consen-\nhead of the White House Office of\nHOUSE\nsus in the meeting that any such\nManagement and Budget who yes-\nMeets at 10:30 a.m.\nterday was appointed White House\nCommittees:\nmeasure for mandatory employer\nAgriculture-10 a m. Considers\npayments would not pass the com-\nchief of staff, to discuss the com-\nlegislation to implement agricultural\nmittee, the members said.\nmittee's deliberations.\nprovisions of the Uruguay Round of\nGATT. 1300 Longworth House Office\nBreaux said yesterday that even\nMeanwhile, Sen. Robert F. Ben-\nBldg\nhe would vote against his original\nnett (R-Utah) became the first Sen-\nBanking, Finance, & Urban\ntrigger proposal. \"Foolish consis-\nate Republican to threaten a filibus-\nAffairs-10 a m. International\ndevelopment. finance, trade & monetary\ntency is the hobgoblin of little\nter on health care if the bill that\npolicy subc. hearing on international\nminds,\" Breaux said, quoting Ralph\ngets to the floor is anything like the\nlabor standards & use of trade\nWaldo Emerson. But such a com-\nClinton plan or a similar one passed\nagreements & development assistance.\n2128 Raybum House Office Bldg\nmittee vote might serve the pur-\nby the Labor and Human Resourc-\nGovernment Operations-9:30 a.m.\npose of convincing the White House\nes Committee, headed by Sen. Ed-\nCommerce, consumer & monetary\naffairs subc. hearing on Chief Financial\nthat its proposed \"employer man-\nward M. Kennedy (D-Mass.).\nOfficers Act compliance. 233 RHOB.\ndate\" is a non-starter, committee\n\"The Clinton plan, and its clone\nHouse Administration-10: m.\nDemocrats said.\nthe Kennedy plan, are in my view\nPersonnel & police subc. considers\nprinting resolutions & personnel items.\nAccording to an option discussed\npoison,\" said Bennett. \"They must\nH-328, Cap.\nyesterday, Moynihan then would\nbe defeated, even at the cost of\nMerchant Marine & Fisheries-10\noffer a proposal contained in his\ngridlock. Yes, filibuster, if that is\na.m. Coast Guard & navigation subc.\nhearing on new commandant of Coast\nown plan. a draft of which was ob-\nwhat it takes. This senator is pre-\nGuard. 1334 LHOB.\ntained by The Washington Post last\npared to engage in that to see to it\nMerchant Marine & Fisheries-2 p.m.\nweek.\nOceanography. Gulf of Mexico, & outer\nthat neither of these plans becomes\ncontinental shelf subc. & environment &\nMoynihan's draft proposes a\nlaw.\"\nnatural resources subc. hearing on\nCoastal Zone Management Act. 1334\nHouse Votes\nLHOB.\nNatural Resources-10 a.m. National\nparks. forests & public lands subc.\nTo Streamline\neliminate red tape by encour-\nhearing. 1324 LHOB.\naging agencies to buy com-\nRules-10:30 a.m. Hearing on H.R.\nmercial goods and services;\nDistrict of Columbia approps.: H.R.\n4600. expedited rescissions: & H.R.\nProcurement\nraise the acquisition threshold\n4299. intelligence programs auth.\nto $100,000; streamline con-\nH-313. Cap.\nThe House yesterday ap-\ntracts between the govern-\nScience, Space & Technology-10.30\nment and small businesses;\np.m. Energy subc. hearing on women &\nproved legislation designed to\nK-12 science & mathematics education.\nand establish pilot programs to\n2325 RHOB.\nstreamline the way the gov-\nexperiment with other innova-\nScience, Space & Technology-2 p.m.\nernment buys goods and ser-\ntive reforms.\nTechnology, environment & aviation\nvices.\nsubc. mark up. 2318 RHOB.\nHe described the bill as rev-\nRep. John Conyers Jr. (D-\nSmall Business-1:30 p.m.\nolutionary.\nProcurement, taxation & tourism subc.\nMich.). chairman of the House\nEarlier this month the Sen-\nhearing on unfair competition. 2359\nGovernment Operations Com-\nRHOB.\nate approved its version of\nmittee, and Rep. Ronald V.\nWays & Means- TBA. Mark up of\nprocurement legislation and\nhealth care reform legislation.\nDellums (D-Calif.), chairman\nthe two houses must hold a\nof the House Armed Services\nnegotiating session to recon-\nCommittee, played key roles\ncile differences.\nin steering through the legisla-\ntion, which passed on a voice\nvote.\nConvers said the bill would\n37\nWHERE HEALTH CARE REFORM STANDS\nCONGRESS\nL\negislation to reform health care must follow the path below before being enacted by Congress and\nsigned into law by President Clinton. Five committees with broad jurisdiction over health issues are\ndeveloping recommendations for health plans.\nOn March 23, a bill largely similar to Clinton's\nThe House Energy and Commerce health\nproposal-requiring employers to pay 80 percent of their\nsubcommittee abandoned efforts to produce a bill\nand the full committee appears gridlocked.\nworkers' insurance premiums-moved out of the House\nWays and Means health subcommittee on a 6 to 5 vote. A\nThe Senate Labor and Human Resources\nmodified version is now before the full committee.\nCommittee (which does not have a subcommittee\nthat votes directly on health issues) on June 9\nOn May 25, a similar bill was approved 17 to 10 by a\napproved a bill similar in most respects to\nHouse Education and Labor subcommittee. This legislation\nClinton's proposal that would require all employers\nwould allow discounts for very small firms and was\nexcept for very small businesses to pay about 80\napproved. 26-17, June 23 by the full Education and Labor\npercent of the health insurance premiums for their\nworkers.\nCommittee.\nA second bill, proposing Canadian-style, government-run\nA bill has been proposed by Senate Finance\nnational health insurance financed by taxes-was\nCommittee Chairman Daniel Patrick Moynihan\napproved June 9 by the subcommittee and June 23 by\n(D-N.Y.). The committee is discussing it and an\nalternative in closed session.\nthe full committee, 22-21.\nHOUSE\nSENATE\n1.\nSubcommittees did preliminary work.\nHealth\nHealth\nLabor-\nand the\nManagement\nTUESDAY, JUNE 28. 1994 THE WASHINGTON POST\nEnvironment\nRelations\nSenate bill markups don't occur\nat the subcommittee level.\nApproved\nUnable to\nApproved\na bill\nreach\ntwo bills\nagreement\n2.\nCommittees with broad jurisdiction now send recommendations to leaders.\nYOU ARE\nHERE: The\ndebate over\nnational\nhealth care\nWays and\nEnergy and\nEducation\nLabor and\nFinance\nlegislation\nMeans\nCommerce\nand Labor\nHuman\nSen. Daniel\nis at this\nRep. Sam\nRep. John D.\nRep. William\nResources\nPatrick\nstage in the\nGibbons\nDingell\nD. Ford\nSen. Edward\nMoynihan\n(D-Fla.).\n0\n(D-Mich.),\n(D-Mich.)\nM. Kennedy\n(D-N.Y.),\nlengthy\nchairman\nchairman\nchairman\n(D-Mass.),\nchairman\nprocess\nchairman\ndetailed\nhere.\nWorking on sub-\nNo action\nApproved two\nApproved\nDiscussing bill in\ncommittee bill\nso far\nbills\nbill\nclosed session\n3.\nLeaders\nmeld bills.\nHouse Speaker Thomas S. Foley (D-Wash:).\nSenate Majority Leader George J.\nleft. and Majority Leader Richard A.\nMitchell (D-Maine) may blend bills\nGephardt (D-Mo.), right. meld bills into\ninto one before sending to floor.\none and send to Rules Committee\nHouse debates bill.\n4.\nMembers\nSenate debates bill.\nSubstitutes may be offered.\ndebate bills.\nSubstitutes may be offered.\n5.\nBill goes to conference.\nHouse Senate conference committee reconciles differences\nand sends final version back to each chamber.\n6.\nEach chamber votes.\nHouse votes on a\nSenate votes on a\nfinal \"conference\nfinal \"conference\nCongress hopes to pass\nreport\" version.\nreport\" version.\na bill by the end of this\nsession in October.\n7.\n-Compiled by Spencer Rich\nBill goes to President Clinton.\n38\nBY ABIGAIL TRAFFORD\nLacking a Sense of Urgency,\nCongress Dawdles on Reform\nhen Hillary Rodham Clinton\nhealth status or whether a family member has a\nW\nchallenged members of Congress to\npre-existing medical condition.\ngive Americans the kind of health\nThis idea doesn't originate with the First Lady.\ncoverage they themselves enjoy, she\nIn fact, some members of Congress have been\nwas roundly criticized for not playing by\nadvocating it. Senator Ted Kennedy (D-Mass.) has\nWashington rules. Key Republicans thought it was\nproposed that the Federal Employees Health\na cheap shot against Congress. No\nBenefit Program, which covers Congress and the\ninside-the-Beltway savvy, the insiders sniffed. The\nfederal government, serve as a model for extending\nArkansas Outsiders just don't get it on how to play\ncoverage to all Americans. As he has said: \"If that\nwith Congress in the big political leagues.\nkind of coverage is good enough for members of\nBut that is a typical\nCongress, it is good enough for\nBeltway conceit to cast the\nCOMMENTARY\nevery man, woman and child in\noutsiders as bumbling\nAmerica.\"\nbarbarians on Capitol Hill. Granted, there's a\nAnd this is not a Democrats-only point of\ncertain schoolyard common sense that says don't\nview. The concept has bipartisan support, or at\nslam the people from whom you want to get\nleast lip service. Two weeks ago, according to\nsomething. In that sense, the First Lady's timing\nnews reports, Senate Minority Leader Bob Dole\nwas not the best since at that moment the critical\n(R-Kan.) said in a taped interview for NBC that\nSenate Finance Committee was trying to fashion a\nhe thought all Americans ought to be able to\nbill to present to the whole Senate.\nparticipate in the federal health care program.\nIt was also a little disingenuous to single out\nSo why all the fuss about Hillary Clinton putting\nCongress, since the federal government,\nher foot in her mouth? Entre nous, as over-civilized\nincluding the Clintons themselves, have the\ninsiders would say, it was just bad political manners.\nsame health care coverage as the lawmakers on\nBut the concept makes good political sense.\nCapitol Hill.\nIt also stirs the populist pot. Challenging\nBut beyond Washington, her words struck a\nmembers of Congress to give as good as they get\nchord. The bigger mistake was to limit her\nhighlights the underlying issue of timing: What's\nremarks to Congress. After all, why shouldn't\ntaking so long?\nevery American have the same health care\nPerhaps the critical difference between Congress\ncoverage as not only members of Congress but\nand the 38 million uninsured Americans is that\nalso federal bureaucrats?\nmany of those without coverage personally feel the\nThe suspicion in the heartland is that if\nurgency of enacting a national health care\nCongress had the same imperfect health care\nplan-now. Not in five years or 10 years. After all,\ncoverage as many Americans, a national health\nmost other industrialized countries have long had\ncare plan would have been passed years ago.\nnational health programs for their citizens.\nThat's the point: The policy architects inside\nOf the 38 million Americans who are without\nthe government who design health plans and the\nmembers of Congress who legislate them do not\nhealth coverage at any given time, about 24\npersonally feel the desperate urgency of the\nmillion are chronically uninsured, according to\nneed for health reform. They don't know what\nEBRI. A recent study suggests that the\nit's like to fall through the cracks in the current\nlong-term uninsured may number 28 million\nnonsystem of health care and face financial ruin\npeople in the U.S. Over the past decade, the\nbecause of uncovered medical costs.\nranks of those without coverage has steadily\nCelebrity-status politicians along with their\nincreased.\nentourage of policy analysts belong to an elite\n\"What's the message here-that the richest\nsegment of society: the mostly healthy,\ncountry on earth with the greatest legislative body\nemployed or employable, and covered.\ncannot give to its people what other countries\nThey are quite different from the profile of\ngive?\" asks HHS Secretary Donna Shalala.\nthe uninsured. According to the Employee\nAs the trend for people to be without\nBenefit Research Institute (EBRI), adults\ninsurance goes up, the goals of a national plan\nwithout coverage are usually working in firms\ncome down. The latest gimmick to break the\nwith fewer than 100 employees. They also tend\npolitical gridlock is to fashion a bill that\nto be poor; about half are in families earning less\nredefines the concept of universal coverage. In\nthan $20,000. For many people with little or no\nthis doublespeak, 91 percent or 95 percent of\nhealth insurance. a medical problem has the\nthe population suddenly equals \"universal.\"\npotential of quickly bankrupting a family.\nAnother Capitol Hill strategy gaining favor is\nIf they had the same options for health\nproclaiming that the subject is so complex. it best\ncoverage as federal workers, they would find\nto take another year to design a national plan.\nthemselves enjoying a choice of affordable plans\nOnly people with good health care coverage\nwith fairly comprehensive benefits, regardless of\ncould find these steps acceptable.\nTUESDAY. JUNE 28, 1994 THE WASHINGTON POST\nBY MARILYN MOON\nHealth Reform and You\nQ. I'm very concerned about possible higher taxes as\na result of health plans being offered by President\nIt is difficult to know\nClinton and others. These plans are going to be\nfunded with a tobacco tax. At the same time, the\nfederal health officials are trying to cut the number\nwhether the proposed\nof Americans who smoke and some folks even talk\nabout having tobacco banned. It seems like a case of\nrevenue sources will be\nhaving your cake and eating it too. Are we going to\nget stuck with a lot of other heavier taxes when the\ntobacco tax doesn't provide the needed revenues?\nsufficient.\nA. One of the effects of a tobacco tax will likely\nbe to discourage smoking, but the estimates of\nMany states do not have the resources to cover\nhow much revenue would be raised take a\nall their citizens without federal government\nreduction in smoking into account. The 75-cent\nsupport. If such help is not part of this approach,\ntax on each pack proposed by Clinton would\nnot all states would participate. But if there is some\nraise about $10 billion to $11 billion each year.\nfederal support, would the federal government\nBy itself, this tax is certainly not enough to\nchoose just a few states for an experiment? In\npay for comprehensive health care reform. The\neither case, this would result in disparities in\nvarious plans also assume other ways to finance\ncoverage across the United States. Moreover,\nexpanded coverage, including savings from\nstates need to worry about companies' relocating if\ncutting Medicare and reducing or eliminating\nstate taxes were raised. That is less of a problem\nthe Medicaid program. Other ways that some\nfor the United States as a whole. But despite these\nplans finance reform include requiring that\nproblems, if national health care reform fails to\nemployers contribute to health insurance and\npass, a number of states are likely to move on their\nlimiting the extent to which insurance benefits\nown to change the health care system.\ncan be deducted from taxable income. Like you,\nmany people fear that additional revenue\nsources may also be needed, especially if costs\n&\nUnder the proposed health plans pending in\nof health care continue to rise in the future.\nthe Congress, how will part-time and hourly\nComprehensive reform legislation would be\nemployees be covered?\ncomplicated, and it is difficult to know with\nA. The Clinton proposal, with its employer\ncertainty whether the revenue sources that have\nmandate, would require employers to pay on a\nbeen proposed will be sufficient, especially after\nprorated basis for part-time and hourly workers as\nthe program has been in place for a few years.\nlong as they work more than 10 hours a week. The\nsingle-payer approach sponsored by Rep. Jim\nQ. Have policy makers considered evaluating\nMcDermott (D-Wash.) would cover everyone\nseveral of the plans by having different states try\nregardless of employment status and pay for the\nthem out? This way, they could give different\npublic system through payroll and income taxes.\nplans a chance to see which one or ones could\nThe other major proposals would either require\nwork best, and implement the best plan for the\nindividuals to purchase insurance or leave coverage\ncountry.\noptional, and these plans would make insurance the\nresponsibility of individuals. Employers under these\nA. One of the suggestions for compromise on\nplans would be free to help pay the premiums, but\nhealth care reform is to give states a great deal\nthey would have no increased incentives to expand\nof latitude in designing reform. Many of the\ntheir current efforts. Low-income individuals under\nexisting proposals already allow some state\nall the plans would receive some type of subsidy to\nflexibility. There are, however, several\nhelp in the purchase of insurance, but the details\nproblems with allowing more flexibility, many of\nvary. The more generous these subsidies, the\nthem surrounding the issue of who would pay.\nmore expensive the proposal.\n0 you have a question about President Clinton's health proposal or about\nD\nthe other bills in Congress? The Washington Post free telephone\ninformation service takes questions from readers about how the plan could\naffect them. Call POSTHASTE at 202-334-9000 on a touch-tone phone and\nenter category code 8500 (in Prince William County, 703-690-4110). Health\neconomist Marilyn Moon of the Urban Institute provides answers in this column\nbased on information from the White House, Congress and other sources. While she\ncannot answer all questions or give personal advice, she will answer a range of\ninquiries.\nTUESDAY. JUNE 28. 1994 THE WASHINGTON POST\n58\nGo Figure\nOne Company's Data\nIt already has; last year, industry\nanalysts say, revenue of the suburban-Vir-\nginia research and consulting company\nFuel Diverse Views\njumped about 30% to around $20 million,\nreflecting a surge in health-care reform\nIn Health-Care Debate\nbusiness. Value Health doesn't break out\nfigures for Lewin. whose business also\nincludes analyses for federal and state\ngovernments as well as studies for hospi-\nLobbyists Clamor for Studies\ntals and other health-care providers.\n\"I think a lot of people who have rather\nBy Lewin-VHI; Clients\nscruffy reputations think that Lewin gives\nthem a little bit of credibility,\" says Rep.\nExpect Certain Results\nPete Stark, a California Democrat who\nheads the House Ways and Means Commit-\ntee's health subcommittee. He adds, \"You\n'Take It With a Grain of Salt'\ntake It with a grain of salt.'\nBy HILARY STOUT\nA1\nSpecial Computer Model\nMost agree on why Lewin is in such big\nStaff Reporter of THE WALL STREET JOURNAL\ndemand: It is both good and fast. For many\nWASHINGTON - Every member of\nyears virtually the only firm doing this\nCongress this year received a health-re-\nkind of health-economics analysis, the\nform report from a group called Families\n24-year-old company was in an ideal mar-\nUSA with a glossy orange cover and the\nket position to cash in on the health-care\nheadline: \"Better Benefits. Millions\nreform movement. But its best weapon is a\nHelped by Clinton Réform.\"\nhighly sophisticated computer model, the\nEach lawmaker also got a report from\nHealth Benefits Simulation Model, devel-\nthe Heritage Foundation warning that the\noped over the past decade. It can do things\nother companies' computers can't. Deter-\nEconomic Analyses Faulted\nmined to perform its own, independent\nanalysis of the 1,342-page Clinton health-\nAs drug makers try to win business from\nfrugal health plans and physicians, eco-\ncare bill, Lewin completed the task in just\nnomic analyses of drug treatments have\nover a month, more than three times faster\nproliferated. But concerns are growing\nthan the Congressional Budget Office.\nabout wide variations in the reliability of\nRobert Rubin, a 48-year-old internist\nthe studies. Article on page B1.\nand nephrologist and the company's presi-\ndent, says Lewin decided to undertake the\nClinton bill \"has huge hidden costs, in the\nproject at its own expense because \"we\nform of wage reductions and job losses.\nactually thought we could do a service to\nThe two studies have one thing in\nthe country. While this sounds corny, we\ncommon: Both were based on analyses by\nreally did believe that.\"\nthe same company, Lewin-VHI Inc., a\nHe estimates the company lost between\ndivision of Valúe Health Inc.\n$80,000 and $200,000 in business it had to\nThese days, no self-respecting interest\nturn down in order to finish the study by a\ngroup comes to the table without a study to\nDecember deadline. Lewin's final report\nback up its view, and Lewin is one of the\nconcluded that the White House had un-\nhottest health-care research outfits in\nderestimated premiums for the federally\nWashington. When it comes to lobbying\nguaranteed benefits package by 17%, but\nCongress, \"the days of wine, women and\nthat its basic scheme for financing univer-\nsong are over,\" says Fred Graefe, a vet-\nsal coverage was sound. When the report\neran health-care lobbyist. \"I don't go any-\ncame out, according to one person on the\nwhere in this town without being armed\nscene, White House officials were so re-\nwith a Lewin-VHI study. You can't win\nlieved that some jumped up and down in\nwithout it.\"\nglee.\nConflicting Results\nStudies With Viewpoint\nThe company's success and influence\nThe paying customers don't care what\npoint up both the power and shortcomings\nLewin determined on its own. Various\nof research data in today's Washington:\ngroups - often bitter opponents - set their\nThe nature of the questions guides the\nown parameters for studies they can use to\nnature of the answers. When you are a\npromote their positions on health care.\npaying client, you usually get to ask the\nFor example, another study Lewin did\nquestions. Consequently, studies often re-\nfor Families USA, which backs the Clinton\nport conflicting results, adding to a com-\nplan, concludes that the president's plan\nplex issue's uncertainties rather than help-\nwould save the average American $695 a\ning cut through the fog.\nyear in health-care expenses. But the\nThe debate over health care is no\nstudy Lewin prepared for the Heritage\nexception. Indeed, so many interest groups\nFoundation, a foe of the Clinton proposal,\nbrandish Lewin data to bolster their view-\nsays the bill would save families on\npoints that Senate Finance Committee\naverage only $31 - and 53% of Americans\nChairman Daniel Patrick Moynihan says\nwould see health costs go up.\nabout the only sure thing regarding health-\nAre the studies contradictory? Net at\ncare legislation is this: \"Whatever else\nPlease Turn to Page A10, Column 1\n1/2\ncomes out of this year. Lewin-VHI will do\nvery well.\"\nTHE WALL STREET JOURNAL TUESDAY, JUNE 28, 1994\nA10 THE WALL STREET JOURNAL TUESDAY, JUNE 28, 1994\nGo Figure: Data From a Single Firm, Lewin-VHh\nAre Used to Support Differing Views of Health Care\nBut the Lewin study didn't address the\nAll this research ping-pong dismays\nContinued From First Page\nportion of the same bill that would help\nsome people active in the struggle over\nall, say Lewin's top executives. \"I think\nsubsidize health-care coverage for individ-\nhealth care. An aide to one prominent\nthat if you took all our reports and put them\nuals whose incomes are up to 200% of the\nlawmaker on health-care issues says\non a table, you would be hard-pressed to\npoverty level. Lewin's union client didn't\nLewin studies are overused and end up\nfind a contradiction.\" says Larry Lewin,\nwant that part assessed: \"The next step of\n\"looking like they can come to whatever\nthe company's 56-year-old chairman. who\nthat model would have been to look at the\nconclusion their clients want.\"\ncame to Washington to work in the John-\nsubsidies in the Cooper bill, and we\nBut Carmela Dyer, an official of the\nson administration. \"It has to do with how\ndidn't.\" Ms. Connerton says. The study\nAmerican Hospital Association. contends\nthe question is asked.\" Often, adds Dr.\nwould have cost more, and \"the subsidies\nthe volume and diversity of Lewin's clients\nRubin, a former Reagan administration\nwould have only gone up to a certain point,\nunderscores its objectivity. She was the\nhealth official, \"There are subtle differ-\nand most of the people affected by the tax\nproject officer on a study Lewin did for the\nences in the assumptions used, or the\ncap are middle-income.' she says.\nAHA concluding that the Clinton plan's\nmethodology.'\nThe same month the union released its\nMedicare savings would mean hospitals\nFor Heritage, Lewin factored in the\nstudy. the Heritage Foundation released\nmight get only 71 cents for each dollar of\nwages that might be lost because of the\nits own Lewin analysis of a health-care\ncare provided to elderly patients.\nplan's requirement that all firms pay part\nproposal with an even stricter tax cap.\nof the cost of their workers' health bene-\nDivergent Interests\nThat bill. which was sponsored by Republi-\nfits. In the Families USA study, it did not.\ncan Sen. Don Nickles of Oklahoma and\nThe company itself is an alliance of\nMoreover. the studies make projections\nwhich Heritage helped write, would wipe\ndivergent political interests. Mr. Lewin. a\nover different time frames. and each group\nout all tax breaks for employer-provided\nHarvard Business School graduate and\nhas chosen to highlight results from differ-\nhealth benefits. replacing them with tax\nformer Marine, decided he wanted to come\nent years. There is something else at work\ncredits for the purchase of health insur-\nto Washington after John Kennedy was\nin the conclusions. too, says Dr. Rubin:\nance. Looking at the trade-off, Lewin found\nslain and became involved in Lyndon\n\"It's the spin the client puts on it.\"\nthat families' annual health costs would\nJohnson's war on poverty. He also was a\nFor example, in April, Lewin did a\ndecline by an average of about $643-\nmember of Bill Clinton's transition team.\nstudy for the Service Employees Interna-\ncounter to the conclusions in the union's\nDr. Rubin, who still teaches a medical-\ntional Union, which vehemently opposes\n\"Hammering the Middle Class\" study of\nschool course every Friday, was an assis-\nthe idea of limiting the tax breaks for\nthe Cooper bill.\ntant secretary in the Health and Human\nemployer-provided health benefits. The\nstudy concluded that workers would lose\nAn Armory of Reports\nServices Department during the Reagan\nadministration.\nbetween $195 and $476 a year if a cap were\nBut it doesn't stop there. The Cooper\nFounded as Lewin & Associates in 1970,\nplaced on those tax breaks. The union\nbill's supporters have another Lewin report\nthe company in the mid-1980s merged with\nincorporated the most onerous of the\nin their arsenal, a more recent study\nan archrival called ICF, then headed by\nLewin findings into its own report, titled it\nprepared for the Healthcare Leadership\nDr. Rubin. It was like \"the Dallas Cowboys\n\"Hammering the Middle Class\" and called\nCouncil, a group of insurers and other\nand the Washington Redskins merging,\"\na press conference.\nfirms in the medical industry pushing for a\nMr. Lewin says. As Lewin-ICF, the firm\n\"We were extremely unhappy about the\nmarket-based reform scheme. The study\ngrew rapidly but narrowed its focus to\ntitle,\" says Dr. Rubin, though Lewin didn't\nsays that while the Cooper bill would cover\nhealth and environmental work. In late\nchallenge the union over it. Lewin's agree-\nonly 91% of the U.S. population, it would\n1992, it was sold to Value Health, based in\ntake care of 97% of the cost of medical care\nment with clients gives it the right to\nAvon, Conn., for $11 million.\nreview press releases issued on Lewin\nin this country.\nTo avoid conflicts, Dr. Rubin says that\nresearch and to put out its own release if it\nA phony 91% solution, contended Fami-\non all \"politically sensitive\" material. both\nfeels study results have been distorted.\nlies USA in a mid-June report based on-\nhe and Mr. Lewin review the final product.\nyou guessed it - still another Lewin study.\nThe company's executives also say they\nLewin's services cost about $25,000 for a\nThe Cooper bill \"would result in 1.3 million\nwill turn down clients who clearly want to\nsimple run of numbers to as much as\nAmericans losing health insurance each\nskew the results.\n$125,000 for a more complex analysis, and\nmonth,\" said Ron Pollack, Families USA's\n\"We're at the point now where people\nclients seem to expect to get the kind of\nexecutive director.\nsay our reputation for being fair is such\nresearch they pay for. Peggy Connerton,\nthat we're just not going to do something in\ndirector of public policy for the service-\na half-baked way,\" says Dr. Rubin.\nemployees union, says the group gave\nLewin \"the scenarios and the parameters\"\n2/2\nfor the study it commissioned. The union\nasked Lewin to analyze effects of the\nManaged Competition Act, a proposal writ-\nten chiefly by Democratic Rep. Jim Cooper\nof Tennessee. The bill would limit the tax\ndeduction businesses can take for provid-\ning health benefits to workers. The result,\nthe study concluded, would be either lower\nwages or higher out-of-pocket expenses for\nworkers.\nTHE WALL STREET JOURNAL TUESDAY, JUNE 28, 1994\n70\nMoynihan Remains Skeptical of Parts\nMoynihan Is Skeptical\nOf Health Plan Drafted by Moderates\nOf Part of Health Plan\nDrafted by Moderates\nBy DAVID ROGERS\ncan. \"Seventy-three percent of our people\nAnd HILARY STOUT\nare employed by small business. 1 just\nStaff Reporters of THE WALL STREET JOURNAL\nthink putting it in would doom the bill.\nContinued From Page A3\nWASHINGTON-Daniel Patrick Moyni-\nAs a practical matter, any such trigger\ncare plan. Rep. Sam Gibbons, the acting\nhan, chairman of the Senate Finance Com-\nwould be designed foremost to give the\nchairman, said he \"imagined\" he would\nmittee, is expected to embrace portions of\nadministration some political cover by\nhave to give ground still on the question of\na health-reform plan drafted by panel mod-\npreserving the hope of universal coverage.\na standby cost-control provision for private\nerates. But he remains skeptical of the\nNo one is discussing an effective date\ninsurance. But the Florida Democrat again\nunderlying financing and the plan's ability\nbefore the year 2000, when President Clin-\ndelayed taking up the divisive issue in an\nto achieve its stated goal of covering 95% of\nton would be either at the end of his second\neffort to complete other sections of the bill\nAmericans.\nterm or out of office. And the interim goal\nfirst.\nThis skepticism is reinforced by early.\nof 95% coverage is meaningless unless\nIf Mr. Gibbons is to meet his deadlines\ncost estimates indicating the plan won't\nthere is a commitment of resources to\nthis week, the issue is likely to come up\nhave sufficient funds to fully phase in pro-\nsubsidize poor and working-class families\ntoday, and insurance interests claim they\nposed subsidies by the target year 2002.\nwho won't buy insurance otherwise be-\nhave the votes to strike the provision\nAnd Mr. Moynihan, who is now drafting\ncause of the high cost.\nentirely. Democrats prefer to find some\nhis own alternative, may force a debate in\nFive-Year Budget\ncompromise, however, to preserve party\nthe committee on a standby mechanism to\nrequire businesses to provide health insur-\nAs drafted, the centrist proposal sets\nunity, and there have been preliminary\nout a five-year budget of $246 billion to\ndiscussions about delaying implementa-\nance for their employees if the 95% goal\nfinance both the initial subsidies and new\ntion of the cost controls or requiring a\nisn't met on time.\nThe New York Democrat will present\ntax deductions to help individuals buy\nvote by Congress before they are put in\nhis proposals to the full committee tomor-\nhealth insurance. The plan calls for an\nplace.\nambitious $1-a-pack increase, in cigarette\nThe opposition among Democrats re-\nrow, with the process being closely\ntaxes that would yield a windfall in the\nflects misgivings among not only moder-\nwatched by the White House because of the\ncommittee's pivotal role as a forum for\nearly years. But once the phase in of\nates on the panel but also an influential\ncompromise on health care. Treasury Sec-\nsubsidies begins in 1997. budget analysts\nbloc of often more-liberal members who\nretary Lloyd Bentsen and Leon Panetta,\npredict the available funds could start\nhave ties to the insurance industry. These\nnamed yesterday by President Clinton to\nrunning short as early as 1998.\ninclude Reps. Barbara Kennelly of Con-\nbe his new chief of staff, met with Mr.\nTo avoid widening the deficit, the gov-\nnecticut and Richard Neal of Massachu-\nernment must slow the rate of increase for\nsetts, who both have large home-state\nMoynihan last night. When asked whether\nSen. Moynihan's draft would meet the\nsubsidies. But this means that fewer peo-\ninsurance constituencies, and Rep. Mi-\nple would receive the assistance needed to\nchael McNulty of New York, a former\npresident's standard of universal cover-\nage, Mr. Bentsen said: \"My understand-\nmake insurance affordable, and some\ninsurance executive.\ning is it does.\"\nestimates indicate the subsides may be\nadequate to reach only 92% coverage. Over\nModerate Alternative\na longer period, by 2003 and 2004, cost\nThe moderate alternative, which was\nestimates suggest that the full subsidies\nthe subject of a closed-door committee\ncould eventually be implemented, but\nmeeting yesterday, stops short of this\nthe cost of the program could range near\npromise and wouldn't require employers to\n$100 billion a year.\nhelp pay for their workers' insurance.\nThe finance panel faces significant\nInstead, it relies on a mix of market\nprocedural hurdles if it tries to complete its\nreforms and subsidies to try to achieve 95%\nwork before the July Fourth recess, which\ncoverage by the year 2002.\nbegins at the end of this week. But a\n1994\nGiven the power of this bloc, many of\ncertain surreal quality has settled over the\nthese ideas could be incorporated in the\nproceedings as both sides have an invest-\nchairman's proposal, and it's uncertain\nment in not seeming to obstruct progress.\nhow much further he can take the debate.\nSen. Dole Plans Alternative\nThough weekend news reports suggested\nSenate Republican Leader Robert Dole\nthat Mr. Moynihan may try to move\nof Kansas is attempting to draft his own\nup the deadline, this is at odds with\nalternative for the GOP members. but\nadministration estimates now indicating\ndoesn't want to give the administration\nthe proposal won't generate sufficient\nany chance to blame him for its failure to\nfunds to finance the required subsidies\nget more from the finance panel.\nuntil 2003 or 2004.\nThough decisions haven't been made\nTo achieve coverage of 95% of all\nyet. staff drafts of the GOP plan focus\nAmericans by an earlier date. the plan\nlargely on insurance-market reforms with\nwould require even more taxes and spend-\nmore-modest subsidies than those pro-\ning reductions to pay for more-generous\nposed by Mr. Chafee and other moderates.\nsubsidies to encourage low-income people\nA cigarette-tax increase is among the\nto buy insurance. This could prove an\noptions, but much greater weight is put on\nimpossible hurdle and increase the likeli-\nsavings. including a proposed per-capita\nWALL STREET JOURNAL TUESDAY, JUNE 28,\nhood that any standby provisions would\ncap on federal expenditures for Medicaid\nbe triggered into action.\nand a more symbolic elimination of gov-\nIn shaping their proposal. moderates on\nernment contributions for health insur-\nthe panel had considered a variety of\nance for high-level federal employees, in-\nstandby devices. But a leader of the cen-\ncluding members of Congress and the\ntrist group. Sen. John Chafee, warned\npresident.\nTHE\nyesterday that even a standby mandate on\nWhile attention focused on the Senate\nemployers to pay for health care could kill\nyesterday. the House Ways and Means\nhopes of compromise.\nCommittee pushed stubbornly ahead in\n\"Look kiddo. I come from a small-busi-\ntrying to complete work on its own health-\nness state,\" said the Rhode Island Republi-\nPlease Turn to Page A4. Column 2\n74\nExtra Baggage Distorts\nUse Medicare Rates,\nOriginal Intent of A to Z\nDestroy Health Care\nIn response to your May 24 editorial\nIn his \"Hospitals' Overcapacity is Fi-\n\"Look Who's Blocking A to Z\": The dis-\nnanced by Insurers\" (Letters, June 15),\ncharge petition for the A to Z plan is com-\nProf. Uwe Reinhart questioned why health\npletely different from the legislation I co-\ninsurers, businesses and individual payers\nsponsored. and your readers need to know\ndo not reimburse health care providers at\nthe truth.\nMedicare rates rather than suffer the ef-\nThe A to Z bill provides a process for\nfect of government cost shifting. He and\namendments to be offered to lower discre-\nyour readers deserve an answer.\ntionary spending for fiscal 1994. This is a\nFirst, nongovernment payers of health\ngood and necessary proposal. On that. I\ncare bills do not have the police powers to\nfully agree. The rule. however, is different\nenforce a policy of paying suppliers as low\nand actually changes the substance of the\nas 40% of costs and 17% of charges. Second,\nbill. While it establishes the length of de-\nnone of us would want the Third World\nbate and the nature of the amendments to\nlevel of hospital care that would result if all\nbe offered, it also broadens the scope of the\nof us paid hospitals at Medicare reim-\nbill to include cuts in mandatory spending\nbursement rates. I have an office full of ex-\nprograms. such as Social Security. a pro-\namples where Medicare payments to hos-\nvision that was never included in the orig-\npitals are only 17% to 18% of charges.\ninal bill. This is a highly unusual tactic-\nWhile some hospitals carry excess fat,\nparticularly since the two sponsors of the\nhealth care as we know it would cease to\nlegislation never informed the co-sponsors\nexist in the U.S. if all payers used\nof this unprecedented approach.\nMedicare rates.\nThe purpose of a rule is to set the para-\nHere is a simple Hospital Finance 101\nmeters within which a bill is to be consid-\nquestion: If 45% of your customers pay\nered. It should not change the substance of\nyou 40% of your costs, how much do you\nthe bill. In the case of the original legisla-\nhave to charge the remaining 55% in order\ntion, it would permit specific cuts in waste-\nto break even? The universally held truth\nful discretionary spending, but does not\namong U.S. hospital finance professionals\nendanger a vital program like Social Secu-\nis that Medicare/Medicaid payment rates\nrity.\nhave inflated U.S. hospital prices by 50%\nThe previous two rules mirrored legis-\nto 75% in the private sector. In the world\nlation we co-sponsored. It was, in fact, the\nof classroom theories there may have\nthird rule that completely altered the orig-\nbeen a cost shift, but not in the real\ninal intent of the bill.\nworlds of hospital finance and health in-\nAs a fiscally responsible member of\nsurance.\nCongress with a proven record of fiscal re-\nThe massive \"hidden tax\" on U.S.\nstraint and trimming of government waste\nhealth care commonly referred to as gov-\nthrough my work on the House Budget\nernment cost shifting is nothing more than\nCommittee, I remain committed to reduc-\nlast ditch liberal efforts to foster unsound\ning our national budget deficit and cutting\nentitlement programs by government\nspending. These are genuine goals that\nmandates rather than leveling with a tax-\nmerit consideration through an equally\nweary public on the real costs of such pro-\ngenuine process. I am one of two members\ngrams. Let us have faith that the truth will\nof Congress who received the second high-\neventually prevail over deception.\nest rating-99%-from the bipartisan Con-\nRON JONES\ncord Coalition out of the 435 lawmakers in\nPresident\nthe House.\nMutual Medical\nREP. OLYMPIA J. SNOWE (R., Maine)\nPeoria, III.\nWashington\nTHE WALL STREET JOURNAL TUESDAY, JUNE 28, 1994\n85\nTUESDAY, JUNE 28, 1994\nUSA TODAY\nSHAKE-UP\nWASHINGTON\nPanetta, McLarty,\nGergen and Rivlin\nPanel today awaits\nLEON PANETTA, new chief of staff; was budget director:\nRecord: Barely 100 days into Clinton's administration.\nthe Moynihan plan\nwith a revolutionary economic plan designed to rein in the\ndeficit, trade pact and Russian aid package in limbo on Cap-\nitol Hill, Panetta told reporters Clinton needed to \"define\nThe Finance Committee, the key Senate panel on health\nreform, learns today how Chairman Daniel Patrick Moyni-\nhis priorities\" and take the battle to the public. The com-\nments were viewed by some as insubordinate, by others as\nhan, D-N.Y., intends to finance his plan.\nHe distributes a detailed proposal that calls for 95% of\nintentional message-sending In reality, it was just Panetta\nAmericans to have health insurance by 2000. He's expected\nbeing candid as always.\nto use a watered-down form of President Clinton's contro-\nReputation: Panetta, a former House Budget Com-\nversial employer mandate - forcing firms to pay for their\nmittee chairman, is a hard-working pragmatist, affable\nworkers' coverage. \"There will probably be some votes on\neven while making the tough choices that come daily for a\nmandates,\" says Sen. John Breaux, D-La. But he doubts\nman charged with balancing a $1.5 trillion budget while\nthere is sufficient support for requiring the payments.\nparing the mighty deficit he hates.\nMoynihan's backup: If the 95% goal wasn't met, a new\nWhy he got top spot: Panetta combines McLarty's\ncommission would recommend specific steps - possibly in-\ncharm with some of the rougher traits associated with for-\ncluding the mandate - to reach it. Such recommendations\nmer White House bosses. He also knows Congress, a plus in\nwould take effect unless Congress voted them down.\nthe final crucial battles over health-care and crime legisla-\nPresident Clinton says employers should share the cost of\ntion this summer and fall.\ninsuring all Americans. Monday. right after naming budget\ndirector Leon Panetta his new White House chief of staff.\nTHOMAS 'MACK' McLARTY,\nnew\ncounselor\nto\nClinton;\nhe sent Panetta and Treasury Secretary Lloyd Bentsen to\nwas chief of staff:\npress that point with Moynihan.\n- Jessica Lee\nRecord: Fairly or not, he caught the blame for: the\ntravel office staff firings that were\nSENATE RACE: Sen. Jim Sas-\nlater rescinded; Clinton's $200 hair-\nser, D-Tenn., is gaining support for\ncut, which was widely reported -\nthe post of majority leader. Mon-\ninaccurately - as tying up Los An-\nday he got the endorsement of four\ngeles Airport; the handling of the\nmore senators. Patty Murray of\ninvestigation into the suicide of top\nWashington and Max Baucus of\naide and fellow Arkansan Vince\nMontana ended speculation that\nFoster; the spiraling Whitewater\nthe race between Sasser and Sen.\ninvestigation; Paula Jones' sexual\nTom Daschle, D-S.D., would be a\nharassment suit; the staff's tell-all\nregional contest when they\nramblings to Washington Post\npledged their support. Earlier this\nwriter Bob Woodward for the book\nGannett News Service\nmonth, Sen. Russell Feingoid, D-\nThe Agenda; the misuse of a White\nSASSER: Gains four\nUSA TODAY\nWis., who had been considered a\nHouse helicopter for a staffer's golf\nPRESERVATION\nMcLARTY\nPHOTOCOPY\nmore endorsements\nDaschle supporter, and Sen. Barba-\nouting.\nΓa Boxer, D-Calif., said they would\nBehind the latest move: A Clin-\nvote for Sasser, who has more than 20 senators' support.\nton friend since childhood, and later a political supporter\nwhile heading a utility in Arkansas, his arrival at the White\nSPACE STATION:\nThe House is ready to resume its\nHouse was met with skepticism that he was tough or politi-\nannual debate on funding for the planned space station. A\ncal enough to handle the job. The White House says he was\nsubcommittee approved the Clinton administration's $2.1\nbehind the reshuffling, but first lady Hillary Rodham Clin-\nbillion request for the orbiting space laboratory as part of a\nton also was disappointed with McLarty's handling of\nVeterans Affairs and Housing and Urban Development\nhealth-care reform.\nspending bill earlier this month. To date, the federal gov-\nernment has spent $11.2 billion on the space station.\nDAVID GERGEN, new special adviser to president and\nsecretary of State; was counselor to Clinton:\nWHITEWATER HEARINGS SET: The House Bank-\nRecord: Gergen's darts at the\ning Committee scheduled Whitewater hearings for July 26.\nnew administration in U.S. News\nCommittee Chairman Henry Gonzalez, D-Texas, invited 22\n& World Report brought a call\nwitnesses to appear, including special counsel Robert Fiske\nfrom McLarty. He wanted the\nand former White House counsel Bernard Nussbaum.\nmagazine editor - and aide to\nThe hearing will cover the death of White House lawyer\nthree Republican presidents - to\nVince Foster and whether Clinton aides tried to cover up\njoin Clinton's staff as senior adviser\nthe Whitewater affair.\nto stabilize relations with Congress\nRepublicans had wanted a broader hearing to probe\nand the media. McLarty sold the\nwhether a failed savings and loan, owned by Clinton's\ndeal to Clinton. At first, Gergen was\nWhitewater partner James McDougal, improperly fun-\ncredited with steadying the staff\nneled money into the real estate development.\nand with improving the White\nBut Fiske asked that the hearing only cover issues he has\nHouse's workings with the media.\nUSA TODAY\nfinished investigating He'll release his report on Foster and\nPerception: Hillary Clinton\nGERGEN\nthe possible coverup this week.\nnever warmed to him, and many\nstaffers resented his Republican credentials. This chance to\nPRIMARIES AND RUNOFFS:\nUtah\nvoters\nare\nexpect-\nimprove foreign policy spin could round out his public ser-\ned to largely ignore today's first-ever June primaries. A Sen-\nvice portfolio.\nate race pits Craig Oliver against Bill Rigley for the Inde-\npendent Party nomination. The winner will face incumbent\nALICE\nRIVLIN,\nnew budget director; was deputy:\nRepublican Sen. Orrin Hatch and Democratic challenger\nRecord: She surprised Washington when she be-\nPatrick Shea. In the House. Dixie Thompson and Torn Dras-\ncame Panetta's deputy. She was\nchil are battling for the GOP nomination. The winner goes\nwidely regarded as overqualified\nagainst Democratic incumbent Rep. Bill Orton.\nfor the job after eight years as\nIn other states' runoffs today:\nhead of the Congressional Budget\nAlabama - Republican governor. Former governor\nOffice. the non-partisan arm of\nFob James faces Ann Bedsole. House 5th District Republi-\nCongress that analyzes the budget\ncan: Wayne Park faces Hugh McInnish; one of them will\nand the fiscal impact of legislation.\nmeet Democratic Rep. Bud Cramer.\nShe sounded alarms about the ris-\nMississippi - Democrat U.S. Senate: Ken Harper\ning deficits during the Reagan ad-\ngoes against Hiram Eastland for the right to face GOP in-\nministration.\ncumbent Sen. Trent Lott. House 1st District: Each party\nChallenge: Rivlin, a hard-liner\nhas a runoff for election to replace retiring Rep. Jamie\non the budget deficit, lacks experi-\nWhitten. On the Democratic side, Bill Wheeler faces Tim\nence in working with Congress to\nFord; on the GOP side, Roger Wicker battles Grant Fox.\nUSA,TODAY\nput together the budget - one of\nRIVLIN\nthe qualities that made Panetta\nWritten by Charmagne Helton\npopular on Capitol Hill.\nMoynihan health plan\nmelds with moderates'\nBy J. Jennings Moss\nTHE WASHINGTON TIMES\nTo Clinton, \"every\nSen. Daniel Patrick Moynihan's health\nneed not mean 'all'\nplan, to be presented to the Finance Com-\nmittee today, will be a merger of his ideas\nand a proposal by a bipartisan group of\nBy Frank J. Murray\nmoderates. according to senators.\nTHE WASHINGTON TIMES\nWhen Mr. Moynihan, New York Demo-\nHow could \"every American\" not be\ncrat and chairman of the committee,\ndefined as 100 percent of Americans?\npresents the final product to the panel. it\nIf the Clinton White House knows,\nwill shift the debate from closed rooms to\nit's not telling, but the administration\npublic hearing rooms.\nhas begun making such a distinction on\nSpeaking to reporters after meeting with\n\"universal\" health care coverage.\nthe panel's Democrats yesterday morning,\nFrom President Clinton to Press Sec-\nMr. Moynihan said he had not decided\nretary Dee Dee\nwhether mandates on employers or indi-\nNEWS\nMyers, the rhetoric's\nviduals would be in the package. The mod-\nlogic sounds like res-\nerates' plan called for no mandates.\nANALYSIS\nervations a men-\n\"That is basically a question of what will\ntal asterisk to the\nmove a bill. I'll have a final judgment on\npresident's read-my-lips promise of\nthat in the morning,\" Mr. Moynihan said.\nprivate insurance for every American.\nIf that is the intent. it could allow Mr.\nA Polish diplomat speculated\nSen. John H. Chafee. Rhode Island Re-\nClinton to back away from his promise\npublican and a pivotal player in the seven-\nto veto any health bill providing less-\nEmbassy\nthat Mr. Kozminski's quick recep-\ntion at the White House was con-\nmember bipartisan \"rump group,\" later\nthan-universal coverage in the foresee-\nnected to Mr. Clinton's upcoming\nsaid he expects employer mandates to be\nable future.\nRow\ntrip to Eastern Europe. He is due\nincluded in Mr. Moynihan's bill. The reason\n\"You all can define that however you\nin Warsaw July 6 for a visit to co-\nfor the inclusion is so the committee can\nwant,\" Miss Myers said yesterday.\nincide with a meeting of foreign\ntake a vote on the contentious issue, which\nThe quest for a definition permeated\nministers of nine countries that\nlikely would fail.\nher press briefing, and she was told the\nhave received U.S. aid through\n\"The proposal that the moderates have\nwords seemed simple enough they\nthe Support for Eastern European\nput together will be merged with the\nshould mean the same thing to public,\nDemocracy Act, the diplomat\nchairman's bill. We don't know what it will\npresident and news media.\nFrom envoy to critic\nsaid.\nactually entail - if it has mandates until\nThroughout the long briefing Miss\nSecretary of State Warren\nwe see it tomorrow,\" Sen. Tom Daschle,\nMyers eluded every request that she\nHungarian Ambassador Pal\nChristopher, who will accompany\nSouth Dakota Democrat, said yesterday.\ndefine universal or at least agree that\nTar will go from an envoy for his\nMr. Clinton, is due to meet the\nMr. Daschle is part of the minority on the\n\"every American\" means 100 percent.\ncountry to a critic of the new\nforeign ministers of Albania, Bul-\nAmong the definitions Webster's\ngovernment, dominated by for-\ngaria, the Czech Republic, the\ncommittee - those who back President\nClinton's proposal to require businesses to\nNew World Dictionary lists for \"uni-\nmer Communists, when he re-\nFormer Yugoslav Republic of\nversal\" as an adjective, the most rel-\nturns home next week.\nMacedonia, Hungary, Poland, Slo-\npay 80 percent of the cost of their workers'\nevant seem to be \"present or occurring\nMr. Tar, in his last public\nvakia, Slovenia and Romania.\nth insurance 80 that every American\neverywhere or in all things\nused,\nspeech as ambassador yesterday,\nMr. Kozminski, who replaced\nhas health coverage.\nintended to be used, or understood by\ntold the American Jewish Com-\nAmbassador Kazimierz\n\"I'm skeptical that it [universal cover-\nall.\"\nmittee (AJC) to watch the new\nDziewanowski, is one of the sec-\nage] can be obtained if this is all we do,\" Mr.\nWith many legislators mentioning\ngovernment for any cracks in a\nond wave of diplomats from East-\nDaschle said of the idea of eliminating\nalternatives that would result in 91 per-\ncoalition between the Socialists,\nern European countries, follow-\nmandates. \"But I'm optimistic that this will\ncent or 95 percent coverage, an inter-\nwhose supporters are anti-\ning those who arrived here after\nallow us to continue the process and we'll\nviewer on KMOX radio in St. Louis\nWestern and anti-capitalist, and\nthe collapse of communism.\nhave opportunities on the floor and in con-\nasked Mr. Clinton on Friday if he was\nthe Free Democrats, who support\nBefore he left Poland, Mr. Koz-\nference to try and build upon what we do\nwilling to compromise on that.\na market economy.\nminski told reporters that I\nhere in the committee.\"\n\"You said you'd veto any bill that did\n\"The old Communists are back\nwho went before him represented\nnot insure every single living Amer-\nin power.\nThey profess to be\nthe \"poetry of breakthrough\"\nTwo congressional panels already have\napproved health plans similar to Mr. Clin-\nican,\" the reporter recalled accurately.\nSocial Democrats,\" he said. But\nand that his job is more\n\"Universal,\" Mr. Clinton responded.\nthe \"contradictions in the coali-\nmundane, calling his m\non\nthe\nton's and a third - the House Ways and\n\"We need to have universal coverage.\ntion\" are many.\n\"prose of normality.\"\nMeans Committee - is trying to finish its\nThat's what I said.\"\nThe supporters of the Social-\nThe other ambassadors who\nwork this week. Clinton backers hope these\nAsked yesterday how the president\nists expect \"some redistribution\npresented their credentials, in or\nmeasures will prevail.\ndifferentiated \"universal\" coverage or\nof wealth, increase in pensions. a\nder of their precedence in the\nIf these Democrats win. at least one Re-\ninsurance for \"every American\" from\ndecrease in prices\nbut I don't\ndiplomatic corps, are Fatikh Tes-\npublican has vowed to filibuster a health\n100 percent, Miss Myers got into a long\nsee that.\nhabaev of Uzbekistan, Branislav\nbill.\nand somewhat caustic debate with re-\n\"From everything I hear, they\nLichardus of Slovakia, Jerome\n\"The Clinton plan and its clone - the\nporters. She accused them of being\nwant to speed up privitization, for\nMendouga of Cameroon, F\n[Senate Labor and Human Resources Com-\nready to define the president's words.\nexample,\" he said.\nTabbarah of Lebanon, Khalii\nmittee] plan are in my view poison,\" said\n\"I think the president and others of\n\"For the time being, I don't see\nUgur of Turkmenistan, Kepas is\nSen. Robert F. Bennett, Utah Republican.\nus here at the White House have\nany slowing down\" in the eco-\nmael Watangia of Papua New\nworked hard to stay out of a debate\nnomic policies promoted by his\nGuinea, Lionel J. Wood of New\n\"They are based on the assumption that the\nabout numbers,\" she said.\nconservative party.\nZealand, Moise Koffi Kournoue o\nonly way reform can work is through\n\"His definition of universal care is\n\"I think the pendulum will\nthe Ivory Coast, Benjamin Kip-\ngovernment-imposed price controls. They\nguaranteed private insurance for ev-\nswing back to the center-right,\"\nkorir of Kenya, Sven Alkalaj of\nmust be defeated even at the cost of grid-\nery American,\" Miss Myers explained.\nhe said of the next elections\nBosnia and Manaspas Xuto of\nlock. Yes, filibuster, if that is what it take.\"\n\"But isn't that 100 percent?\" re-\nscheduled in four years.\nThailand.\nOn Sunday. The Washington Post re-\nporter after reporter inquired, asking\nMr. Tar, an international banker\nThe Uzbek ambassador had\nported that Mr. Moynihan had prepared a\nwhether 95 percent or some other\nbefore becoming a diplomat, in-\nwaited the longest to present his\ndraft bill that ditched all mandates in favor\nnumber could be deemed \"universal.\"\ntends to head a conservative\ncredentials. He arrived\nin\nof relying on incentives to businesses to\n\"We're just not getting drawn into a\nthink tank and prepare to run for\nNovember\nprovide health insurance, insurance re-\ndebate about numbers,\" she said over\nparliament.\nforms and government aid to the poor. The\nand over.\nHerman Obermayer, an AJC\nDIPLOMATIC\ngoal would be to have 95 percent of the\nFinally, a reporter said what was\nboard member, introduced Mr.\nDIARY\npublic covered by 2000.\nwanted was definition, not numbers.\nTar as a \"unique ambassador\n\"We think it was clear, we think we\nfrom a unique country for Jews.\"\nToday\nA Finance Committee staffer said yester-\nunderstood it, and we think when the\nHe said Hungary, with 80,000\n10 a.m. - News conference\nday, \"substantial things have changed\"\ntime comes - when he puts his signa-\nJewish residents, had the second-\nSalim A. Salim, secretary-general\nsince the article was published. although\nture or veto on it - it will be because\nhighest number of Jews in Eu-\nthe Organization of African Unity,\nthe aide would not discuss those changes.\nthis is or isn't what we think we under-\nrope after France.\nmeets the press at the residence O\nDuring the past two months, as Finance\nstood.\" she was told.\n\"The ambassador is a man of\nSouth African Ambassador Harry\nCommittee members have met behind\nMiss Myers laughed and said, \"I\npolitical conscience but not a\nSchwarz. 3101 Massachusetts Ave\nclosed doors. the number of people - re-\ndon't have any idea what you just\npolitician,\" Mr. Obermayer said.\nNW. Contact: 202/232-4400.\nmeant by what you said.\"\n8 p.m. - Lecture - James\nporters, lobbyists and activists - loitering\nIt got so tiresome that she finally\nHutson of the Library of Cong\noutside its Dirksen Senate Office Building\nannounced herself open to any other\nCheaper by the dozen?\nreviews Swiss-U.S. relations during\nsuite of offices has swelled.\ntopic.\nMany new ambassadors here\nWorld War II. Swiss Embassy. 290\nYesterday. government watchdog Ralph\nCathedral Ave. NW. Contact:\nYou guys are cranky. It's Monday.\nmight want to drop a thank-you\nNader paced the corridor while a group of\n202/745-7900.\nYou don't want to be here,\" she ob-\nnote to the new Polish envoy,\npeople in wheelchairs and others who sup-\nserved.\nwhose arrival in Washington\nIf you have a tip, suggestion or\nport the Clinton plan lingered near the\nIn his January State of the Union\nended what for some was a long\nquestion, call Embassy Row at\nmeeting room door.\naddress, Mr. Clinton waved a pen and\nwait to see President Clinton.\n202/636-3297.\n\"What they doing in there is ludicrous,\nwarned he would use his first veto if he\nOnly 16 days after landing\nabsolutely ludicrous and we expect those\ndid not get what he asked for.\nhere, Ambassador Jerzy Kozmin-\nguys to come up with a health plan for ev-\n\"If the legislation you send me does\nski presented his diplomatic cre-\neryone in this country - not 95 percent, not\nnot guarantee every American private\ndentials last week in a White\n91 percent but 100 percent.\" said Becky\nhealth insurance that can never be\nHouse ceremony.\nOgle, 38. of the Real Health Care for All\ntaken away, I will take this pen, veto\nBut because he was the latest\ncampaign.\nthat legislation, and we'll come right\narrival, protocol demanded that\nback here and start over again,\" Mr.\nMs. Ogle, who has spina bifida, sat in a\nthe ceremony also include 11\nClinton said.\nother ambassadors who were\nwheelchair plastered with bumper stickers\nwaiting to present their creden-\npromoting universal coverage.\n123\nTUESDAY.\nJUNE\n28.\n1994\nThe\nWashington\nTimes\nThird party, anyone?\nTwo years after the strongest\nshowing by an independent pres-\nidential candidate in 80 years,\nClinton likes camp\npollsters say President Clinton\nand top Republicans have failed\nPresident Clinton has finally\nto win the election-crucial block\nInside Politics\nadopted Camp David.\nof independent voters.\nHe plans to spend the long In-\nThe Christian Science Monitor\ndependence Day weekend in the\nreports Ross Perot is running at\nMaryland retreat he had largely\n20 percent in recent polls, a\nr\nshunned since taking office, his\nhigher than the 19 percent of the\nthird consecutive weekend in the\nnational vote he received in 1992.\nCatoctin Mountains.\nAnger toward Washington is also\n\"He certainly enjoyed his\nup since the last election.\nweekends there, the last two\n\"The American people are will-\nweekends there.\" White House\ning to break from the two-party\nPress Secretary Dee Dee Myers\nsystem,\" says pollster Gordon\nsaid. She insisted he wasn't\nBlack of the New York Indepen-\nsneaking away to fish, as Jimmy\ndent Party. \"The problem is you\nCarter says he did.\nhave to have the resources to pre-\nAnd Mr. Clinton hasn't yet\nsent them with an alternative.\"\ndropped in on nearby Holly Hills\nBut some political observers\nCompiled by Alan McConagha\nCountry Club that former admin-\nwarn that American voters have\nistrative director David Watkins\nhistorically not been kind to\nThe Richards lectures\nclaimed to be checking out on his\nthird-party candidates and that\nbehalf when he took his famous\nthis is not a firm block of voters\nCongress' coverage\nIn what the Houston Chronicle\nhelicopter golfing trip.\nwaiting to be seduced by a\nThe Wall Street Journal re-\ndescribed as another of her lec-\n\"He's spending time with his\nthird party.\nported that the congressional\ntures to teen-agers, Texas Gov.\nfamily, mostly, I think. Reading,\"\nhealth plan is not likely to be a\nMiss Myers said.\ncrowd pleaser despite the politi-\nAnn Richards proposed statewid\nRed Meat II\ncal fuss being made by Hillary\ncurfews for young people to help\nRodham Clinton over getting one\nreduce juvenile crime.\nGOP vs. Rosty\nDemocratic National Chair\nas good as the members enjoy.\nThe Democrat said she hoped\nTwo House Republicans are\nDavid Wilhelm at a party strat-\nThe federal employees' pack-\nthreatening to file a complaint\negy meeting: \"The Republican\nTexas communities would impose\nage isn't \"as generous as most\ntheir own but added that she\nagainst Rep. Dan Rostenkowski if\nParty has a problem. Its state,\nunion health plans, or the pro-\nwould consider legislation at the\nthe chamber's ethics committee\nparties are rapidly being taken\ngrams of many Fortune 500 com-\ndoes not launch a probe of the\nover by the forces of the radical\nstate level. Her GOP opponent,\npanies.\" For example, there are\nHouse post office episode, Roll\nright, the very same people who\nGeorge W. Bush, supports local\nno preventive dental care or sub-\noption only on curfews.\nCall reports.\nbrought us the 1992 Republican\nstance abuse benefits.\nChris Shays of Connecticut and\nconvention in Houston.\"\nMrs. Richards said, \"My\nScott Klug of Wisconsin are pre-\nmamma always said that there's\nChristian Republicans\npared to force a floor vote on a\nnot anything going on at 2 o'clock\nOutbursts redux\nresolution that would require an\nLeading Republicans say the\nin the morning that should be of\nethics panel probe of the post of\n\"Actually, his outbursts are\ninfluence of religious conserva-\nany concern to me.\"\nfice if the committee does not\nnothing new,\" wrote Carl M. Can-\ntives depends on whether they\ntake it up on its own.\nnon in the Baltimore Sun.\nlimit themselves to messages on\nRed meat\nHouse Democratic leaders\n\"In the past year, President\nabortion and homosexuals or if\nhave supported the federal at-\nClinton has publicly displayed hi.\nthey broaden appeals to issues\nDick Cheney in Iowa: \"When\ntorney in resisting GOP calls for\ntemper with increasing fre-\nsuch as the economy and health,\nwe left office, America's strength\nan immediate ethics probe, say-\nquency, causing some promism\nthe New York Times reports.\nand resolve could not be ques-\ning such action could impede the\nDemocrats to wonder why such\nAs evidence that the religious\ntioned. In the 17 months he's\nJustice Department's criminal\nconsummate political cam-\nconservatives are not dividing\nbeen in office, Bill Clinton has\ncase against Mr. Rostenkowski.\npaigner is unnerved by the kind\nthe party, some Republicans\nsquandered that legacy.\"\nof criticism that is standard in\npoint to their support for two pro-\nFutures\nmodern politics.\"\nchoice Republicans - Sens. Paul\nSocial Security cuts\nMr. Cannon said that a Demo-\nCoverdell of Georgia in 1992 and\nColumnist Michael Barone in\nIn Washington state's 2nd Con-\ncrat who knew Mr. Clinton w\nKay Bailey Hutchison of Texas in\nU.S. News & World Report says\ngressional District, Democratic\nhe was governor of Arkansas\n1993.\ncurrent political signs suggest\nstate Rep. Rob Johnson and Re-\ncontends that his political skills\nSenate Minority Leader Bob\nthat Social Security payments\npublican businessman Jim An-\nseem to fail when he is criticized\nDole told the Times' Richard L.\nmay be cut sharply for future\ndrews became the latest to\n\"He's a good man, but he was\nBerke: \"The plus side of it is\nbeneficiaries.\nthrong the field in what is rated a\ngovernor and then president for\nwe're bringing people into the\nMr. Barone says the fiscal, de-\npartisan toss-up to succeed retir-\nall but, like, two years since he\nparty, and they are middle class\nmographic and political vectors\ning Democratic Rep. Al Swift.\nwas in his 20s.\nwith strong family values. If I\npoint in that direction because of\nNot Rollins\n\"He's never had to bite his\nthought they were all directed at\nthe public's general inclination to\ntongue, never had to pick up 1.\none or two issues, I'd be worried.\"\ncurb government spending and\nFormer GOP Chairman Rich\ndinner check, always had a DC\nthe fact that Social Security\nBond insisted to the New York\nliceman there when a bully\nA miracle?\n\"is where the money is.\"\nPost's Fredric Dicker that he was\ncomes by. He's been spoiled\n\"Jimmy Carter, truster of Leo-\nHe speculates that cuts would\nnot the one who recommended\nand it shows.\"\nnid Brezhnev until Afghanistan,\nnot be vigorously postested be-\nconsultant Ed Rollins to Berna-\ntruster and promoter of the BCCI\ncause the people now turning 65\ndette Castro, New York's Repub-\nbanker until thousands of deposi-\ndo not have the sense of moral\nlican Senate candidate.\ntors were bilked of their savings,\nentitlement \"a stronger emo-\n\"I would have strongly argued\nmakes his pilgrimage to the last\ntion than greed\" that moti-\nagainst him in the belief that the\nStalinist - and again bets on the\nvated the World War II genera-\nrace is already a long shot and\ncontagion of his own indisputable\ntion.\nthe candidate doesn't need the\ngoodness.\" wrote columnist Wil-\nAmericans of the silent gen-\nproblem of a hired gun,\" Mr.\nliam Safire in the New York\neration don't feel as entitled to\nBond said.\nTimes.\nbenefits far greater than the\nmonetary worth of their contri-\nbutions, and baby boomers and\nFear and loathing\ngeneration X don't expect to get\nThe blasted dream\nHunter S. Thompson in an ex-\nmuch from Social Security any-\n\"Once Clintonites dreamed of\ncerpt from his new book, \"Better\nway, Mr. Barone observed.\nrealignment. Now they are\nthan Sex: Confessions of a Politi-\nNow that Demcorats control\nscrambling for survival,\" says\ncal Junkie Nixon was a mon-\nthe government and the push for\nRonald Brownstein in the Los An-\nster with insanely wrong convic-\nthe cuts is likely to be led by\ngeles Times.\ntions. Clinton is a humorless punk\nDemocratic Sen. Bob Kerrey,\n\"Under siege from Whitewater,\nwith bad habits. Nixon was so\nhead of the entitlements commis-\nCattlegate and Paula Jones, his\nbad he could get innocent people\nsion, the objections of older\npoll numbers sagging, his health\ninto politics, but Clinton is bad in\nDemocrats may be overcome.\ncare plan struggling for air, it is\na way that will get-all but the\nThe reason for President Clin-\ndifficult to remember that Clin-\nworst ones out.\"\nton to go along despite campaign\npledges to the contrary? It would\nton once seemed to many Demo-\nmake more money available for\ncrats their best hope for realign-\ninnovative government programs.\ning national politics.\n\"Bill Clinton's promise was\nthat he could inspire a lasting\nnew Democratic majority in na-\ntional politics.\n\"Does anybody think of Bill\nClinton that way today?\"\n130\nThe ripple of the unintended consequences of health care reform\\\nBy Peter J. Levin\nthe mandate to pay for an ever\nlic has exhibited an aggressive\nprogram EHSDS, or the Experi-\nchanges were occurring in the mar-\nislative solutions to bureaucrati-\nincreasing number of aged nursing\ndesire to benefit from their physi-\nmental Health Services Delivery\nketplace: (1) there was a new focus\ncally revamp the health care sys-\nF\nFormer Health, Education and\nhome residents whose care has\ncians' use of the latest techniques.\nsystems, was created to foster the\non cost consciousness by employ-\ntem. A number of attempts at\nWelfare Secretary Joseph Cal-\nbecome the liability of the state.\nComprehensive Health Planning\ndevelopment of rational delivery\ners; and (2) care was being moved\nhealth planning have taken place in\nifano in an April 1, 1993 arti-\nThere may be more responsive,\nwas enacted to help rationalize\nsystems in a number of selected\nout of the hospital into a variety of\nthe past that were not as overarch-\ncle in the Washington Post wrote of\neffective, and less costly ways to\nhealth care delivery locally by lim-\nareas. The idea was to put togeth-\nambulatory settings by providers.\ning as what President Clinton has\nthe ripple of unexpected conse-\ncare for these people but the legis-\niting the diffusion of technology\ner the 4P's (payers, political, pub-\nThese were to have a much more\nproposed. Health planning has\nquences when government tries to\nlation prevents flexibility in choice\nthat was deemed to be duplicative\nlic, providers) in a voluntary coali-\nlasting effect than all of the\nfailed in our country because it did\nre-invent the way we deliver and\nof facilities, services, or methods of\nand unnecessary by putting the\ntion that together with dialogue\nattempts in the past at legislating\nnot take into account the realities of\npay for health care. there is a long\npayment.\nbrakes on hospital capital expendi-\nand data would lead, in a locality,\nhealth planning.\npolitics, interest groups, and the\nhistory of federal attempts at trying\nMedicaid stands out today as a\ntures. Local CHP agencies made\nto a more rational and equitable\nProbably the most acute legisla-\nevolving marketplace. Rarely have\nto improve the structure of the\nprime example of a federal attempt\nup of community representatives,\nhealth care delivery system.\ntive failure was the passage of cat-\nwe been able to replace the market\nhealth care system in this country\nto affect the availability of, pay-\nproviders and others were to over-\nEHSDS had no legal clout,\nastrophic coverage as a part of\nthrough policy innovation.\nand the unintended, frequently neg-\nment for and cost of health services\nsee and guide the evolution of the\napproval authority or money to\nMedicare. this well intentioned\nGovernment has repeatedly\native consequences. With all the\nto Americans. While many in need\nhealth care delivery system in a\ninfluence behavior. In a way, these\neffort to cover the very sick and\nshown that it can create programs\nbest intentions, it is naive to try to\nhave benefitted from Medicaid, a\nlocale largely by conducting a\nserved as prototypes for the struc-\nreduce bad debts by health care\nto increase the level of services,\nredo the American Health care sys-\nvery unfortunate consequence has\nmulti-step public review process.\nture of the HSA's, or Health Sys-\nproviders backfired when the elec-\nbut that it has an extremely difficult\ntem in one piece of legislation.\nbeen the cost shift to individuals\nthe infamous CON, or certificate of\ntems Agencies, which were given\ntorate, in the form of Medicare eli-\ntime slowing down the proliferation\nMedicaid was passed in 1965 as\nand insurers, and ultimately to\nneed, process was created as the\nformal approval authority over the\ngible, rose up and demanded its\nof regulations, services, and expen-\na means of sharing with the states\nemployers and employees, because\nmeans of doing this within a state\nCON process in their locals as suc-\nrepeal. They refused to pay more\nditures. Our system of government\nTUESDAY. JUNE 28. 1994 The Washington\nthe cost burden of caring for per-\nof the governments' failure to pay\napproved local health plan. It\ncessors to the CHPs.\nto benefit the few who needed addi-\nmakes it almost impossible to have\nsons with poverty level incomes or\nthe real cost for the provision of ser-\nrequired hospitals, nursing homes\nThe public interest was expected\ntional coverage with almost no vis-\nunbiased evaluation followed by\nthose whom had become impover-\nvices.\nand others to apply to obtain\nto be dominant on each HSA board,\nible improvement in the benefits to\nrational dialogue that then leads to\nished by the cost of medical care.\nThere have been several other\napproval prior to making capital\nfree from control by providers, the\nthe vast majority. For the first time\nthe curtailment of government\nMedicaid may be the government\nwell-intentioned efforts at planning\ninvestments. Physicians in private\ngroup with the greatest economic\nwe saw consumers rebel against a\nsponsored programs and expendi-\ncost increase \"sleeper\" of all time.\nby the Congress. Regional Medical\noffices were exempt from oversight\ninterest and the ability to organize\nfederal program that promised pay-\ntures. It would be useful for the\nIt has eaten up state budgets at a\nPrograms were initiated to serve as\nand the approval process and they\nsustained monitoring of and a ready\nment for the very seriously ill, a\nelectorate to acknowledge that our\nmore rapid rate than any other fed-\na framework for dissemination of\nwere able to invest in new technol-\ninterface with the planning and\nsmall but costly minority in the pro-\ncountry does not have a successful\neral-state cost sharing program\nthe most advanced medical knowl-\nogy and the creation of services as\napproval process. In fact, politi-\ngram. They did this because there\nhistory of merging public policy\nand paralyzed the ability of states to\nedge throughout the country to\nthey wished. the CON process was\ncal and bureaucratic interests grew\nwas an immediate increase in the\nand private delivery to create new\nexpand care for children and oth-\npracticing physicians and their par-\nin itself a bureaucratic hurdle\nin proportionate power and the\nmonthly premium and no visible\ngovernment sponsored programs\ners. this has occurred because of\nents who were suffering from heart\nwhich led to the creation of an\nHSAs soon became politically and\nexpansion of benefits to the major-\nthat are supposed to decrease the\ndisease, cancer and stroke. The\nindustry of consultants, lawyers,\nprocedurally gridlocked from deal-\nity. We might conclude from this\ncost, increase the availability and\nidea was a noble one, to make spe-\nand lobbyists who were necessary\ning with the major issues of health\nthat with the creation of a national\nreduce the use of inappropriate ser-\nPeter J. Levin is a fellow in\ncialty care available in rural and\nto obtain local Comprehensive\ncare reform.\nhealth plan the public will not hes-\nvices. this certainly will not hap-\nHealth Care in the office of Sen.\nsuburban areas that previously was\nHealth Planning and state agency\nWhile all these programs were\nitate to hold their elected repre-\npen through the passage and imple-\nConnie Mack, Republicant of Flori-\nfound only in major urban medical\napproval. In almost all states, this\nwell intentioned, they were chewed\nsentatives accountable for the ben-\nmentation of a single bill by\nda. Mr. Levin is former dean in the\ncenters. It appeared desirable to\ncumbersome and intrusive process\nup in the reality of changes occur-\nefits package. this will result in\nCongress. A carefully phased in\nCollege of Public Health of the Uni-\ndisperse specialists and this has\nhas been overturned because of its\nring in the marketplace. Provider\nconstant pressure to increase the\nprogram aimed at realistic targets\nversity of South Florida, Tampa\noccurred. Now, specialists are\ndismal record at controlling costs or\nsurvival once again was primary\ncoverage.\nproposing limited immediate solu-\nand former chairman of the Flori-\nfound everywhere their diffusion\nrationalizing the diffusion of tech-\nover a generalized desire to\nWe should be aware of \"the rip-\ntions with financial safeguards has\nda Hospital Cost Containment\nlimited only by constraints of the\nnology.\nimprove community well-being.\nple of unexpected consequences\na much greater chance of passage\nBoard.\nmarketplace. In addition, the pub-\nAnother federally sponsored\nAnd, more important, two major\nwhenever we begin to expect leg-\nand ultimate success.\n6/28/94\nFROM\nUSDAY\n1994,06-27\n23:25\n#660 P. 03/05\nHarry and Louise Turning Tail\nWashington - Harry and Leuise\nsmall health insurance companies as\ntes. bottom-line Jemands entil now\nChickenlittie, the housey fearmongers\ntually had only nerrow objections 10\nIt's too late.\" said 1 Senate starTer, watching\nfeatured in those health insurance in-\nCEnter's approach. but they attacked it\nClinton's propotals disabline in the Senate Finance\nduatry TV commercials, appear to he\nwith a bludgeon. As u terror campaign.\nCommittee \"They\" turred and feathered the\nsuffering d sudden done of fright them.\n3\nit has bown M brilliant sucress. Although\nClinton plan for su lung - and new they want to\nselves Serves hum -ight, LOO.\nmast Americans still want national in.\nput a nice Pat on it?\"\nAfter ontha of sprcading terror\nsurance they have become you WHIN of\nLike Harry and Louse loctors, too, have\nabout President Hill Christin's health\nanything Clinton proposes that they are\nbeen having second dhoughts about their long.\nF1 sposals. Hurry and Louise unexpect\nletting health reform slip away\nstanding opposition to government-funded \"so-\nediy showed -P in a newspaper ad here\nSpecifically, ae R result of the general.\ncraimed medicine. What scares them is that\nyeste. day. supporting supporting\nHIA A-aided onelaught against the Clin-\nthey are rapidly losing their independence to\nCititon's two basic demands: univer-\nLars-Erik\nten reforms, the Senate Finance Com-\nfor profit insurance companies, which are far\n3a. erage and an employer-breed fi-\nNelson\nmitter LM walking away from both the\nstricter about holding down costs than the gov-\nnameing avecem\nemployer-paid premiums and from\nemailment than ever been. \"Many doctors notieve\nIf health care reforms and insurance reforms\nguaranteed or versal coverage. And the is what\nthat maybe living under the government is net-\nare gring to work Bb well - we want. they must\nscares Harry and Louise\nter than living under these compunies,\" D-. Rot.\nwork together. Hand in Hand. Everyone cooperar-\nThe thin, minimalist compromises being offered\nland Lowe of the California Medical Association\ning. That means universal coverage. says the 40\non Capital Hill could soddle the health insurers\nCold the Washington Post and month These\nsponsored by the Health Insurance Association of\nwith the worst of all worlde: The obligation to at\nfor-profit entities are really making pronte an\nAmerica. Through universal coverage and our\nSept all applicants for insurance without requiring\nthe backs of doctors\npresent employer-based system. we can huld down\nall American:, or their employers, to pay into the\nFor doctors the choice is not returning the\nCOSTS and ensure coverage for everyone.\"\nsystem. Without universal coverage, Americans\nNorman Rockwell dave or independent medical\nExectly what Clinton has been goying all along.\ncould wall until they were sick before buying th-\nproctices: those times are gone. New they maki\nThis IN \" amazing turnsbout Up to now, Harry\nsurence. and the insurers would not be nhic to\ndecide which prospect given them more freedom LI,\nat 1 Louise have apread fear that Clinton's plans\nturn them away. HIAA has lung recognized this\npractice medicine: A Canadian-style government\nto national insurance will mean rationing of\ndunger, but it has not advertised in support of who\nfinanced * store with free choice of doctors Class\nhealth care They have washed that it could run\nversal coverage. It her only attacked\nton's mixed government-private atem; or being\nout of money. presumably leaving people to die in\nSimilarly, HIAA favors employer-based financ-\nforced by market preasure into an insurance come\nshe streets They have shares their worry that\ning as the securest income source for insurance\npany's hrath-maintenance organization\nAmericans would be fr reed into health plans de.\ncompanies. If employers are required to pay o0\nAs health reform about to fall victim to\nsigned he government bureaucrats who would not\npercent of insurance premiums. as Clinron wants.\ninertia. to partisan pelitics and to\ncover important illnesses.\nthe insurance companies will be rolling in money.\ninhhying, even its opponects realize the current\nMore important. their incessant drumbest of\nWhen asked. HIAA officials have always NO d they\nhealth system has to change and toot the Clin-\nnegativism has helped to poison the debate about\nfavor universal coverage and employer-paid premi-\nton plan, with all to un doubted faults. may be bec-\nnational health care. Harry and Louise - i.e.. the\nums. But they DRIVE not advortised in favo: of Clin-\nter than the likely alternativea.\nWORLD BRIEFS\nNATION BRIEFS\nSurge in Haitians\nKravchuk, a former Communist\nClinton to Move\ndetect condition\nSeized on Boats\nlender who carried the become of\nindependence throughout the car.\nTo Dismiss Suit\nIn an article in the Journal of\nClinical Medicine. an immunoi-\nThe U.S. Coust Guard picked up\npaign. was the clear favorite in\nPresident Bill Clinton will nak\nagist at the University of Medi-\nwestern the strongh old of\nabout 1.300 boat people fleeing\nthat a sexual Increasment lawsuit\ncine and Dentistry of New Jersey\nUkrainian nationalism But for\nHeith yesterday, more these half the\nmer Prime Minister I. onid\nbe dismissed until he leaves the\nreports his team cas: can detect\ntotal number picked up in Caribbe-\nKushma. who seeks closer time\npresidency, according to papers his\nLyme disease RE soon as a few\non waters in all of last year.\nThe surge ccincides with Presi-\nwith Moscow, commanded strong\nlawyer filed yesterday in U.S. Dis-\ndays or weeks after infection\ntrict Court in Little R.s.k. Ark.\nCurrent tests are sometimes in-\nsupport in the industrialized dest\ndent Clinton's new policy. which\nThe motion ASKS the court to al-\nconclusive and can fail to detect\nand south, regions with large eth-\nrook effect June 16. to grant refu-\nnic Russian populations\nlow Clinton is delay the normally\nthe discuss for as long as a LOU-\ngees picked-up at vest # chance for 8\nrequired response to the allega-\nple of years after infection.\nhearing to determine whether rhev\nLinns until courts have decided\nare eligible for political asytom.\nMissing Freighter\nwhether = president can be: such\nHouse Unit to Hear\nA US embasay spokesman suic\nabout 900 were picked DD yeaterday\nPollution 'Suspect'\nAttorney Robert Bennett of\nWashington said in the court pe-\nWhitewater Case\nin 25 toat. Later, the Coast Guard\nAn ore-camying ship that disup.\npera that Clinton will file a inot.\nin Mian.. said the figure was closer\npeared after leaving port last week\nby Aug. 5 arguing that presidents\nThe House Banking Committee\nto 300. but that :: would not have\nmay have caused the oil stick coat-\nare Time while in office from\nwill begin Whitewater acorings\nan accurate count until today in\ning penguins and spoiling priatine\nhaving to deal with private law-\nJuly 26 and has asked special\naddition 25 heats carrying 786 Hai-\nSouth African beaches, officials\nsuits.\ncounsel Robert B. Fiske Jr. and\ntiana had been intercepted by U.S.\nand yesterday\ntop White. House officials to Lear\nships over the weekend. in all of\nThe Apells Sea. \" Penamenian-\nFDA OKs Drug\ntify.\n1993 Coust Guard Petty Officer\nregistered are carrier based in\nCommittee Chairman Henry B.\nToni Long-Gay said, 2,239 Haitiana\nHong Kong. left Saldanha Bay\nTo Combat AIDS\nGonzelez eaid yesterday that he in-\nwere apprehended\nnorth of Cape Town on June 20\nvited Fiske to the initial hearing to\nwith & crew of 36 and has not been\nA fourth drug that attacks the\nreport or. the \"Washington prese\nheard from since. It was carrying\nvirus that AIDS was ap-\nof his investigation into the Arkan\nVoting Shows Split\nabout 800,000 gallons of fuel 0.1.\nproved yesterday by the Fond and\nBAS land deal in which President\nAmong Ukrainians\nDrug Administration and is EX-\nhill Clintor and first lady Hillary\nVow on Arafat\npected to be on the market within\nRadham Clinton were partners.\nUkraine A nationalist weat and\ntwo weeks.\npro-Russian east lurched toward a\nThe chemical name is stavudine,\nThe mayor of Jerusalem an-\nor d4'1' It will be sold by Bristol-\nStorm Systems\ncuilision yesterday when early elee.\nnounced plans yesterday to Cy in\nMyers Souibb Co. under the brand\nLion returns signated a July runuff\nJews from abroad to stand in the\nSock It to South\nname Zerit.\nbetween President Leonid Krav-\nway of any future visit to the city\nchuk end his main challenger\nby PLO Chairman Yasser Arafat\nStorms rumoled across the\nUnitficial results from Sunday's\n\"I was not elected 5 deal only\nNew Way to Detect\nSouth. spinning off tornadoes,\npresidential butloting showed a\nwith sanitation,' said right-wing\nLyme Symptoms\nanapping trees nn1 flooding\nstark regional division in the vast\nMayor Ehud Olmert durying Prime\nstreams\nformer Soviet republic the world's\nMinister Yitzhak Rabin's inais-\nResearchers say they have de\nAt lenst five people were killed,\nHurd-largest nuclear power. The\ntonce lest week that Arefat had 0\nveloped a new Lyme disease test\ndozens were injured and 36.eral\nfirst official returns were not ex-\nright LO pruy nt Mustim holy aites.\nthat could lead to earlier diagno-\ntowns had heavy dainege.\nJUNF\nnectod until today.\nCOMPLED KICIM NEWS SPATCHES\n818 and treatment of the hard-co-\nCOMPLETED FROM NEW DISPATURES\n6/28/94\nSenate Girds for Partisan Clash on Health Care Reform\nexpects to get few if any Republicans. Relying entirely on\n(Washn) By Karen Hosler and John Fairhall= (c) 1994,\nDemocrats is risky because there are only 56 Democrats,\nThe Baltimore Sun=\nand 51 votes are required to pass a bill.\nWASHINGTON Despite centrist efforts to compromise on\nThe White House is trying to remain above the\nhealth care reform, Republican and Democratic Senate\nlegislative hard ball at least until the end of this week,\nleaders are preparing for a partisan clash that could\nwhen Congress adjourns for a weeklong Independence Day\nprevent any sweeping legislation from passing this year.\nrecess. But Clinton, Hillary Rodham Clinton and various\nSenate Republican leader Bob Dole of Kansas and Senate\ninterest groups backing health care reform are working to\nMajority Leader George J. Mitchell of Maine have both\nbuild enthusiasm for the central elements of their\napparently concluded that it serves their political and\nproposal.\npersonal interests to fight rather than bargain.\nDole is resisting the compromise plan drafted last week\n(Optional add end)\nby a bipartisan group of moderates from the Senate Finance\nCommittee. Even though that proposal is less ambitious\nWhite House press secretary Dee Dee Myers noted that\nthan a bill Dole co-sponsored last year, the Republican\nthe president is flexible about the financing of\nleader is crafting an even more modest plan and imploring\nlegislation. Although he supports a requirement that\nhis troops to line up behind him.\nemployers pay the bulk of insurance costs, \"he would look\n'I've got 40 Republicans, and they've only got\nat other ways,\" she told reporters.\nthree,\" Dole said of the three Republican moderates who\nAdministration officials argue that without all\nhelped shape the compromise. \"Two of them aren't going to\nAmericans participating in the insurance system, it will\nbe around here next year like the rest of us,\" he added,\nbe impossible to control the skyrocketing cost of health\nreferring to two members who are retiring.\ncare and protect unhealthy people against exorbitant\nThe political calculation of Dole, a prospective\ninsurance rates.\nchallenger to President Clinton in 1996, is easy to\n\"Universal coverage is really critical to health care\nunderstand. There is little incentive for him to cast\nreform,\" said Dr. Michael E. Johns, dean of medical\ntough votes in order to give Clinton a victory on health\nfaculty at the Johns Hopkins School of Medicine in\ncare legislation that would be the centerpiece of the\nBaltimore. \"To go through this incredible effort and\npresident's re-election effort.\nthen come out with something that leaves a large segment\nBut there are a lot of reasons for Dole to wait until\nof the population uncovered, really is just not facing up\nafter this year's congressional elections, when, both\nto the reality of the situation.\"\ntradition and polls suggest, the Republicans will pick up\nDistributed by the Los Angeles Times-Washington Post\nmore seats and be in stronger position to write the health\nNews Service=\ncare legislation as they want it.\nThe Republican leader fears, however, that he will look\nlike an obstructionist if he is forced to stop a\nClinton-like bill with a filibuster near the end of the\nprocess. So he is trying his best now, confidants say, to\nJapan Faces Currency Crisis as Yen Outweighs Dollar\nprevent the Finance Committee from breaking its deadlock.\n(Tokyo) By Thomas Easton= (c) 1994, The Baltimore\nThat wouldn't stop the legislative process, but it would\nSun=\nmake it so difficult that the effort might collapse on its\nTOKYO Japan, already gripped by political turmoil, now\nown.\nfaces a full blown currency crisis.\nMitchell, who serves as the president's chief agent in\nThe yen became more valuable than the penny Monday for\nthe Senate, is devising a risky strategy aimed at calling\nthe first time since World War II, as financial markets\nDole's bluff. He and other Democratic liberals, who are\nshrugged off strong central bank intervention. The losing\ntrue believers in the health care overhaul Clinton\nstruggle between the Bank of Japan and the market became\nproposes, don't want to yield as much ground as it would\nevident early in the day, with the yen steadily rising\ntake to win Republican votes.\ndespite the bank's purchase of billions of U.S. dollars.\nEven the bipartisan compromise itself a breakthrough\n\"The fear,\" said David Snoddy, a financial analyst at\nin many respects falls far short of meeting Clinton's\nJardine Fleming, an investment bank, ``is that nobody\ngoal of guaranteed health insurance for every American\nknows why this happening.\"\nthat can never be taken away.\nAt the end of trading, the yen was quoted at 99.93 to\nSome Democrats, like Sen. Thomas A. Daschle of South\nthe U.S. dollar, down just a fraction from an intraday\nDakota, a Mitchell protege who hopes to replace him next\nhigh of 99.5 and, importantly, cracking the psychological\nyear as majority leader, are willing to back the\nbarrier of yen-penny parity. The previous low was 100.40,\nbipartisan bill, even though they feel it isn't generous\nset Friday.\nenough, just to break the committee deadlock.\n(The dollar also closed under 100 yen in London,\nLet's get it through committee and see what we can do\nfinishing the day at 99.96 yen, but stabilized slightly in\non the floor,\" Daschle said.\nNew York, where it closed at 100.45 yen, down from\nA much-postponed committee drafting session on health\nFriday's close of 100.60.)\ncare legislation was put off again Monday until Wednesday.\nThe committee is expected to consider proposals to require\n(Begin optional trim)\nemployers to buy health insurance for employees after a\ncertain date. Supporters of a Clinton-style plan say such\nNews shows are filled with the predictable kaleidoscope\nan employer ``mandate\" is crucial to ensuring universal\nof reactions: Manufacturers of cars and electronics\ncoverage.\nexpress anguish and mutter about having to raise the price\nMitchell's plan is to combine whatever comes out of the\nof their exported goods; importers of cars and food can\nSenate Finance Committee with a much more generous version\nbarely contain their joy; foreign tourists groan at the\nof the Clinton plan approved by the Labor and Human\ncost of even the briefest stay in Japan; and Japanese\nResources Committee, chaired by Sen. Edward M. Kennedy,\nleaving to go abroad talk about the delights of riding on\nD-Mass.\nhappily on a strong currency.\nMitchell's strategy is to tailor the combined bill\nThe most recent rise in the value of Japan's money\nlargely to meet the concerns of Democrats because he\nmerely continues a trend evident since the early 1970s,\n159\n6/28/94\nwhen it was delinked from its post-war rate of 360 yen to\nthe dollar. In the past, however, the yen's increase in\nHealth Reform: Who Pays?\nvalue has occurred when the country's economic growth was\nfar stronger and the attractiveness of domestic production\n(c) 1994, The Baltimore Sun= The following editorial\nmore evident.\nappeared in Monday's Baltimore Sun:\nThe latest surge has caused great alarm in Japan as one\nSenate moderates pushing health care reform that puts\nindustrial company after another has shifted manufacturing\nthe emphasis on individuals, not employers, in purchasing\nto less costly sites outside the country. Companies\ninsurance may be on to something. The fact is that in the\ncontinuing to produce in Japan are beginning to consider\nend it will always be individuals not employers, not the\nincreased purchases of crucial materials like steel and\ngovernment who have to pay the doctor (and the hospital\nparts from abroad, breaking the domestic suppliers' hold.\nand the pharmacist and the insurance peddler).\nWhen you have an ``employer mandate,\" as Bill\nThe new high for the yen comes just as Japan seems to\nand Hillary Clinton propose, the cost is ostensibly\nbe pulling out of its worst recession in almost half a\ncovered by the boss. But employees inevitably feel the\ncentury. Similar rebounds during the past 30 months have\nimpact in the form of smaller paychecks.\nfaded following new highs in the yen and in almost every\nWhat the debate on Capitol Hill is really all about is\nforecast now being issued in Tokyo there is an ominous\ncost shifting of somehow finding a way to force healthy,\ncaveat that this could occur once again.\nreasonably well-off people to help pay the bills of the\nsick and the less fortunate.\n(End optional trim)\nThe nation's poor already are covered by Medicaid, the\nelderly by Medicare. But the nation's jerry-built health\nExplaining the strength of the Japanese currency,\ncare system too often fails to cover lower-income people\neconomists point to numerous factors ranging from monetary\nwho are self-employed or working for employers who do not\npolicy throughout the world, to inflationary expectations\nprovide insurance. And why? Because insurance companies\nin the United States. But the single factor that appears\ntend to deny coverage to those with pre-existing\nto cut across all analysis is the persistently strong\nconditions and refuse customers the right to carry their\ntrade surplus posted by Japan.\ncoverage from job to job. Because healthy citizens or the\nNext to the surplus exists a painful paradox. That is\nmillions of employees used to having their medical\nthe bewildering fact that Japanese consumers cannot afford\ninsurance extracted tax-free from their paychecks don't\nproducts sold here even those made in Japan for anything\nreally want a change. Because there is so much red tape\nlike the prices charged abroad. This has been a strong\ninvolved in medical billing that billions of dollars go to\nimpetus here for political reform that could crack the\nadministration rather than health care.\ngovernment-fostered a web of regulations blocking imports.\nA year ago remember? health care reform was widely\nregarded as a cause whose time had come. But then came the\nYet the initial triumph of political reform last summer\ndetails, and from them emanated so many devils that today\nhas stalled. The latest government resigned Saturday and\nthe whole reform movement could collapse. Republicans who\nin a general chaotic scramble for power, it is possible\nonce were guarded or cautiously supportive of health\nthat a ruling coalition will emerge that has little\nreform now seem more emboldened to oppose the Clintons\ncommitment to change or any consistent policy.\noutright.\nSince last July the United States has been involved in\nPerhaps this can be blamed on the secretive way in\noften testy negotiations with Japanese officials to widen\nwhich Clinton concocted a vastly complicated 1,300-page\nmarket access and thus diminish the country's persistent\nbill. Perhaps it can be attributed to a small-business\ntrade surpluses. Those discussions appear to have been put\nlobby that cranked out the ``Harry and Louise\"\non hold with the demise of Japan's government.\ncommercials without ever quite informing the public that\nemployers providing health care were carrying the water of\n(Optional add end)\ntheir deadbeat competitors.\nBe that as it may, the focus now is on proposals before\nEven in the midst the current pessimism, however, there\nthe Senate Finance Committee that would throw out\nis some thought that what is occurring now may be merely\n``employer mandates\" and substitute them with insurance\nthe markets over-reacting.\nreforms, subsidies for the ``working poor\" paid for\nIt's a classic overshoot,\" said Robert Feldman of\nthrough tobacco and payroll taxes and vague prospects for\nSalomon Brothers, a U.S. investment firm.\ntaking further action perhaps even ``individual\nConcern about inflation in the United States and other\nmandates\" if more than 5 percent of the population\neconomic factors in each country has been overblown,\nremains uncovered at century's end.\nFeldman said. Both countries have already taken, or are\nAs many holes can be picked in this approach as in the\nsoon to take, steps that will redress any reservations.\nClinton proposal or its variations. But if it is\nDistributed by the Los Angeles Times-Washington Post\ntheoretically correct that the individual is the end\nNews Service\nsource of health dollars, then bipartisan proposals in\nSenate Finance deserve a fair hearing. The alternative, as\neven the Clintons are starting to suspect, could be\nnothing at all.\nDistributed by the Los Angeles Times-Washington Post\nNews Service=\nPolitics & Policy: A Look at Lawmakers' Medical Plans Suggests Congress's\nHealth Coverage Isn't So Generous --- By Hilary Stout Staff Reporter of\nThe Wall Street Journal\nWASHINGTON -- For President Clinton and his allies on health care, it has\nbecome the one sure-fire applause line: Give every American what Congress\ngets.\n\"You say it and the audience goes crazy,\" says Families USA foundation's\nArnold Bennett, a member of the team helping the administration craft its\nhealth-care message.\nHillary Rodham Clinton uses it in virtually every speech she gives. Just\nthis week a group of Democratic senators, including Labor and Human Resources\nCommittee Chairman Edward Kennedy of Massachusetts, called a news conference\nto demand that the general public get the coverage that \"members of Congress\nhave arranged for themselves.\" Sen. Harris Wofford, the Pennsylvania Democrat\nwho won his seat in 1992 by stressing health care and faces a stiff\nre-election fight this year, is circulating a petition demanding a bill that\noffers \"every Pennsylvanian and every American the same kind of guaranteed\ncoverage and choice of private health plans that members of Congress get.'\nBut while focusing on Congress's benefits may be a stroke of political\nbrilliance, the prospect of actually getting what Congress gets might not\nplease large numbers of Americans, including some of the most vigorous\nsupporters of the president's health-care bill.\nThe federal employees package isn't as generous as most union health plans,\nor the programs of many Fortune 500 companies. For example, many of the\npolicies available to federal employees don't include substance-abuse benefits\nor preventive dental care.\nHowever, Congress's benefits package would be an improvement for a vast\nnumber of Americans, particularly many employees of small and midsize\nbusinesses and, of course, the estimated 39 million people with no health\ninsurance. Still, the federal government's share of the premium isn't as\ngenerous as most unions and many big employers -- or, for that matter, the\n80% share the White House would like employers to bear. And as far as the\nscope of the benefits and the patient cost-sharing requirements, Congress's\nplan isn't nearly as comprehensive as Medicaid, the federal-state health\nprogram for low-income people.\nWhat lawmakers -- and indeed all federal employees, including the president\n-- get is the opportunity to enroll in one of an array of health-care plans,\neach offering a comprehensive package of medical benefits, with the premium\npaid in part by their employer: the taxpayers.\nIn the Washington area, members of Congress can choose from among nearly 30\nhealth plans, including 14 health-maintenance organizations and seven\n\"fee-forservice\" plans, which pay at least part of the bill for visits to the\ndoctor or hospital of the patient's choice. The benefits in each plan vary,\nbut generally include hospital and emergency services, doctor visits, lab\ntests, prescription drugs and some dental care. Depending on the policy,\ncoverage may include children's immunizations and some nursing-home benefits.\nUnlike much of the general public, Congress is also free of some of the\nonerous insurance-industry practices that shut some people out of the market.\nUnder the Federal Employee Health Benefits Program, no health plan can drop C\nrefuse to enroll a government employee or dependent because of a medical\ncondition.\nBut as far as cost-sharing goes, Congress isn't getting quite the ride that\nmany working Americans do. According to the Office of Personnel Management,\nwhich runs the federal benefits program, the government pays on average 72% (\nemployee health premiums, and no more than 75%. But for some policies the\nshare is far less.\nFor example, the government's share of a family policy for a Blue\nCross/Blue Shield \"high option\" fee-for-service plan is $306.41 a month, or\nless than half; the employee pays $343.24. For a Blue Cross standard option\nplan -- which has higher deductibles and generally pays 75% of most doctor\nbills instead of 80% -- the government pays $303.77 for a family plan and the\nemployee pays $101.25.\nThe political thrust and parry over the \"what Congress gets\" argument\nflusters some Republicans. For instance, House Minority Whip Newt Gingrich, a\nstaunch foe of the president's health-care proposals, was taken aback on NBC's\n\"Meet the Press\" Sunday when a reporter asked him, \"Why can't the average\ncitizen have the same health-care plan that Congressman Gingrich has?\" The\nGeorgia Republican replied, \"I have a Blue Cross plan that I pay for every\nmonth.\nI think it's about $400.\"\nNot exactly. The total monthly premium for the standard-option Blue Cross\nplan Mr. Gingrich and his family are enrolled in is just over $400. But on\nMonday a spokesman for Mr. Gingrich said the congressman only pays about $100\na month. The government picks up the remaining $300.\nAmong other things, Republicans are especially irked that Democrats seldom\nmention that the president gets the same benefits as lawmakers. (The Clintons\nhave the same plan Rep. Gingrich has.) Senate Minority Leader Robert Dole of\nKansas this week denounced the argument as a \"cheap shot,\" and said he plans\nto propose that the president and members of Congress pay their entire premium\ncosts themselves. Democratic Sen. Wofford, though, has already gone him\none-up: He says he'll pay the full cost of his health insurance until Congress\npasses coverage for all, and is challenging his GOP opponent, Pennsylvania\nRep. Rick Santorum, to do the same.\nIn addition, the president's allies are already planning a sequel to the\n\"what Congress gets\" line, says Mr. Bennett of Families USA. If moderate and\nconservative lawmakers continue to tout a bill that would cover 91% of the\nAmerican population as a worthy achievement, he says, the retort will be:\n\"Which nine senators intend to give up their health insurance?\"\nWhat Congress Gets\nHighlights of the Blue Cross/Blue Shield Standard Option Plan, one popular\nhealth plan in the Federal Employee Health Benefits Program\nAnnual deductible\n$200\nAnnual inpatient hospital deductible\n$250\nOut-of-pocket limit\n$3,250\nInpatient hospitalization\n100% coverage\nDoctor services\n75%\nOutpatient hospital services\n75%\nPrescription drugs\n$50 deductible,\nthen 60% coverage\nTotal premium\n$405.02 per month\nMember's shares\n$101.25\nGovernment share\n$303.77\n****\nfiled by:WSJ-(--)\non 06/25/94 at 23:17EDT ****\n**** printed by: WHPR (JEL) on 06/27/94 at 08:11EDT ****\nBC-MO-BRF--Dean-Clinton,0130\nDean Of MU School Of Medicine Invited To White House Meeting\nCOLUMBIA, Mo. (AP) The dean of the medical school at the University of\nMissouri at Columbia will travel to the White House next week for a conference\non health care reform.\nDr. Lester R. Bryant will join 60 other leaders of academic health centers\nin meetings Monday with President Clinton, Hillary Rodham Clinton and senior\nWhite House officials.\nAcademic health centers are a vital foundation of America's health-care\nsystem, \" Bryant said Friday in a statement announcing the White House visit.\nWe train the health-care providers of tomorrow, including the primary-care\nphysicians who will be integral to the growth of managed care plans.\nAs part of the meeting, participants will sign a statement endorsing\nuniversal medical coverage.\n****\nfiled by:APW-(MO) on 06/24/94 at 20:46EDT ****\n**** printed by: WHPR(JEL) on 06/27/94 at 08:14EDT ****\nBC-OK- Health Care-Okla, 310\nMeeting With Mrs. Clinton Strikes Nerve With Boren\nOKLAHOMA CITY (AP) The first lady pitched President Clinton's health care\nplan to a group of Oklahoma leaders, a move that drew raised eyebrows from\nOklahoma Sen. David Boren.\nHillary Rodham Clinton told the Oklahomans on Friday that universal\ncoverage was the critical component of the president's plan and that employer\nmandates were the most effective way of achieving it.\nParticipants said they weren't asked explicitly by the president's wife tc\nlobby Boren and other members of the Oklahoma delegation. But one Oklahoman\nsaid the implication'' was there that they should ask the delegation to\nsupport the Clinton plan.\nBoren, a Democrat, is among a group of moderate senators who put together\na compromise health care package.\nI'm always happy when Oklahomans get invited to the White House, \" Borer\nsaid Thursday. I'm all for that. But as a device to try to switch my vote,\nit's not a very effective one, because it's so transparent.\nJust coincidentally, all of a sudden, they decide to have a group of\nOklahomans come in. Purely by coincidence. Sort of a state chosen by random.\nIt's SO transparent. I would not call it a very subtle form of politics. \"\nThe alternative plan is aimed at covering 95 percent of Americans by the\nyear 2002 without forcing employers or individuals to buy health insurance.\nOklahomans interviewed after their meeting with Mrs. Clinton and other\nWhite House officials said the session was beneficial and cleared up some\nconfusion and inaccurate information that had been circulated about Clinton's\nplan. They said the moderates' plan was mentioned but not discussed at length\nbecause details weren't available.\nThe Oklahoma group included state lawmakers, hospital administrators, a\nlabor leader and others.\n****\nfiled by:APW- (OK) on 06/25/94 at 01:51EDT ****\n**** printed by: WHPR (JEL) on 06/27/94 at 08:13EDT ****\nbc-conghealth\nCONGRESS DOES UNTO OTHERS IN HEALTH CARE\nAS IT DOES UNTO ITSELF MORE OR LESS\nEds: Good thru weekend; originally moved Friday.\nBy WENDY KOCH=\nGannett News Service=\nWASHINGTON Members of Congress, fighting a nagging image of special\nprivilege, still have free parking spots at the airport and subsidized meals\nat the Capitol. But they don't get a special break on health insurance.\nLawmakers get the same options as all federal workers, including\nPresident Clinton, and many private-sector employees. They are guaranteed\ncoverage by their employer, who pays about three-fourths of the cost.\nEvery member of Congress has health care that can never be taken away\nand it is paid for in large part by our employers the American taxpayer,\nsaid Sen. Edward Kennedy, D-Mass.\nAs Congress debates health care reform, the issue of parity is becoming an\nincreasingly potent weapon for members who support the requirement that\nemployers supply health care insurance, and an embarrassing one for those who\ndon't.\nIn many of her speeches, Hillary Rodham Clinton makes a simple populist\npitch: Congress should give Americans what members get sort of Do unto\nothers\nTo counter the Democrat pitch, Senate Minority Leader Bob Dole of Kansas\nsaid he will propose that the president and members of Congress pay the entire\ncost of their health coverage.\nClinton's plan guarantees workers coverage with employers paying 80\npercent of the cost of a standard plan.\nThey wanted to find the average, said Bill Custer, research director\nof the Employee Benefits Research Institute, a private, non-partisan research\ngroup.\nBut some lawmakers are confused about their own benefits and are proposing\nplans that guarantee constituents much less.\nWhen asked about his own coverage on NBC's Meet the Press, House\nMinority Whip Newt Gingrich stumbled. He said he pays about $400\na month for his Blue Cross/Blue Shield plan.\nActually, as his office later corrected, the Georgia Republican pays\n$101.25 monthly for his family's standard option plan. Uncle Sam pays the\nrest: $303.77.\nHis plan is the most common one selected by members of Congress, said\nStuart Balderson, financial clerk of the Senate. It is the one that covers\nPresident Clinton's family.\nIts cost also closely resembles the average monthly premium paid by\nprivate-sector workers with a similar family plan. In 1991, at medium and\nlarge companies, workers paid $96.97. At small businesses they paid more, the\nLabor Department says.\nSome workers do much better. Union workers and employees at Fortune 500\ncompanies, for example, often get more generous plans. Typically, they do not\ncontribute toward their monthly premium, benefits may be broader, and they are\nlikely to continue to receive coverage after retirement.\nIf these workers were to get only what Congress gets, they would lose out.\nSo unions and some others are seeking exceptions from the White House. But\nthese are more the exception than the rule.\nMany would do as well, or better, with a Congress-type plan. For the 15\npercent without health insurance an estimated 39 million Americans getting\nwhat Congress gets would be as blessing.\nFor those on Medicaid, the federal health insurance program for the poor,\nbenefits might be narrower but reimbursement rates for health care providers\nwould rise. As a result, said Custer, quality of care probably would improve.\nMedicare beneficiaries who need hospital stays would have lower\nout-of-pocket costs. And for the 30 percent of workers with no\nemployer-provided insurance, a Congress-type plan would ensure them coverage.\nCurrently, all federal workers can enroll in the Federal Employee Health\nBenefits Program, which provides a selection of nearly two dozens plans with\nvarying premiums and benefits. Uncle Sam picks up the tab for an average of 7\npercent of a plan's cost. The worker pays the difference.\nUnlike most private-sector workers, federal employees can continue\nemployer-subsidized coverage after retirement, if they meet eligibility\nguidelines. Only one-fifth of private sector retirees retain coverage\nsubsidized by an employer.\nAmong federal workers, Clinton and his family get perhaps the best\nsupplemental care. They have round-the-clock access to a personal physician a\nthe White House.\nWe'd hope the president has the best care, said Reg McGhee, spokesman\nfor the United Auto Workers union. `If a world crisis happens, we'd hope the\npresident wouldn't be away at his dental appointment for two hours.\nIronically, Clinton's initial proposal would have scrapped the federal\nworkers' plan, hailed for its fine record of cost containment, and required\nthat they join the same purchasing cooperative as other workers in their\ngeographic area.\nYet Kennedy has put the federal plan back into a bill that passed his\nSenate Labor and Human Resources Committee. He argues all workers should be\nentitled to buy from the same system that has produced good benefits and cost\nsavings for members of Congress.\nWhat ultimately happens to health care reform if anything will be the\nresult of a long, bitter battle between Congress and the White House.\nThere are going to be lots of twists and turns in the process, said\nLorrie McHugh, the White House's health care spokeswoman.\n**** filed by:GN-F(--) on 06/25/94 at 13:52EDT ****\n**** printed by: WHPR (JEL) on 06/27/94 at 08:13EDT ****\nNew Senate Proposal Retreats\nOn Required Health Insurance\nModerates' Plan Also Drops Universal Coverage\nBy ROBIN TONER\nSpecial to The New York Times\nAl\nWASHINGTON, June 24- A bipar-\nates' proposal is widely seen as a\ntisan group of moderates on the Sen-\ngood approximation of what the com-\nate Finance Committee unveiled a\nmittee is likely to produce. Democrat-\nnew health plan today that eliminates\nic leaders are eager to get the com-\nany politically contentious require-\nmittee moving, even if it produces a\nments that individuals or employers\nplan that requires substantial revi-\npurchase insurance. But the plan also\nsion later.\nfalls short of guaranteeing universal\nThe moderates argued that theirs\ncoverage, President Clinton's bottom\nwas a politically attainable proposal\nline.\nthat would extend health coverage to\nThe group appeared to decide that\nmillions of uninsured Americans\nit was easier to give up the goal of\nthrough a system of subsidies for low-\nguaranteed universal coverage than\nincome people and new insurance\nproduce a palatable mechanism to\nregulations to make coverage easier\nattain it. The Finance Committee as a\nto get. It would also seek to restruc-\nwhole has been stalled for months\nture the health care market through\nover the issue of how to pay for\nmechanisms like insurance purchas-\nuniversal coverage, and the moder-\ning groups.\nSenator John H. Chafee, Republi-\ncan of Rhode Island and a leader of\nthe group, declared, \"We believe this\nis a very serious advance.\" He esti-\nmated that the plan could eventually\ncover as many as 20 million of the 37\nmillion Americans who now lack\nhealth insurance.\nBut the plan was quickly de-\nnounced by many advocates of health\ncare restructuring because it fails to\nmeet the goal of universal coverage.\nOne of the seven members of the\nmoderate group, Senator Bill Brad-\nley, Democrat of New Jersey, dis-\ntanced himself from the proposal,\nsaying, \"I regret this plan did not do\nmore to achieve universal coverage\nthrough a shared responsibility by\nindividuals and employers.\"\nThe group reached final agreement\nContinued on Page 9, Column I\n1/2\n2\nTHE NEW YORK TIMES, SATURDAY, JUNE 25, 1994\n3\n1\nNEGOTIATIONS\nHealth Plan\nIs Proposed\nBy Moderates\nContinued From Page 1\non the measure in a private meeting\nthis morning, after members decided\nto drop a proposal to guarantee uni-\nversal coverage by ultimately requir-\ning people to purchase health insur-\nance. That idea, known as an individ-\nual mandate, had met fierce resist-\nance from groups representing labor,\nconsumers, health organizations and\nthe elderly.\n\"I started coming to the conclusion\nnobody was for it,\" said Senator John\nB. Breaux, Democrat of Louisiana,\nthe other leader of the group. \"I just\nthought, why on earth am I support-\ning something that nobody else is\nfor?\"\nA Republican strategist close to the\ntalks, who spoke on the condition of\nanonymity, agreed, saying: \"There\nwas no constituency for it. And they\nbelieve these reforms are going to get\nto a substantial level of insur-\nance.\"\nThe 7 moderates will present their\n1 on Monday to the Senate Fl-\nnance Committee, which has 20 mem-\nbers. Many on Capitol Hill consider\nthis proposal to be the best hope of\nbreaking the logjam. The architects\nof the proposal were very much drive\nen by the need to get \"a bill that could\n, Mr. Chafee said.\nThe White House responded to the\ncompromise plan with great caution,\ncontinuing its attempt to keep legisla-\ntion moving through committees\nwhile retaining the hope of ultimately\nfixing it - by restoring universal\ncoverage before final passage.\n\"It's encouraging to see members\nwork in a bipartisan fashion,\" said\nLorrie McHugh, the White House\nspokeswoman on health. \"There will\nbe many twists and turns along the\nI\nto health care reform, but we\nare confident that the road will lead\nto the President's bottom line of uni-\nversal coverage.\"\nator Daniel Patrick Moynihan,\nDemocrat of New York, departed this\nPhotographs by Stephen Crowley/ The New York Time\nafternoon for his farm in upstate New\nAbove, Senators Daniel Patrick Monynihan, Demo-\nversal coverage. Below, from left, Senators Kent\nYork after describing the plan as \"an\ncrat of New York, left, and Bob Packwood, Republi-\nConrad, Democrat of North Dakota, John Chafee,\nextraordinarily powerful proposal.\"\ncan of Oregon, on their way to a meeting with\nRepublican of Rhode Island, John B. Breaux, Demo-\nThe Fight's Not Over\nmoderates on the Finance Committee to discuss a\ncrat of Louisiana, and Dave Durenberger, Republi-\nator Tom Daschle of South Da-\nscaled-down health insurance proposal without uni-\ncan of Minnesota, announcing the plan.\nkota, an influential Democrat on the\ncommittee and a close ally of the\nAdministration, said he doubted that\nChlopak, a spokesman for the group.\nlike allowing new insurance purchas-\nered a plan that, at that point, would\nanything substantially closer to uni-\nThe group of seven has struggled\ning pools for small companies and\nhave required individuals to pur-\nversal coverage could be passed by\nfor an agreement throughout the\nindividuals.\nchase insurance.\nthe Finance Committee. He called the\nweek in a modest room at the end of a\nThese changes, Mr. Durenberger\nproposal a \"good beginning\" and add-\nstuffy corridor on the second floor of\nargued, would make insurance more\nSeeking Middle Ground\ned: \"My guess is this is pretty repre-\nthe Capitol. They included three Re-\naffordable. He said, \"The principal\npublicans Senators Chafee, Dave\nMr. Breaux today argued that their\nsentative of the committee as a\nreason people don't get coverage is\nwhole. But I think you can expect all\nDurenberger of Minnesota and John\nbecause they can't afford it.\" The\nplan represented middle ground.\nC. Danforth of Missouri and four\n\"Our group really had a choice: of\nof the issues to be revisited on the\nplan would also increase the cigarette\nfloor.\"\nDemocrats: Senators Breaux, Brad-\ntax by $1 a pack and impose a new tax\nsiding with that group of people who\nley, David L. Boren of Oklahoma and\nwanted to do everything and do it all\nSenator John D. Rockefeller 4th, a\nKent Conrad of North Dakota.\non high-cost health plans.\nat once, or with those who wanted to\nW\nVirginia Democrat and another\nMuch of the debate has focused on\ndo almost nothing and take a long\nstaunch Administration ally, was\nThe-plan they produced would use\nwhat would happen if these voluntary\ntime doing it,\" he said.\nmore muted. \"I commend the com-\nsubsidies to help low-income people\nchanges and incentives did not\nBut there was substantial skepti-\nmit I and effort of my Finance\nbuy insurance, ultimately aiding peo-\nproduce universal coverage; or some-\ncism off Capitol Hill. The National\nCommittee colleagues, but if this is\nple with incomes up to 2.4 times the\nthing close to it. About 85 percent of\nLeadership Coalition for Health Care\nthe best they have to offer, it only\nofficial poverty level. That would help\nAmericans are insured now. Under\nReform, an alliance of 93 corpora-\nshows we have a lot of work to do.\"\na family of four with an income up to\nthe moderates' plan, if 95 percent of\ntions, unions and health groups. said\nA spokesman for the Health Care\n$35,433. It would also allow a tax\nAmericans were not covered by the\nin a statement that the plan fell\n1\nReform Project, a coalition of 56 civ-\ndeduction for people who paid any of\nyear 2002, a National Health Commis-\nin terms of both improving coverage\nic, elderly and consumer groups that\nthe cost of their insurance: And it\nsion would make recommendations\nand containing costs. That reflected\ncriticized the emerging plan on\nwould require insurance companies\nto Congress on what to do about it.\nthe widely held view in health policy\nThursday, dismissed the final plan\nto end practices like denying cover-\nCongress would have to act on the\ncircles that until everyone is brought\ntoday. \"We view this as the lowest\nage for pre-existing conditions.\nrecommendations but would not be\ninto the health care system, costs will\ncommon denominator, not even close\nIn addition, it would enact a variety\nbound to accept them.\njust be moved from one group to\nto universal coverage,\" said Bob\nof changes in the health marketplace,\nEarlier, the moderates had consid-\nanother rather than being conta\nTHE NEW YORK TIMES, SATURDAY, JUNE 25, 1994\n2/2\n4\nTHE DETAILS\nA Call for Health Cost Curbs,\nBut Not Mandatory Insurance\nBy ROBERT PEAR\nsame premiums to all people buying\nSpecial to The New York Times\ncoverage through purchasing pools in\nWASHINGTON, June 24 - A plan\na particular geographic area. But,\nendorsed today by members of the\nunlike Mr. Clinton's proposal, higher\nSenate Finance Committee is seen as\npremiums for older people would be\na way of getting some form of health\npermitted. There would be five age\nplan through a panel that has been\ncategories, and premiums for the old-\nstalled on the issue for months. Any\nest people could be no more than\nplan leaving the committee could be\ntwice the premiums for the youngest.\nsubstantially modified later.\nCompanies with more than 100 em-\nUnder the bill, private insurers\nployees would be able to buy private\nwould have to offer coverage to all\nhealth insurance or serve as their\napplicants at standard rates calculat-\nown insurers, paying claims from\ned by the Government. To help people\ncorporate assets as many companies\npay the premiums, the Federal Gov-\nnow do.\nernment would offer subsidies to mil-\nThe bill says insurance purchasing\nlions of Americans, including many\ngroups could negotiate prices with\nwith incomes substantially above the\ndoctors and hospitals but would not\nofficial poverty level, which is new\nhave to sign contracts with all doct-\n$14,764 for a family of four.\ntors and hospitals in their areas.\nThe proposal would also help peo-\nA novel feature of the Chafee-\nple buy coverage by creating a new\nBreaux proposal is a mechanism to\ntax deduction for people who pay any\nprevent any increase in Federal\nof the cost of their health insurance.\nhealth spending beyond what is at-\nUnder current law, self-employed\nready projected. If outlays exceeded\npeople can take a deduction for 25\nthose projections, Congress could\npercent of the amount they pay for\nrein in spending. If Congress took no\nhealth insurance for themselves and\naction, Federal subsidies for low-in-\ntheir families. The new proposal\ncome people would be automatically\nwould increase the deduction to 100\nreduced and higher taxes would be\npercent and make it available to all\nimposed on insurance plans. Tax de-\npeople who spent their own money on\nhealth insurance, not just the self-\nemployed.\nA plan for more\nTaxes to Cover Costs\nSenators John H. Chafee, Republi-\naffordable health\ncan of Rhode Island, and John B.\nBreaux, Democrat of Louisiana, are\nthe leaders of the effort that produced\ncoverage would not\nthe bill. They estimate that the subsi-\ndies and the new tax deduction would\nmake it universal.\ncost the Federal Government $246\nbillion over five years. The bill would\ncover part of this cost with a $1\nductions for the cost of health insur-\nincrease in the Federal cigarette tax,\nance would be limited, and consum-\nnow 24 cents a pack. It would also tax\ners could be required to pay larger\nthe 40 percent of insurance plans\nportions of their medical bills.\ncharging the highest premiums in\nConsumer Group Is Opposed\nany geographic area.\nUninsured people and businesses\nSupporters of this proposal de-\nwith 100 or fewer workers would be\nscribed It as a way to avoid increases\nable to pool their purchasing power in\nin the Federal budget deficit. But\nregional groups. Nothing in the bill\nCathy L Hurwit, legislative director\nwould require such groups or limit\nof Citizen Action, a consumer group\nthe number that could operate in a\nwith three million members, said:\ngiven area. The groups would be simi-\n\"The cumulative effect of these ac-\nlar to the regional purchasing alli-\ntions would be to increase costs to\nances proposed by President Clinton,\nconsumers or reduce their benefits.\nbut they would be smaller and have\nThose responsible for the cost in-\nless power to control health costs.\ncreases - the insurance industry,\nThe subsidies envisioned in the new\ndrug companies, some hospitals and\nbill would eventually be available to\nhealth maintenance organizations -\npeople with incomes up to 2.4 times\nget off scot-free.\"\nthe official poverty level. For a fam-\nThe bill includes several restric-\nily of four, the income celling would\ntions on medical malpractice law-\nbe $35,433 a year.\nsuits. Damages for pain and suffering\nThe Chafee-Breaux bill would set\ncould not exceed $250,000, and there\nup a National Health Commission to\nwould be new limits on fees for plain-\nassess progress toward the goal of\ntiffs' lawyers. Doctors have sought\nuniversal insurance coverage. The\nsuch changes, but consumer groups\ncommission would report to Congress\ngenerally oppose them.\nevery two years, describing the unin-\nThe new proposal would leave\nsured and the reasons they lacked\nMedicare as a separate program for\ncoverage. If more than 5 percent of\nelderly and disabled people. It would\nAmericans still lacked coverage in\nalso offer additional benefits, like pre-\nthe year 2002, the commission would\nscription drug coverage, for people\nadvise Congress on how to attain uni-\nwho joined health maintenance or-\nversal coverage. Congress would\nganizations or other private health\nhave to vote on the commission's\nplans under Medicare.\nrecommendations within a certain\nThe Senators' proposal, like Presi-\nperiod, to be specified later. At\ndent Clinton's bill, calls for substan-\npresent, at least 37 million Ameri-\ntial cutbacks in the growth of spend-\ncans, 15 percent of the population,\ning on Medicare and Medicaid, the\nhave no health insurance.\nprogram for low-income people. That\nThe commission would also define\nwould be achieved mainly by restrict-\na standard package of health benefits\ning doctors' and hospitals' payments.\ncovering doctors' services, hospital\nThe Senators' proposal would re-\ncare, prescription drugs, family plan-\nduce projected spending for Medi-\nning, X-rays and laboratory services.\ncare and Medicaid by $133 billion, or 7\npercent, over five years. The Clinton\nUnder the Chafee-Breaux bill, in-\nplan would cut $50 billion more from\nsurers would charge roughly the\nthe programs' projected growth.\nTHE NEW YORK TIMES, SATURDAY, JUNE 25, 1994\n12\nSenate Moderates Reach Compromise\non Health Care Legislatio\nBy Dana Priest\nThe rump group of moderates had\nallow final floor passage of anything\nWashington Post Staff Writer\nconvened to try to find a compro-\nnow under consideration.\nmise. Its proposal announced yester-\nSenate Minority Leader Robert J.\nAfter toiling for a week to pro-\nday would eschew employer man-\nDole (R-Kan.), who previously had\nsuce a consensus document, a bipar-\ndates, but would seek to ensure\nbacked many of the rump group's\nisan group of Senate moderates\ncoverage for all through a system of\nideas, denounced the effort this\nesterday proposed a limited health\ngovernment-funded vouchers for\nweek as a bipartisan position ap-\ncare package they hoped would\nlow-mcome Americans, new taxes\npeared near. Dole announced he\nCheak a deadlock in the influential Fi-\nimposed on higher-priced packages\nwould support a conservative, bare-\nnance Committee.\nand increased cigarette taxes, and\nbones package that would rely pri-\nSen. John H. Chafee (R-R.I.), who\nthe establishment of voluntary pur-\nmarily on changes in insurance rules\nsed the effort, said the plan repre-\nchasing groups for small businesses.\nto make coverage more affordable.\nented what the group believed was\nIf the measures failed to provide\nSenate Majority Leader George J.\nmeasure that could pass\" the Sen-\ncoverage for 95 percent of all Amer-\nMitchell (Maine) and other Demo-\nate.\nicans by the year 2002, a national\ncratic heavyweights publicly ap-\nBut in an indication of the ongoing\ncommission would recommend new\nplauded bipartisanism. But Mitch-\ndifficulties of reaching even limited\nmeasures to Congress.\nell's chief health care deputy, Sen.\ncongressional agreement on health\nThe other senators in the group\nThomas A. Daschle (D-S.D.),\nsare reform, two of the eight-mem-\nare Republicans John C. Danforth\nwarned about compromising too far.\nher group's five Democrats quickly\n(Mo.) and Dave Durenberger\n\"If we're fashioning legislation de-\ndisowned the proposal.\n(Minn.), and Democrats John Breaux\nsigned to bring about a certain num-\nIn a statement withdrawing his\n(La.), David L. Boren (Okla.) and\nber of votes, it's the wrong ap-\nsupport, Sen. Bill Bradley (D-N.J.)\nKent Conrad (N.D.).\nproach,\" he told a small group of\nsaid: \"I regret this proposal did not\nSenate Finance is one of five com-\nreporters. \"I'm prepared to support\ndo more to achieve universal cover-\nmittees-two in the Senate and\nsomething that will pass by the nar-\nage.\" The group's plan would not\nthree in the House-with jurisdic-\nrowest majority.\"\nguarantee health insurance for all\ntion over health care, and each is\nBoth the president and Hillary\nAmericans by a certain date-the\ntrying to pass its own bill. Those\nRodham Clinton continued stumping\nbottom line for President Clinton\nbills then will be melded by the lead-\nfor the Clinton plan, insisting that as\nand many of his supporters in Con-\nership, with the resulting bill in each\nfar as the White House was con-\nchamber debated and voted on.\ncerned. universal coverage was non-\ngress.\nSen. Max Baucus (D-Mont.), who\nTwo of the five committees, one\nnegotiable.\nalso withdrew from the effort, said\nin the Senate and one in the House,\nSee HEALTH, A5, Col. 1\nthe plan \"would not do anything to\nhave now passed bills-both of them\nreduce the annual growth of health\nclosely resembling Clinton's propos-\ncare costs.\"\nal, providing universal coverage for\nMeanwhile, Finance Committee\nall Americans and mandating that\nChairman Sen. Daniel Patrick Moy-\nemployers pay for most of it.\nnihan (D-N.Y.), who yesterday\nThe Senate's Labor and Human\nmorning praised the group's effort\nResources Committee, chaired by\nas \"incredibly powerful\" and said it\nSen. Edward M. Kennedy (D-Mass.),\ncontained \"a lot of good ideas,\" by af-\nearly this month passed a bill much\nternoon was said by his staff to feel\nlike Clinton's plan that is likely to be\nthe plan \"had gone so far off base\"\nattacked strongly on the floor by the\nthat little of it was acceptable.\nsame conservatives and business in-\nMoynihan plans to introduce on\nterests who have fought so hard\nMonday his own version of a health\nagainst employer mandates in the\ncare reform plan, which will include\nFinance Committee.\nslightly stronger guarantees of uni-\nOn Thursday; the liberal House\nversal coverage, according to con-\nEducation and Labor Committee\ngressional sources. The committee\npassed a similar bill, requiring em-\nis due to begin public discussions of\nployers to pay 80 percent of the cost\nthe issue next week, in hopes it\nof employee insurance. The commit-\neventually can agree on a bill.\ntee also passed \"without recommen-\nThe Finance Committee has been\ndation\" a separate bill that would\ndeadlocked for months as Republi-\nprovide tax-paid, government-man-\ncans and conservative Democrats\naged insurance for all Americans.\nrejected \"employer mandates\" re-\nBut while the congressional pro-\nquiring employers to pay for work-\ncess continued this week, and the Fi-\ners' health insurance, and more lib-\nnance Committee rump group\neral Democrats insisted that any bill\nworked painstakingly away in Cha-\nfulfill Clinton's pledge of universal\nfee's Capitol Hill hideaway office,\ncoverage. None of the plans that al-\nDemocratic and Republican leaders\nready had been proposed, including\nwere hardening their public posi-\nClinton's bill, had enough votes to\ntions and seemed further than ever\npass the committee.\naway from a compromise that would\n26\nTHE\nWASHINGTON\nPost\nSATURDAY,\nJUNE\n25,\n1\n2\nHealth Proposal May Break Deadlock\nHEALTH, From A4\nothers turned back several of their\nRostenkowski, who was ousted from\namendments, worried that the\nIn one of the more convoluted\nthe committee chair after being in-\nhealth care bill being crafted there\ntwists of health care politics, Dole\ndicted last month, had planned to\nwill be too liberal.\nsuggested in a closed-door Finance\nmake changes to the subcommittee\nGibbons \"is ardently and zealously\nCommittee meeting that the com-\nbill that would be more favorable to\nfighting to defend\" his own proposal,\nmittee publicly criticize Hillary Clin-\nprivate business.\nsaid Rep. Michael A. Andrews (D-\nton for suggesting that some mem-\nAs the committee broke up for\nTex.).\nbers of Congress are unwilling to\nthe evening last night, due to meet\nGibbons's plan, which includes the\ngive the American public the same\nagain today for a six-hour session,\nlevel of health care they accord\nemployer mandate, closely resem-\nGibbons declared. \"We're going to\nthemselves. According to congres-\nbles one approved several months\nvote out of the Ways and Means\nsional sources who were in the\nago by a Ways and Means subcom-\nCommittee before we go home for\nroom, Moynihan agreed that Clinton\nmittee headed by Rep. Fortney\nthe Fourth of July recess a health se-\nwas out of line and promised to\n\"Pete\" Stark (D-Calif.), of whom Gib-\ncurity bill for the whole nation,\" one\nspeak to the White House about the\nbons-unlike his predecessor as\nthat will cover all Americans \"from\nmatter.\nchairman, Rep. Dan Rostenkowski\nClosed-door caucuses continued\n(D-III)-is a great admirer.\nbirth to death and even before they\nyesterday in the House Ways and\n\"He's like a teacher, a coach, a\nare born with prenatal care\nprofessor,\" said Gibbons of Stark.\nWe're going to get there!\"\nMeans Committee, where some\nmoderate members, frustrated when\nThe clash of egos between Stark and\nStaff writer Spencer Rich\nChairman Sam Gibbons (D-Fla.) and\nRostenkowski was well-known, and\ncontributed to this report.\nhis administration unfairly emphasized its failures and\nignored its accomplishments.\nHe said news reporting today was `much more negative\nSenate Health Proposal Does Not Guarantee Coverage\nmuch more editorial and much less direct\" than\nfor All (Washn) By Karen Tumulty= (c) 1994, Los Angeles\never before.\nTimes=\nAnd he said the American people were subjected to a\nWASHINGTON A bipartisan group of senators on the\nconstant unremitting drumbeat of negativism and\nFinance Committee unveiled the fruits of its closely\ncynicism\" from talk radio particularly Limbaugh and his\nwatched attempt to produce a compromise health care plan\nmany imitators.\nFriday, but despite weeks of effort, their proposal failed\nHe noted that Limbaugh would follow him on the same\nto reach President Clinton's bottom-line goal of\nradio station for three hours without any opportunity for\nguaranteed coverage for every American.\nresponse or challenge.\n\"There have been created unrealistic expectations of\n`And there's no truth detector,\" Clinton said. You\nwhat can be achieved,\" Sen. John Chafee, R-R.I., the\nwon't get on afterwards and say what was true and what\nleader of the group, said in defending the new proposal.\nwasn't.\"\n`This compromise sends a clear message to the American\nLimbaugh, in his show Friday, answered the president\npeople that we will not allow health care reform to be\nmockingly, \"There is no need for a truth detector. I am\njeopardized by extremists from either party.\"\nthe truth detector.\"\nOf the five congressional committees charged with\nproducing health legislation, the Finance Committee has\nbeen viewed as the most crucial battleground for Clinton's\neffort to overhaul the health care system, in part because\nthe committee's membership closely reflects the range of\nWhite House Maintains Support for Breyer (Washn) By\nopinions on the difficult issue that exist in the Congress\nMelissa Healy and Paul Richter= (c) 1994, Los Angeles\nas a whole.\nTimes=\nAnd the moderates' failure to bridge the gap between\nWASHINGTON The White House, reacting Friday to a\nClinton and his opponents represented at least a temporary\nreport that Supreme Court nominee Stephen G. Breyer ruled\nsetback for the administration.\nin cases in which he had major financial interests,\nStill, although few expect the Chafee formulation to\ndeclared its continued confidence in the Boston judge and\nbecome law as presented, it could prove crucial in moving\nsaid that it does not expect the charges to affect his\nthe process along.\nnomination.\nTo date, only the Senate Labor and Human Resources\nBreyer, who had as much $500,000 invested in the\nCommittee has managed to produce a bill for consideration\ninsurance conglomerate Lloyds of London in the mid to late\nby the full Senate and its measure is widely considered\n1980s, ruled in several cases that dealt with companies'\nfar too liberal. That has increased the pressure on the\nliability for the clean-up of Superfund sites, according\nFinance committee's moderates to find more acceptable\nto a report in Newsday.\nmiddle ground or risk losing any chance for significant\nThe rulings may have affected the London firm's\nreform.\nexposure to liability in legal actions that involved\nThe president emphasized in speeches this week that he\nSuperfund sites, as well as in asbestos cases, the Newsday\nis sticking to his promise to veto any legislation that\nreport suggested.\ndoes not guarantee coverage for the roughly 39 million\nLegal ethicists responded with caution to the report.\npeople about 15 percent of the population who now lack\nBut Senate aides said it will almost certainly prompt a\nit.\nfurther look.\nAnd Senate supporters of the Clinton plan had insisted\n`Are alarm bells going off in the Senate? No,\" said\nthey could accept the moderates' plan only if it\none Senate staff member. Should people be concerned and\nguaranteed universal coverage.\nwill (the committee) inquire? Yes.\"\nOn Friday, however, some Clinton allies on the Finance\nClinton administration officials, however, disputed the\nCommittee shifted their ground slightly, saying they might\nsuggestion that Breyer issued rulings in cases where he\nvote for the proposal even without the guarantee as a\nknew his investments were at stake. The judge regularly\nmeans of getting the issue to the Senate floor and\ndisclosed his investment with Lloyds by filing public\navoiding the embarrassment of failing to produce a\nfinancial documents with the government, officials said.\ncommitte bill.\nAdditionally, officials said, Breyer \"went far beyond\nThe Finance Committee had been scheduled to begin\nwhat the rules require\" by instructing the broker who\ndrafting a bill on Monday, but Friday evening announced\nplaced his Lloyds investment to steer clear of units\nthat it would delay meeting in public until later next\nwithin the insurance group that had stakes in American\nweek.\ntort liability.\nBeyond those instructions, White House officials said,\n(Optional add end)\nBreyer was not in a position to learn the firms his\ninvestments were used to underwrite. Thus, they said, he\nThe conservative Democrats and moderate Republicans\ncould not knowingly have ruled in cases where he had a\nallied with Chafee had been meeting feverishly in recent\npersonal financial stake.\ndays, hoping to produce a plan that could both meet\nLloyds, one of the world's largest and most prestigious\nClinton's universal coverage test and claim significant\ninsurance firms, is made up of ``syndicates\" groups of\nsupport from both parties.\ninvestors who hope to reap returns when the insurance\nTheir initial strategy for achieving universal coverage\npremiums collected are greater than the claims made\nwas a so-called ``individual mandate\" a requirement that\nagainst them.\nuninsured workers be required to buy health insurance,\nWhite House Counsel Lloyd N. Cutler told Newsday that\nmuch the way car owners must buy accident insurance under\nthere was no case to Judge Breyer's knowledge where his\nsome state laws. The individual mandate was to kick in\nsvndicate or Llovds itself had an interest in the\nonly if voluntary efforts failed at expanding coverage to\nparticular case he was deciding.\"\n95 percent of the workforce.\nThe senators hoped that approach would be an acceptable\nalternative to Clinton's proposal for requiring employers\n48\nto pay 80 percent of the cost of their workers' health\nTimes=\ncoverage. Clinton's employer mandate has drawn intense\nStock and bond prices took another drubbing Friday\nopposition from business, which contends that the\nafter central banks worldwide failed in an effort to\nadditional costs would force smaller and weaker firms to\nbolster the dollar against other currencies, thus\nlay off workers, or shut down altogether.\nenhancing fears that the Federal Reserve Board again will\nThe senators' plan for an individual mandate was\nraise U.S. interest rates.\nattacked from both the left and the right, and ultimately,\nThe Dow Jones average of 30 industrials tumbled 62.15\nthey decided against suggesting any requirements on\nto 3,636.94 its worst daily decline since losing 72.27 on\nemployers or their workers.\nMarch 30, and dropping the blue-chip average to its lowest\nInstead, they would put into motion an intricate series\nlevel in six weeks.\nof reforms aimed at making health coverage more affordable\nIt was the average's fifth loss in six sessions, during\nand thus more nearly universal.\nwhich the industrials have skidded 174.40 points, or 4.5\npercent. This week alone, the Dow Jones industrials\nsuffered their worst pummeling since mid-October in 1989.\nLosers overall swamped gainers by nearly five to one on\nTwo Indicted in Immigration Fraud Case (Los Angeles)\nthe New York Stock Exchange, but the session was not a\nBy Patrick J. McDonnell= (c) 1994, Los Angeles Times=\nrout. Big Board volume was a moderate 261 million shares,\nLOS ANGELES In one of the largest cases of such\nwell below the average daily turnover so far this year.\nimmigration fraud, a federal grand jury Friday indicted a\nIn the credit markets, government bond prices skidded\nSouthern California couple on suspicion of filing more\nand their yields soared amid investors' expectations that\nthan 2,600 bogus claims for political asylum.\nthe Federal Reserve will now try to prop up the dollar by\nAuthorities charged that the couple doing business as\nraising U.S. interest rates for the fifth time this year.\nGeneral Office Services out of sites in the Los\nAngeles-area communities of El Monte, Azusa and Santa Ana\nThe Treasury's bellwether 30-year bond lost more than\nemployed a now-common scheme: Duping applicants, mostly\n1&1/4 points, or 12&1/2 for every 1,000 in face value,\nillegal immigrants from Mexico, into thinking they were\nwhile its yield jumped to 7.52 percent from 7.40 percent\nmerely applying for permits to work in the United States.\non Thursday.\nStocks came under pressure at the opening bell, with\nInstead, authorities said, the suspects charged clients\ntraders knowing that foreign stocks already had plummeted\nup to $1,150 to file the phony applications for political\non news that the Federal Reserve and several other central\nasylum.\nbanks had been unsuccessful in propping up the dollar by\n\"The immigrants themselves have been duped by these\ndirectly buying dollars in currency markets.\npreparers and are victims in this whole scenario,\" said\nIndeed, after only 90 minutes of trading, the Dow Jones\nRosemary Melville, who heads the Los Angeles asylum office\nindustrials had lost more than 50 points, which activated\nof the U.S. Immigration and Naturalization Service.\nthe NYSE's \"circuit breaker\" constraints designed to\nAfter obtaining clients' signature on the application\nlimit the market's volatility. The constraints stayed in\nforms, authorities said, the suspects filled in data about\nplace for the rest of the day.\nthe purported political asylum claims.\n\"The big disappointment today is we had a concerted\nMost of the documents featured identical assertions,\neffort to support the dollar, and the currency traders\nofficials said, contending that applicants were opposition\nwon,\" said Gail M. Dudack, market strategist at S.G.\nparty members in Mexico and had been beaten by Mexican\nWarburg & Co. in New York. \"Now there's this whole pallor\npolice. All feared for their lives if they returned home,\nthat just hangs over the market.\"\nthe applications stated.\nThe dollar traded late in the day at 100.45 Japanese\nMany applicants receive work permits as a result of\nyen, down 0.8 yen from levels late Thursday and near a\ntheir applications while their cases are being considered.\npost-World War II low, and at 1.584 Deutsche marks, down\nHowever, work permits in this case were later revoked and\n0.019 mark, to reach a one-year low against the German\nthe applicants subject to deportation once officials\ncurrency.\ndetermined that the asylum claims were bogus.\nThe number of asylum applicants from Mexico has been\n(Begin optional trim)\ngrowing sharply, authorities say, although Mexican\nnationals seldom qualify for political asylum. Foreigners\nWith the greenback still in retreat, investors ``are\npersecuted in their homelands because of their race,\nnervous that the Fed is going to have to raise interest\ncreed, political opinions or membership in social groups\nrates to correct the decline in the dollar,\" said Stephen\nmay qualify for asylum, allowing them to remain and work\nE. Keane, research director at the brokerage Robert W.\nin the United States.\nBaird & Co. in Milwaukee.\nCharged were Cecilia Parra Sanchez, 45, and her\nAmong other things, the dollar's weakness prompts\nhusband, Emilio Parra Garcia, 27, of San Bernardino,\nforeign investors to dump dollar-denominated stocks in\nCalif. He was arrested earlier this month at his home but\nsearch of better returns from investments based in other\nhis wife remains a fugitive, authorities said.\ncurrencies. Because they expect the Federal Reserve to\nFederal agents searching the couple's home discovered\ndrive rates higher in defense of the dollar, investors\ncopies of 2,601 fraudulent asylum cases that had been\nalso pushed bond prices lower, which in turn lifts the\nfiled with the INS, U.S. Attorney Nora M. Manella said.\nbonds' yields.\nIf convicted on all charges, each suspect faces maximum\nThere's also the concern that if U.S. rates keep\npossible sentences of 20 years in prison and $1 million in\nclimbing, they will dampen the nation's and state's\nfines.\neconomic growth and lead to disappointing corporate\nprofits that also could push stocks lower.\n(End optional trim)\nStocks, Bond Prices Tumble After Central Banks Fail to\nAfter the opening plunge, stocks stabilized for much of\nBoost Dollar By James F. Peltz= (c) 1994, Los Angeles\nthe session but then resumed their decline in the final\n49\nopportunity to change priorities offered by the collapse of the\nClinton's proposing a bill that, at 1,364 pages, was so\nSoviet Union is lost in the fog.<\ncomplicated there was never a chance people would be able\nWith the Cold War over, a real debate about the\nto keep its provisions straight. Then, when the first\nU.S. world role is needed. Instead we witness a Gresham's law\ncongressional opposition arose, White House officials\nof politics: Counterfeit partisan posturing displaces real policy\nbegan saying that everything was negotiable except for\ndebate. No wonder Americans have learned to hate politics.<\nuniversal coverage. This meant open season.\nV\nNow almost every major chairman of a relevant committee\n^end adv sun june 26<\nin the House and Senate has a reform bill most\ncobbled-together admixtures of buzzwords and loopholes. An\nexample is the \"trigger\" provision every bill suddenly\nseems to contain. Rather than an immediate requirement\nthat employers provide health insurance, \"trigger\"\nprovisions specify that if all Americans do not acquire\nAdv sun june 26\nhealth coverage five or 10 years down the road, employer\nAt the Stretch on Health Care But What's the Plan?\nmandates would be imposed. The \"trigger\" approach is a\nGregg Easterbrook is a contributing editor to Newsweek and\nclassic example of the political gimmick of taking credit\nthe Atlantic Monthly. By Gregg Easterbrook= Special to\nfor action today but postponing the hard work into the\nthe Los Angeles Times=\nfuture.\nAnyone remember the Gramm-Rudman bill? Enacted in\nWASHINGTON As a congressional vote on health-care\n1985,\nreform draws near, it is important to keep Rita's phone\nit declared with great fanfare that henceforth Congress\nnumber in mind. In 1981, when the tax-cut plan proposed by\nwould be compelled to balance the budget but postponed\nRonald Reagan was approaching its floor vote, the\nenactment of balanced budgets into future years.\nprovisions of the bill were changing so frantically that\nGramm-Rudman allegedly had \"trigger\" provisions that\nmembers of Congress never saw a printed version of the bill\nfuture sessions of Congress would never be able to dodge.\nbefore the final vote. Instead they voted yea or nay on a\nEvery one was dodged.\nsheaf of handwritten pages scrawled down by White House\nHealth-care trigger provisions appear to have about as\nlobbyists. One page included the notation, \"CALL RITA,\"\nmuch actuality as Gramm-Rudman. Because there is zero\nwith a phone number. This historic message was then\nchance that universal coverage will achieve itself\ndutifully transcribed into the U.S. Code of Federal\nspontaneously, either an employer-mandate trigger would be\nRegulations. After all it had been formally approved by\n\"hard,\" written in such a way as to be automatic, and\nCongress.\nthus would be a dishonest provision, shifting the\nIt turned out the legislators who voted on the 1981 tax\naccountability to a future Congress and White House; or\ncut bill not only did not know that it contained Rita's\nthe trigger would be \"soft,\" a Gramm-Rudman-style\nnumber, they barely understood any of the provisions:\nprovision written so it can be easily circumvented.\nchief among them that the law would create the\nThat prominent Democrats such as Sen. Daniel Patrick\nmega-deficits that have plagued the federal government\nMoynihan of New York are now speaking kindly of triggers,\nsince.\nand Clinton has said he will consider them, indicates that\nThis is the gathering dynamic on health-care reform.\nserious health-care reform is in the process of\nHardly anyone can keep the provisions of the various\nevaporating. In fact at this point it's not even clear\nmanaged competition\" proposals straight anymore. There\njust what reform Clinton's bill would achieve, let alone\nexists considerable danger that when the House\nwhat would be achieved by any of the many watered-down\nand Senate act to restructure the $900 billion health-care\nalternatives.\nindustry that, at about 14.5 percent of the gross national\nClinton's plan, all major Democratic alternatives and\nproduct, is larger than the auto and petroleum industries\nthe moderate Republican alternative backed by Sen. John H.\ncombined, many members of Congress will have only the\nChafee of Rhode Island ought to be rechristened\nfaintest notion of what is in the bill.\n``insurance-reform\" bills. All would outlaw the practice\nLet's see, there's the Clinton plan, the Cooper plan,\nof health insurers barring coverage for those with\nthe Cooper-Breaux version of the Cooper plan, the Kennedy\npre-existing illnesses; make it easy for people who change\nplan, the Moynihan plan, the Chafee plan and the Dole plan\njobs to change plans; make it easy for the self-employed to\nto cite only the major proposals. These plans call for\nbuy health insurance; impose some version of ``community\nsome version of voluntary mandated, subsidized,\nrating\" where premiums are about the same for all who\nmarket-oriented, standardized, individual,\nsubscribe to the same plan, and require standardized\ntrigger-financed, seasonally rotated, regional alliances\ninsurance packages so that consumers could make meaningful\n(with subsection D attainment zone waivers) for universal\nprice comparisons when they shop polices.\ncoverage (except for those not covered) beginning in the\nAll these are valid reforms whose enactment will\n1998-23rd Century time frame. The cost will be precisely\nbenefit consumers. Most are even reforms the\napproximately $25.95 to $500 billion, although we haven't\nhealth-insurance industry knows are needed, but that will\nyet figured out if that is annually, or per person.\nonly work if realized through uniform national legislation\nNot only are the provisions of the plans dimly\nthat keeps competition among individual companies equal.\nunderstood: They are now changing so fast even policy\nBeyond that it's not clear what, if any, health-care\nwonks have difficulty remembering what stipulation is in\nreform will be accomplished. Clinton has repeatedly and\nwhich bill. After all those months of Hillary Rodham\nrightly said the fact that the United States is the sole\nClinton's black-cloaked health-care monks coming to\nindustrial nation without universal health care is an\nnuanced positions covering minute details, now in the rush\noutrage, and that he would veto any bill that does not\nto enact something matters as fundamental as whether\ncreate universal health care. But his is the sole\nemployers will be required to pay for health coverage or\n``managed competition\" bill facing this issue head on.\nonly asked to pay are being revised on an almost daily\nSen. Edward M. Kennedy's plan waffles. The Cooper bill,\nbasis. New cost estimates are essentially being pulled out\nauthored by Rep. Jim Cooper D-Tenn pointedly dodges\nof the air.\nuniversal coverage. Moynihan's makes hazy promises about\nTo a certain extent this is a predictable result of\nrevisiting the issue in a decade or so.\nFurther on the nonreform front, Clinton's mandatory\n5\nregional health alliance requirement (whatever it means;\nno one has ever understood it) is teetering and may be\nwithdrawn. Some of the plans now call instead for creation\nof health-purchasing cooperatives, but these sound\nhauntingly like existing HMOs and PPOs.\nAnd the goal of containing health costs the goal that most\nfrightened the entrenched hospital, pharmaceutical and\nphysician interests has, to the pleasure of these groups, been\nforgotten in the ruckus. Cooper's plan contains some\nnonbinding mumbo-jumbo about how it would be nice if\nmarket forces drove down costs. Clinton's plan is gradually\nbeing stripped of what meaningful cost-control measures it\nonce had. The Kennedy, Moynihan, Chafee\nand other proposals barely mention cost controls.<\nIf what ultimately passes Congress is\nhealth-insurance reform plus some vague language about\npurchasing co-ops, the aftermath for Clinton will be strange.\nGenuine good would be done by such a bill, particularly for\nthe self-employed and those in the Kafkaesque position of\nbeing unable to obtain health insurance because they need it.<\nHealth insurance reform is a long overdue objective\nthat neither Ronald Reagan nor George Bush would have\ntouched with a 10-meter pole. Had the goal going in been\nhealth-insurance reform, Clinton would deserve praise for\nreaching it. But Clinton set for himself the high moral goal of\nuniversal coverage, and now may not attain it. This will enable\npundits and Clinton's\nopponents to portray the bill as a defeat.<\nVoters may end up thinking of the bill as a success\nfor Clinton because the insurance-reform aspects will be a\nboon to the middle class, particularly anyone who changes jobs\nor falls ill. Today middle-class complaints about health care\nturn not on costs or quality but on the problems of obtaining\nor keeping coverage. These will likely be solved by whatever\nbill Congress enacts.<\nTo the extent middle-class voters come to feel their\nhealth-care complaints have been resolved by Clinton's actions,\nthey will care less about the system's two basic faults the\nshameful lack of coverage for 15 percent of Americans, and\nthe health-cost spiral that consumes ever-more national\nwealth.<\nMeanwhile, the sole bill that does address both\nuniversal coverage and the need to control costs the\nnational-health or \"single payer\" legislation sponsored by Rep.\nJim McDermott, D-Wash., now has 91 co-sponsors. This\nmeans that despite the continuous impression given in\nhealth-care commentary that no sentiment exists in U.S.\npolitics for national health care, nearly a quarter of the House\nis now on record as favoring this approach.<\nBritish-style national health care would be a\ndisaster. But France and Germany have national-health systems\nthat provide universal coverage at a significantly lower\npercentage of GNP than the U.S. system, with no rationing, no\nwaiting lines, hi-tech care and handsome incomes for doctors.\nThese systems combine that best of market medicine private\npractice physicians, privately administered insurance pools\nwith national cost controls. National health care can work. It\nwill work someday in the United States: maybe sooner than\nyou think, especially if what is billed as sweeping health-care\nreform passes in 1994, but fails to address the system's root\nproblems of cost runaway and the uninsured.<\nV\n^End sun adv june 26<\n55\nsenawis present\nom\nse\nBy J. Jennings Moss\nTHE WASHINGTON TIMES\nPoll sees clamor for family doctors\nA group of moderate senators\non the Senate Finance Committee\nshould go to specialists.\nyesterday unveiled the details of à\nBy Kevin Robbins\nBCRIPPS HOWARD NEWS SERVICE\nI The survey found t at 89 per-\nhealth care compromise that\ncent of the respond ents have\nwould rely largely on market re-\nAmericans want more family\nsome kind of health insurance.\nforms to insure Americans and\ndoctors and a health care system\nConducted in April, the bi-\ncontrol costs but would impose no\nthat makes better use of them,\npartisan survey confirms the\nmandates.\naccording to a survey released\npopular notion that Americans\nThe proposal, crafted over the\nyesterday by the W.K. Kellogg\nprefer family doctors to medical\npast week by four Democrats and\nFoundation.\nspecialists. They also bestow a\nthree Republicans, is a significant\nA majority prefers that its tax\nbetter image on family doctors\nshift to the right from both Pres-\ndollars be used to train more pri-\nthan on specialists\nident Clinton's reform proposal\nmary care providers rather than\nAbout a third of the respon-\nand one originally crafted by Sen.\nspecialists.\ndents listed \"more expertise\"\nJohn H. Chafee. Mr. Chafee, Rhode\n\"They see a role for both,\" said\nand \"knowledge in one area\" as\nIsland Republican, was a member\nCelinda Lake, one of two poll-\nthe chief benefits of pecialists.\nof the moderate group.\nsters conducting the survey.\nWhen asked about fi mily doc-\nBut just as soon as members of\n\"But they want to keep a bal-\ntors, the largest majority - 20\nthe group began discussing the\nance\" favoring the family doc-\npercent - ranked kno wledge of\nspecifics of the plan, some sen-\ntor.\npersonal and family medical\nators - including some of the\nEighty-four percent of the\nhistory as the primar benefit.\ngroup's own participants raised\n1,000 people surveyed said \"suc-\n\"On balance, fami y doctors\ndoubts about the $250 billion plan.\ncessful health care of the fu-\ncome out with a much better im-\nSen. Max Baucus, Montana\nture\" should make more use of\nage,\" said Vincent Bre glio, a Re-\nDemocrat and an original member\nfamily doctors. Eighty percent\npublican pollster wi 0 worked\nof the bipartisan group, withdrew\nsaid more use should be made of\nwith Democrat Lake.\nhis participation on Wednesday\nnurses, while 67 percent said the\nRecalling the a chetypal\nbecause of the direction toward\nsame of \"basic health care pro-\n\"Marcus Welby\" TV episodes,\ntaxing health care benefits. The\nviders.\"\nMr. Breglio said Americans are\ntax would be imposed on the top 40\nOnly half said more use\nmore likely to enjoy a \"consis-\npercent of health plans in a re-\nPhoto Ross D. Franklin/The Washington Times\nshould be made of medical spe-\ntent, ongoing relation ship\" with\ngional area.\nCorrespondents reach for a handout after a news conference revealing the new bipartisan health care plan.\ncialists.\nfamily doctors than with spe-\nThe tax, which was included in\nA majority said more tax\ncialists.\nthe proposal, \"will be passed on by\nmoney should go toward the\nThe foundation said that from\nthe insurance companies to the\nable. As four members from the\npay most of the cost of their work-\n95 percent of the public covered\neducation and training of family\n1982 to 1992, the percentage of\nmiddle-class worker who is al-\nseven-person group briefed the\ners' Insurance while Mr. Chafee's\nby the year 2002. If that target is\ndoctors, nurses and basic health\nmedical students cheosing pri-\nready paying exorbitant health in-\npress about its details, aides to an-\noriginal health plan relied on an\nnot reached, then a national health\ncare providers. Thirty-seven\nmary care had fallen from 36\nsurance premiums,\" Mr. Baucus\nother member Bill Bradley,\nindividual mandate.\ncommission would make recom-\npercent said more tax money\npercent to 14 percent\nsaid.\nthe lawmaker who floated the orig-\nBoth the Clinton plan and the\nmendations to Congress to flx the\nMr. Chafee, at a packed news\ninal draft of what the group\nChafee plan used the mandate ap-\nproblem. Congress would have to\nconference at the Capitol, said, \"As\nadopted - distributed a statement\nproaches to reach what both said\nact on the recommendations,\nyou know on both sides there are\nadding a note of caution.\nwere their ultimate goal, to ensure\nwhich could be amended.\ncomment on the specifics of the\nforms, such as prohibiting denial\nextremists who demand that what\n\"This bill is very much a work\nthat all Americans had health in-\nSen. Daniel Patrick Moynihan,\nproposal but said the bipartisan\nof coverage for pre-existing condi-\nthey want to be in (a health bill],\nin progress. Each turn will pro-\nsurance coverage.\nNew York Democrat and chair-\nactivity was \"encouraging.\"\ntions.\nand that's why it seems to me the\nduce a slightly different product. I\nThe bipartisan group had been\nman of the Finance Committee,\n\"There will be many twists and\nExpanding the he 11th care tax\nprogress in health care reform in\nregret this proposal did not do\nleaning toward including an indi-\nand Sen. Bob Packwood of Oregon,\nturns on the road to health care\ndeduction from 25 percent for the\nthe Congress of the United States\nmore to achieve universal cover-\nvidual mandate, but Mr. Conrad\nthe committee's ranking Republi-\nreform, but we're confident that\nself-employed to 100 percent.\nto date has been chaos.\"\nage through a shared responsibil-\nsaid that idea \"was on its death\ncan, were briefed on the bipartisan\nthe road will lead to the president's\nCreating two type of benefits\nSen. Kent Conrad, North Dakota\nity by individuals and employers,\"\nbed\" by Thursday night.\nproposal. Also briefed were Ma-\nbottom line of universal coverage,\"\npackages that health plans must\nDemocrat, said the package would\nMr. Bradley said.\n\"They realized that there would\njority Leader George J. Mitchell\nshe said.\noffer that would be set by the\nexpand insurance coverage, con-\nThe New Jersey Democrat\nbe no support on the left or right,\nof Maine and Minority Leader Bob\nOther elements of the biparti-\nhealth commission The first\ntrol costs, protect consumers'\nadded that he hoped \"the Finance\nand you would take it to the floor\nDole of Kansas.\nsan plan include:\nwould be a \"standard package of\nchoices, preserve quality and em-\nCommittee will strengthen this\nand there would be a vote to take\nMr. Dole said he had not seen all\nIncreasing the cigarette tax\ncomprehensive benefits. The sec-\nphasize prevention programs.\nproposal before reporting it out.\"\nout the mandate, and it would pass\nof the details but said the proposal\nby an estimated $1 a pack, al-\nond would be a \"basic\" package\n\"This has been a serious effort\nThe chief element of the bi-\noverwhelmingly,\" he said.\n\"will be helpful to the debate.\" He\nthough this level could change.\nthat would contain higher cost-\nwith great pressures from both\npartisan proposal is that it con-\nMr. Chafee yesterday said the\nalso reiterated that he and Mr.\nProviding subsidies to low-\nsharing or fewer benefits\nsides, and I think we have achieved\ntains no requirement on either em-\nnew bipartisan plan should cover\nPackwood are developing a con-\nincome people who earn up to 240\nAllowing those on Medicare to\nan important breakthrough,\" Mr.\nployers or individuals to purchase\nabout two-thirds of the uninsured\nsensus Republican plan to offer to\npercent of the poverty level to help\neither stay with the traditional fed-\nConrad said.\nhealth insurance. The cornerstone\npopulation, which currently is es-\nthe committee.\nthem buy insurance. Subsidies\neral program for the elderly or\nJust how strong that break-\nof Mr. Clinton's reform proposal\ntimated at about 37 million people.\nWhite House health spokeswo-\nwould be phased in by 2002.\ngiving them the optio n to stay in\nthrough is, however, is question-\nwas a mandate on all businesses to\nThe proposal sets a target to get\nman Lorrie McHugh would not\nImplementing insurance re-\ntheir own private healt plan.\nThe Washi Aton Times\nSATURDAY, JUNE 25, 1994\n1994 'ST ENGLE SATURDAY'S\nThe Washington Times\nONY SNOW\nlintonCare is dead, but\ned select audience members to ask\ntems in America.\nC\ndon't tell NBC. \"To Your\nClouds\ncare maven, stormed out of the\npre-planned questions.\nRoughly two-thirds of all employ-\nevent. \"It was outrageous what\nHealth,\" the network's June\nMichael Thompson, who runs a\ners with 500 or more workers\nthey did,\" she recalled. \"We have\n21 \"town meeting\" about\nsmall marketing company in\nfinance health coverage for their\nsome serious issues that we're\nmedical industry reform, blew a\nSpringfield, Va., complained about\nworkers, as do 40 percent of all\nnowhere near settling in this coun-\ncl ce to reshape the health-care\nthe technique of using tear-jerker\nestablishments with 500 or fewer\ntry - how to moderate spending,\ndebate at a propitious moment.\nover\nanecdotes as a way to introduce\nemployees. The network contacted\nincrease access, improve quality.\nAccording to USA Today-Gallup\nstories. \"If we're going to set policy\nno experts to discuss this innova-\nThis broadcast did nothing to help\nnumbers, approval ratings for the\nby horror stories,\" he said later,\ntion.\nthe American pubic understand the\npresident's reform plan have tum-\nhealth\n\"we ought to nationalize lawyers,\nParticipants sensed the slant. A\nchoices they have to make. It was\nbled to 42 percent, while negative\nsince everybody has a horror story\nconsultant who represents large\nbiased - heavily tilted toward\nresponses have jumped to 50 per-\nabout lawyers.\"\norganizations that support the pres-\nDemocratic solutions.\ncent.\nBut NBC grandees, like much of\nident chortled: \"My people knew\n\"This was a sham as an education\nMore than four-fifths of the\nthe national press, seem to have a\nthe thing was a well-designed setup\nprogram for the American public,\nAmerican people want to keep their\nreform\nblind spot when it comes to free-\n- and they liked it just fine.\"\nand NBC ought to be ashamed.\npresent health-care arrangement\nmarket alternatives to the status\nBut conservatives in the audi-\nIt was so loaded it was unbeliev-\n- not surprising, since healers\nquo. They consider a debate bal-\nence raged. John Goodman of the\nable.\"\nhave done a better job than Con-\nanced if it describes different pro-\nNational Center for Policy Analysis\nThe Establishment, including the\ngress in controlling costs. And\nthe left wing of the polítical spec-\nposals for federal control. The idea\ncalled the event \"absolutely awful.\nnetwork and the Robert Woods\nNBC's own research shows health\ntrum. Furthermore, the network\nof private alternatives just doesn't\nAt no point was there any presen-\nJohnson Foundation (which under-\ncare has slid to third in the list of\ncanceled plans to advertise its sur-\nseem to occur to them.\ntation of a conservative or Repub-\nwrote the show), just doesn't get it.\npeople's priorities- - tied with wel-\nvey numbers in nationwide news-\nMalcolm S. Forbes Jr., editor in\nlican approach to these problems.\"\nPeople distrust government and\nfare reform, way behind fighting\npaper ads - perhaps because the\nchief of Forbes magazine, has craft-\nMichael Tanner, a scholar with\nwant to take matters such as health\ncrime and strengthening the econ-\npolls undercut the program's\ned a revolutionary self-insurance\nthe Cato Institute, dismissed the\ncare into their own hands.\nomy. Network statistics also indi-\npremise that we must do something\nplan for his company's employees.\nmeeting as a \"propaganda fest.\" He\nIf the network wants to surprise\ncate that most Americans want no\nnow about health care.\nThe scheme has reduced insurance\ngot to speak briefly but was inter-\nviewers with fresh programming, it\naction on the issue this year.\nWhatever the case, the show\ncosts by more than 40 percent in\nrupted by Harvard Professor Steffy\nought to produce a second special\nIn such circumstances, one\nlooked like a White House produc-\nthree years, and workers report\nWoolhandler, a cofounder of Physi-\n- about the story it ignored the first\nmight expect NBC to explore alter-\ntion. Panels discussed various\nfewer serious illnesses or sick days\ncians for a National Health Pro-\ntime around.\nnatives to Mr. Clinton's New Deal-\nforms of government health care.\nthan before. Mr. Forbes wasn't\ngram. Her punishment for rude-\n1, such as self-insurance, med-\nCitizens spun tales of woe. Hillary\ninvited to the show. Neither was\nness was to get the last word on the\nical savings accounts and\nRodham Clinton promised that her\nPatrick Rooney, chairman of the\nsubject.\nTony Snow is a Washington-based\npurchasing cooperatives. But no:\none-size-fits-all approach to the\nGolden Rule Insurance Co., which\nAnd mild-mannered Gail Wilen-\neditorial page columnist for the\nJust about every inhabitant of the\nproblem would save the unfortu-\noperates one of the most successful\nsky, a former Bush administration\nDetroit News and is nationally syn-\nhand-picked talk town came from\nnate. And network anchors prompt-\nemployer-operated health-care sys-\nofficial and well-regarded health-\ndicated\nGI's Widow Gets Life\nRival Health Plan\nThe widow of a guin war soldier was Mon-\nserced to life in prison without parale yesterday\nfor platting the 1991 murtier of her husband in\n-R811 in on his insurance pulicy.\n7 GOP senators omit universal coverage\nTow Call Riggs. 25. who who convicted of\nFirst-degrue aurder to Detroit on June 8. Te-\nBy Dena Bunis\nThe group would pay for subsidies by crising the\ndeived Lne mandatory sentence for couspiring\nTAIF CORRESPONDENT\ncigarette Lnx by $1 spack cutting Medicare and Mestic-\nwith her brother to kill her husband. Anthony\nWashington After a week of meetings behind\nnid spending and imposing a DEW tax on insurance\nRICES\ncinsed doors, a group of modernte Republican and\ncompany plans with higher-than-nveragr premiums.\nProsecutors had argued that Ring- hired her\nDemocratic senature einerged yeaterday with its pro-\nAller a briefing 01: the proposal, Muynihan said :\nprother. Michael Cato. to shoot her husband\nnosal to overhani the nation health care sytem.\nhad \"a Lot of gund new ideas.\" out he was noncomenit-\noutside the coupie's Detroit home just dava\nBut the plan doesn't fulfill President Bill Clinton's\nrel about IL\nRiter he returned from Sauni Ambia where he\nDiedge that all Americans be guaranteed medical in-\nMeinners of the modernte Senate group neknow\nserved Rb a Patriot missile crewinan.\nsurance, and it is not likely to form the busis of the\nenged that their proposal only pares the way for un:-\nl'on: Riggs who showed nn emotion during\nbill the key Finance Committee will begin deliberat.\nversal CUVCI but Sen. John Breaux (1)-La. said he\nthe original trial, broke down during the sen-\ntenning hearing. quoting from the Hibie and\ning next week. Senate sources said yesterday.\ndidn t believe it would necessarily mean = presidention\n\"It'm a for rese than advertised.\" one station said of\nVeln They estimated that their proposal would extend\npressung with the judge for every.\nthe plan, diafted by seven senature and released yes.\ncoverage in 3.7 additional 20 aullion Americans An\nlerday alternoon. \"I don't chink it will Dy nt all.\nestimated 39 million are currently uninsured\nElders' Ouster Sought\nThe proposal would revemb the laws under which\ninsurance companes operate, offer subsidies to low.\nincoine people to encourage them to buy health insur-\nEighty-lieven Republicin House members\nance. and cream a national health commission to\nClinton Assails\nFLOGHT the resignation of Surgeon General Joy-\nmonitor the progress the country makes toward uni.\ncelyn Elders vesterday. escalating a confiect\nveral insurance coverage.\nover Democrate attachs on right-wing Republi-\nBut unlike most Democratic plans and even the bill\ncans.\n'Negativism'\nintroduced lake year by Sen. John Chafee R-R.I. is\nThe Republicans letter to President BUT\nincomber of the modernite group. yesterday's proposal\nClinton cime two Jays after Elders, according\nTHE Area CATED PRINT\nwould Lot require anyone to have health insurance\nto newspaper accounts. referred to the \"un\n\"I am liere in tell you today and through you, the\nSt. Lanis Striking out at his conservative critics\nChristian religious right\" and anded \"Welve\nAmerican people this is the closest. We TO going to come\nin particular and the media in general President Bill\nTOU LG be strong 10 take on theme people who src\nto doing health care reform right in America at any\nClinton bitrecty complained cestering that unlair and\nsetting our collinen out in the name of reli-\nLime. Sen. David Durenburger (R-Minn.) said AC is\nnegative reports about him are feeding 0 cynical\nmon.\nnews conference outlining the moderate group plan.\n:nindaet in America\nThe Intter and not specifically mention chese\nBut aimost immediately, Finance Committee mein-\nMentioning conservative malk-snow howe Rush Lim.\nremarks but they were cated often at a Dews\nbers committed to universit coverage decried the re-\nhaugh and televangelist Rev. Jerry Felwell by name.\nconference by Ren. CHIF Stearns (R-Fla., RU-\nout if not the affort of their fellow Senators\nClinton decried \"a constant unremitting drumbeat of\nthe of the letter. ,ther inwrankers and spokes-\ncommend the effort but if this is the been they\nnegativism\nmen for conservative Christian organizations\nhave to offer, it only shows we still have lot of work to\nThe American people keep being told that chings\ndo.\" said Sen. Jay Hockefeller (D.W.Va). an ardent\nare bad and politicians are corrupt and the system\nPolice Queries Upheld\nsupporter of a comprehensive health care plan.\nbroken It's not true.\" Clinton said. Fle insisted he\nEven one of the members of the unoderate group,\nwasn't criticizing evangelical Christians overnil just\nSen. Mill Bradley (D-N said the proposal falls short\npeople who \"pul on the mantie of religion and then\nhe Supreme Cannt made it. eanier vesterday\nsaying be hopes the \"Finance Committee will\nlune it toj justify anything they say or do.\nFor police \" press criminal suspects into mak-\naurengthen this proposal before reporting it. out\"\nLimbnugh shot back on his own talk show a half-\nincriminating remarks before getting is law.\nBradley was particularly concerned that the plan did\nhour later.\nyer's help.\nnot include any mandates for coverage.\n\"The gauntlet has been thrown,\" he wild then pro-\nThe court ruled unanimously that police offi-\nSenators in the Finance Committee, chaired by Dan-\nceeded to play a tape of Clinton's remarks and cirticule\ncera do not have to stop questioning surpects\niel P Moyninan (I)-N.Y.). luve been stymied in their\nthem. \"This is not a program of negative possition.\nwho make what may be ambiguous requests for\nattempt w reach a bipartisen accord on a health care\nOne question that Clinton cited as an example of\nlegal assistance.\nbill After back-room 3 with the fall committee\nthe media's focus on barl news dealt with stories that\n**: 9W enforcement officers may continue\nproved unproductive, the seven senntors broke off in\nWhite House staff members and taken towels from\nquestioning unall and unders the suspect clearly\nin attempt to come up with n middle-nf-the-road plan.\nainterooms during their stay aboutd an aircraft carri-\nrequests all attorney.\" Justice Sandra Day\nWhat cmerged memor clumer to the kind of plan\ner in Europe earlier this month\n0 Connor wrom for the court.\nSenate Minority Leuder Bob Dole (R-Kan.) has been\n\"We're not sure that just the White House SWIT did\npushing. and ***** sources suggested that Dole exerted\nthat\" Chinton insisted. There were Drwn people.\npressure on the Republicins in the splinter group to\nthere were lots of other people on that boat who were\nAdmiral Won't Get Job\nhold the line on any mandates. Mort observers had\nnot members of the White House NERTH\nexpected the RTOUT to recommend that individuals be\n\"Lock at all the things you |could| ask me about -\nThe Navy withdrew President Bill Clinton's\nrequired to buy insurance if at least 96 percent of the\nand you asked me about that Clinton told his inter-\nchoice for Pacific communder in the wake of\nAmerican people aid not have insurance by 2002 Ip-\nviewers.\ncritic over the admiral's handling of a sexual\nstend the seven proposed that a commission. make\nFalwell issued a statement inviting Clinton to tape\nincreasment Lase.\nnonbinding recommendations to Congress if that goal\n\"personal and direct rebutting to run un \"Old Time\n^ brief statement issued late yesterday by the\nwas not renched.\nCompel Hour.' which aire On 200 stations nationwide\nNavy said Adm. Stanley R Arthur. 59.\nthat the anticipated dulay in Sennte confirma-\ntion of his nomination to be Commander in\nChief. U.S. Pacific Command, has the potential\n3 creating gap in that key billet.\"\nRacial Vein Disparity Seen\nSen. David Durenberger (D-Minn.) had\nthreatened Ln place a hold on Arthur's required\nTHE ASSOCIATED PICTS\ndilate as well as whites. he said. Dilation lulps blood\nSenate confirmation because of a turual Farass\nneut case that involved it Navy officer from\nAllanta - Veins in black people are less flexible\nget to the heart in times of demand.\nMinnesota\nand more difficult to dilate a finding that may kelp\nHigh blood pressure affects an estimated G2 million\nexplain why blacks are more likely than whites 3\nAmericans. and neart disease is the metion's No. 1\nsuffer from heart disease. researchers mid vesterday.\nkiller. High blood pressure in a najor underlying\nAIDS Victim's Award\nOne reason for the disparity may lie in the endothe-\ncause of heart attacks. heart failure, strokes harden.\nHa, the flat cells that line the inside of veins and are\nmg of the atteries and kidney failure.\nries. A team of Georgia researchers reported on the\nA New Jersey unan who gut AIDS from a\nit is \" huge health bazard for all Americans. but is\nissue its a study presenued in Cleveland nt the Interna-\ntransfurion was awarded $570,000 in the First\nworse for blucks They have the disease one-third\nConai Interdisciplinary Conference on Hypertension\nsuccessful lawsuit of its kind against the organ.\nmore with than whites, get it earlier in life and suffer\nin Blacks\ntalum three extablishes blood-screening ston-\nit far Ingro severely.\nThe findings may enable researchers to develop\ndards for the nation's blood annks.\nResearchers uren am why the meial dispariry ex-\ndrugs that treat high blood pressure and heart disense\nNEWSDAY, SATURDAY, UNF :481\nA Gergen County Superior Court jury or.\nists, but some believe it may be generic, while others\nas effectively in blacks as they do in whites. said the\ndured the American Association of Blood Bonks\nUniversity of Georgia's Dr. Handall Tackett. Inader of\npoint to environmental (actors.\nno Thursday to pay William Snyder $405.000 in\nthe study.\nThe DEW study examined portions of veins Laken\ncompensatory damager and an estimated\nThe research represents the first time that veins\nfrom the legs of 60 whites and 22 blucks underguing\n$166,000 in interest Snyder. 67. said he con.\nwere used to study racial differences in high hlood\nheart bypans surgery. Even when factors such as age\ntracted the human immunudeficiency virus\npressure. said Dr. Elijah Sunders of the University\nand acx were taken into account, racial differences\nfrom 0 blund transfusion following hunrt HUF-\nof Maryland. . co-founder of the International Society\nwere found in the veins ability to dilate, Tackett said\ngery its 1384.\non Hypertension in Blacks The results were not star-\nTackett assid the researchers believe that the racial\nCOMPILED Firm NEWS DISPATENCE\nGing but were significant, Saunders said.\ndispurity may result from differences in the reaction\nPrevious work bad found blacks arteries do not\nof endothelini cells to certain hormones in the blood.\n74\nVeto of health care compromise plan hinted\nPIMOTHY CLIPPORD\nbe separdised By extremists\nthreet b veto any that\nand Samais committees have\n$\nlive\n-\nR\nThe compromise declares\n(MM) either party.' Ben. John\ndoes not provide universal\ntaken up health care. Senate\nuniversal coverage \" its\nCharge sale.\nreverage - would and such a\nFinance is believed to be the\ngoal. But there is no have\nWASHINGTON The first\nThere WM no official White\nbill \"difficult to sign.\nplace where the bill mest\nwither\" to guarantee. n. if\nmajor bi-partisan health care\nHouse comment on the pro-\nCailing their plas a \"main-\nlikely to pace Congress Is\n25% coverage is not achieved\npropossi emerged on Capital\npossi put together by goven\nstream proposal.\" the sens-\ncrafted.\nby 2002. a commission would\nHill vasterder. but the White\nmembers on the Senate Fi.\ntere presented It te Finance\nUnder yesterday's plan, In.\nbe creeted to make recom\nreuse signated that the com-\nnance Commission four\nshatroom Sea.\nsurance reform would wake\nmendations to Coogression\npromise - water alms to COV.\nDemocrate and three Resub.\nDaniel Patrick Maysikan (D-\nhealth coverage more *****\nnew to make more progress.\nor at least 15% of Americans\nlicans - that its outhors said\nN.Y.) along with (ther hay\nsible with subsidies to Isw-in-\nthen a vale would be re\nby $002 - would face 6 presi-\neventually would cover two.\nBenate leaders.\ncome Americans The plan\nquired.\ndential veta.\nthirds of the currently 35 mil-\nThe 20-member Finance\nwould be linenses with cuts\nBut one oritis said: \"It's\n\"This compromise sends &\nlien unineared.\nCommittee. of W lich the\nin Medicare and Medicald\neven sefter than & soft trig.\ngroup of seven will form the\nclass message to the Ameri-\nBut sourses disco 10 the\nsigns with 8 #: increase in\ngor. That Just won't mane \" at\nargent blook. beginn work on\ntan people that we will not\nthe eigaree tax sad a levy on\nthe White House. We'll have\nprocess Insteted that Prest-\nallow beeith care reform to\nthe plan noxt work. Even\ndeat Clinten - given Ria\ninsurance companies solling\nto see what Moynihan will\nthough 4 number of House\nmore-expensive teverage.\ndo.\nLast flight from Haiti\na time of desperation\nPlane can't\ntake 'em all\nPRINCE\nRatu\n-\nHours\nbefore American Airlines flight\n606 to New York started boarding\npassengers late resterday, sugar and\ndesperation overtook many of those\nhoping to catch the plane.\nFor this was the last flight leaving for\nthe United States pending a return of\nPresident Joan-Harmand Aristide. The\npoorest country in the hemisphere has\nsaw - the must levisled. Sill Clin-\ntos and the world community have\ndrawn the economic 80088 tighter\naround HALL's Milliary distature.\nNo bigger paychological. blow 12A be\nimagined in this country than suiting off\nJUAN\nGONZALEZ\ndally air travel between Mare and Miami\nand New York. . ban which began at\nmidnight. and the restrictions on money\ntransfers which Clinton ordered several\nweeks age.\nWith , million Huitisns living in the\nU.S., benning als travel means separat-\nLng funilies indefiatiely.\nAndre Gil, a graff old man wearing 4\nwhile beachall cap, was one of these\noutside the entranes to use sirport ter-\nminel serambling to get on yesterday's\nlast Right His brother and cousin la the\nBroax, whom he heas't seen 5 14 years,\nsent him 8 ticket pure months ago to he\ncould ge to New York for BA operation\non his atting back.\n\"My ticket was for next week, but\nthat's no good. no more planes.' be said,\nsimeet beside himself with ADJUT. \"Thay\ntall me I have no reservations.\nAs ou argued with 88 sirtine agent,\n600708 of other Haitians waited is the\nsweltering heat u standays for & flight\nthey would never eateh A1 surbaide. I\nsmartly dreamed Heltian coupie, their\nPARTING UN: Delve Richards GRYS goodbye to dousins, Millis Prances, 2. and Seins\nthree children and Jummer piled late\nManican, 3. before putting them on last American Airlines fight OUT of Part-su-Price, Helt.\nthe backsest of their wine-colored Mar-\nAlso boardling was Desir Quantion, 11 (f.).\nredes, jumped angrily into the car and\nsped off. They bediet been Able get seats\n\"Xy dream can't get their report\nDominiess Republican\nout.\ncards from school. because we have no\nFood secure more abundant than ever\nAmong the lucky ones were the Augus-\nmoney to say the final tuition.\" she said.\namong the street-side venders, electri-\ntime. $ pose family from the village of\n\"Fifty dellars goes nowhers in Halti to\ncat blockouts are less frequent than last\nCavailian in the south. Michou Augustin\nday.\nyear. The military has area begun pay-\nmanaged to get her 87-year-old father on\nEverywhere. of course, is the tarror of\ning the countiess potholes downtown\nthe flight. The mea was volted is a tan\nthe Maiture Army. An especially nasty\nand clearing the giant pllas of\nweel federa which sat backward on his\nsoldier in from of the main terminal on.\nthat used to block scores of Intersec.\nhead, a black and gray plastripe BUIS two\ntranse be 110 beating a Hallian-Ameri-\ntime.\nsizes the big, and 4 purple de lecesly At.\ncan citizen in full view of foreign report-\nted around his nach,\nera. then invisted several of we from the\n\"I don't know was I'll ⑉ them\nairport to: daring to interview the via.\nagain,\" said the man, who refused to\nu.s.\nW\nNY, YOU ARE forced to ask. de\noutward conditions seem to be\nimproving in B country that 18\ngive his first name, as as pointed to MI-\nRestrictions on foreign reporters have\ntoday more dictatorial and more estre-\ntheu and enother daughter. \"T've 1008\nsuffered 18. means weeks. since threats\ntoo mush killing here time 10 go. It's\nclased in the world's Monomy than over\nof a U.S. tend investen to restors Aristids\nbefore? You AND left with the suspicion\n- 6M - - M - LABO-\nmore 1981 card day.\nthat this embarge to somehow more\neurs. All less my with 16 is Breakiyn, I\nEven wi the tightened International\nbluster then reality.\nhaven't was har for a year.\"\nembarge, hawever, the espital sacms\nBut his and grandchildren\nThes again. It sould be that Heltians.\nmore related than It has brian in years.\nwho are asserieurly fanatical about ser\nremain behind, and Michou, whose bus-\nCars are on the read everywhere and\nband sise us working is Breakiyn, wor-\near. have just decided to relax and pay\ngasolias 11 pleatiful - - has even\nmore attention to the World Cup games\nries about the many like can't get from\ndropped III 57 8 gallon from a bigh of B10\nin the sext few weeks man the endless\nhis because money transfere IN new\n- despite the supposed compliance\npolicies! times here and is Washington\nlimited to MO a masts\nup the neighboring\nscall La use big Invertise.\nN.Y.\nDAILYNEWS\n6-25-94\n75\n6/27/94\nSenate Finance Committee announces compromise\n(EDITORS: BEGIN OPTIONAL TRIM)\nhealth-care reform plan By Peter G. Gosselin Boston\nThe measure's authors were almost plaintive in their\nGlobe\nappeal for support Friday, using an afternoon press\nWASHINGTON Senate moderates managed to salvage a\nconference to portray their plan as the last best hope for\ncompromise aimed at averting partisan warfare over health\navoiding a kind of legislative Armageddon over health care\ncare Friday, but only after dropping key elements of the\nlater this summer.\nproposal and papering over deep differences among\n\"On both sides, there are extremists who demand that\nsupporters.\nwhat they want\" should part of the plan, `and that's why\nFollowing a series of frantic, closed-door meetings\nthe progress on health care reform in the Congress to date\nThursday night and Friday, moderate leaders announced they\nhas been total chaos,\" complained Chafee.\nhad agreed to a plan that would provide $250 billion in\n\"Give this mainstream plan a chance,\" pleaded.\nsubsidies and tax breaks over five years to help uninsured\nRepublican Sen. Dave Durenberger of Minnesota. ``It\nAmericans get health coverage. But the plan would not\nrepresents the only opportunity to enact true health\nrequire employers or individuals to help pay for it, as\nreform this year.\"\nmany health proposals in the current debate would.\n(END OPTIONAL TRIM)\nThe leaders frankly acknowledged that their proposal\nBut the prospects for the plan remained very much up in\nstops far short of the goal that President Clinton has\nthe air Friday. Aides to Senate Finance Committee chairman\nsaid any compromise must meet: health coverage for all\nDaniel Moynihan, who had been hoping the Chafee group's\nAmericans. Otherwise, the legislation risks his vetoed.\ncompromise would offer a way out for his deeply divided\n*Our goal ultimately, of course, is universal\npanel, said the New York Democrat was canceling plans to\ncoverage. But if that is not able to be achieved, then we\nbegin drafting a health bill Monday and would met\nseek to cover as many as possible,\" said Republican Sen.\nprivately with committee members.\nJohn H. Chafee of Rhode Island, who was chiefly\nMeanwhile, one of the group's own members, Democratic\nresponsible for the compromise proposal.\nSen. Bill Bradley of New Jersey, issued a statement\nThe plan was immediately damned by faint praise from\ndistancing himself from the very measure he had just\nall sides.\nagreed to, and suggesting he might withdraw his support.\nAbout the most White House spokesman Jeff Eller could\n\"I regret this proposal did not do more to achieve\nmuster was that ``it is encouraging to see work proceeding\nuniversal coverage through a shared responsibility by\nin 8 bipartisan fashion.\"\nindividuals and employers,\" Bradley said.\nDemocratic congressional leaders said they were studying\nFailure of the Chafee compromise would not necessarily\nthe proposal.\nspell the end of the health reform drive.\nMeanwhile, Senate Republican Leader Bob Dole of Kansas\nIn the Senate, Massachusetts Democrat Edward M: Kennedy\nrepeated his threat to offer an alternative, and much more\nhas already pushed a Clinton-like health plan through his\nconservative, measure. Dole is reportedly furious with\nSenate Labor and Human Resources Committee, Senate\nChafee and other Republicans for working on the\nMajority Leader George Mitchell of Maine has strongly\ncompromise, fearing Democrats will simply use the idea as\nhinted he may send the Kennedy bill to the floor next\na ticket to bring the health issue to the Senate floor and\nmonth in a move that could bring the debate to a sudden,\nthen discard it in favor of a broader plan.\npartisan head. In the House, two committees, Education and\nThe measure that Chafee outlined Friday represented a\nLabor and Ways and Means, are moving on health measures,\nsubstantial retreat from his own original plan for\npaving the way for an expected floor vote next month.\nproviding universal coverage, and dropped the one element\nBut collapse of the compromise would be a sharp setback\nthat might have led to full coverage, an ``individual\nin the search for a bipartisan middle ground on the hugely\nmandate,\" or requirement that everyone without health\ncomplex health issue, and would increase chances that the\ninsurance after a certain buy it for themselves.\nissue will be settled by the kind of highly publicized\nThe individual mandate was supposed to replace a\ncongressional showdown that many lawmakers are desperate\nClinton proposal for an employer mandate, a requirement\nto avoid.\nthat American firms pay much of the cost of expanding\nThe compromise itself illustrated how much the health\nhealth coverage, that had become a lightning rod for\ndebate has changed since its earlier, more rosy opening\nbusiness objections to the White House plan.\nphase last year.\nBut the idea created intolerable political problems for\nThen, lawmakers and commentators cited as proof that\nmoderate Democrats working with Chafee who feared it would\nsweeping change was just around the corner the fact that\nappear they were willing to fix the nation's health\nChafee, as a moderate Republican, supported the same goal\nproblems on the backs of workers, rather than of\nof universal coverage as Democrat Clinton. Many observers\nbusinesses. As a result, the group was forced to drop both\nportrayed the coming debate as mostly a technical dispute\nideas and rely on other means of financing the plan.\nover the best means to an end.\nThe final compromise depends entirely on government\nBesides Chafee, Durenberger and Bradley, others in the\nsubsidies and health insurance market changes to expand\nmoderate group who endorsed Friday's compromise proposal\ncoverage to the uninsured. About $150 billion of the $250\nincluded Democrats John Breaux of Louisiana, David Boren\nbillion in subsidies over five years would come from cuts\nof Oklahoma and Kent Conrad of North Dakota, and\nin the Medicare and Medicaid programs, with the rest being\nRepublican John Danforth of Missouri.\nraised by a $1-a-pack cigarette tax and a tax on high-cost\ninsurance policies. By contrast, the Clinton plan would\nrely on the employer mandate and elaborate cost controls,\nas well as subsidies to extend coverage.\nChafee said Friday that the group believes that its\nproposal would pick up about 20 million of the nation's 37\nNewsday: Nominee Breyer could have profited from some\nmillion uninsured. Under the compromise, if 95 percent of\ncases he ruled on By Ana Puga Boston Globe\nthe country is not insured by the vear 2002. a government\nWASHINGTON Supreme Court nominee Stephen G.\ncommission is required to propose ways for further\nBreyer had\nextending coverage. And Congress must consider its ideas,\na financial interest in the outcome of toxic waste\nbut not necessarily accept them.\nliability suits similar to some of the waste cases he\n79\nHEALTH CARE\nFinancing compromise is good alternative\nThe current health care obstacle facing\ninsurance, three reasons make the \"Individ-\nlegislators is the question of who should pay\nual mandate\" not so onerous.\nfor the coverage President Clinton insists\nFirst, the substantial number of busi-\nall Americans should have. The president\nnesses now picking up employee health\nand leading congressional Democrats want\ncosts will likely continue their practice as a\nemployers to pick up the costs, while moder-\nmeans of recruiting employees. Second,\nates and conservatives in both parties don't\nindividuals with annual incomes as high as\nwant to saddle businesses with a \"mandate\"\n$34,000 would receive some federal subsidy\nto purchase health insurance.\nto help purchase their insurance. Third, if\nA new compromise being offered by some\nemployers not now covering employee\nleading Senate Finance Committee members\nhealth costs are required to do so, won't they\ncould break the impasse. Moderate Republi-\ntake the new costs from employee salaries?\ncans John Chafee, John Danforth and David\nThe move to require individuals to pick\nDurenberger and centrist Democrats John\nup insurance costs is not necessarily new.\nBreaux and Bill Bradley hope to move the\nThe idea has been promoted in the Senate by\ndebate forward by requiring individuals to\nRepublican Chafee of Rhode Island and in\npurchase health insurance if 95 or 96 per-\nthe House by Democrat Jim Cooper of\ncent of Americans do not have health insur-\nTennessee.\nance by the year 2002.\nBut its current significance is that the\nActually. the senators contend. that\nproposal could move the important Finance\nmandate may never be necessary. Immedi-\nCommittee beyond its deadlock. Yes, some\nate reforms such as allowing employees to\ninterest groups are lining up to oppose the\ntransfer their policies from job to job could\nindividual mandate. But the idea is one the\nsharply increase the number of insured\nfull committee should support when it\nAmericans to the point where no require-\nreconvenes next week. It gives times for\nment need be placed on individuals to pur-\nother reforms to work, while proposing a\nchase coverage.\nfinancing system that will not seriously\nYet if the debate does come down to\nthreaten the small businesses that generate\nrequiring individuals to purchase their own\nso many American jobs.\nDauas Marning news\n6/25\n90\nBC-NC--Hospitals Merger, 300\nASHEVILLE (AP) Regulators' permission to allow a partial merger of two\nFlorida hospitals bodes well for similar plans at Asheville's Memorial Mission\nand St. Joseph's hospitals, officials say.\nThe U.S. Justice Department last week proclaimed an antitrust breakthrough\nin the deal involving Morton Plant Hospital and Mease Health Care, two major\nhospitals near St. Petersburg.\nUnder a proposed consent decree, the two will jointly provide some\nservices, compete on others and share some administrative functions. The\ndecree requires approval by the federal district court in Tampa.\nThe agreement was the first in the health care industry since an antitrust\nenforcement guidelines were issued by Hillary Clinton and Attorney General\nJanet Reno last September.\nThe Justice Department is currently monitoring a potential deal between\nMission and St. Joseph's for the combination of some services. In March\nofficials of the two hospitals signed a letter of intent to seek a\ncollaboration, and the consulting firm Arthur Andersen was hired to do an\nanalysis of the benefits.\n``It is really very close to the blueprint we seem to be headed toward in\nour collaboration efforts, said John Coli, president and chief operating\nofficer of St. Joseph's Health Services Corp. If they approved it for two\nhospitals in Florida, why not approve it for two hospitals in Asheville?'\nUnder the agreement, the Florida hospitals may combine medical staffs and\nform a partnership to provide such things as outpatient care, open-heart\nsurgery, radiology and laboratory services.\nMission and St. Joseph's officials have refused to release a copy of the\nletter of intent stipulating details of their plan. They said releasing the\nletter would encourage needless speculation'' by employees about what form\nthe collaboration might eventually take.\n**** filed by:APE-(NC) on 06/26/94 at 17:09EDT ****\n**** printed by:WHPR(JEL) on 06/27/94 at 08:11EDT ****\nBritish Health System Fails\nCancer Victims, Critics Say\nBy WILLIAM E. SCHMIDT\nA\n(\nSpecial to The New York Times\nLONDON, June 25 - Armed with\nmendations last month for broad\nstatistics showing that patients in\nchanges in the treatment, including\nBritain with certain types of cancer\nthe way patients are referred, so that\nare more likely to die - and die\nmore patients will be seen by special-\nsooner - than patients in the United\nists trained in cancer care.\nStates or the rest of Western Europe,\n\"The N.H.S. is brilliant when it\nhealth advocates are demanding that\ncomes to primary care,\" said Dr.\nthe national health care system do a\nKarol Sikora, the director of clinical\nbetter job in diagnosing and treating\noncology at London's Hammersmith\na disease expected to afflict 260,000\nHospital and a member of a 12-mem-\nnew people here this year.\nber specialist committee that worked\nIncreasingly outspoken groups of\nwith Dr. Calman. \"But when it comes\nsurvivors, joined by Britain's top can-\ncer specialists and largest cancer\nContinued on Page 6, Column 3\ncharities, say the Government has\nfailed to spend enough money on can-\ncer care and train enough specialists.\nWhat's more, they argue that Brit-\nain's medical establishment and the\nNational Health Service, the 46-year-\nold Government system that provides\nmost Britons with medical care,\nsometimes hinder patients from see-\ning the best people or receiving the\noptimum treatment.\nIn the face of growing pressure, Dr.\nKenneth Calman, an oncologist and\nthe chief medical officer in the De-\npartment of Health, published recom-\nTHE NEW YORK TIMES, SUNDAY, JUNE 26, 1994\nLTH\nTracking Cancer Treatment in Britain\nMortality rates\nCase burden\nBreast cancer rates\nChemotherapy treatment\nPer 100,000 people per year,\nNew patients seen per year per\nPer 100,000 people per year.\nNumber of cycles of treatment per\n1987-90.\noncologist (study published in '91)\nFigures are adjusted for age.\ncancer patient.\nCancer\nBritain\nU.S.\nBritain\n560\nBelgium\n10.8\nIncidence\nDeaths\ntype\nMale\nFem.\nMale\nFem.\nNetherlands\n250\nFrance\n9.9\n200\n1,021\n1,084\n27.9\nLung\n63.7\n21.6\n56.9\n22.7\nU.S.\n22.4\nSpain\n8.0\nColo-\n21.5\n15.5\n17.2\n12.0\nFrance\n200\nrectal\nItaly\n6.8\nSpain\n200\n86-\n87\n87\nStomach\n13.9\n6.3\n5.3\n2.5\nPortugual\n200\n90\n90\nGermany\n6.8\n88\n90\nProstate\n14.4\n15.7\nGermany\n140\nBritain\nU.S.\nBritain\nU.S.\nBritain\n3.8\nSources: Cancer Research Campaign, Britain: National Cancer Institute, U.S.; World Health Organization: International Agency for Research on Cancer: Royal College of Radiologoists, Britain; CIE Monitor-Glaxo\nThe New York Times\nBritain's Health System Faulted for Cancer Treatment\ntook two years, eight different doc-\nContinued From Page 1\ntors and a series of false diagnoses\nbefore physicians in Britain finally\nto cancer, it is very patchy. Some\nfigured out she had Hodgkin's dis-\nhospitals are world class, but others\nease, a form of lymphatic cancer.\nare far below standard, which means\nLast spring, Mrs. Miles, who is 35,\nthat for anyone with cancer, it is a bit\nfounded the National Cancer Alli-\nof a lottery.\"\nance, Britain's first public lobbying\ngroup of cancer survivors, because\nAmong most Britons, the N.H.S. is\nshe says she is determined that oth-\nrevered for offering unimpeded ac-\ners do not have to go through what\ncess to quality primary health care,\nshe did.\nand the system is often cited as a\nIn part because of the faith that\nmodel by advocates of health care\nmost Britons place in their Nati\nreform in the United States. But crit-\nHealth Service, few have a consum-\nics say the service is also plagued by\ner's attitude about medicine, and\ninefficiency and a lack of resources,\nmany do not question the judgment of\nleading to long waiting lists for pa-\nthe general practioners whom they\ntients awaiting elective surgery.\ngo to first for medical care.\n\"So the system favors the well-\nA report issued last year after a\neducated, the pushy or the wealthy\nconference of Britain's cancer chari-\nwho can afford to pay for private\nconcluded: \"The U.K. is not\ntreatment,' Mrs. Miles said. \"If\nmeeting the cancer challenge. Surviv-\nnot stood up and hollered and de-\nal rates for some types of cancer are\nmanded answers to questions about\nfar less good than they are in the U.S.,\nmy illness, I really believe the\nth\nGermany and France. Less than 40\ncare system would have just let me\npercent of cancer patients in the U.K.\ndie.\"\nare ever referred to cancer special-\nJonathan Player for The New York Times\nFighting Breast Cancer\nists.\"\nMany cancer survivors in Britain say the Government fails to spend\nInspired by the success of AIDS\nWhile Prof. Gordon McVie, the\nenough money on cancer care and train enough specialists. Becky Miles,\ngroups in lobbying for Government\nchief scientific officer for the Cancer\n35, a survivor who formed a lobbying group in London, said it took two\nmoney to fight the disease, British\nResearch Campaign charity says en-\nwomen, like women in the United\nyears, eight different doctors and several false diagnoses before physi-\nvironmental factors cannot wholly be\nStates, are demanding a larger Gov-\nruled out - the incidence of lung and\ncians figured out she had Hodgkin's disease, a form of lymphatic cancer.\nernment commitment to combating\nbreast cancer. In a letter to The\nstomach cancer, for example, are\nhigher in Britain than in the United\nTimes of London earlier this year,\nStates experts agree that the chief\nMany Britons with\nDr. Sikora said as recently as the\nLesley Elliott, a woman who said it\nreason for the differences are cultur-\nmid-1980's, it was accepted clinical\ntook doctors seven months to diag-\nal and structural barriers to the de-\npractice in Britain for doctors not to\nnose a breast lump as cancer, argued\nlivery of cancer care.\ncancer lack early,\ntell patients they had cancer.\nthat as many women are dying of\n\"It still happens today,\" he said.\nbreast cancer in Britain now as did\nA recent study by European re-\nspecialized care.\n'The doctor will say, 'You have a\nwhen her grandmother was alive.\nsearchers suggested that only 6 in 10\ncyst, dear, and we'll have to give you\n\"Mortality rates have hardly\nBritish women diagnosed with breast\nsome radiation to prevent it from\nchanged,\" she said. \"This is not a\ncancer will be alive after five years,\ncoming back.'\nlegacy I wish to leave my daughters.\ncompared to nearly 7 in 10 in the rest\nvival rates among patients who have\nCritics also point out that Britain\nLoretta Tinckham of the Cancer-\nof Europe, and nearly 8 in 10 in the\nspends only 6 percent of its gross\nRelief Macmillan Fund, one of Brit-\nUnited States. At the same time, the\naccess - and especially early access\nnational product on health care, less\nain's four major cancer charities,\nmortality rate for breast cancer\nto specialist care, and those who do\namong British women is higher than\nnot,\" said Dr. Harmon Eyre, the chief\nthan half the percentage spent annu-\npublished one of Britain's first pam-\nmedical officer for the American\nally in the United States.\nphiets on breast cancer last year.\nfor women in any other Western na-\n\"We reacted to the data, which is\ntion, even though the incidence of the\nCancer Society in Atlanta.\nNot so long ago, Dr.. Sikora said,\nappraling.\" said Mrs. Tinckham, who\ndisease is less than it is in the United\npeople from developing countries\nStates.\nShortage of Specialists\ncame to Britain to seek the best possi-\nargust that the relatively poor prog-\nAs in the United States, cancer is a\nble cancer care. \"But the best centers\nnose of many patients is directly\nAmong lung cancer patients, ac-\ncording to a survey by a Manchester\nin the third world are actually quite\nrelated to inequality in access to spe-\nmajor public health challenge in Brit-\ncialist care.\nhospital, only 15 to 30 percent of Brit-\nain, and will afflict one in every three\ngood, and probably better than small-\nish patients with small-cell lung can-\npeople here over the course of their\ner units in the U.K.,\" he said, explain-\n'Luck of the Draw'\ncer will survive for two years, com-\nlifetime. Yet Britain has only 300 can-\ning that a patient in New Delhi, for\npared with 40 to 50 percent in the rest\nexample, might be better off staying\n\"It is a lottery, the luck of draw,\ncer specialists for a population of 57\nof Western Europe and in the United\nmillion people, which is one reason\nthere.\ndepending on where you live,\" she\nsaid. \"Some women see specialists\nStates.\nonly 4 in 10 cancer patients ever see a\nSecond Opinions Discouraged\nwho know what they are doing: oth\nEarly Diagnosis\nspecialist. In the United States, by\nCritics generally say that Britain's\ners see general surgeons who\ncomparison, Dr. McVie said, there\nAmerican cancer experts say the\nhealth care system which relies on\nlittle about the disease.\"\nare about 6,000 cancer specialists for\ndebate in Britain over shortcomings\nthe skill and ability of general practi-\nShe said it was imperative to give\na population four times the size of\nin the nation's strategic approach to\ntioners to recognize symptoms and\npatients more choices and improve\nBritain's.\ncancer treatment affirms their own\nthen refer patients appropriately -\ntreatment options, while maintaining\nDr. McVie said the relatively low\nconviction that the most successful\nnumber of cancer specialists in Brit-\nhas traditionally discouraged second\nsome control over the cost.\nway to fight the disease is with early\nopinions and refused patients the op-\nResearchers in Britain and the\nain was a reflection of \"cultural\"\ndiagnosis and prompt intervention by\nportunity to choose the specialist or\nUnited States say there is a measur-\nTHE NEW YORK TIMES, SUNDAY, JUNE\nfactors, including a \"vigorous resist-\ngroups of highly trained specialists.\nthe hospital where they will be treat-\nable difference in the prognosis\nance\" not only to the idea of sub-\ned.\ncancer patients who receive care\nspecialization in British medicine but\nAs the United States contemplates\nBritain's health system did not be-\nspecialist centers and those who dos\nto the notion that most cancer pa-\na comprehensive health care system\ngin a nationwide breast screening\nnot.\nof its own, which may by necessity\ntients can be successfully treated.\nprogram for women until the late\nA recent study in Glasgow demon-\nhave to ration services to save money\nMatters of Tradition\n1980's and it is only recently that\nstrated that men with testicular can-\nand conserve resources, American\ncancer charities have inaugurated\ncer who were treated at a center\ncancer experts say they want to be\n\"The attitude toward the disease\npublic education campaigns, so wom-\nstaffed by cancer specialists were\ncertain it does not limit patients' ac-\nhas been softer in Britain,\" he said,\nen will be alert to the early symptoms\nmore than 2½ times more likely to be\ncess to the kinds of sophisticated ear-\ndescribing a belief among doctors\nof the disease.\nalive, five years later, than men who:\nly treatment that can be offered only\nthat some kinds of chemotherapy\n\"Even now, patients have no power\nwere treated at one of four other\nin specialized care centers.\ntreatment, for example, \"won't nec-\nto see the doctors they want, or get\nhospitals in the city, where doctors\n'Experience clearly shows there is\nessarily do the patient any good, and\nthe treatment they need,\" said Becky\nwere less likely to follow estable\na measurable difference in the sur-\nmay be more trouble than it's worth.\"\nMiles, a cancer survivor who said it\nprotocols for treatment.\n2/2\n110\nCONGRESS\nTHE NEW YORK TIMES, SUNDAY, JUNE 26, 1994\nHealth 5'11 Care Makes Progress on Rocky Path\nb/ By ADAM CLYMER\nwere not covered by 2002, a commis-\nnor Special to The New York Times\nsion should tell Congress how to close\nWASHINGTON, June 25 -\nThe stage is set for\nthe gap.\nThrough the grinding labors of its\nThe Finance Committee's chair-\ncommittees, Congress is on track to\ndebate, but Congress\nman, Daniel Patrick Moynihan, Dem-\na critical deadline of July 4 for\nocrat of New York, appeared uncer-\ndrafting national health Insurance\nremains split on\ntain today about where he wanted to\nlegislation. But its struggles under-\nlead the committee this week. He said\nhow difficult reaching agree-\nmemt will be.\nhealth coverage.\nhe planned to see how much support\nthe moderates' proposal could com-\nAs one committee after another\nmand If it was tilted a little more\nclears - or perhaps just runs\nstrongly toward universal coverage.\nthrough - its hurdles, Congress is\nBut It was also clear that he was\nmaking progress without coming\nHouse Ways and Means Committee\nconsulting the Clinton Administration\ncloser together. The leaders of both\nmet into the afternoon today and Is\nabout whether - and how easily - he\nparties insist that they want biparti-\nlikely to pass another such bill by\nshould give in to a proposal that plain-\nsan agreement, but they insist even\nFriday, also without Republican\nly falls short of the President's bot-\n: firmly that the legislation must\nvotes.\ntom line. It appeared that, in the end,\ntheir political bottom line. The\nThe Senate Labor and Human Re-\na bill patterned on the proposal of\nDemocrats demand insurance for all\nsources Committee Is already on\nSenators John H. Chafee, Republican\nAmericans; the Republicans reject\nboard and the House Energy and\nof Rhode Island, and John B. Breaux,\nwhat many of them concede is the\nCommerce Committee hopelessly\nDemocrat of Louisiana, and four of\nonly plausible way of getting there, a\ndeadlocked, while the Senate Finance\ntheir colleagues would emerge from\nrequirement for employers to pay\nCommittee is still unsettled.\nthe committee, perhaps by the end of\nmost of the cost.\nOne thing seems certain. Nothing\nthe week.\nach side thinks that It has the\ncan emerge from that committee\nThat would mean that two commit-\nground,\" Senator Bob Packwood\nwithout Republican votes because\ntees would have acted in each house,\ntegon, the senior Republican on\nSenator David L. Boren, one of its 11\nsetting the stage for a floor debate.\nenate Finance Committee, said\nDemocrats, has all but switched par-\nIt has been clear for weeks that\n\"Politics mixes up in It. If\ntles on this Issue. He has said he will\ngetting the bills out of committee\nCS was not involved, I think we\nnot vote for a bill that some of the\nbefore the Fourth of July vacation\nget together.\"\ncommittee's nine Republicans sup-\nwas about the minimum that Demo-\nAssociated Press\npolitics is involved, and, except\nport, effectively giving the Republi-\ncratic leaders could settle for. Even If\nRepresentative Barbara B. Kennelly, Democrat of\nB. Rangel, Democrat of New York, yesterday on\nSenate Finance Committee,\ncans his proxy.\nthe Finance Committee does not quite\nConnecticut, talking with Representatives William J.\nCapitol Hill at a meeting of the House Ways and\nhave been hardly any efforts at\nA centrist group of Senators on the\nfinish by the start of the one-week\nration.\ncommittee suggested a way out on\nrecess, It could move soon enough for\nCoyne, left, Democrat of Pennsylvania, and Charles\nMeans Committee on the health care overhaul.\nAction on Several Fronts\nFriday with a proposal that calls for\nleaders to start patching the bills\nchanges in Insurance laws to make\ntogether to get measures debated by\nThursday, with no Republicans\ncoverage more widely available and\nthe full House and full Senate this\nate, the 56 Democratic Senators, even\nversal coverage. He said requiring\nup with a group of six, \"We started\nin favor, the House Education\nsubsidies for low-income people. But\nsummer.\nif united, are 4 short of the number\nemployers to pay most of their work-\nwith eight people who philosophically\nLabor Committee voted out a bill\nit would not promise to provide all\nWidespread Praise\nneeded to force a vote.\ners' insurance cost was a \"tax on\nwere tilting in the same direction.\"\ngenerous in its benefits than\nAmericans with health Insurance. It\nOn all sides, politicians praised the\nAs Mr. Packwood said, politics is a\njobs.\" He said it would cost \"one\ndent Clinton's proposal. The\nsays that if 95 percent of Americans\nmillion jobs.\"\nEven on an Issue that seemed sim-\nefforts of the Finance Committee\nmajor factor. Republican uncertainty\nmoderates as a hopeful indicator,\nabout a filibuster results from a fear\nple to the group, like malpractice\neven If they were unhappy with their\nof being seen as obstructionist, but as\nTempers Grow Short\nlitigation, he said, \"everybody agreed\nNAPSHOT\nproduct. \"The moderate bill yester-\nthe President encounters other trou-\nThe atmosphere is increasingly Ir-\nonly on the label on the box - medi-\nday is forward movement,\" the\nbles, Republicans have been Increas-\nritable. Senator Bob Dole of Kansas,\ncal malpractice reform - and when\nWhere Coverage Comes From\nHouse majority leader, Representa-\ningly sharp in their attacks on his\nthe Republican leader, bristles when\nyou open the box, there are wide\ntive Richard A. Gephardt of Missouri,\nplan.\nHillary Rodham Clinton argues, as\ndivergences of opinion\" over details.\nsaid today. \"Obviously It is not uni-\nDemocrats say the passage of\nshe did before him in a television\nSenator George J. Mitchell of\nTypes of health care coverage among the United States population.\nversal coverage, but obviously they\nhealth care legislation would be a\nprogram Tuesday night, that Con-\nMaine, the majority leader, echoed\nare trying to act.\"\nmajor boost for their election pros-\ngress has given Itself a better health\nMr. Chafee's view. With all the atten-\nTotal with private health Insurance 70%\nHe added, \"When you've got Re-\npects. Representative Vic Fazio of\nInsurance deal - with employers\ntion on a central issue like employer\nEMPLOYER COVERAGE\npublicans and Democrats sitting in\nCalifornia, chairman of their House\npaying most of the cost - than It\npayments, he warned, it Is easy to\nrooms and negotiating, it means to\ncampaign committee, urged his col-\noffers the people.\nforget that it is \"only one of a whole\nme that there's some pretty great\nleagues to portray Republicans as\nAt a Finance Committee meeting\nseries, a large number of interlocking\ndesire to get some significant thing\n\"sticking it to the middle class\" by\nlater in the week, Mr. Dole com-\nmeasures, each of which is difficult\nTotal with public health Insurance\ndone in health care.\"\nbeing unwilling to require employers\nplained about Mrs. Clinton's tactics\nand complex.\"\nBut the Chafee-Breaux group, in\nto foot the bill.\nand proposed a step that would stifle\nIncludes Medicare, Medicaid and coverage\nthe end, commanded the allegiance of\nAgainst that background, Presi-\nher argument: ending Federal contri-\nBut he said he was encouraged,\nfor the armed services and veterans\njust six Senators, and the Finance\ndent Clinton, in his weekly radio ad-\nbutions to Insurance for members of\ndespite the issue's \"obvious complex-\nCommittee is one of the most colle-\ndress, warned Congress against\nCongress, the President and the\nNo health Insurance\nity and controversy,\" and despite the\ngial settings in Congress. There re-\n\"half-hearted\" measures \"that\nWhite House staff. Although some\nfact that it Is \"very easy to block\n15%\nmain very deep divisions, not exclu-\nwould not provide coverage to all\nDemocrats shared his annoyance at\nthings in our system and very hard to\nsively on party lines, that keep the\nfamilies.\" A senior Administration\nMrs. Clinton's anti-Congress mes-\nget things done.\"\neventual fate of legislation uncertain.\naide said the President was not refer-\nsage, the idea was dropped after Mr.\nThe Democrats have majorities in\nring in particular to the Chafee-\nMoynihan said, \"I can't afford it.\nNote: Percentages do not total 100 because some Individuals are covered\nboth houses, but they are far from\nBreaux proposal.\nEven without partisanship and bad\nby more than one source.\nsolid in favor of requiring employers\nResponding for the Republicans,\ntemper, the task of passing health\nto pay for Insurance. While it is not\nRepresentative H. James Saxton of\ncare legislation would be daunting.\nSource: Employee Benefits Research Institute\nclear that Republicans H d filibus-\nNew Jersey ham red on the means\nMr. Chafee recalled today that al-\nter a Democratic measure in the Sen-\nMr. Clinton is seeking to achieve uni-\nth\nhis compromise effort ended\nAmid Cries of/Politicking, a Widely Endorsed Plan Dies\nTHE NEW YORK TIMES, SUNDAY, JUNE 26, 1994\nmonth, blocked it in votes strictly\nGovernor Chiles said another spe-\nBy PETER APPLEBOME\nalong party lines.\nSpecial to The New York Times\nBusiness liked the\ncial session is possible. Republicans\n\"The anomaly of this is it's totally\nsay voters are more afraid of a bad\nTALLAHASSEE, Fla., June 24 - A\nupside down,\" Governor Chiles said.\nattempt by government to fix health\nlegislative deadlock that killed a\n'Chiles, a Democrat, is going to uti-\nwidely watched health care plan here\nDemocratic plan,\ncare than they are clamoring for a\nlize Federal cost savings to insure\ngood health care plan. In a Florida\nis raising two questions that could\nworking people, with no new taxes\nand no mandates. That should be a\nbut Republicans\nOpinion Poll conducted this month by\ndetermine the fate of health care\nThe New York Times Regional News-\nlegislation in Washington as well:\nRepublican utopia. There is no group,\nHow much did election-year partisan\nblocked it.\npapers, health care ranked fourth as\nnone, nada, that is opposed to our plan\nan important issue for voters, behind\npolitics dominate the process, and\nexcept the Republicans, who are\ncrime, education and immigration.\nhow much do the voters really care\nagainst it totally for politics.\"\nOnly 15 percent of respondents\nabout health care?\nGov. Lawton Chiles and other Dem-\nDemocrats' Lament\n\"The starting point of the politics\nranked it among the two most impor-\ntant issues. Still, 85 percent agreed\nocratic leaders are saying that Re-\nLieut. Gov. Buddy MacKay con-\nwas Governor Chiles's re-election ef-\npublicans, including Republicans in\nfort,\" said State Senator Locke Burt,\nthere was a health care crisis in the\ntended that state Republicans op-\nWashington, leaned on Republican\nposed it to hurt Governor Chiles in his\na Republican on the committee that\nUnited States.\nstate senators to block the proposed\nkilled the proposal.\n\"Both Lawton Chiles and Bill Clin-\nbid for re-election this fall and that\nhealth care plan, which had broad\nnational Republicans did not want\nIndeed, political experts here say\nton have found themselves with their\nbacking.\nFlorida Democrats to be able to pass\nthat the Democratic effort was a\nhands wrapped tightly around a polit-\nRepublicans have derided the\nclumsy one, with a noticeably weak\nical issue that has come to be the\na plan that would steal the thunder\nclaim that Senator Bob Dole, the mi-\nlobbying effort by supporters, and\ncenterpiece of their political ambi-\nfrom national Republicans, whose\nnority leader, and other national Re-\nemerging health care plan would\nthat Governor Chiles called the ses-\ntions, and virtually only 10 to 15 per-\npublicans worked to kill Governor\nhave many similar features.\nsion without determining whether he\ncent of the American people give two\nChiles's plan. They say it was a deep-\nIn Washington this week, Governor\nhad the votes to get his bill through.\nhoots in Hell about it,\" Mr. Slade said.\nBut State Representative Ben\nly flawed plan that many supporters\nChiles told Democratic senators that\nDismayed Conservatives\nGraber, a doctor and the Democrat\ndid not understand. Democrats have\nhe had private assurances from sev-\nStill, even many conservative\nwho helped write the bill, said that\npresented no proof that Republicans\neral Republican state senators that\ngroups were disappointed by the pro-\npolitics dominated the process and\noutside the state played a role.\nthey would vote for his plan. He said\ngram's failure. \"The real irony of this\nthat voters will not look kindly on a\nBut whether it was because of na-\nthey caved in under pressure from\nis that our plan that we supported\npurely political effort to kill the bill.\ntional or local politics, it is clear that\nthe Republican National Committee\nhere is very similar to what the Re-\n\"Although the moderate Democrats\nthe effort to pass a health care plan\nand Senator Dole.\npublicans nationally are saying is the\nand moderate Republicans could\nhere became mired in gut-level elec-\nState and national Republicans, in-\nconservative alternative to the Clin-\nhave sat down and worked it out, the\ntion-year politics.\ncluding a spokesman for Senator\nton plan,\" said Jim Brainerd, general\npolitics of this year took over,\" he\nFlorida's plan gained the backing\nDole, deny any national Republican\ncounsel for the Florida Chamber of\nsaid. \"This is a good bill, and its\nof a broad coalition of groups, from\nrole in Florida. Tom Slade, the chair-\nCommerce.\nfailure is going to hurt people.\"\nunions to businesses. It used cost sav-\nman of the state Republican Party,\nings projected to come from enrolling\nsaid that \"there's not a thread of\nMedicaid recipients in managed care\ntruth\" to Governor Chiles's allega-\nplans to provide premium discounts\ntions.\nto uninsured residents with income\nRepublicans' Critique\nlevels up to 250 percent of the Federal\npoverty level. That means an Income\nFlorida Republicans say the Chiles\nof as much as $37,000 a year for a\nplan relied entirely on speculative\nfamily of four.\nsavings and depended too heavily on\na flawed agreement with the Federal\nDemocrats said. the plan would\nGovernment They contend that Gov-\nhave helped insure about a million of\nernor Chiles is blaming Republicans\nthe 2.7 million Floridians who are\nto cover up his political ineptitude.\nunable to buy health insurance. The\n\"Chiles is blaming everybody, but\nFederal Government would have\nhe needs to blame himself,\" said\npaid for 56 percent of the costs\nState Senator Ander Crenshaw, who\nthrough Medicaid savings, with the\nis seeking the Republican nomination\nrest coming from the state, the par-\nto challenge Governor Chiles in No-\nticipants and voluntary employer\nvember. \"The reason that session\ncontributions.\nwas a disaster was that the more\nMany pro-business groups, such as\npeople found out about the Chiles\nthe Florida Chamber of Commerce,\nhealth care plan, the less they liked\nsupported the plan as a free-market\nit.\"\napproach that would not have re-\nOther Republicans say that if poli-\nquired businesses to pay. But Senate\ntics did rule the process, it was the\nRepublicans, in a general session in\npolitics of Democrats desperate to\nApril and a special session this\npass a bill.\nHealth Care Horror Stories\nCritics labeled them horror stories, and they\nhealthy or sick, at identical rates. That is fine, but\nwere. On Tuesday night, NBC presented a two-hour\nunless there is a parallel obligation for all individ-\nnews special on health reform that began by focus-\nuals, healthy families will not buy coverage until\ning on the human disasters caused by a system that\nsomeone gets sick. Premiums will thus rise drasti-\ndenies families the guarantee of adequate health\ncally for everyone else. The way around this prob-\ncoverage.\nlem is universal coverage.\nRick Reckoway works hard as an electrician.\nThere is room to disagree about tactics. Mr.\nWhen his 12-year-old son was born with respiratory\nClinton would impose an employer mandate, requir-\nand cardiac problems, he thought he did not have a\ning employers to pay most of the cost of the policies\nfinancial worry because he had bought family cov-\nchosen by workers. That makes sense because it\nerage. Mr. Reckoway discovered that his insurance\nwould build upon the system that already provides\nbenefits were capped at $100,000, leaving him\ncoverage to most Americans. It is also feasible\n$700,000 in debt. He played by all the right rules, and\nbecause, with time to adjust and the help of Federal\nfound himself impoverished.\nsubsidies, companies would be able to avoid mas-\nCathi and Perry Thoorsell both work. Yet they\nsive layoffs by passing along the costs to workers in\ndo not have $7,000 for health insurance for them-\nthe form of lower wage hikes.\nselves and their two children. When Cathi suffered a\nYet furious opposition by small employers has\ndifficult pregnancy, they were hit by whopping bills\nbottled up the idea in the Senate Finance Committee\nand went $30,000 in debt. Their lives are haunted by\nthe threat of more medical bills they cannot afford.\n- a crucial battleground because its membership\nAnd they have abandoned any thought of having a\nmirrors that of the full Senate. A. group of moder-\nthird child.\nates on the committee - led by John Breaux,\nThese horror stories, some opponents of reform\nDemocrat of Louisiana, and John Chafee, Republi-\nsay, slander the overall excellence of U.S. health\ncan of Rhode Island - put together a measure that\ncare. But the issue is coverage, not quality. The\navoids an employer mandate. Some of their ideas\nsystem is riddled with holes through which tens of\nare sound, primarily a provision to tax lavish health\nmillions fall - forcing them to scrounge to get by\ncare policies as a way of driving consumers toward\nwith no insurance or inadequate insurance. Though\ncost-effective plans. But their plan fails to lock in\nthe vast majority of Americans say they are happy\nuniversal coverage now or in the future.\nwith their health care, families like the Reckoways\nUniversal coverage can be delayed to give\nand Thoorsells are the tip of a large problem - a\nbusinesses time to adjust to voluntary market re-\nproblem that has no place in a wealthy country.\nforms. The idea can even be dropped until, say, five\nPresident Clinton has it right: Universal cover-\nor more years from now when it would automatical-\nage is needed for humanitarian reasons, and eco-\nly kick in if voluntary reforms did not achieve\nnomic reasons as well. Without it, health care\nuniversal coverage. But universal coverage cannot\nmarkets will not work properly. Most reform bills\nbe denied unless the country wants to tolerate the\nwould require insurers to sell to all applicants,\nspectacle of millions of Reckaways and Thoorsells.\nTHE NEW YORK TIMES, SUNDAY, JUNE 20, 1994\nUnnecessary Nuclear Relics\nThe Pentagon says it does not want more B-2\nrestoration and other work at military bases that\nbombers. The Energy Department does not want a\nare being closed.\nnew nuclear reactor. But there are interested par-\nThe B-2 is wasteful, but the new nuclear reactor\nties in the private sector and in Congress who want\nis downright wrong. It was originally designed as a\none or the other or both. By denying funds this week,\nbreeder reactor, which produces more plutonium\nthe Senate can stop these superfluous programs in\nthan it consumes. At a time when the world is\ntheir tracks.\nworried about nuclear proliferation and cannot\nThe B-2 bomber was designed to penetrate\nkeep track of the tons of plutonium it already has,\nSoviet air defenses and drop nuclear bombs on\nproducing more of this critical ingredient in bombs\ntargets that U.S. missiles missed. That mission is\nis perverse.\nextinct. The B-2 is now being touted as a convention-\nFinancing the Integral Fast Reactor would\nal bomber, at an exorbitant $870 million a copy. The\nsend the wrong signal to Japan and others who are\nPentagon already has 20 B-2's, and an ample num-\nplanning to produce more plutonium to fuel nuclear\nber of other bombers, to carry out that new mission.\npower plants. Energy Secretary Hazel O'Leary,\nYet B-2 backers want to spend $150 million to\nwho wants to terminate the program, put it well:\nkeep the plane's production line warm. Senator Carl\n\"We cannot credibly urge that others not use tech-\nLevin has a better way to spend the money: use it to\nnologies for separating and using plutonium if we\nmake up a shortfall in funding for environmental\nare pursuing those same technologies ourselves.\"\nSmarter, and Fairer, About Drug Crime\nBeneath the din of tough-on-crime shouting in\ntives Henry Hyde of Illínois and Bill McCollum of\nthe White House and Congress, a quiet strain of\nFlorida endorse retroactivity. Attorney General\nsober reason has begun to emerge in the fight\nJanet Reno hangs back, even though she was among\nagainst drugs. Both the House and Senate have\nthe first in Washington to denounce the rigid mini-\nvoted to ease mandatory minimum sentences for\nmum sentences. Her own Justice Department found\ncertain low-level drug offenders.\nlast year that as many as 16,000 Federal prisoners\nThat refreshing step recognizes that while the\nare in the small-time drug offender category. The\nmules and messengers of drug operations must be\nHouse bill would spring only a fraction of that\npunished, it is dumb and unfair to inflict mandatory\nnumber by reducing five-year minimums to two\nminimum sentences of 5 and 10 years. Both cham-\nyears - if prisoners' criminal records include only\nbers would remove mandatory terms for minor\nminor previous offenses and the Justice Depart-\ndrug violators. The House would apply the more\nment does not accuse them of being ringleaders.\nflexible rules retroactively to release between 1,600\nMinor offenders need punishment, but existing\nand 4,000 inmates needlessly cramming Federal\nsentencing guidelines can do the job. Otherwise,\nprisons.\nthese inmates will occupy beds needed for more\nSenate-House conferees can adopt the House's\ndangerous crime leaders and force new prison\nretroactive leniency without losing any political\nconstruction, eating up funds for police and crime\npoints. Certified crime warriors like Representa-\nprevention. The House has the right version.\nTHE NEW YORK TIMES, SUNDAY, JUNE 26, 1994\n17\nTHE WASHINGTON POST\nSUNDAY. JUNE 26. 1994\nNo Mandate\nMoynihan Health Plan\nIn Moynihan\nIs Not Quite Universal\nHealth Plan\nHEALTH, From A1\nBut Moynihan has warned Clinton\nDraft of Bill Envisions\nthat Congress will not pass a bill\nwith that mandatory provision, and\nCovering 95 Percent\nmany Republicans, conservative\nDemocrats and uncommitted mem-\nbers who object to it have been\nOf Americans by 2000\nwatching the Finance Committee\nclosely as a bellwether of what ulti-\nmately can garner a majority on the\nBy Dana Priest\nWashington Post Staff Writer\nAI\nfloor of both chambers.\nThe committee will begin public\ndiscussions of the health care issue\nA health care reform bill being\ndrawn up by Senate Finance Com-\nthis week in hopes of voting out a\nmittee Chairman Daniel Patrick\npackage before the July 4 congres-\nsional recess. Moynihan's plan,\nMoynihan (D-N.Y.) would rely on\nknown as the \"chairman's mark\" will\neconomic incentives, new insurance\nbe the official vehicle for the discus-\nregulations and government subsi-\nsion, although the committee also\ndies for the poor to provide insur-\nwill consider a compromise plan pro-\nance coverage to 95 percent of\nposed Friday by a \"rump group\" of\nAmericans by the turn of the centu-\ncommittee senators. There is con-\nry, according to a draft of the pro-\nsiderable overlap between the two\nposal.\nplans.\nUnder the Moynihan plan, which\nInitial reaction to Moynihan's pro-\ncongressional sources said will be\nposal appeared positive, and some\nproposed to the committee Monday\nin a closed-door session, neither em-\nployers nor individuals would be re-\nquired to buy health insurance. But\n\"It sounds\nif the 95 percent target is not\nreached by 2000, a national commis-\nextremely\nsion would recommend new, manda-\ntory measures to Congress. Special\npromising. It sounds\nprovisions in the bill would make it\ndifficult, but not impossible, for Con-\nlike we're on the\ngress to reject the recommenda-\ntions.\name wavelength\nFinancing and other provisions\nstill are under discussion and com-\n-he's focusing on\nmittee chief of staff Lawrence\nO'Donnell Jr. said last night that\nachieving the\nMoynihan, \"Has made no decisions.\"\nThe draft includes proposed new\nobtainable.\"\ntaxes on cigarettes, guns, ammuni-\n-Sen. John H. Chafee\ntion, certain insurance premiums\nand a 1 percent payroll tax on firms\ncommittee members said yesterday\nwith more than 500 employees.\nthey believed it has a good chance of\nA draft of Moynihan's 139-page\nbreaking the deadlock.\nproposal was obtained by The Wash-\n\"It sounds extremely promising,\"\nington Post. In many ways, its intro-\nsaid Sen. John H. Chafee (R-R.I.),\nduction will mark a new phase in the\nthe leader of the rump group. \"It\nhealth care reform debate, finally\nsounds like we're on the same wave-\npinning down the mercurial chair-\nlength-he's focusing on achieving\nman of what is arguably the most in-\nthe obtainable.\"\nfluential committee in Congress on\n\"Senator Moynihan is making a\nthe health care question.\nserious effort to lay before the com-\nThe Finance Committee, which\nmittee something they will consider\nhas a history of bipartisanship. has\n\"credible,\" said Sheila Burke, chief of\nbeen deadlocked for months over\nstaff for Minority Leader Robert J.\nhow or whether to finance what\nDole (R-Kan.), who is also a commit-\nPresident Clinton has said is his bot-\nstee member. \"Dole will see this as a\ntom line for a health care plan-\nserious effort to reach out to Repub-\nhealth insurance for all Americans.\nlicans.\"\nTwo of the five congressional\nA White House official, briefed by\ncommittees with jurisdiction over\na reporter on elements of the Moy-\nhealth care-one in the House and\nnihan proposal, said, \"the concepts\none in the Senate-already have\nsound interesting and seem to be\nadopted plans to pay for universal\nmoving in the right direction.\" The\ncoverage by requiring employers to\nofficial said it would be impossible to\nbuy insurance for their workers-\ncomment further without having an\nthe so-called employer mandate that\nimpportunity to review the complete\nis part of Clinton's original health\nplan.\ncare proposal.\nSee HEALTH, A22, Col. 1\n1/2\nColeman Shows he Grea est Potential\nFor Gains in Senate Race, Poll Indicates\n\"He is not a spectacular senator. He is not\nPOLL, From A1\na brain surgeon,\" said Robert B. McKinney,\npercent of Democrats interviewed favored\nroom for growth, his best hope may lie in a\n39, a lawyer in Louisa County in central Vir-\nNorth. and another 8 percent were backing\nginia. Nonetheless, McKinney said, \"I still\nColeman.\nclose four-way race in which less than 35\npercent is needed to win.\nfeel he is a hard-working and competent poli-\nRobb's lead would be substantially larger\nAlthough Coleman may be best positioned\ntician.\"\nif Wilder were not in the race. Wilder, the\nto pick up supporters, he also has the softest\nNorth supporters are far more enthusias-\nnation's first black governor, currently\nsupport of the four: Fewer than a third of\ntic about their candidate. More than six out\nclaims 56 percent of the black vote, while\nColeman's advocates said they strongly back\nof 10 strongly support their choice, com-\nRobb received the support of 34 percent.\npared with four out of 10 Robb backers.\nRobb is the second choice of an overwhelm-\nhim.\n\"I feel he's probably the best candidate,\"\nNorth is collecting dividends from the un-\ning number of black voters surveyed. About\nMarie Toshiko Clarke, 25, a suburban\nrelenting travel schedule he has followed in\none out of six voters in Virginia is black.\nRichmond homemaker. \"But I don't know\nthe last two years, crisscrossing Virginia to\nWilder \"pulls for the black community,\"\nwhether voting for him would be a wasted\nspeak on behalf of state and local candidates.\nsaid Latawnya Peterson. 21, a physician's as-\nvote.\"\nLately, he's been campaigning for hinself, at\nsistant in Hopewell.\nColeman also is the most popular \"second\nevery chicken fry, crab fest and pig roast in\n\"As an African American, 1 feel like he has\nchoice\"-named by 26 percent-an impor-\nsight.\nan understanding of some of the social\nconsideration if one of the candidates\n\"I have had the opportunity to hear him\nneeds,\" said Marguerite Murray. 37, who su-\ndrops out. He also benefits if some voters de-\nspeak, and I am pretty much on-line with ev-\npervises a residential mental health program\ncide their first choice can't win and go look-\nerything he says,\" said Walter Lindsay, a 20-\nin Charlottesville. think he does have an\ning for an alternative. Both Robb and Wilder\nyear-old student from Giles County on the\near for listening and some compassion\nwere the second choice of 21 percent, while\nWest Virginia border, sounding a familiar re-\nabout what the people are facing.\nHe has\nNorth was the second choice of only one out\nfrain of North backers.\na connection with some people.\nof 10:\nThe Bible-quoting North also is being re-\nAmong white voters, Robb has 36 percent\nThose statistics combine to present a.\nwarded for his hard-line antiabortion stance\nand Wilder has 9 percent. Robb's lead is\nmonumental challenge, and opportunity, for\nand his call for Christian-based family values.\nmuch narrower when it comes to North, who\neach of the candidates and their consultants.\nThe survey found that among those white\nhas 31 percent support among white voters.\nBy November, they are likely to have shared\nevangelicals who said they were deeply in-\nMany people expressed ambivalence\nin the most costly, and perhaps one of the\nvolved in their church-about 20 percent of\nabout the candidates.\nmost negative, U.S. Senate campaigns in the\nthe electorate-the former White House\n\"I don't think he's an ideal candidate, but if I\ncountry's history.\nhad to choose between the two, I would choose\nEach of the campaigns tried yesterday to\nmilitary aide is favored by 45 percent. Robb\nRobb over North,\" said Brian P. Menard, a 29-\nput the best light on the survey.\nwon support from 28 percent; 12 percent\nyear-old law student at the University of Vir-\nRobb spokesman Bert Rohrer said the poll\nback Coleman; and 4 percent favor Wilder.\nginia. \"While I won't put Charles Robb's lack of\n\"confirms what we've been saying. It looks\nEven among North supporters who aren't\nintegrity in the same category as Oliver North.\ngood, but we are taking nothing for granted.\nsure he did the right thing in the Iran-contra\nclearly he has shown to me at least a lack of\nIt's going to be a long, difficult campaign.\"\naffair, there is a feeling, as Roy Eugene Phil-\ndiscretion and a lack of good taste.\"\n\"Any challenger who is within 10 points of\npotts Jr., of Martinsville, put it, that \"he was\nKimberly Rilma, a recent high school\nan incumbent five months out has to be\njust following orders from the higher-ups.\"\ngraduate from Hampton who described her-\npleased,\" said North spokesman Mark Mer-\n\"He's a war hero,\" said James R. Glenn,\nself as moderate Republican, said: \"Honestly,\nritt. Recalling that in last year's gubernatori-\n64, a farmer from Nickelsville in Southwest\nI feel that Oliver North is a crook. And I feel\nal race, in which the Republican nominee-\nVirginia. \"I think [the arms-for-hostages\nthat Charles Robb is a crook, also, but I think\nand eventual winner-badly trailed the\ntrade] was done under orders and that the\nhe's a productive crook.\"\nDemocrat at the start of the summer, Mer-\nnews media set him up.\"\nEven though the candidates don't satisfy\nritt said, \"George Allen would have given his\nNorth's support isn't limited to the Chris-\neveryone, interest in the race is high.-With\nright arm for these numbers.\"\ntian Right. Susan P. Jones, a, 29-year-old\nthe election more than four months away,\n\"It's clear voters are looking for an alter-\nhomemaker from Standardsville, is attracted\nnearly three out of four voters said they're\nnative to Robb and that North is not it,\" said\nto his campaign because of his opposition to\nalready closely following the race.\nColeman campaign manager Anson Franklin.\ngun control.\nOverall, 56 percent of those interviewed\n\"The most remarkable and consistent find-\n\"I think they are taking too many rights\nsaid they were satisfied with the candidates\nings in the early polls is the unacceptable\naway,\" Jones said. \"They are going about gun\nrunning. In December, before Coleman and\nquotient [of the other three], especially after\ncontrol the wrong way. The criminal can al-\nWilder entered the race. an equally large\nRobb and North spent millions to get their\nways get a gun, but your average citizen can't\nmajority were dissatisfied with the candi-\nnominations.\"\ngo buy a gun now without it being a hassle.\"\ndates in the field.\nWilder campaign manager Glenn David-\nOn the other hand, North has yet to at-\nA total of 1,000 randomly selected regis-\nson, noting that an earlier poll by another or-\ntract many Democratic defectors. Only 4\ntered voters were interviewed by telephone\nganization showed the race much closer,\nJune 19-23. Margin of sampling error for the\nsaid: \"It's difficult for us to put our confi-\noverall results is plus or minus 3 percentage\ndence in either poll. And as the governor\npoints.\nlikes to say, the only poll that counts is the\none that's taken on Election Day.\"\nSenior polling analyst Sharon Warden\nRobb is running best among women, older\ncontributed to this report.\nvoters, independents and political moder-\nates.\nAnd according to extended interviews by\npoll takers with 40 of the respondents, Robb\nis benefiting from a forgiving electorate, low-\nered expectations and opponents who often\nare viewed even less favorably.\nNearly everyone interviewed was aware\nTHE WASHINGTON POST\nof Robb's personal problems, which began\nSUNDAY.\n11\nduring his term as governor in the 1980s.\n26.\n1994\nHe attended parties with drug users in Vir-\nginia Beach and acknowledged marital indis-\ncretions.\n\"He had such great promise. How sad that\nhe didn't live up to it,\" said Frances Richard-\nson, 77, of Falls Church, who is more dis-\nheartened than she is angry with Robb. \"I\nthink he could have gone on and been a good\nsenator and maybe even run for president\nsome time. But he blew it.\"\n35\n2/2\n\"Clinton, in his weekly radio ad-\nBut at the heart of the bill is a reli-\nress yesterday, continued an ongo-\ndrumbeat of White House insis-\nance on a \"managed competition\" ap-\nonce on universal coverage. \"We've\nproach to reform, including changes\nCard a lot about measures lately\nin the rules insurance companies\nVitit wouldn't provide coverage to all\nmust follow, a standard benefit pack-\nTHE WASHINGTON POST\n\"families,\" he said. \"But, make no mis-\nage and the ability of small firms and\ntake, measures that are halfhearted\nindividuals to pool their purchasing\nd, at best, guarantee that things\npower and bargain with insurers for\nSUNDAY, 26. 1994\nStay only about as good as they are\nbetter rates.\nnow; the poor would get health care,\nIn committee hearings, Moynihan\nMare wealthy would get health care,\nhas shown a preference for letting\nthe middle class would get it some-\nthe private market fixes work before\ntimes and not get it sometimes.\"\nallowing the government to get in-\nMoynihan, who was out of Wash-\nvolved. On more than one occasion\nington yesterday, could not be\nhe has revisited the government's\nreached. His staff did not return\nfailure to accurately predict the cost\nelephone calls.\nof the Medicare program for the el-\nThe employer mandate has been\nderly. Government actuaries pre-\nproved by the Senate Labor and\ndicted when it was first enacted in\nfiman Resources Committee and\n1965 that Medicare would cost $9\nHouse Education and Labor\nbillion in 1990. It cost the govern-\ncommittee, and is believed to have\nment $106 billion in 1990.\nenough support to pass in the House\n\"Over the last quarter of a centu-\nry we have all been wrong\" in pre-\nWays and Means Committee, which\ndicting the true cost of entitlement\nis still debating its bill.\nprograms, Moynihan told First Lady\nBut the House Energy and Com-\nHillary Rodham Clinton when she\nTHE MOYNIHAN COMPROMISE\nmerce Committee is deadlocked on\ntestified before the Finance Commit-\nthe issue, and many members do not\ntee in October.\nFollowing are the key provisions of the health reform bill propo\nfavor it. Major elements of the busi-\nby Finance Committee Chairman Daniel Patrick Moynihan (D-N.)\ncommunity have mounted an\nunprecedented district-by-district\nWHO PAYS\ngrass-roots and media campaign to\nVoluntary. No requirement that employers or individuals buy\nlobby against it.\ninsurance.\nOn the other side, labor unions,\nconsumer and senior citizens groups,\nThere are government subsidies for low-wage firms that pay 8\nhealth professionals and elements of\npercent of their workers' insurance cost.\nthe insurance industry favor the em-\nSmall businesses that pay at least 50 percent of their workers'\nployer mandate to pay for what they\nhealth costs can enroll in the existing Federal Employee Health\nagree with Clinton is the bottom line\nBenefits Program.\nof an acceptable plan-one that pro-\nFull government subsidies phased in for low-income people.\nvides universal coverage.\nEmployers must offer at least three health plans, including a\nFinding a middle ground that is\nfee-for-service plan.\nacceptable to enough members on\nboth sides of the issue is the ultimate\nUNIVERSAL COVERAGE\nof whether the legislation will\nIf 95 percent of all Americans do not have insurance by 2000, tl\npass.\na National Health Care Commission would recommend ways to\nMoynihan, according to congres-\nachieve that goal. If Congress did nothing, the recommendations\nsional sources, believes he has found\nwould take effect. If Congress substituted other measures, it WOU\nacceptable middle ground by pro-\nhave to vote on them by the specified deadline-helped by fast-t\nviding a mechanism to achieve uni-\nprocedures. If it wanted to reject the recommendations, it would r\nversal coverage-redefined as 95\nto hold a full debate and vote to do so before the deadline.\npercent of the population-that is\nBENEFITS\nflexible and still allows Congress a\nway around compulsory insurance\nAll insurance plans would have to offer a standard package of\npayments by employers or individu-\nhealth benefits equivalent to the Blue Cross/Blue Shield Standa\nals.\nOption plan available to federal employees, currently worth abo\nThe plan would give a new nation-\n$4,800 for an annual family policy.\nal commission-a seven-member\nThere would be annual limits on out-of-pocket exper\ninclu\nbody nominated by the president and\nco-payments, deductibles and coinsurance.\napproved by the Senate-authority\nA \"catastrophic\" option with a deductible of at least $5,000\nto determine why more people are\nwould also be available.\nnot insured and the flexibility to tai-\nlor a remedy. It may turn out, propo-\nCOST CONTROLS\nnents of the proposal argue, that\nAnnual insurance premium targets would be set. If exc led.\nthere is some unforeseen problem\nNational Health Cost Commission would recommend to Congre\nthat an employer or individual man-\nways to meet targets. Congress must vote on recommendations\ndate would not fix. Congressional\nfast-track procedures.\nability to reject the recommenda-\nControls against deficit spending would be imposed, automat\ntions would be limited.\nreducing subsidies if government health spending increased the\nThe Moynihan plan contains sev-\ndeficit, unless Congress finds some other way to eliminate the\neral incentives for employers to vol-\ndeficit spending.\nuntarily provide coverage for their\nINSURANCE MARKET REFORMS\nworkers. It would offer subsidies, for\nexample, to employers of low-wage\nNo termination or nonrenewal of coverage, except for\nworkers, but only if the employers\nnonpayment or fraud.\nvoluntarily pay 80 percent of their\nNo exclusion from coverage of a preexisting condition for mo\nworkers' insurance costs.\nthan six months from the date of enrollment.\nUnlike Clinton's plan, and the ma-\nInsurers would be required to \"community rate\" with limited\njor congressional variations of it,\nvariations for geography, family size and age.\nMoynihan's proposal also stops short\nof government-imposed controls on\nVoluntary insurance purchasing cooperatives would be availa\nfor individuals and for firms with fewer than 500 workers.\nincreases in the price of insurance\npremiums. Instead, it would set an-\nMEDICAID AND MEDICARE\nnual targets for such increases and\nMost Medicaid recipients treated like other low-income peop\ngive a new National Health Cost\nProvisions to facilitate enrollment of Medicare recipients in +\nCommission authority to recom-\nand other certified managed care arrangements.\nmend ways to reduce costs, such as\nscaling-back the standard benefit\nFINANCING\npackage or imposing premium ceil-\nMoney for subsidies would come from Medicare and Medica\nings. Congress would have to vote\nsavings, a tax on cigarettes, cigars, guns, ammunition, insurers\non the recommendations using fast-\na 1 percent tax on firms with more than 500 employees.\ntrack provisions with limited debate.\n37\n2/2\nTHE WASHINGTON POST\nSUNDAY. 26. 1994\nCarter's Call\nFrom N. Korea\nCARTER, From A1\nLooms Large\nlated states out of its ambition to join\nthe select ranks of nations posses-\nsing nuclear weapons.\nConcession to Ex-President\nThe key to this abrupt policy shift,\naccording to several participants in\nCreated Opening for U.S.\nthe White House meeting and many\nothers familiar with the events, was\nWashington's decision to seize a\nBy R. Jeffrey Smith\nsmall North Korean concession to\nand Ann Devroy\nCarter and try to enlarge it.\nWashington Post Staff Writers\nThat meant taking Kim's limited\nPresident Clinton and his top nation-\nand somewhat vague pledge to Cart-\nal security aides were well into the sec-\ner, and transforming it into a more\nond hour of discussing a plan to build\nconcrete and slightly wider North Ko-\nup U.S. military forces in South Korea\nrean promise to put on hold its most\nwhen a secretary interrupted to say\nworrisome nuclear activities. Gallucci\nJimmy Carter was on the phone.\nwrote a one-page letter Monday to his\nThe former president was calling June\nNorth Korean counterpart, Vice For-\n16 from the capital of North Korea,\neign Minister Kang Sok Ju, saying\nwhere he had met with president Kim Il\nWashington would enter talks if Kang\nSung-the man who ordered the 1950\nconfirmed Washington's interpreta-\ntion of Kim's statement to Carter.\ninvasion that started the Korean. War.\nA\nant Secretary of State Robert L.\n\"We didn't have a good message\nGallucci hurriedly left the White House\n[from North Korea]-we made it up\"\nCabinet room to take the call about\nby turning North Korea's offer into\n10:30 a.m., idling the discussion.\nsomething that provided an opening\nGallucci returned 30 minutes later\nfor negotiations, one official said. The\nand diplomatic sanctions against\ndecision was to \"frame our answer [to\nwith a startling message: Carter would\nNorth Korea faced tough opposition\nCarter's public statement] in terms of\nshortly appear live on Cable News No\nfrom China, and had at best lukewarm\nwhat we wanted to hear,\" another\nwork to convey what the former presi-\nsupport from Russia, Japan and South\nofficial said.\ndent considered a dramatic break-\nKorea.\nKim had pledged to Carter that\nthrough in the long-standing dispute\nMoreover, the significance of the\nNorth Korea would leave international\nover North Korea's suspected develop-\ncoming Geneva talks remains an open\ninspectors in place at North Korea's\nment of nuclear weapons.\nquestion. If North Korea is bent on\nYongbyon nuclear complex, and freeze\nVice President Gore, Secretary of\nbuilding a nuclear arsenal, its involve-\nits accumulation of plutonium if Wash-\nDefense William J. Perry, Secretary of\nment in new diplomacy will eventually\nington entered high-level talks. Pluto-\nState Warren Christopher and the oth-\nbe seen as a clever but devious move.\nnium is a key ingredient of nuclear\ners filed into a cramped, adjoining of-\narms. This offer had been made be-\nBy playing a good host to a former\nfice, equipped with a television set, to\nfore.\nU.S. president, the country was able\nwatch Carter. They were flabbergast-\nto derail the U.S. drive for sanctions.\nIn response to the Gallucci letter,\ned when the former president de-\nhowever, Washington obtained North\nAnd, as some congressional critics\nscribed Kim's promises as a \"very posi-\nKorean promises not to refuel the\nhave emphasized, one of North Ko-\ntive step\" and urged the administration\nYongbyon atomic reactor and specifi-\nrea's principal promises, not to repro-\nto withdraw a two-day-old proposal for\ncally not to conduct more reprocess-\ncess used fuel to make plutonium, has\nmild sanctions against North Korea.\ning of used nuclear fuel to make pluto-\nno immediate effect. That's because\n\"It looked as if we were contracting\nnium. The United States also obtained\nthe fuel is so radioactive, or \"hot,\" that\nout our foreign policy, like we were by-\na less tangible but critical piedge by\nit cannot be reprocessed anyway for\nstanders\nand had totally lost con-\nNorth Korea to maintain \"the continu-\nawhile while it is cooled in a storage\ntrol of it,\" a White House official later\nity of safeguards\" at the nuclear\npond. If North Korea wants to, it can\nrecalled.\nsite-a phrase Washington internets\nfind a reason to withdraw from the\nFor many in the room, nothing\nto mean that the inspector\ndo\ntalks in several months and have\nseemed new in what Kim reportedly\nwhatever they please.\nenough plutonium by the end of the\nhad said. But after the shock and frus-\nThe United States granted North\nyear for four to five nuclear weapons.\ntration had waned, with Go urging\nKorea the diplomatic talks that the\nSuch an outcome would make\neveryone to set aside their emotions,\ncommunist nation strongly desires,\nCarter and the Clinton administra-\nClinton and other officials cleared their\nwhich North Korea hopes will demon-\ntion look like dupes.\nafternoon schedules and held a two-\nstrate that it plays an important role\nIf on the other hand the new talks\nhour discussion that sharply altered the\nin world affairs. The talks, between\nsucceed in shutting off the North\ndirection of U.S. policy on Korea.\nGallucci and Kang, are scheduled to\nKorean nuclear effort, the Clinton\nHaving begun the day in a grim\nbegin in Geneva on July 8 or 11.\nadministration's decision to seize the\ncouncil of war-discussing sending\nAdministration officials likened\ndiplomatic opening provided by Cart-\nnew planes, ships and troops to South\ntheir strategy to the one that Attor-\ner's awkward visit will be seen as a\nKorea for a possible horrible conflict-\nney General Robert F. Kennedy had\nmaster stroke that brought the Ko-\nthe senior officials had by mid-after-\nadvised during the 1962 Cuban mis-\nrean peninsula back from the brink\nnoon switched to a new embrace of di-\nsile crisis. Then, Moscow made a\nof another conflict.\nplomacy.\npromising but unsatisfactory offer to\nIf the man calling from North Ko-\nAfter quick consultations with key\nsettle the crisis that Washington in-\nrea in the middle of the White House\nU.S. allies and lawmakers, the military\nterpreted to mean what it wanted.\nmeeting had been any other of the\nbuildup plans were put on hold, so\nTo be sure, the administration was\nmany Americans who have gone there\nWa ington could again try to talk one\nmaking the best of a difficult situation.\nrecently. the White House could have\nof the world's most xenophobic and iso-\nIts drive for United Nations economic\nignored him. But an ex-president of\nSee CARTER, A10, Col. 1\n12\nTHE WASHINGTON POST\nSUNDAY, JUNE 26. 1994\nDoctors Score Victories\nIn Battle on Health Bill\nAMA-Approved Provisions Advance on Hill\nBy Spencer Rich\nother services for an illness that an\nWashington Post Staff Writer\nHMO could treat by less costly\nmethods.\nIn the struggle over a new health\nIn a \"pure\" HMO, the patient\nsystem, doctors have won some ma-\nmust use only the accepted doctors.\njor congressional battles in recent\nTo succeed, the HMOs contend they\nweeks.\nmust be able to exclude wasteful\nThe aim, in the view of the Ameri-\ndoctors.\ncan Medical Association, is to pre-\nJost says a new \"point of service\"\nvent HMOs and other insurers from\nrequirement approved by the Ways\nimposing undue constraints on physi-\ncians' freedom to practice good\nand Means Committee Thursday\nmedicine and patients' right to\nnight on an amendment by Rep. Bill\nchoose a doctor.\nBrewster (D-Okla.) would \"gut\" the\nAMA President Lonnie R. Bris-\n\"ability of HMOs to manage care.\"\ntow charged recently that to control\nIt requires all HMOs to allow any\ncosts, insurers are increasingly leav-\npatient at any time to use any doctor\ning doctors and patients with less\noutside the HMO's panel of doctors,\ncontrol over their health treatment\nwith the HMO required to pay part\ndecisions and are setting up rules\nof the fee. \"Anyone could go out to\nthat make it difficult for doctors to\nany specialist and get a procedure,\nexercise their medical judgment.\ntest or operation whether we think\nElements of what the AMA calls\nhe needs it or not.\nthe \"Patient Protection Act\" but crit-\nThe effect is to turn every HMO\nics have labeled largely a doctor-pro-\ninto an old-style fee-for-service\ntection act have been incorporated\nplan,\" Jost said. Many HMOs, do of-\nin three major health bills moving\nfer plans that have an option of this\nthrough Congress. Other AMA-fa-\ntype, at a premium that reflects the\nvored provisions that HMOs contend\nadded cost to the HMO, she added,\ncould severely damage their opera-\nbut for quality care at the lowest\ntions have been adopted by the\nprice, it is essential for HMOs to re-\nHouse Ways and Means Committee.\ntain the HMO-doctors-only option.\nDiana Jost, vice president of the\nThe Ways and Means Committee\nGroup Health Association of Ameri-\nalso approved, 20 to 17, an amend-\nca, an HMO umbrella group, said,\nment by Rep. William J. Jefferson\n\"These provisions go straight to the\n(D-La.) requiring every HMO (ex-\nheart of what makes an HMO an\nHMO, and destroy our ability to pro-\ncept those using salaried doctors and\nKaiser and HIP of New York) to ac-\nvide high-quality care at lower\ncosts.\"\ncept as part of its doctor network\nThe disputed issues include the\nany doctor willing to accept its fee\nright of HMOs to hire and fire doc-\nschedule.\ntors, to allow their patients to use\nJost said that if this \"any-willing-\nonly the doctors deemed able to pro-\nprovider\" requirement is absolute-\nvide good service without waste, and\nand would apply even in cases where\nto set treatment rules.\nthe HMO does not need any more\nPrepaid HMOs (health mainte-\ndoctors-it would wreck an HMO's\nnance organizations) such as Kaiser,\nability to choose only the most effi-\nwhich provide all services needed for\ncient doctors. But House aides said\na fixed annual fee, historically have\nthe Jefferson amendment applies on-\nkept their costs lower than fee-for-\nly to unfilled slots.\nservice policies.\nWhat is clearly driving this dis-\nThey do this in part by managing\npute, said a House staffer, is public\nthe care they provide to see a pa-\nfear that people will be unable to\ntient does not wander from one doc-\nchoose their doctors. \"The freedom-\ntor to another. repeating tests or ob-\nof-choice argument has gone over\ntaining surgery, hospitalization or\nbig and people are worried about it.\"\nRobb Says He'll Ask Clinton to Help in Campaign\nBy Peter Baker\nBut facing a four-way race in\ncountry, I suspect.\nIt's very\nin the party expected Reilly to side\nWashington Post Staff Writer\nwhich a third of the vote may be\nmuch on his radar screen. I'm not\nwith Wilder, she appeared today\nenough to win, Robb is targeting\ngoing to run away from him at all.\"\nwearing a Robb button and declar-\nCHARLOTTESVILLE, June\nhis appeal to more liberal party loy-\nBy wrapping himself in the Clin-\ning herself in his camp.\n25-Sen. Charles S. Robb (D-Va.)\nalists who support Clinton, accord-\nton cloak, however, Robb feeds in-\n\"Chuck won fair and square,\" she\nplans to invite President Clinton to\ning to analysts.\nto the strategy of Republican Oli-\nsaid of this month's Democratic\ncampaign with him in Virginia this\n\"I know it energizes our friends\nver L. North, who regularly attacks\nprimary. But she acknowledged\nfall, a move that could help shore\non the other side, but I look for-\nRobb as a rubber stamp for the\nthat endorsing him \"was the most\nup his Democratic base but also\nward to working with and running\npresident's liberal social and tax\ndifficult decision I ever had to\nTHE WASHINGTON POST\nmake it easier for Republicans to\nwith\nSUNDAY. JUNE 26. 1994\na very able and dedicated\npolicies.\nmake. I mean, I love Doug Wilder. I\npaint him as a Clinton clone.\nand hard-working president of the\nRobb's appearance before the\nthink he'd make a wonderful sena-\nIn any other year, appearing\nUnited States,\" Robb told a meet-\ncentral committee prompted a dis-\ntor.\"\narm-in-arm with Clinton could be a\ning of the state party's central\nplay of party unity for the incum-\nHoping to prevent many defec-\nmistake for a Democratic candidate\ncommittee today.\nbent. The audience of 200 passed a\ntions, party Chairman Mark R.\nin this generally conservative state,\nIn an interview after his speech,\nresolution supporting his reelection\nWarner sternly warned those who\nwhich went for Republican George\nRobb said he had spoken to Clin-\nand gave him repeated standing\nplan to support Wilder to quit their\nBush in 1992 and, according to\nton about his reelection campaign\novations.\nparty posts immediately.\npolls, thinks even less of the presi-\nseveral times in the last week. \"At\nAmong those on hand was Mame\n\"We're going to expect them to\ndent today.\nsome point I expect that he will be\nReilly, a member of the Democrat-\ndo the honorable thing and resign,\"\nAs recently as last fall, guberna-\nmaking an appearance,\" Robb\nic National Committee and a long-\nhe told the crowd.\ntorial nominee Mary Sue Terry\nsaid.\ntime confidant of former governor\nAlthough most stood to applaud\npointedly did not invite Clinton to\n\"Each time, he's talked about it,\nL. Douglas Wilder, who has bolted\nWarner's admonition, about one-\nVirginia and repudiated some of his\nand he's following the race as\nfrom the party to run against Robb\nthird of the crowd remained seated\npolicies.\nclosely as any other race in the\nas an independent. Although many\nand silent.\n69\nMARY McGRORY\nGood Soldier Sam\nMcGRORY, From C1\npapers, where lobbyists sit grimly sizing up their prey\nImmediately, the bickering Democrats fell in line,\nthe incident-\"insignificant, a footnote,\" he said. At a\nand where Republicans offer amendment after\ngiving chairman Gibbons a run of straight party-line votes\ncaucus scheduled to last into the night, Democrats\nown-and had to back up when the Congressional Budget\namendment to a bill they have announced they will vote\nthat set Democratic leader Richard Gephardt to praising\npromised it would never happen again.\nOffice could not do the arithmetic until mid-July, long\nagainst.\nthem for \"doing a great job in a tough situation.\"\nGibbons says it is fitting that the lower House prod the\nafter the deadline he had set had passed.\nThe Democrats were slogging along when they\nBut if Grandy could give, he could also take away.\nlordly Senate into action. \"All the really big\nLast week it was Gibbons's turn for the standing O. He\nsuddenly got a break. A Republican blurted out the\nThere followed one of those episodes that makes health\ngave the meeting of Democratic whips a report about his\nprograms-Social Security, Medicare, Fair Housing.\nworst-kept secret in town: His party's leaders, despite\ncare so confusing and the outcome hard to predict.\ncommittee's progress on the bill that Bill Clinton says he\nhave originated in the House. They always put on the\nmuch protest that they really wanted health care reform,\nGrandy introduced an amendment calling for hearing aids\nhas to have. Colleagues had been reminded that the\nbetter show over there [in the Senate], but we do the\nwere behind the scenes urging members to sabotage it.\nfor poor children. Rostenkowski, who sometimes forgets\nmodest chairman had been one of the brave warriors at\nRep. Fred Grandy, a moderate Republican from lowa and\nhe is no longer chairman, reared up and reminded Grandy\nheavy lifting.\"\nNormandy. He jumped with his unit on D-Day. The\nmembers of the Ways and Means Committee, who like\nco-sponsor of the Cooper bill, told the world that Minority\nthat Ways and Means has a pay-as-you-go rule-no\nHe likes being (acting) chairman even better than he\nhim, led the applause.\nWhip Newt Gingrich had given him his \"marching orders\"\nproposals without funding provisions. Grandy retreated.\nthought he would. He thinks he's up to it.\nGibbons is surrounded by a large staff of professionals\nnot to cooperate in any changes that might improve the\nBut 24 hours later, he was back with the hearing aids and\n\"I think I am trained for it,\" he said. That is what made\non the committee, many of whom mean Rostenkowski\nbill and its chances for passage.\na one-half-of-1-percent reduction in insurance subsidies\nus do so well in Normandy, the immense amount of\nwhen they refer to \"the chairman.\" He presides at long,\n\"We now have a leadership that preempts policy with\nto pay for them. He peeled off six Democrats, who voted\ntraining. You tend to do automatically what other people\ngrueling sessions in a hearing room the size of an airplane\npolitics.\" Grandy said in a sound bite that was music to\nagainst his funding scheme but for his proposal. Was this\nhave to pause and think about. You listen, decide, try to\nhangar, where people are constantly darting about with\nDemocraticiears.\nthe beginning of the end of discipline? Gibbons dismisses\nlead.\"\nTHE ASHINGTON POST\nMIN. 26. 1991\nMARY McGRORY\nGood\nSoldier\nSam\nNE OF THE FEW genuinely\nhappy Democrats on Capitol\nHill is 74-year-old Sam\nGibbons of Florida. He is living a\ndream come true. After 25 years of\nyearning, he has become acting\nchairman of the House Ways and\nMeans Committee. When Dan\nRostenkowski was indicted, the gavel\npassed to Gibbons, an unassuming man\nwhose ears stick out and whose eyes\nwater and whose philosophy is that of\nthe infantryman: one step at a time. He\nknows that colleagues in both\nchambers think he is dreaming when\nhe says that a health care bill will come\nout of committee next week. pass the\nHouse, go to the Senate soon after and\nland in a House-Senate conference that\nwill give the Clintons most of what\nthey want. They think the euphoria he\nfeels at being in charge at last is\naffecting his judgment.\nWith health care, you never know.\nTwo months ago, George Mitchell\nwent to a Democratic retreat and\nbrought his fellow senators to their\nfeet, cheering his fight talk on his\nswan-song push for health care. The\nspotlight then swiveled to Jim Cooper.\nyouthful author of an alternative bill\nthat roused Hillary Clinton's ire, then\nto Senate Finance Committee\nChairman Pat Moynihan, who told the\npresident there was no way to get\nemployer mandates. He announced the\nneed for speed, promised a bill of his\nSee McGRORY, C3, Col. 1\nMary McGrory is a Washington Post\ncolumnist.\nNCTON POST\nSUNDAY, JUNE 26, 1994 C7\nWilliam J. Bennett\nCredit the Christian Right\nI have been an ally of the conserva-\nstandpoint of politics and religion.\nthe self; and does not endorse unfet-\ntive Christian political movement for\nAnd some of the \"Christian right\" are\ntered freedom. Christianity is about\nthe last decade. If the portrait now\nguilty of overheated, offensive and\nright and wrong. And politics is, too.\nbeing painted of it were anything\nreckless statements. But every politi-\n(\"It is the cardinal issue of goodness\n€\nto being true, I would have long\ncal movement has extremists who do\nor badness in the life of the polis\nago dissociated myself from it. But in\nnot represent the movement as a\nwhich always engages the attention of\nfact, Christians active in politics are\nwhole. What is fundamentally unfair is\nany state that concerns itself to se-\nnow on the receiving end of an ex-\nthe attempt to take the fringe ele-\ncure\ngood laws,\" according to\ntraordinary campaign of bias and prej-\nment of this (or any) movement and\nAristotle.)\nudice.\nargue that it is central and defining.\nMany Christians assume that the\nConsider a few recent examples.\nThe vast majority of conservative\nDemocratic Congressional Campaign\ncharges leveled against them are\nChristians are promoting a responsi-\nCommittee Chairman Vic Fazio la-\nbased on a misunderstanding of-the\nble (and mainstream) political agenda.\nbeled conservative Christians the\nfundamental aims of their political\nWhat do they seek? Things like safe\n\"fire-breathing Christian radical\nmovement. It may be that the critics\nstreets, good schools, strong families,\nunderstand all too well the aims-the\nright.\" Texas Gov. Ann Richards calls\nnonintrusive government and commu-\nmoral aims-of the movement. And\nthem \"hatemongers.\" The Anti-Defa-\nnities where people care for one an-\nthat is what gives offense.\nmation League published a book ac-\nother. Good things all. And not, one\ncusing the \"religious right\" of bringing\nA cultural divide exists in this na-\nwould think, particularly controver-\n\"a rhetoric of fear, suspicion and even\ntion. Where we can bridge the di-\nsial or \"divisive.\"\nhatred\" to cultural disagreements. A\nvide-where liberals and consérva-\nDuring the last three decades a lot\nrecent New York Times editorial re-\ntives can find common ground-we\nhas gone wrong in America. Our soci-\nferred to conservative Christians as\nshould. Where we cannot, we should\nety is far more violent and vulgar than\n\"sir er,\" \"retrograde\" and \"exclu-\nengage in a robust, spirited, civilized\nit used to be. We have experienced\nsionist.\"\ndebate. But people of goodwill should\nenormous increases in violent crime,\nThis is not political discourse. It is\nnot allow this vital national debate to\nout-of-wedlock births, abortions, di-\nargument by invective. It is worth\nbe sidetracked by mudslingers.\nvorces, suicides, child abuse and wel-\nreflecting on how liberals and the\nOur political culture has sunk to the\nfare dependency. The answer to\nmainstream media would respond if\npoint where people who have time-\nmuch of what ails us is spiritual and\nsimilar things were said by conser-\nhonored religious beliefs that inform\nmoral regeneration. Yet some liberals\nvatives about, say, homosexuals. Or\nwould have us believe that the great-\ntheir politics now become the object\nfeminists. Or blacks. Or Jews. Or\nof scorn and ridicule. On the issues,\nest threat to our Republic are people\nvirtually any group actively engaged\nthe \"religious right\" now stand where\nwith strong religious convictions who\nin politics except conservative evan-\nmost Americans stood 30 years ago.\nare actively involved in politics. This\ngelical Christians. Such criticisms\nThe irony is that the critics of the\nis nonsense.\nwould of course unleash, and rightful-\n\"Christian right\" are often guilty. of\nThe attempt to discredit the con-\nly so, a tidal wave of criticism and\nthe things they profess to be offended\nservative Christian movement is an\ncondemnation. But when it comes to\nby: intolerance, mean-spiritedness, di-\nattempt by some to discredit its un-\nChristians, apparently it is open sea-\nvisiveness and even bigotry.\nderlying philosophy. Christianity\nson.\nmakes normative claims; stands\nThe writer, a former secretary of\nThere are inherent dangers in po-\nagainst moral relativism; is the anti-\neducation, is co-director of Empower\nliticizing religious faith-from the\nthesis of the modern age's worship of\nAmerica.\n63\nHarry and Louise Get Queasy\nDie Harder: A Clinton Health Plan Conservatives Will Love\nBy Robert Hirschfeld\nI\nn a calculated effort to attract\nconservative support for his\nhealth care proposal, President\nClinton today announced new provi-\nsions including a tough stance on\nheart treatment he referred to as\n\"three strokes and you're out-pa-\ntient.\"\nThe policy would actually broadly\napply to any serious ailment requir-\nONLY\ning intensive care. Citing the need to\ncut medical costs, Clinton explained\nthat the government can no longer\nafford to pay for those who need\ncontinuing medical care. \"We simply\ndon't have the money for the\nhangers-on,\" the president stated in\nthe White House press room. He\nwas wearing a dark blue suit with\npleated cuffs complemented by a\ncrisp canary yellow tie and black Ox-\nfords.\nClinton also proposed a five-day\nwaiting period for all surgery to al-\nlow for a background check by a\nteam of government bureaucrats to\nascertain whether cheaper alterna-\ntive procedures would be appropri-\nate, such as blood-letting. During\nthis time patients would be heavily\nsedated to alleviate any discomfort\nthey may feel when informed of how\nmuch of the surgery's cost will have\nto come out of their own pockets un-\nder the new guidelines.\nThe president expressed new\nflexibility toward his previous insis-\nBY ROB SHEPPERSON FOR THE WASHINGTON POST\ntence on universal coverage, which\nhas met resistance in Congress.\nthe healthy. Businesses shouldn't be\nhan thought a scaled-back version\nClinton indicated that he would be\nforced to divert profit to prop up the\nconsisting of bandages and aspirin\nwilling to accept coverage just for\nweak, the feeble and a bunch of\nhad a better chance of passage.\nearth now and allow the other plan-\nmealy-mouthed hypochondriacs,\" he\nOpposition to the Clinton plan is\nets in the universe to be phased in\nstated gruffly.\nalso being fueled by the influence of\nover a prescribed amount of time.\nConcerns about funding for the\nthe insurance industry's \"Harry and.\nThe reaction on Capitol Hill was\nplan were raised by a revised report\nLouise\" TV campaign. In the latest\nswift and not what the president\nfrom the Congressional Budget Of-\nad, the couple who spend their lei-\nmay have hoped for. Senate Minori-\nfice. Contrary to its previous esti-\nsure time reading the Clinton pro--\nty Leader Bob Dole said it wasn't\nmates for revenues generated by\nposal are shown sterilizing a Ginsu\nenough to head off a stalemate in\ncigarette taxes, the latest figures\nknife set with a do-it-yourself sur-\nCongress. \"We have to face the fact\nproject a decline by nearly one-half.\ngery book in supposed preparation\nthat health care assistance perpetu-\nA CBO researcher explained that\nfor the enactment of the plan. The\nates illness. We have allowed whole\nthey had forgotten to factor in the\nfilming of the spot, which took place\ngenerations of Americans to develop\nshortened life expectancy for smok-\nin Los Angeles, was evidently inter-\na dependency on the government for\ners. A tobacco industry spokesman\nrupted when the actors fled the stu-\nthis. It has caused people to lose\ndisputed that assumption and assert-\ndio in order to wave to OJ. Simpson\ntheir incentive to work toward stay-\ned that it is increased taxes that\nas he drove by on an adjacent free-\ning healthy,\" Dole explained before a\ncauses death.\nway.\ngroup of reporters gathered outside.\nPerhaps the most serious setback\nOne influential senator, who asked\nnot to be identified, requested ano-\nA\ndding to the grim outlook for\nto the president's efforts for health\naction on reform, Sen. Daniel\ncare reform came unexpectedly from\nnymity and spoke off the record, was\nPatrick Moynihan, appearing\nformer President Jimmy Carter, who:\neven more critical. \"We have got to\non \"Beat the Press,\" said that even\nappeared to belie the White House:\nstop pussy-footing around with re-\nwith the new provisions, the presi-\ncontention of urgency for passage. Af-\nform. Health care should only be for\ndent's plan is so lavish and overly\nter meeting privately with Republican\ngenerous that it's nearly as expen-\nopponents to the plan, Carter ap-\nSatirist Robert Hirschfeld is a\nsive as the health care program\npeared on CNN and announced that\nfreelance television producer.\nmembers of Congress have. Moyni-\nthe health care crisis is over.\n66\nGeorge F. Will\nGood Limits, State Limits\nThe Supreme Court, which last week agreed to rule\nConstitution, nor prohibited by it to the States, are\non the constitutionality of state-imposed limits on the\nreserved to the States respectively, or to the people\"),\nnumber of terms members of the U.S. House and\nthat the states cannot add qualifications. And they say\nSenate can serve, sits across the street from the\nterm limits constitute a fourth qualification. But wait.\nCapitol. So when the justices consider the Arkansas\nFifteen states have passed term-limits laws. Up to\nSupreme Court's ruling that that state's term-limit law\nseven more may pass them this fall. The courts denying\nis unconstitutional, nine pairs of eyebrows may be\nthe constitutionality of state-imposed limits make much\nraised concerning the crucial four sentences:\nof a manifestly inapplicable case, the one concerning\n\"If there is one watchword for representation of the\nthe late Rep. Adam Clayton Powell of New York.\nvarious states in Congress, it is uniformity. Federal\nIn it the Supreme Court ruled that one house of\nlegislators speak to national issues that affect the citizens\nCongress, when exercising its power to \"judge\" the\nof every state. Additional age restrictions, residency\nqualifications of members, unconstitutionally adds to\nrequirements, or sundry experience criteria established\nthe enumerated three qualifications if it excludes a duly\nby the states would cause variances in this uniformity and\nelected member because of his behavior. But this case\nlead to an imbalance among the states with respect to\nis irrelevant to the question of state powers to regulate\nwho can sit in Congress. This is precisely what we believe\nelections.\nthe drafters of the U.S. Constitution intended to avoid.\"\nWhat is relevant is the history that the Arkansas\nWell. The second sentence is refuted by a glance at the\ncourt ignored. As the Supreme Court noted 20 years\nfederal budget or the workings of a congressional office.\nago, states have evolved comprehensive and complex-\nAnd even were the second sentence true, the first\nand different-codes regulating not only the time,\nsentence is false, the third is an opaque non sequitur, and\nplace and manner of elections but also \"the selection\nthe fourth is disproved by what was done contemporaneous\nand qualification of candidates.\" States began doing so\nwith the drafting of the Constitution, and subsequently.\nimmediately after ratifying the Constitution. They\nRegarding the second sentence, the justices surely know\nwrote laws requiring, for example, candidates to be\nwhat transpires across the street. The Founders' under-\nproperty holders and-the Constitution is silent on\nstanding of federalism-Congress would concern itself only\nthis-to live in the district they wish to represent.\nwith truly national issues; states would do most of the\nDid the Framers mean to prohibit states from doing\nlegislating regarding domestic matters-bears no resem-\nwhat states immediately did? Not likely. The Framers\nblance to today's practice. Today senators and representa-\nknew how to prohibit state actions when they wanted to\ntives occasionally speak to truly national issues, but most\n(which, being believers in federalism, they rarely did).\ndevote most of their time to the parochial business of\nAnd the most important Framer, Madison, was elected\nbenefits for their state or district, and constituency service.\nto Congress under a Virginia law stipulating the qualifi-\nThe Arkansas court did not, because it could not, cite\ncation that candidates must be freeholders.\nthe Constitution's text, or the Constitutional Convention\nIn modern times millions of Americans have been\ndebates or the states' ratification debates to prove that\ndisqualified from running for Congress by \"little Hatch\n\"uniformity\" among the states in regulating elections is a\nacts\" by which some states prohibit public employees\nfundamental constitutional value. And the Arkansas court\nfrom being candidates. These and many other state\nwas arbitrary and murky in asserting that uniformity is\nlaws restricting ballot access (to persons who win\nsupremely important because \"imbalance among the\nprimaries, or otherwise demonstrate support, or have a\nstates\"-whatever that might mean-is bad.\nparty affiliation, and so on) have passed constitutional\nOpponents of term limits say the three qualifications\nmuster.\nfor federal legislators enumerated in the Constitu-\n\"Uniformity\" has never existed regarding states'\ntion-age, citizenship, state residency-are not mini-\nregulations of candidacies for the national legislature.\nmal but exclusive. They say, based on nothing the\nFurthermore, it is an aspiration antithetical to the spirit\nFramers said, and in disregard of the 10th Amendment\nof federalism, the revival of which is an ancillary benefit\n(\"The powers not delegated to the United States by the\nof the term-limits movement.\n65\n6/26/94\nlies not in more talk from the president and his advisers\nby moderate Republicans and Democrats on the Senate\nwhich tends to confuse and alarm the public but less,\nFinance Committee, that was unveiled this week but fell\naccording to former White House press secretary Marlin\nshort of meeting the president's bottom-line demand on\nFitzwater. `The problem is every time he tries to show\ncoverage.\npeople he knows the subject, he defeats his own purpose,\"\nThe much-discussed compromise would require neither\nsaid Fitzwater, who was spokesman for Presidents Bush and\nemployers nor individuals to buy health insurance but\nReagan. \"He should know enough to be careful not to say\nwould rely on market reforms, tax breaks and vouchers for\ntoo much.\"\nthe poor to achieve coverage for 95 percent of Americans\nWhether the crisis of the day is in Pyongyang or\nby the year 2002.\nSarajevo or Kigali, the president should explain American\n``Half measures, quick fixes, things that sound better\ninterests in an easily understood form and refrain from\nthan they actually will work will only make matters\nmusing aloud about complex, fast-changing international\nworse,\" the president said. ``Make no mistake, measures\ncrises, Fitzwater said.\nthat are halfhearted would, at best, guarantee that things\n\"In the absence of policy, too often your\nstay only about as good as they are now\ncommunications are swept up in response to questions and\nthe poor would get health care, the wealthy would get\nthey always relate to action and threats,\" he said. ``All\nhealth care and the middle class would get it sometimes.\nwe've seen is either (Vice President) Gore or the\n\"We have to help middle-class Americans whose\npresident making threats of one kind or another. My advice\neconomic success is the key to America's prosperity know\nto them would be to settle on two or three brief points\nthat they will always have health security, even if they\nthat make a case for our policy and, whatever the\nhave to change jobs or if they lose their jobs,\" he said.\nquestion, repeat those points and reassure the public\nHis remarks came as the House Ways and Means Committee\n(that) they are staying on top of the issue.\"\nheld an unusual Saturday session in an attempt to finish\nwork on its modified version of Clinton's plan by the end\n(Optional add end)\nof this week, before Congress leaves on its Fourth of July\nbreak.\nFollowing Fitzwater's advice might have spared Clinton\nActing mainly along party lines, the panel beat back a\nembarrassment over the last year as he has been forced to\nseries of Republican attempts to modify the bill,\nretreat from threats and evolving policies around the\nrejecting a proposal to make prescription drug coverage\nglobe:\noptional for Medicare beneficiaries.\nHad Clinton not promised vociferously to revoke China's\n\"We are making very substantial progress on this\nmost-favored-nation trading privileges if Beijing did not\nlegislation,`` said Rep. Sam Gibbons, D-Fla., acting\nimprove its human rights record, he would not have had to\nchairman of the committee. But Gibbons said the\nsheepishly back down a year later.\ncontroversial topic of cost containment would be taken up\nIf he had not threatened Haiti's coup leaders with\nwhen the panel resumed its mark-up sessions on Tuesday.\nmilitary action, he would not have had to face the\nThe president, noting that 15 percent of the U.S.\nignominy of weeks of inaction while the Haitian generals\npopulation lacks health insurance, said even those who are\nconsolidated their power and did great harm to their\nnow covered cannot be sure they will be protecter against\nenemies.\nmedical costs in the future.\nIf he had not noisily brandished the sanctions weapon\nagainst North Korea and hinted at the possibility of war\n(Begin optional trim)\non the Korean peninsula, he would not have had to explain\nhow Carter's brief visit to Pyongyang could produce\n``Actually, not all Americans face this kind of risk,\"\n``hopeful signs\" that the crisis might be ended quickly\nClinton added in a message apparently aimed at the\nand peacefully.\nlawmakers who are considering health care reform.\nOne senior White House official said Clinton aides\n``Members of Congress, along with the president and all\nunderstood from the beginning of his presidential campaign\nfederal government employees we have a great deal right\nthat Clinton's habit of thinking aloud would be a major\nnow.\nchallenge.\n\"Now I believe every working American deserves these\nWe hoped at first that all of you, the press and\nsame benefits and that same guarantee,\" Clinton said,\nWashington in general, would adapt to his style and\nappealing to his listeners to tell members of Congress\nunderstand that he likes to try out ideas in public,\" the\nthat they share his belief.\nofficial said. \"But we got over that hope pretty\nquickly.\"\n(End optional trim)\nThe heart of Clinton's plan mandating employers to pay\n80 percent of health care costs was assailed by Rep. H.\nJames Saxton, R-N.J., as a job-killing, wage-cutting\nprovision that was unacceptable to the American people.\n``Mr. President, it's not that the American people are\nClinton Denounces Half Measures on Health Reform\nunwilling or unable to understand your plan,\" Saxton said\n(Washn)\nin a Republican response to the president's radio talk.\nBy William J. Eaton= (c) 1994, Los Angeles Times=\n``It is that the American people have rejected your\nbig-government, high-tax approach.\"\nWASHINGTON President Clinton said Saturday he hoped\nto\n(Optional Add End)\nprovide all working Americans with the same ``great deal\"\non health insurance that he shares with\nThe GOP spokesman argued that Congress should pass more\nmembers of Congress and other federal employees.\nlimited legislation to bar denial of health insurance\nIn his weekly radio address, the president stood firmly\ncoverage for pre-existing conditions, to reform medical\nbehind his renewed call for universal coverage and\nmalpractice laws and to allow smaller firms to pool risks\ndenounced \"halfhearted measures\" that he said would not\nthat would lower their insurance costs.\nassure medical insurance protection for all families.\nClinton clearly was referring to a new proposal, backed\nLos Angeles Times first-edition Page 1 for Sunday, June\n26, 1994:\nMuch Talk, Little Substance Mark Clinton Foreign Policy\nTop of page:\n(Washn)\nBy John M. Broder= (c) 1994, Los Angeles Times=\nCol 1: When voters in 1988 agreed to slap an additional\n25-cents-a-pack tax on cigarettes, they also launched an\nWASHINGTON Late last month, in the aftermath of yet\nunprecedented state-wide experiment in persuading\nanother administration foreign policy embarrassment the\nCalifornia smokers to kick their nicotine habit. Using\nabrupt reversal over linking trade with China to human\nthe new tax in the cause of public health, the state's\nrights improvements there President Clinton said there\ntobacco control program has set out to ban tobacco.\nwas nothing wrong with his foreign policy that better\ncommunication could not solve.\nCol 2: Southern California's role in the gay rights\nClinton acknowledged in a recent interview with the Los\nrevolution.\nAngeles Times that his inability to articulate his\nadministration's foreign policy goals \"is not inspiring\nCols 3-5: Russia was critical to liberating Berlin in\npeople's confidence in me.\" He said that, if he were\nWorld War II, but now that post-Cold War occupation forces\nbetter able to communicate his goals, Americans would be\nare going home, the Russians are not invited to celebrate\nmore comfortable with his policies.\nwith the other Allies. (With art.) (GERMANY-RUSSIANS,\nSo in recent weeks, the White House has hired a new\nmoved.)\nforeign policy spokesman, begun regular high-level\ncommunications strategy meetings and put the president on\nCol 6: President Clinton holds firm to his demand that\ndisplay more often to demonstrate his grasp of foreign\nhealth care reform include universal coverage, as the\naffairs.\nHouse Ways and Means Committee continues its deliberations\nBut while Clinton may believe that failure to\non a health care bill. (HEALTH, moved.)\ncommunicate is at fault, others see a more troubling\nproblem the tendency to communicate more while having\nAbove fold:\nless to say.\nClinton's new expansiveness has exposed the sometimes\nCol 2: Taco Bell's decision to keep its 1,000\ntortuous path that his thinking takes to arrive at foreign\nheadquarters jobs in Southern California rather than flee\npolicy decisions. Many outside observers and some senior\nto Texas is being heralded as an important corporate\nWhite House aides believe Clinton would be more\nendorsement of a new, smarter and more business-friendly\nconvincing if he would reserve comment on foreign affairs\nCalifornia.\nuntil after he has made up his mind what to do.\nDespite recent attempts to improve the presentation of\nCols 3-4: With less than a week to prepare for O.J.\nadministration policy, the dispute with North Korea has\nSimpson's preliminary hearing, prosecutors hunker down to\nbeen marked by crossed signals, mixed messages, empty\nsift through evidence and set their strategies for the\nthreats and the unusual spectacle of a current and a\nunanticipated ``mini-trial\" in which a judge will rule\nformer president at odds over American policy.\nwhether there is probable cause to believe the former\nThe performance is reminiscent of earlier foreign\nfootball superstar murdered his ex-wife and her friend.\npolicy troubles in Bosnia-Herzegovina, Somalia, Haiti and\n(SIMPSON-TIMES, moved.)\nChina in which Clinton and his advisers talked tough but\ndid not follow through with forceful action.\nBelow fold:\nAs he did with Bosnia last year, Clinton talked about\nputting together an international coalition to punish\nCol 4: At the Iowa Republican Party's 1996 presidential\nNorth Korea before he had done the groundwork with\nstraw poll, the delegates cast just over 26 percent of the\nAmerican allies. Both attempts at concerted international\nballots for Senate Minority Leader Bob\naction failed.\nDole. (GOP-TIMES, moved.)\nWhite House aides, concerned that Clinton had not\nclearly spelled out American interests in Korea and the\nBottom of page:\nadministration's policy for dealing with North Korea's\nnuclear ambitions, persuaded the president to disrupt his\nCols 1-2: For some of the most emotionally gripping\nschedule and make an unplanned appearance in the White\nscenes in the rapidly unfolding drama of O.J. Simpson, the\nHouse briefing room last week.\nman at center stage has been Robert L. Shapiro, an\nClinton gave a rather long talk on why Americans should\nattorney known as a discreet advocate who is particularly\ncare about what happens in Korea and explained that he was\ndeft at damage control. (SIMPSON-SHAPIRO, moved.)\ntrying to put together an international coalition to\nthwart North Korea's efforts to produce nuclear weapons.\nCols 5-6: Los Angeles Mayor Richard Riordan, who\nBut within a day, his effort to rally U.S. allies to\npledged during his campaign to separate his substantial\nimpose sanctions against North Korea was undercut by\nbusiness holdings from any official actions, helped win\nformer President Carter's statement that sanctions would\napproval last year for a rail project that has brought\nbe counterproductive and should not be part of American\nhundreds of thousands of dollars to a company in which he\npolicy.\nholds a major stake.\nClinton appeared in the briefing room again Wednesday\nto announce the good news\" that North Korea had agreed\nSent: 10:30 p.m. EDT. For questions, call (800)\nto freeze its nuclear programs while Washington and\n283-NEWS, ext. 77832.\nPyongyang engage in high-level talks. But the president\nacknowledged that North Korea may not be sincere and said\nLos Angeles Times-Washington Post News Service=\nhe would reassess American policy again if Pyongyang\nreneges on its promises to open its nuclear facilities to\ninspection.\nThe answer to Clinton's communications difficulties\n75\nThe Washington Times\nSUNDAY, JUNE 26, 1994\nPETE DU PONT\nark Twain concluded\nthat bind the rest of us.\nM\nthat \"There is no dis-\ntinctly native criminal\nRosty,\nWorkplace safety rules, civil\nrights acts, sexual harassment poli-\nclass except Congress.\"\ncies, minimum wage laws, union\nWith Rep. Dan Rostenkowski's\nindictment on 17 criminal counts,\nCongress\nrules, Equal Employment Oppor-\ntunity Commission regulations,\nthe American people may be ready\nhandicapped discrimination pro-\nto believe it.\nand the\nhibitions, the Family Leave Act -\nI was elected to the House of\nall apply to us, but not to them.\nRepresentatives in 1970 and served\nOnce newly elected congress-\nthree terms. Congress was, of\nmen arrive in Washington, secure\ncourse, partisan and political in\nevery action it took. It also had sig-\nrule of law\nin the knowledge that the election\nrules will see 98 percent of them\nnificant corruption problems even\nre-elected for life, and see they are\nthem Three of the five subcommit-\nresponse to the Rostenkowski\nabove the law in some areas, they\ntee shairmen with whom I worked\nindictment - \"health care is more\nsoon come to believe they are above\nwould later serve time in jail. Rep.\nimportant than any one person\" -\nthe law in others.\nJim Wright, Texas Democrat, the\nsuggests that if one is politically\nTo put it bluntly, if congressmen\nMajority Leader, would become\ncorrect on the issues, 17-count\ncan avoid workplace health and\nspeaker of the House and resign in\nindictments don't matter much.\nsafety rules in their offices, sexual-\ndisgrace. Since 1970, 24 members\nThe problem in Congress is\nly harass the women on their staffs,\nof Congress have been convicted of\ntwofold: The corruption of holding\nand discriminate against minori-\nvarious crimes and served prison\npower for too long, and the tempta-\nties and the handicapped in hiring,\nsentences. Nearly two dozen more\ntion of congressmen exempt from\nwhat's a few thousand dollars from\nhave pleaded guilty, plea bargained,\nsome laws to believe they are\nthe till?\nor religned to avoid prosecution.\nexempt from all laws.\nWhat it is, of course, is a breach\nRep. James Burke of Massachu-\n\"Power tends to corrupt, and\nof trust that is undermining the\nsetts when asked how he could vote\nabsolute power corrupts absolute-\nentire structure of representative\nfor every spending increase and\nly.\" The truth of Lord Acton's apho-\ngovernment.\nagainst every tax increase to pay for\nrism is seen in the absolute cor-\nThe endless corruptions will not\nthem, replied, \"You think this place\nruption of a Congress controlled by\nend until we - the people - make\nis on the level?\" Mr. Burke was talk-\none party for 40 years. Closed rules,\nit crystal clear to them - the con-\ning politics then. We are talking\nforbidding floor\ncorruption now and the place is\namendments to\nhardly on the level.\nlegislation,\nWithin the last few years we have\nwere in the\nMIKETIONPON\nseen the House Bank Scandal,\n1970s a rarity.\ninvolving dozens of members of\nNow 79 percent\nCongress kiting checks, and the\nof the bills con-\nHouse Post Office scandal, which\nsidered in the\nhas already resulted in eight\nHouse\nare\nemployees pleading guilty to drug\nunder closed\nor embezzlement charges. The\nrules. Twice the\n\"Keating Five\" S&L scandal\nHouse, on party\nrevealed equivalent corruption in\nline\nvotes,\nthe Senate.\nrefused to even\nNow comes Mr. Rostenkowski,\ninvestigate the\nIllinois Democrat, another power-\nvery Post Office\nful committee chairman, indicted\nscandal that\nfor warnming more than $500,000\ndethroned Mr.\nDan Rostenkowski\nfrom\nhe people through phantom\nRostenkowski.\nemployees on the payroll, private\nRep. Henry Gonzales, Texas Demo-\ngressmen - that we expect higher\ngifts paid for with public monies,\ncrat, chairman of the House Bank-\nethical standards. Term limits\nusing House stamp vouchers to\ning Committee, directed the Reso-\nwould send that message. So would\nobtain cash for personal use, etc.,\nlution Trust Corp. and the Office of\nadoption of a bill by Rep. Christo-\netc.\nThrift Supervision not to supply to\npher Shays, Connecticut Republi-\nCongress has lost its moral com-\nRep. Jim Leach, Iowa Republican,\ncan, to apply all the laws of the land\npass, but is it because we are elect-\npublic documents that should be\nto congressmen. But those are com-\ning crooks to public office or turn-\navailable to every member of the\nplex things to accomplish. Throw-\ning citizens into crooks once they\nCongress. Fearful for their budgets,\ning the rascals out is easy, and each\nget to Washington?\nthe two agencies are so far com-\nof us has an opportunity to do so on\nbe fair, the problem is not just\nplying.\nNov. 8.\nin the Congress. President Richard\nBut the nub of the problem is\nNixon's \"I am not a crook\" was not\nthis: Since congressmen by their\nthe best phrase to inspire a nation\nown votes are exempt from the\nPete du Pont, former governor of\nto high standards of public morali-\nworkplace laws governing the rest\nDelaware, is policy chairman for\nty. \"I didn't inhale\" isn't much bet-\nof us, they have come to believe\nthe National Center for Policy\nter. The Clinton administration's\nthey also are above the ethical laws\nAnalysis.\n87\nThe Washington Times\nSUNDAY, JUNE 26, 1994\nWALTER MEARS\nenerations of con-\nG\ngressional seniority\nwill be erased by\nretirements and elec-\nTerm limits and turnover on a quickening roll\ntions before the\nSupreme\nCourt\nity and senility. But it was more\nwhether that's the only route, or\nArkansas court held that the state\nWhile those legal arguments are\nof congressional powers and per\ndecides whether state-imposed\nthan 40 years before the issue took\nwhether the states can impose the\ncould not add limited tenure to the\nbeing heard and settled, here will\nand with the sagging confider\nterm limits are constitutional.\nhold, and states began to vote in lim-\nlimits they've already adopted.\nqualifications set by the Constitu-\nbe another display of political mus-\nratings that show up in the pu¹\nBut changing faces won't blunt\nits on their own officeholders and,\nThe decision will come in 1995,\ntion for service in Congress, age 25\ncle in a movement whose sponsors\nopinion polls.\nthe campaign for legal ceilings on\noften, on congressional terms.\non an appeal from an Arkansas\nfor the House, 30 for the Senate,\nsay career members of Congress\nThe odds are that where to\ntenure in the House and Senate.\nThe Supreme Court never has\nSupreme Court ruling that over-\nU.S. citizenship, and residence in\nlose touch with everyday America.\nlimits go on the Nov. 8 ballot, the\nThe aim of that movement is to\nruled on the question of whether\nturned state-set term limits. The\nthe state represented.\nThat meshes with voter re entment\nbe approved - to apply later\nchange attitudes\nstates have that\nCongress that is changing marl\nas well, so new-\npower. When the\nly right now.\ncomers will know\nThere'll be another\nterm limits push\nThere are 117 first-term Hot\nthe limits when\nbegan it was\n©1992 The Grand Rapid Press\nmembers in this Congress, incl\nthey get to the\ncrowd of newcomers\nwith an implied\nassumption that\nSTANTS\ning two Republicans who have\nCapitol and won't\nnext year; 50 are\nwon special elections to Demo\nthink of Congress\nthey did not,\ntic seats, both as supporters of \"\nas a career.\nguaranteed even before\nsince the first\nlimits.\nFifteen states\nproposal was to\nThere'll be another crowd\nnow have the con-\nthe off-year elections,\nset a 12-year\nnewcomers next year; 50 are gu\ngressional term\nceiling, two\nanteed even before the off-y\nlimits that are at\n48 by retirements,\nterms in the\nelections, 48 by retirements, no\nissue in the\nnearly half to seek\nSenate or six in\nly half to seek other offices; two\nSupreme Court\nthe House, by\nprimary defeats. Among\ncase and by the\ntime it is decided,\nother offices; two by\namending the\nretirees are more than 20 memb:\nConstitution.\nwhose seniority had made the\nat least seven\nprimary defeats.\nThat's the\nchairmen of committees and SI\nmore are likely to\nhard way. There\ncommittees. One had been the\nhave joined them.\nAmong the retirees are\nstill are such\nsince 1941.\nLimits are a pop-\nmore than 20\nproposals pend-\ning, which is\nare next to\nRAID!\nThe off-year elections will ad-\nular cause; once\non the ballot, they\nmembers whose\nhow they'll\nunstoppable.\nseniority had made\ntake two-thirds\nWaal\nthat turnover; incumbents won\nper cent of their races last time.\nremain. It would\nthat was down a bit, and their\nof return could slip again.\nIn Utah, where\nmajorities of the\nthem chairmen of\nThat adds up to a House will\na referendum\nHouse and Sen-\nmajority well within any term lim\ncampaign is\nunder way, a poll\ncommittees and\nate, unattainable\nincluding the six-year ceiling\neven if sponsors\nArkansas law would set.\nshowed 3-to-1\nsubcommittees.\ncould get the\nNine senators are retiring\nsupport for term\namendments\nthere will be major changes in\nlimits, although\ncleared\nfor\nlineup there, too, with elections\nsponsors acknowledge the vote\naction, to send an amendment to the\nyear for 34 seats.\ncount would be closer than that.\nstates for ratification.\nThe sentiment is typical.\nThe limit the advocates point to,\nThe idea has been around for a\ntwo terms for a president, was set\nQW\non\nWalter R. Mears is vice presid\nwhile. Harry S. Truman once said\nby constitutional amendment in\nand columnist for the Associ\nthat term limits would cure two ter-\n1951.\nPress.\nrible diseases in Congress, senior-\nNow the court will decide\nDOLLARS\nCENTS\nGains for Tobacco in Health Care Fight\nRaising\n1\nX\non\nTobacco\nCurrent Federal taxes on tobacco products, and what they would be under various proposals to raise\nthose taxes. State taxes on tobacco are not included. For example, state taxes on cigarettes typically\nCigarette Industry and Allies in Congress Aim for Lower Tax Rise\nadd an additional 20 to 30 cents to the price of a pack.\nCIGARETTES\nPIPE TOBACCO\nCHEWING TOBACCO\na swing vote on the Ways and Means\nbers of Congress said, the pivotal\nBy NEIL A. LEWIS\nCommittee.\nfactor has been the unified front of\nKEY\nPer pack\nPer 1.5-ounce pouch\nPer 3-ounce pouch\nSpecial to The New York Times\nThe President had proposed a 75-\nthe tobacco-state members. And at\nWASHINGTON, June 24 - Within\ncent-a-pack increase on cigarettes,\nthe heart of that strategy is Mr.\n$0.24\n$0.06\n$0.02\ndays after President Clinton's speech\nwhich are now taxed at 24 cents a\nPayne, an affable, 47-year-old Demo-\nCLINTON\n$0.99\n$1.23\n$2.36\nlast fall outlining his health care pro-\npack by the Federal Government,\ncrat who has represented the south-\nposal, tobacco-state members of Con-\nand equivalent increases on other to-\nern tier of Virginia, known as South-\n$2.00*\n$2.81\n$5.52\ngress and tobacco companies mobi-\nlized to battle one of the plan's princi-\nbacco products. The White House es-\nside, since 1988. Southside is second\ntimated the revenue from the tax\nonly to eastern North Carolina in pro-\nHOUSE WAYS\n95\n$0.39\n$0.10\n$0.04\npal elements: a sharp increase in\nincreases at $10 billion, and predicted\nducing flue-cured tobacco, which is\nAND MEANS\ntobacco taxes.\nused for cigarettes, Mr. Payne said.\n99\n$0.69\n$0.18\n$0.07\nan additional health dividend in that\nAs the health care plan moves\nthrough a crucial period this month, it\nthe increases would discourage many\nAs the Ways and Means Committee\nconsidered the health care plan, Mr.\n\"Some members have proposed a $1 increase to the current tax. tWould phase in higher taxes between 1995 and 1999.\nIs apparent that their efforts have\npeople from smoking.\nPayne found himself in the politically\nwon some Important victories. Al-\nenviable situation of discovering that\nSource: American Cancer Society\nBut in a vote last week, the Ways\nthough the industry has failed to elim-\nand Means Committee opted for a\nhis fellow Democrats needed his vote\nThe Nev. York Times\ninate tax increases altogether, pros-\nlower tax Increase of 45 cents a pack,\nto give them a working majority.\npects for a steep rise in tobacco taxes\na rise that would not be fully phased\n\"I made it very clear to people on\nhave faded in the Ways and Means\nthe Ways and Means Committee that\nRepresentative Benjamin L. Car-\nthat he needed their votes if he hoped\n45 cents a pack, phased in over six\nCommittee, which, as the House tax-\nthis was not an abstract issue to me\ndin, a Maryland Democrat who is a\nto produce a health care bill.\nyears. The amendment was part of a\nwriting panel, is expected to have\nand the people in my district,\" said\nmember of the Ways and Means\npackage of several other changes in-\nenormous influence on the issue.\nMr. Payne, whose constituents in-\n\"The message at the meeting was,\nA likely swing vote\nCommittee, called Mr. Payne highly\n'Don't assume we won't be there\ntended to win votes for the health\nThe success on the legislative front\nclude nearly 5,000 tobacco growers.\nskilled at exploiting his position.\nwhen you need us,' said a senior\ncare plan.\ncomes as the tobacco industry has\nbeen strongly challenged by Govern-\non a House panel\nThe Vital '20th Vote'\n\"He's.a very good legislator who\nRostenkowski aide who recalled the\nknew that he could drive a hard bar-\nTobacco Industry's Role\nmeeting. \"And they also made it\nment regulators who are trying to\nMr. Payne became known as \"the\ngain,\" Mr. Cardin said. \"And he did\nclear they would move as a bloc.\"\nMr. Payne said the tobacco compa-\nrestrict smoking, and even talking\nplays a key role.\n20th vote,\" the committee member\nso. He said very early, 'Look, this is\nny lobbylats have been important in\nabout regulating the nicotine in tobac-\nwhose support was imperative to win\nwhat I need.'\nWithin short order, the proposed\nproviding information to use as am-\nCO as a drug. In this two-front war the\na majority on a committee with 38\nincrease in the cigarette tax was re-\nmunition in the legislative battle.\nindustry's well-placed allies in Con-\nmembers.\nMr. Cardin said that his Virginia\nduced to 60 cents a pack in the com-\nRepresentative Gerald D. Kleczka,\ngress have kept one flank, the tax\n\"I never wanted to destroy health\ncolleague also made it plain that he\nmittee's draft.\na Wisconsin Democrat who 13 a mem-\nissue, relatively secure.\nin until the end of the century. Other\ncare reform,\" he said. But he also\nspoke not just for himself on tobacco\n\"Rostenkowski considered the to-\nber of the Ways and Means Commit-\ntobacco products would have only\nsaid he could not vote for health care\ntax and health care, but also for more\nbacco tax one of the variables he\ntee, said that while the tobacco com-\nTwo-Tlered Approach\nmodest increases. Most states add 20\nlegislation if it contained steep tobac-\nthan 20 other members of the House.\ncould deal with In forming a majority\npanies had influenced the issue by\nThe campaign against tobacco tax\nto 30 cents a pack to the 24 cents that\nCO taxes.\nIn March, major tobacco compa-\nfor health care,\" said one Democratic\norchestrating a campaign to have\nincreases has deftly combined two\nnow goes to the Federal Government.\nMr. Payne's resolve to fight the\nnies like R. J. Reynolds and Philip\nmember of the committee. For him,\nsmokers telephone and write to Con-\napproaches. First, the tobacco com-\nThe Finance Committee, which is\ntobacco tax was stiffened last Octo-\nMorris gave their workers the day off\nthis was part of the process of round-\ngressional offices, \"the main players\npanies brought growers and tobacco\nconsidering the tax portion of health\nber after a confrontation with Hillary\nand brought more than 15,000 of them\ning up needed votes.\"\nin this fight right now are the mem-\nfactory workers to Washington to put\ncare legislation in the Senate, has.\nRodham Clinton, who led the group\nto Washington to demonstrate\nA few weeks ago, when Mr. Rosten-\nbers themselves.\"\na human face on the the industry.\npegged the tax increase at $1.76 a\nthat devised the White House plan.\nagainst the proposed tax Increase and\nkowski was forced to relinquish the\nThe tobacco industry has also\nSecond, House members from to-\npack and has been preoccupled with\nto lobby members of Congress. The\nchairmanship of the committee after\nmade itself felt through hefty cam-\nbacco-growing states combined to de-\nother elements of the health plan. But\nWhen Mrs. Clinton appeared before\nsame month, 22 members of the\nhe was Indicted on felony corruption\npaign donations to the members of\nliver a blunt message to Congression-\na bipartisan group of senators on the\nthe Ways and Means Committee, Mr.\nHouse met with Representative Dan\ncharges, the tobacco caucus met with\nthe committee.\nal leaders: Unless increases in the\ncommittee today proposed pegging\nPayne said he was troubled by \"the\nRostenkowski, the Chicago Democrat\nhis successor, Representative Sam\nIn 1993, the 13 political ac Ion com-\ntobacco tax are held to modest levels,\nthe tax Increase at $1 a pack.\nunfairness\" of having tobacco bear\nwho was then chairman of Ways and\nM. Gibbons of Florida, to press the\nmittees readily identified with the\nthey would vote as a bloc against the\nWhatever tax increase the Senate\nthe burden of the costs. Mrs. Clinton\nMeans Committee.\nargument with the acting chairman.\ntobacco Industry contributed more\nfinal health care plan that emerges\nends up with will have to be recon-\npraised him for his loyalty to his\nAt the time, some committee mem-\n'When we changed chairmen we\nthan $130,000 to members of the Ways\non the floor of the House.\nciled with that of the House, which is\nconstituents, but then added firmly,\nbers had succeeded In raising the\nreinforced the message again,\" Mr.\nand Means Committee, acc ording to\nReinforcing that ultimatum was\nlikely to reflect the level sought by\n\"There will be a tobacco tax to pay\ntobacco tax to $1.25 in the draft bill.\nPayne said of that meeting.\nthe Center for Responsive Politics.\nthe fact that one of the tobacco-state\nthe Ways and Means Committee.\nfor this legislation.\"\nBut the delegation, led by Represent-\nLast week, in a 24-to-14 vote along\nThat was about about twice as much\nmembers, Representative Lewis F.\nWhile the lobbying effort by the\nMaybe, but it will probably not be\native Charlie Rose, a North Carolina\nparty lines, the committee approved\nas they had contributed in the elec-\nPayne Jr. of Virginia, was likely to be\ncompanies has been important, mem-\nas large as Mrs. Clinton had hoped.\nDemocrat, told Mr. Rostenkowski\nthe proposed cigarette tax Increase of\ntion cycle two years earlier\nTHE NEW YORK TIMES, SATURDAY, JUNE 25, 1994\nHEALTHY CONCERN\nFIRST LADY\nHillary Rodham Clinton and House Majority Leader Richard\nGephardt of Missouri meet at health care reform seminar yesterday in the\nn's\ncapital. It was sponsored by HealthRIGHT, a nonprofit coalition of organizar\nsupporting the Clintons' health care reform program.\nWS\nHealth-Care -2-: Congress\nToying With Alternatives\nThose costs won't disappear, however. As big companies shed them, insurance\npremiums for smaller employers will be forced up. This probably will lead\nmore of them to stop offering insurance, to limit coverage for workers'\nfamilies or to rely more on part-timers and temporary workers who often don't\nget health insurance. Already, the fraction of adults who work but have no\npublic or private health insurance has risen to 17.5% in 1992 from 15.3% in\n1988, the Census Bureau says. And employment is growing fastest in industries\nthat tend not to offer health insurance.\nToday, many who lack insurance still get health care if they get sick\nenough, either through federal or local government programs or through\ncharity. But as employers squeeze the health system harder and the number of\nuninsured grows, free care probably will be harder to find, and the quality\nis likely to deteriorate. And the government's costs, from the Medicaid\nprogram for the poor to emergency rooms at municipal hospitals, will climb.\n\"Supermarkets don't go out and give free food to poor people. They can't\nafford to. They'd go out of business,' says Harvard health economist David\nCutler. \"That's the danger of making the health market real competitive\nwithout bringing people in.\" So most of the pending health-reform plans would\nspend tens of billions of dollars a year so low-income families or their\nemployers can afford insurance.\nComing up with such funding without a broad-based tax is tough. So Congress\nis toying with lower-cost alternatives that would subsidize insurance for\nsome, but not all, of the 39 million who lack it. The plan crafted last week\nby Senate Finance Committee moderates would offer subsidies to the poorest\nAmericans, and gradually move up the income ladder. By 2002, subsidies would\nbe available to families of four with incomes of $34,500 (in today's dollars).\nSo far, Bill and Hillary Clinton reject such a step toward the goal of\nuniversal coverage. Despite advice from moderates like counselor David Gergen,\nTreasury Secretary Lloyd Bentsen and economic adviser Robert Rubin, the\nClintons want a guarantee that the goal will be achieved -- even if that\ndemand means no health-reform bill at all this year.\nSome Clinton advisers argue he can pin the blame on Republicans; others\nfear he and other Democrats will suffer the wrath of voters disgusted with\ngridlock. But the social and economic consequences of once again retreating\nfrom far-reaching reform are clear: more uninsured Americans and higher costs\nfor the government.\n(END) DOW JONES NEWS 06-27-94\n6 41 AM\n****\nfiled by:TAPE(--)\non 06/27/94 at 06:48EDT ****\n**** printed by: WHPR (JEL) on 06/27/94 at 08:09EDT ****\nIN DEALING WITH CONGRESS, CLINTON PLAYS DOWN DETAILS ON HEALTH STRATEGY\nBy ROBERT PEAR\n1994 N.Y. Times News Service\nWASHINGTON - Even though the battle over health care has moved into a\ncritical time of striking deals and compromises, President Clinton and his\nadministration have deliberately avoided detailed negotiations with Congress,\npreferring to give only technical assistance'' while affirming the general\ngoal of universal coverage.\nThat is partly by design and partly by default.\nFor the president, it is clearly a tactical choice. Clinton loves to\ndiscuss the intricacies of health policy, but his statements over the last two\nweeks have been disciplined, sticking to broad themes and goals. Hillary\nRodham Clinton has taken much the same approach.\nBut below that level, some of the disengagement is less calculated. With a\nfew exceptions, the administration's health experts do not have the political\nexpertise or authority to negotiate with Congress. The senior officials who do\nhave the political experience and acumen know little about the details of\nhealth policy, by their own account.\nClinton's legislative strategy puzzles some members of Congress, who say\nthe White House should negotiate over the substance of legislation. But it\npleases others, who do not want the White House to interfere.\nRep. Pete Stark, the California Democrat who heads the Ways and Means\nSubcommittee on Health, is one of the latter. ``I give the administration high\nmarks, he said. I feared they would meddle in our work.\nBut another California Democrat, Rep. Lynn Schenk, who has a crucial swing\nvote on the Energy and Commerce Committee, said: I haven't heard from a soul\nin the administration in months. Maybe they lost my phone number.\nSen. John B. Breaux, D-La., argued for more administration involvement.\nIt's not enough just to sit back and say, `Let Congress do its will, he\nsaid.\nIn the last week, the administration has encouraged bipartisan efforts in\nthe Senate Finance Committee and has urged Congress to keep up the momentum on\nhealth care.\nThe administration's strategy was described by Harold M. Ickes, deputy\nchief of staff at the White House, in an interview: ``We have not been\ndickering with Congress. We let the committee chairmen do the work they need\nto do to get bills out of their committees. We provide technical assistance,\ncomputer runs, statistical data. We can discuss the implications of various\noptions, but we will not say whether one is better than another.'\nIckes noted that three committees in the House and two in the Senate had\nbeen trying to write health care bills. For us to be bargaining against\nourselves with five different committees would be self-defeating, he said.\nIn interviews, Clinton officials and members of Congress said the\nadministration had encountered difficulty in three areas:\n- Some members of President Clinton's team of sub-Cabinet officials,\nincluding some experts on health policy, are eager to provide more guidance to\nCongress, but they have generally been forbidden to do so because decision\nmaking is concentrated in the White House.\n- The administration was overly optimistic in assessing congressional\nsupport for major elements of the president's original health care plan and\nset unrealistic deadlines. Lawmakers say they have received mixed signals\nabout the administration's willingness to compromise, with Mrs. Clinton\nusually expressing less flexibility than the president.\n- The Democratic National Committee had ambitious plans to sway votes in\nCongress by orchestrating a groundswell of support for the president's plan\nwith television commercials and grass-roots lobbyists, but that effort fell\nshort.\nRichard F. Celeste, the former governor of Ohio who spent eight months\nsupervising the Democratic effort to drum up support, said: Originally there\nwas an expectation that there would be a big national campaign. But there was\na substantial recalibration as people realized that resources were limited and\ntime was limited.\n`Our campaign was diffuse because we had an issue so big and complicated,\nwe couldn't characterize it easily, Celeste said. He left the campaign a few\nmonths ago and returned to Ohio.\nThere is still some resentment in Congress over the secrecy employed by\nthe administration when it drafted the president's health plan last year with\nthe help of more than 500 advisers. The White House aide who supervised that\nprocess, Ira C. Magaziner, has no significant role in dealing with Congress\nnow.\nMany elements of the president's bill, including one that would have\nrequired most people to get health insurance through purchasing cooperatives\nknown as alliances, have sunk from view on Capitol Hill.\n`We have not tried to defend every tiny piece of the bill except in the\ninitial hearings, said Donna E. Shalala, the secretary of health and human\nservices. We have narrowed down what is of fundamental importance.\nIn an interview, Shalala defended the administration's tactics, saying:\nAnybody who argues we should give Congress more guidance doesn't know much\nabout Congress. It is a separate branch of government. One must respect\nthat.\nBut members of Congress, including Democrats who want to help the White\nHouse, say the administration's lobbying has suffered from a lack of\ncoordination.\nThey also say that only one White House official combines a detailed\nknowledge of health policy with a feel for the politics of the issue. That\nofficial, Jack Lew, worked for Thomas P. O'Neill Jr. when he was speaker of\nthe house in the 1980s.\nIn dealing with Congress, the administration has focused on congressional\nleaders and committee chairmen. It has not made much effort to lobby\nbackbenchers in the House, even if they sit on major committees with authority\nover the legislation.\nIn their public remarks, Mr. and Mrs. Clinton try to avoid the jargon and\ndetails of the health care debate - issues like employer mandates, triggers\nand community rating of insurance premiums - so they can emphasize universal\ncoverage.\nSara Rosenbaum, a lawyer who specializes in health care at George\nWashington University and who supervised the process of turning policy\ndecisions into health legislation for Clinton, said, ``The president is doing\nexactly what presidents should do: defining his bottom line, what's needed to\npreserve the fundamental integrity of this legislation.\nBut Ms. Rosenbaum, a longtime adviser to Mrs. Clinton, said Cabinet\nofficials were perhaps being underused.\nPeople at the White House have held them back because this is a\ncentralized operation, she said. ``The White House has felt strongly that\nall decision making should rest at the White House. That may have slowed down\nthe legislative process because the White House is a small place, too small\nto cope with that amount of decision making, and does not always have the\nexpertise to give guidance to Congress.\n-END-OF-AUTOBREAK(1)\n-AUTOBREAK (2) -FOLLOWS\n****\nfiled by: on 06/27/94 at 02:03EDT ****\n**** printed by: WHPR (JEL) on 06/27/94 at 08:10EDT ****\nHEALTH INDUSTRY\nIS CHANGING ITSELF\nAHEAD OF REFORM\nWAVE OF CONSOLIDATIONS\nConcerns Arise as Huge Deals\nLink Providers and Buyers\nin U.S. Medical System\nAl\nBy MILT FREUDENHEIM\nA wave of mergers and alliances is\nContinued From Page Al\ntransforming the nation's trillion-dol-\nlar health care system. Without wait-\ngroups. For example, employers in\ning for the outcome of the Congres-\ndozens of areas, from Long Island to\nsional health debate, providers of\nSan Francisco, have formed alliances\nmedical care - including hospitals,\nto buy medical care for their work-\nphysician groups and nursing homes\ners, the better to negotiate satisfac-\n- are joining to form bigger and\ntory deals with the growing medical\nbigger networks.\nnetworks.\nSome of the combinations are being\nBut what does it mean when both\nput together by hospitals, like the\nproviders and purchasers of health\n$1.08 billion deal in which the coun-\ncare coalesce, when a system in\ntry's largest for-profit hospital chain,\nwhich total spending is expected to\nColumbia/HCA Healthcare, agreed to\nexceed $1 trillion this year is increas-\nbuy the largest chain of surgery cen-\ningly controlled by large entities?\nters, Medical Care America, last\nFor the patient, care could improve\nmonth. Another such combination is\nas the growing medical networks in-\nNew York Hospital's regional alli-\nvest in sophisticated computerized\nance with seven other nonprofit hos-\nsystems that analyze the care re-\npitals, two nursing homes and four\nceived by their many thousands of\nwalk-in clinics, all of which send their\npatients and find ways to improve it.\nTHE NEW YORK TIMES, MONDAY; JUNE 27. 1994\nmost complicated cases to the big\nThe systems could also save money\nUpper East Side hospital.\nfor patients and their insurers by\nOther deals are being struck by\nidentifying the kinds of treatments\nphysicians, who have been abandon-\nthat do little good.\ning solo practices to join medical\n\"The quality of care will inevitably\nimprove as we begin to gather these\ngroups and now fear that even those\npeople under the same roof,\" said Jon\ngroups are not strong enough. One\nGlaudemann, a vice president of Aet-\nexample: Mullikin Medical Enter-\nna Health Plans, one of the largest\nprises, owned by 200 physicians in\nmedical networks.\nSouthern California, is acquiring the\n'Who Will Discipline Those Guys?'\npractices of other medical groups\nBut the consolidation, taken to the\naround the state. It is also negotiating\nextreme, could also cause problems.\nan alliance with a West Coast hospital\n\"If two or three health care compa-\nchain under which the hospitals\nnies have sewn up all the doctors and\nwould lower their fees for patients\nthe hospitals and the health system\nadmitted by Mullikin doctors.\ngets oligopolized, who will discipline\nInsurance companies and health\nthose guys?\" said Uwe E. Reinhardt,\nmaintenance organizations are also\na Princeton University health econo-\nracing to form larger medical net-\nmist.\nworks, signing up hospitals and\n\"The trouble with oligopolies,\nwhere there are only a few buyers\ngroups of doctors and sometimes\nand sellers, is that they become very\neven joining with each other. Two\nsloppy,\" he added. For example, he\nweeks ago, Metropolitan Life Insur-\nsaid, doctors will say that managed-\nance and Travelers announced a joint\ncare companies raise prices and keep\nventure that will provide health in-\nthe difference. Some California insur-\nsurance for 13 million people nation-\ners already allot only 70 cents of\nwide; the companies hope that many\nevery premium dollar for health\nof these people will receive their care\ncare. \"The rest they keep,\" he said.\nthrough the new venture's medical\nAnd unlike other industries, Profes-\nnetworks. And FHP International and\nsor Reinhardt warned, the health\nTakecare, two California-based\ncare business may not have outside\ncompetitors to push it to improve\nH.M.O.'s, recently combined to cover\nitself, the way, say, Japanese car\n1.6 million people in eight Western\nmakers pushed Detroit to improve its\nstates.\nperformance.\nThe goal of all these combinations\nThe poor may also suffer, as\nis to become large enough to offer the\ngroups of employers insuring many\ncomprehensive and conveniently\npeople in a community gain the size\navailable services and the reasonable\nto negotiate harder with hospitals and\nprices needed to assure a steady flow\nreduce the subsidies for patients\nof patients from the increasingly de-\nwithout health coverage, said Bruce\nC. Vladeck, who directs the Govern-\nmanding groups that buy medical\nment's Medicare and Medicaid pro-\ncare.\ngrams.\nThose buyers are themselves join-\ning in larger and more powerful\nFewer Hospitals, Fewer Workers\nOther potential losers include\nContinued on Page D4, Column 3\nmany people in the medical business,\nlike nurses and other hospital em-\nployees, who would lose their jobs as\nThe Missing Voice: Clinton\nthe industry consolidated and elimi-\nAs Congress strives to produce\nhealth care proposals by week's\nend, President Clinton and his Ad-\nministration are deliberately avoid-\ning detailed negotiations. Page A12.\nTHE ogether\nTHE BIGGEST DEALS\nACQUIRED\nVALUE (billion)\nMerck (drug)\nMedco Containment\n$ 6.6\n(managed care drug distributor)\nbiggeri\nColumbia (hospital)\nHCA\n5.7\nColumbia\nGalen Health Care\n3.2\nSmithKline Beecham (drug)\nDiversified Pharmaceutical\n2.3\n(managed care drug marketer)\nFHP (H.M.O.)\nTakecare\n1.1\nColumbia*\nMedical Care America\n1.1\n(surgical centers)\nHealthtrust (hospital)\nEpic Holdings\n1.0\nHealth Net (H.M.O.)\nQual Med\n0.7\nT2 (home care) - Merger\nCuraflex, Healthinfusion, Medisys\n0.5\nUnited Healthcare (H.M.O.)\nRamsay-HMO\n0.5\n'Pending\nSource: Irving Levin Associates\nThe New York Times\nnated, for example, the 250,000 under-\nTO be sure, the fragmented health\nto close half of their remaining beds.\"\nused hospital beds, 30 percent of the\ncare industry is still a long way from\ntotal. At least 15 percent of the 5,500\nthe concentration of an industry like\nAmong the most visible players in--\ncommunity hospitals may close, Gov-\nautomobiles. But in some places, the\nthe consolidation of the health care\nernment officials say. The endan-\nconsolidation has been striking.\nbusiness is the Columbia/HCA\ngered-species list may also include\nIn the Minneapolis-St. Paul area,\nHealthcare Corporation. The giant\nthousands of \"surplus\" physician\nfor example, 1.7 million people - 70\nhospital chain has already assembled\nspecialists who could not find a place\npercent of the total - are now mem-\nthe leading medical care network in\nin any of the medical networks being\nbers of just three big health mainte-\n10 Sun Belt markets - Miami, Tam-\nformed.\nnance organizations, each of which\npa, the Florida panhandle; Atlanta,\nFinally, several hundred small in-\nowns its own medical facilities. Each\nRichmond, Nashville, Dallas, Hous-\nsurance companies and many region-\nof the H.M.O.'s is the product of merg-\nton, El Paso, and Louisville, Ky. -\nal health maintenance organizations\ner after merger.\naccording to Richard L. Scott, chief\nare at risk. \"Even among the largest\nThe Path of Consolidation\nexecutive.\ninsurance companies, who will sur-\nvive is in doubt,\" said Kevin Moley, a\nFor doctors and their patients, the\nconsolidation has meant frequent\nInvestor-owned hospital chains like\nformer senior health policy maker in\nthe Bush Administration.\nchange. Take Dr. Eric Anderson, a\nColumbia are also buying venerable\nMinneapolis internist. His longtime\nnonprofit community hospitals and\nThe consolidation trend is most evi-\npatients have followed him as he\nclosing some of them. Other nonprofit\ndent in places where managed health\ncare is strong, like Minneapolis-St.\nmoved from a neighborhood one-man\nhospitals have formed managed-care\nventures and alliances with Blue\noffice that was affiliated with several\nCross and Blue Shield associations in\nhospitals to a larger hospital-owned\nsystem that in turn will be absorbed\nPhiladelphia, Kansas City, Mo., and a\nnumber of states.\nThe hope is that\nnext month by an even larger health\ncare network called Allina.\nSeventy-one percent of 1,200 hospi-\nbigger will mean\nAllina and the two other big health\ntals recently surveyed by Deloitte &\nnetworks, Health Partners and Blue\nTouche, the accounting and consult-\nbetter, cheaper and\nCross, compete for the business of\ning firm, said they were joining an\ntwo employer groups. One concen-\nintegrated system that included other\ntrates the buying power of the largest\nhospitals, outpatient units or physi-\nbusier.\n25 companies; the other represents\ncian group practices. In the survey,\nsmall businesses.\nreleased last week, one-third of the\nhospitals said they had acquired or\nBadgered by the large buyers, the\nwere acquiring physician practices.\nPaul and Southern California. But\nbig H.M.O.'s have held the line on\neven in New York, 47 of 57 hospitals\nprices this year. Indeed, the state\nSome other traditions are crum-\nsurveyed in March had already\nannounced on Friday that Allina had\nbling in medicine as doctors abandon\njoined local hospital networks or sys-\nreduced its insurance rates for state\ntheir one-person offices to join group\ntems. The survey, by the Greater\nemployees by 25 percent.\npractices. And some physicians stand\nNew York Hospital Association, re-\nto profit. For example, many prima-\ncorded ties among hospitals and with\n\"We're in the middle of a major\nry-care doctors are selling their prac-\nnursing homes, neighborhood health\ncost war,\" said George Halvorsen,\ntices to hospitals or insurance compa-\ncenters, home health programs and\nchief executive of Health Partners.\nnies for hundreds of thousands of\nphysician groups.\n\"The hospitals have announced plans\ndollars.\nTHE NEW YORK TIMES. MONDAY, JUNE 27. 1994\n2\nA12\nTHE NEW YORK TIMES\nKey Voice\nIN BRIEF\nIs Missing\nThe Debate Over Health Care\nOn Health\nDEVELOPMENTS LAST WEEK\nThis is the last week before the July 4 recess, the informal deadline\nfive Congressional committees with jurisdiction on health matters set\nWhite House Lets\nfor producing their proposals for national health insurance They\nmust act by then - or soon after that if the full House and Senate\nOthers Negotiate\nare to complete work on the legislation before Congress adjourns for\nthe fall election campaign.\nIN THE SENATE\nBy ROBERT PEAR\nSpecial 10 The New York Times\nLABOR COMMITTEE With 10 Democrats and one Republican voting\nWASHINGTON, June 26 - Even\nin favor, the committee has approved a proposal much like President\nthough the battle over health care has\nClinton's health plan.\nmoved into a critical time of striking\ndeals and compromises, President\nFINANCE COMMITTEE A bipartisan group of committee members\nClinton and his Administration have\nworked last week to come up with a bill that they say would lead to\nberately avoided detailed negotia-\ntions with Congress, preferring to\nuniversal coverage but without requiring employers to pay for\ngive only \"technical assistance\"\nworkers' coverage. Members of the group considered a plan\nwhile affirming the general goal of\nrequiring that uninsured people pay for their own insurance, but the\nTHE new YORK TIMES, MONDAY; JUNE 199,\nuniversal coverage.\nidea provoked such outrage they dropped it, leaving a plan based\nThat is partly by design and partly\nlargely on new insurance regulation changes and promises of\nby default.\nCongressional action if too many Americans remained uninsured.\nFor the President, it is clearly a\ntactical choice. Mr. Clinton loves to\ndiscuss the intricacies of health poli-\nIN THE HOUSE\ncy, but his statements over the last\nEDUCATION AND LABOR Generally considered a liberal committee,\ntwo weeks have been disciplined,\nsticking to broad themes and goals.\non Thursday it approved a variation on the Clinton plan more\nHillary Rodham Clinton has taken\ngenerous than the President's proposal.\nmuch the same approach.\nBut below that level, some of the\nWAYS AND MEANS The committee worked through Saturday on its\nvariation of the Clinton plan.\nIn an interview, Dr. Shalala de-\ndisengagement is less calculated.\nfended the Administration's tactics,\nWith a few exceptions, the Adminis-\nENERGY AND COMMERCE Under Representative John D. Dingell, the\nsaying: \"Anybody who argues we\ntration's health experts do not have\nshould give Congress more guidance\nthe political expertise or authority to\nMichigan Democrat who has long favored health reform, the\nnegotiate with Congress. The senior\ncommittee had been expected to lead the battle. Instead, it is\ndoesn't know much about Congress.\nIt is a separate branch of Govern-\nofficials who do have the political\ndeadlocked over Mr. Dingell's variant of the Clinton plan.\nment. One must respect that.\"\nexperience and acumen know little\nabout the details of health policy, by\nAT THE WHITE HOUSE\nAsking for Help\ntheir own account.\nBut members of Congress, includ-\nMixed Reception\nHillary Rodham Clinton made forays to Capitol Hill to test the waters\ning Democrats who want to help the\nand gave speeches to supporters to keep morale up.\nWhite House, say the Administra-\nMr. Clinton's legislative strategy\ntion's lobbying has suffered from a\npuzzles some members of Congress,\nWHAT TO EXPECT THIS WEEK\nlack of coordination.\nwho say the White House should nego-\nThey also say that only one White\ntiate over the substance of legislation.\nHouse official combines a detai\nBut it pleases others, who do not want\nToday the Senate Finance Committee takes up the moderates' plan.\nknowledge of health policy with a feel\nthe White House to interfere.\nThe committee seems likely to approve some version of it.\nfor the politics of the issue. That\nRepresentative Pete Stark, the Cal-\nThe House Ways and Means Committee still faces several\nofficial, Jack Lew, worked for Thom-\nifornia Democrat who heads the\nas P. O'Neill Jr. when he was Speaker\nWays and Means Subcommittee on\ncontentious issues, including holding down costs. Representative\nof the House in the 1980's.\nHealth, is one of the latter. \"I give the\nSam Gibbons, the Florida Democrat who heads the committee, says\nIn dealing with Congress, the Ad-\nAdministration high marks,\" he said.\nthe panel will produce a bill for the full House by week's end\nministration has focused on Congres-\nred they would meddle in our\nsional leaders and committee chair-\nwork.\"\nmen. It has not made much effort to\nBut another California Democrat,\nRepresentative Lynn Schenk, who\nteam of sub-Cabinet officials, includ-\nThe New York Times\nlobby other members, even if they sit\nhas a crucial swing vote on the Ener-\ning experts on health policy. Some\nThere is still some resentment in\non major committees with authority\ngy and Commerce Committee, said:\nare eager to provide more guidance\nCongress over the secrecy employed\nover the legislation.\nhaven't heard from a soul in the\nto Congress, but they have generally\nby the Administration when it drafted\nIn their public remarks, Mr. and\nAdministration in months. Maybe\nbeen forbidden to do so because deci-\nMrs. Clinton try to avoid the jargon\nthey lost my phone number.\"\nsion making is concentrated in the\nand details of the health care debate\nSenator John B. Breaux, Democrat\nWhite House.\n- issues like employer mandates,\nof Louisiana, argued for more Admin-\n9The Administration was overly\noptimistic in assessing Congressional\nClinton has yet to\ntriggers and community rating of in-\nistration involvement. \"It's not\nsurance premiums - so they can\nenough just to sit back and say, 'Let\nsupport for major elements of the\nCongress do its will,' he said.\njump into the\nemphasize universal coverage.\nPresident's original health care plan\nIn the last week, the Administra-\nand set unrealistic deadlines. Law-\nSara Rosenbaum, a lawyer who\ntion has encouraged bipartisan ef-\nmakers say they have received\nCongressional fray\nspecializes in health care at George\nforts in the Senate Finance Commit-\nmixed signals about the Administra-\nWashington University and who su-\ntee and has urged Congress to keep\ntion's willingness to compromise,\nwith Mrs. Clinton usually expressing\non health care.\npervised the process of turning policy\nup the momentum on health care.\ndecisions into health legislation for\nThe Administration's strategy was\nless flexibility than the President.\nMr. Clinton, said, \"The Presi is\ndescribed by Harold M. Ickes, deputy\n9The Democratic National Com-\ndoing exactly what Presidents should\nchief of staff at the White House, in an\nmittee had ambitious plans to sway\ndo: defining his bottom line, what's\ninterview: \"We have not been dicker-\nvotes in Congress by orchestrating a\nthe President's health plan last year\nneeded to preserve the fundamental\ning with Congress. We let the commit-\ngroundswell of support for the Presi-\nwith the help of more than 500 advis-\nintegrity of this legislation.\"\ntee chairmen do the work they need\ndent's plan with television commer-\ncials and grass-roots lobbyists, but\ners. The White House aide who super-\nBut Ms. Rosenbaum, a longtime\nto do to get bills out of their commit-\nadviser to Mrs. Clinton, said Cabinet\nthat effort fell short.\nvised that process, Ira C. Magaziner,\ntees. We provide technical assistance,\nhas no significant role in dealing with\nofficials were perhaps being under-\ncomputer runs, statistical data. We\nRichard F. Celeste, the former\nCongress now.\nused.\ncan discuss the implications of vari-\nGovernor of Ohio who spent eight\nMany elements of the President's\nous options, but we will not say wheth-\nmonths supervising the Democratic\n\"People at the White House have\nbill, including one that would have\nheld them back because this is a\ner one is better than another.'\neffort to drum up support, said:\nrequired most people to get health\nMr. Ickes noted that three commit-\n\"Originally there was an expectation\ncentralized operation,\" she said.\ninsurance through purchasing co-\ntees in the House and two in the\nthat there would be a big national\n\"The White House has felt strongly\noperatives known as alliances, have\nSenate had been trying to write\ncampaign. But there was a substan-\nthat all decision making should rest\nsunk from view on Capitol Hill.\nth care bills. \"For us to be bar-\ntial recalibration as people realized\nat the White House. That may have\n\"We have not tried to defend every\ngaining against ourselves with five\nthat resources were limited and time\nslowed down the legislative process\ntiny piece of the bill except in the\ndifferent committees would be self-\nwas limited.\nbecause the White House is a small\ninitial hearings,\" said Donna E. Sha-\ndefeating,\" he said.\n\"Our campaign was diffuse be-\nplace, too small to cope with that\nlala, the Secretary of Health and Hu-\nIn interviews, Clinton officials and\ncause we had an issue so big and\namount of decision making, and di\nman Services. \"We have narrowed\nmembers of Congress made these\ncomplicated, we couldn't character-\nnot always have the expertise to give\ndown what is of fundamental impor-\npoints about the Administration's\nize it easily,\" Mr. Celeste said. He left\nguidance to Congress.\"\ntance.\"\ndealings on health care:\nthe campaign a few months ago and\n9The President has assembled a\nreturned to Ohio.\nBradley Takes Shot\nOn Health Care\nHelps Shape an Alternative Plan\nBy TODD S. PURDUM\nmove ahead,\" Mr. Bradley said with\ncoverage.\nSpecialto The New York Times\npointed understatement in an interview\nIn that sense, he lost. But by lending his\nWASHINGTON, June 26 - Since he\non Friday, effectively acknowledging that\nheft to the effort of John H. Chafee, Re-\nfirst awed Princeton basketball fans by\nif he did not speak up, it would soon be 100\npublican of Rhode Island, and John\nsinking over-the-shoulder shots with his\nlate to have an effect on one of the most\nBreaux, Democrat of Louisiana - fellow\nback to the basket 30 years ago, William\nimportant issues of the day.\nmembers of the Finance Committee who\nWarren Bradley has usually had an un-\nFour years ago, voters angry at his re-\nhad been working on the issue much long-\ncanny sense of where he is. Where he put\nfusal to take a stand on Gov. Jim Florio's\ner - Mr. Bradley may have helped jump-\nhimself last week was right in the middle\ntax increases - then the hottest topic of\nstart a fragile process with a backhanded\nof one of the biggest legislative issues in\nthe day nearly turned the Senator out\nmove his Princeton coaches might have\nhis 16 years in the United States Senate.\nof office, and he has since spoken out in-\ncalled a \"hope pass.'\nUntil then, it was not clear that this\ncreasingly on topics from race relations\n\"Bradley's play has just one somewhat\ngame would include the senior Democrat-\nto trade policy to crime.\nunsound aspect, and it is the result of his\nic Senator from New Jersey, who suf-\nHis health plan set a goal of covering 95\nfered a soul-searing near-defeat for his\npercent of Americans by 2002, through\nsubsidies for low- and moderate-income\nContinued on Page B5\nseat in 1990 and sat out the 1992 Presiden-\npeople financed by taxing high-cost insur-\ntial race. This year, while speaking out on\ners, and it relied ultimately on making\nother issues, he had been mostly on the\nworkers pay for insurance if their em-\nbench in the rancorous debate over re-\nployers would not.\nshaping the nation's health care system.\nHis stance took his colleagues by sur-\nThen, beginning Monday, Mr. Bradley\nprise, and drew the scorn of some Con-\nbroke with his President, announcing that\ngressional liberals, unions and consumer\nTHE TIMES, MONDAY, JUNE 27.\nhe could not support forcing employers to\ngroups, who saw it as a sellout of the mid-\npay for health insurance. He then re-\ndie class and real reform, while others\nshaped and absorbed as his own an alter-\nsaw it as an acceptable way to keep the\nnative plan aimed at assuring universal\nbill alive. By week's end, the centrist\ncoverage that had been percolating\ngroup had rejected requiring either work-\namong several centrist Democrats and\ners or employers to buy insurance and\nRepublicans trying to hammer a compro-\nMr. Bradley had distanced himself from\nmise bill out of the stalemated Senate Fi-\nits proposal, which is now a likely compo-\nnance Committee.\nnent of the full committee's bill, saying he\n\"I thought that this was the moment to\nwanted to do more to assure universal\nAfter Quiet Start, Bradley Jumps Into Health Care Fray\ncould loom disproportionately large\nlittle new, but consistent with the way\nContinued From Page B1\n- which he tracked so closely that he\nin subsequent debate.\nlots of Democrats feel they have to\neven took the highly unusual step of\nBut Mr. Bradley's move was con-\ndefine themselves on this issue. The\nwalking over to the House side of the\nmania for throwing the ball to his\nsistent with his behavior since his\nmiddle class feels put upon, and I\nCapitol to lobby members there -\nteammates: he can't seem to resist\nnear loss to Christine Todd Whitman\nthink Bradley would like to make\nand a 1992 bill to reshape the Califor-\nthrowing a certain number of passes\nfour years ago freed him, he says, to\ncertain that he is someone who is\nnia water system, in which he helped\nthat are based on nothing but theory\nspeak out more, and Bill Clinton's\nseen as recognizing the costs and\npreserve provisions for environmen-\nand\ne,\" John McPhee wrote in his\nvictory relieved him of the endless\nburdens on middle-class people.\"\ntal and wildlife protections in the face\nfamous 1965 profile in The New York-\nspeculation about what his every act\nA common criticism of Mr. Brad-\nof strong agricultural lobbying.\ner of Mr. Bradley's Princeton years.\nmeant for his presidential ambitions,\n\"They happen, usually, when some-\nsince he will be 51 next month and\nley is that he is a better talker than\nIn his last campaign, Mr. Bradley\nthing has gone just a bit wrong.\"\neveryone now assumes he cannot\ndoer, that he fizzled as a prospect for\nspent more than $12 million and won\nSometimes, the writer added, \"a hope\nhave any until at least 2000.\nthe presidency, and some of his Sen-\njust 50 percent of the vote to Mrs.\npass goes flying into the crowd, but\n\"After 1990 I came to speak as\nate colleagues complain that his aloof\nWhitman's 47 percent. So far, he has\nmost of the time they hit the receiver\nmuch from my heart as from my\n6-foot-5-inch presence can create the\njust a couple hundred thousand dol-\nright in the hand, and a gasp comes\nmind, right?\" he said, ending his sen-\nimpression that he thinks he is smart-\nlars in his campaign treasury, but\nfrom several thousand people.\"\ntence with the friendly interrogative\ner than they are (and sometimes, of\nasked if he will run for re-election in\ncourse, he is). For all his fame as a\nhe uses where other politicians might\n1996, he replies, \"Uh, I have abso-\nTaking His Best Shot\nstar of the Knicks (whose retired No.\nsay \"you know.\"\nlutely.' He says he has held off major\nIn the tortured progress of health\nThis year alone, Mr. Bradley has\n24 hung above the podium at the\nfund-raising, both in the belief that he\nDemocratic National Convention at\nlegislation, of course, things have\naccused the White House of \"gratu-\ndoes not have to spend so much and\ngone more than a bit awry from the\nitous brinksmanship\" in its get-tough\nMadison Square Garden in 1992), he\nthat he can raise enough in the next\nDemocrats' viewpoint, and Mr. Brad-\ntrade policy with Japan, argued that\ncan be standoffish with reporters and\ntwo years.\nley, a Rhodes Scholar expert on tax\nhuman rights in China could best be\nnot much of a glad-hander in public.\npolicy and, along with the Finance\npromoted by active trade engage-\n\"Well, I'm certainly not smarter\nThe Senator said he is less con-\nCommittee chairman, Daniel Patrick\nment rather than a rigid withholding\nthan a lot of Senators.' he said as he\ncerned about what the White House\nMoynihan, one of the Senate's deeper\nof trade benefits, and warned that the\ngulped down a cup of coffee and a\nor his colleagues think of his views\nthinkers, seemed to be taking his best\nelection-year omnibus crime bill\ncoconut doughnut before heading to a\nthan how they act on them.\nshot.\n(which he supported) should not be\nmeeting in Senator Chafee's office. \"I\n\"I'm interested in what they do at\nHis maneuver put him in an unac-\nseen as an easy solution to increasing\ndon't know what to say about that. I\nthe end of the day on the issue that I\ncustomed spot, since he is known far\nviolence.\njust try to come to work every day\nspoke out about,\" he said. \"I think to\nfor tactical dealing than for end-\nSuch independence has sometimes\nand call it like I see it\"\nbe silent is not to give your best to\n/ mulling things over in his own\nprompted the White House to wonder\nHis biggest legislative achieve-\nyour own party and your own Presi-\nmind, after which he announces his\nabout the depth of Mr. Bradley's\nments are the Tax Reform Act of 1986\ndent.\"\nviews, however they tend to fit politi-\nfriendship, though he has generally\ncally.\nbeen one of the President's most reli-\nIndeed, in the interview he ex-\nable supporters in Congress. Asked\npr\n1 some puzzlement at why re-\nlast week if Mr. Bradley's move on\nquiring employers to pay the bulk of\nhealth care had been surprising,\nCorrection: Cuomo Is Quoted on I.T.A.\nith care costs had become such an\nGeorge Stephanopoulos, the senior\nanathema. He also said he thought\npresidential adviser, smiled slightly\nBecause of a mechanical error, an\nof politics and business as usual in\nemployers and workers must share\nand said, \"Not particularly.\"\narticle yesterday about Peter E.\ngovernment.\nthe costs, and would not rule out\nStangl's role as chairman of the Met-\nforcing employers to pay for health\n'Down-to-Earth Agenda'\nropolitan Transportation Authority\nA second affected passage should\ncare if such a measure managed by\nDavid P. Rebovich, a professor of\nhad three lines out of place in some\nhave read:\nsome miracle to make it to the Senate\npolitics at Rider University in Law-\neditions, scrambling two passages.\nThe Governor is as adroit as the\nfloor.\nrenceville, N.J., said Mr. Bradley's\nThe first passage, in which the Gover-\nHouston Rockets' Hakeem Olajuwon\nAt a meeting last Thursday, a coali-\nspeaking out on health care reflected\nnor expresses irritation at the\nis in positioning himself for a re-\ntion of groups representing labor, lib-\nthe growing emphasis he has placed\nM.T.A.'s lack of political restraints,\nbound. This is how he described the\nerals and the elderly complained to\non domestic concerns since a series\nshould have read:\nlineup in the L.I.R.R. negotiations:\nMr. Bradley that the centrists' pro-\nof speeches on race relations in which\np\nhe warned - before the Los Angeles\n\"I am not insulated from the pub-\n\"Stangl speaks for the M.T.A.,\" and\ndid not meet the test of univer-\nsal coverage, and that his support for\nlic,\" Mr. Cuomo said shortly after\nEdward Yule Jr., general chairman\nriots - of the potential for outrage\ntaking office in 1983. \"They'll get me\nof the 2,300-member United Trans-\neventually requiring people not other-\ncreated by situations like the Rodney\nwise covered to buy their own insur-\nKing beating.\nfour years from now. Authorities are\nportation Union, \"speaks for organ-\nance was onerous. When he, said his\ninsulated.\"\nized labor.'\n\"This is part of a move toward a\nmore domestic and down-to-earth\nThe usual justification for authori-\n\"I was there,\" he declared, \"as a\nconcern was to keep the process mov-\nties, of course, is precisely that: to\nthird party, speaking as a woman\ning, they countered that if such a bill\nagenda,\" Mr. Rebovich said. \"The\ncame out of the Finance Committee it\nneoconservatism of his position is a\naccomplish things beyond the reach\nfrom Suffolk, as a man from Nas-\nsau.\"\nforced up. This probably will lead more of\nThe Outlook\nthem to stop offering insurance, to limit\ncoverage for workers' families or to rely\nmore on part-timers and temporary workers\nHealth-Care Inaction\nwho often don't get health insurance. Al-\nready. the fraction of adults who work but\nCan Carry a High Cost\nhave no public or private health insurance\nhas risen to 17.5% in 1992 from 15.3% in 1988,\nthe Census Bureau says. And employment is\nWASHINGTON\ngrowing fastest in industries that tend not to\noffer health insurance.\nWhen it comes to health-care re\nToday, many who lack insurance still get\nform, the credo of the cautious on health care if they get sick enough, either\nCapitol Hill is: First, do no harm. What through federal or local government pro-\nsome overlook is that doing nothing can grams or through charity. But as employers\ncause harm, too.\nsqueeze the health system harder and the\nManeuvering in Congress may yet pro-\nduce a compromise that President Clinton\nMore Uninsured Workers\naccepts. But the persistence of partisan\nPercentage of all U.S. workers without any\nbickering. the hard line the White House is\nprivate or public health insurance\ntaking and genuine disagreement over fun-\n19%\ndamental issues raise the odds that no major\nhealth reform will be enacted this year. One\n18\nenemy of far-reaching reform is the growing\nlevel of comfort with doing nothing, or\n17\nnearly nothing. \"The reason negotiations\nare so impossible in health care is that\n16\neveryone's second choice is the status quo,\"\nsays Deborah Steelman, a health lobbyist\n15\nand former Reagan budget official.\nIn some quarters, the prospect of nothing\n14\nmuch coming out of Congress this year is\n1988\n'89\n98\n'91\n92\nmet with little more than a shrug. \"Competi-\nSource Census Bureau, Employee Benefit Research institute\ntive forces are reducing the increases in\nhealth-care costs dramatically,' says Edgar number of uninsured grows. free care proba-\nWoolard, DuPont's chief executive. \"It's bly will be harder to find, and the quality is\nalready happening.\" If more big companies likely to deteriorate. And the government's\nget health-care cost-control religion and costs, from the Medicaid program for the\nstate experiments proliferate, perhaps the poor to emergency rooms at municipal hos-\nhealth-care system will begin to heal itself.\npitals,\nwill\nclimb.\nTHE WALL STREET JOURNAL MONDAY, JUNE 27, 1994\nBut big employers' success in slow-\n\"Supermarkets don't go out and give\ning their own health-care spending may\nfree food to poor people. They can't\nalso foster an unjustified complacency.\nafford to. They'd go out of business,\"\nIf all the players in the health system\nsays Harvard health economist David\ncontinue to do what is in their self-inter-\nCutler. \"That's the danger of making\nest under the current law, more Ameri-\nthe [health] market real competitive\ncans are likely to be without any health\nwithout bringing people in.\" So most of\ninsurance. And even if corporate\nthe pending health-reform plans would\nhealth-care spending slows, govern-\nspend tens of billions of dollars a year\nment health spending probably will con-\nS0 low-income families or their em-\ntinue to climb rapidly, with worrisome\nployers can afford insurance.\nimplications for the deficit.\nComing up with such funding without a\nFor years, employers not only have\nbroad-based tax is tough. So Congress is\npicked up the health-insurance tab for their\ntoying with lower-cost alternatives that\nown workers, but also have helped finance\nwould subsidize insurance for some, but not\ncare for those without insurance and for\nall, of the 39 million who lack it. The plan\nthose covered by Medicaid and Medicare,\ncrafted last week by Senate Finance Com-\nwhich pay less than the full cost. \"The cost\nmittee moderates would offer subsidies to\nshifting has been borne by people who\nthe poorest Americans, and gradually move\nvolunteered to pay,\" says Walter Maher.\nup the income ladder. By 2002. subsidies\nhealth-care strategist for Chrysler Corp.\nwould be available to families of four with\nThe volunteers with the deepest pockets.\nincomes of $34.500 (in today's dollars). So\nthe big companies, are pulling out. By using\nfar, Bill and Hillary Clinton reject such a\ntheir clout with health-care providers to\nstep toward the goal of universal coverage.\ndemand lower costs, big employers help\nDespite advice from moderates like coun-\nsqueeze out inefficiencies. But they also stop\nselor David Gergen, Treasury Secretary\nhelping hospitals care for those with no\nLloyd Bentsen and economic adviser Robert\ninsurance or with government insurance.\nRubin, the Clintons want a guarantee that\nThose costs won't disappear, however.\nthe goal will be achieved - even if that\nAs big companies shed them, insurance\ndemand means no health-reform bill at all\npremiums for smaller employers will be\nthis year.\nSome Clinton advisers argue he can pin\nthe blame on Republicans: others fear he\nand other Democrats will suffer the wrath of\nvoters disgusted with gridlock. But the social\nand economic consequences of once again\nretreating from far-reaching reform are\nclear: more uninsured Americans and\nhigher costs for the government.\n-DAVID WESSEL\n63\nSenators Focus\nFor individuals at 150% of poverty. for\nexample, the vouchers would be worth\nContinued From Page A3\nvotes, or better than a third of the commit-\nOn How to Fund\nábout 65% of the cost of their premiums.\nFor those at 200% of poverty. the voucher\ntee. Among the Republicans. Missouri Sen.\nshare falls to 30%. To stretch available\nJohn Danforth was described as adamant\nresources and make coverage affordable.\nin opposing any type of assessment on\nHealth Reform\npreliminary estimates assume the initial\nemployers. But the most conservative\npremiums can be kept in the range of $1,800\ninfluence, perhaps, was from the Demo-\ncratic side-Oklahoma Sen. David Boren.\nto $2.100 annually for an individual. But\nFinance Panel Is Assessing\nthese costs could double for families, and\nThe drift right reflects the strong influ-\nworking-class households earning between\nence of business, and a major question now\n$23,000 and $35,000 may still find insurance\nis whether the committee can summon\nU.S. Costs in Absence\nunaffordable, given the declining subsi-\nsupport for the tax provisions needed to\nOf Employer Mandate\ndies in their income brackets.\npay for the subsidies. Critics of the em-\nployer mandate argue that it is itself an\nThe vouchers would dovetail with ex-\ninefficient means to finance reform be-\npanded tax deductions to help cover the\ncause it requires subsidies to ease the\nBy DAVID ROGERS\nGost of health insurance, but these are\nburden on small companies. But in an\nStaff Reporter of THE WALL STREET JOURNAL\nmuch less valuable to families in lower tax\nelection year, the alternative of a direct\nWASHINGTON - The Senate Finance\nbrackets. Self-employed persons, many\ntax on business will be a hard sell.\nCommittee. having all but abandoned the\nwith higher incomes, would benefit, and\nThe administration had hoped to avoid\nemployer-based financing of President\nthere may be pressure from liberals to\nsuch a fight by claiming huge savings from\nClinton's health-reform plan, now must\nphase in the deductions more slowly or\nthe cost-containment provisions in its plan.\nconfront the huge government cost of\nchange the tax provision to a credit for\nBut here too, the White House must give\nexpanding coverage without a large contri-\nworking families.\nground as the insurance industry has\nbution from business.\nIn announcing their proposal Friday.\nmounted a strong lobbying campaign to\nmoderates left themselves considerable\noverturn proposed controls on private\nA compromise plan put forward by\ncentrists on the panel would commit more\nflexibility on these deductions, but re-\ninsurance plans.\nthan $246 billion over a five-year period,\ncent estimates indicate that even a more\nMr. Moynihan has never hidden his\nand even this could be inadequate to fund\nscaled-back version could cost as much as\nskepticism about the premium caps pro-\nthe subsidies needed to achieve the stated\n$40 billion over five years, leaving about\nposed by the administration, and Demo-\ngoal of providing health insurance to 95%\n$200 billion in the plan for the vouchers. If\ncrats on the House Ways and Means\nof Americans by 2002.\nthe savings from Medicaid - a program\nCommittee are plainly divided on the is-\nalready aimed at the are subtracted,\nsue. The panel, which worked into the\nThe same budget relies on nearly\nthe proposal provides about $150 billion in\nweekend, hopes to complete action on\n$56 billion in Medicaid savings that pose a\nnew resources to expand health care for\nits own health-care bill before the July\nproblem for states like New York, home of\nlower-income families. And more than half\nFourth recess, but acting Chairman Sam\nthe Finance Committee chairman, Sen.\nof these funds would in fact come from\nGibbons (D., Fla.) cut off votes on a\nDaniel Patrick Moynihan. And in addition\nnearly $78 billion in savings from Medi-\nstandby cost-control plan until party cau-\nto a new tax on high-cost health-insurance\ncare, the health program for the elderly.\ncuses this week.\nplans. the package includes a $1-a-pack\nIn contrast with the finance panel,\nincrease in cigarette taxes - more than\nDespite its misgivings, the Clinton\nthe Ways and Means bill depends heavily\ndouble the level accepted SO far by the\nadministration is wary of doing any-\non mandated contributions from business.\nHouse Ways and Means Committee.\nthing now that would jeopardize the\nBut to preserve this provision, Mr. Gibbons\nchances of advancing a health-care bill in\nChairman Moynihan has delayed any\nalready has had to give ground on tobacco\nthe Finance Committee. And though labor\ndecision until after a meeting this after-\ntaxes and insurance-market changes. In a\ninterests appeared to play a role in pulling\nnoon of committee members. But even\nseries of tradeoffs, the committee agreed\ntwo Democrats. Sens. Bill Bradley of New\nbefore release of the compromise plan last\nto give more flexibility in setting rates for\nJersey and Max Baucus of Montana, away\nFriday, the clear drift in his panel was\ncompanies with more than 100 employees.\nfrom the proposed compromise last week,\naway from the administration's require-\nIn addition, the bill was restructured to\nunion leaders also want to give the reform\nment that all employers help pay for their\nagain allow companies with between 50\neffort more time.\nworkers' insurance.\nand 100 workers to participate in a pro-\nThe finance panel's centrist faction.\nposed Medicare-like program for small\nThe high costs underscore the un-\nincluding Sens. Bradley and Baucus, in-\nbusinesses that can't get private coverage\ncertainty of the whole endeavor. An esti-\ncludes eight Republican and Democratic\nfor their workers.\nmated 39 million people are now unin-\nPlease Turn to Page A8, Column 4\n-Mary Agnes Carey contributed to this\nsured, and Congressional Budget Office\narticle.\nfigures indicate nearly three-quarters\ncould qualify for some subsidy under the\nplan put forward by moderates. A proposed\nsystem of vouchers would cover the full\ncost of insurance premiums for those be-\nIbw poverty, about 15 million persons,\nand this subsidy would be gradually\nphased out until reaching 240% of the\npoverty level.\nTHE WALL STREET JOURNAL MONDAY, JUNE 27, 1994\n64\nTouchy time for\nhealth reform\nMoynihan\noffers his\nplan today\nBy Jessica Lee\nUSA TODAY\nHealth-reform legislation en-\nters a delicate stage today as\nthe Senate Finance Committee\ngets its first look at a bill that\npromises health coverage for\nall Americans, without making\nemployers pay for it.\nSen. Daniel Patrick Moyni-\nhan, D-N.Y., the committee\nchairman, unveils his official\noutline for financing health re-\nFOLL\nform with a combination of\ntaxes and savings in Medicare\nand Medicaid.\nMoynihan's proposal over-\nshadows a bipartisan plan de-\nBy Shayna Brennan, AP\nveloped last week by Sen. John\nEXTRA HOURS: Reps. J.J. Pickle, D-Texas, left, Dan Rostenkowski, D-111. and acting House Ways\nChafee, R-R.I., and five other\nand Means Chairman Sam Gibbons listen to discussion during a rare weekend committee meeting.\nfinance panel members.\nBoth plans share Clinton's\nward in his committee, and we\ncomposition - 11 Democrats,\nHillary Rodham Clinton meet\ngoal of universal coverage but\nare encouraged to see the pro-\nnine Republicans - reflects\ntoday with leaders of medical\nreject his device for guarantee-\ncess move forward,\" she said.\nthat of the full Senate.\nschools and teaching hospitals.\ning it - a requirement that\nMoynihan's financing in-\nRepublicans' strength on the\nMoynihan, who's running for\nemployers pay 80% of their\ncludes a $2-a-pack cigarette tax\nfinance panel gives them the\nre-election this year, has a\nworkers' insurance premiums.\n(up from 24 cents) and a 1.75%\nbest shot they're likely to have\nnumber of influential medical\nMoynihan's plan aims for\ntax on all insurance premiums.\nto influence the health-reform\ncenters in his state.\n95% of Americans to have\nMeanwhile, Senate Republi-\nfinancing legislation that goes\nLast week, Dole rejected the\nhealth insurance by the year\ncan leader Robert Dole, R-\nto the Senate floor.\nChafee proposal as one that\n2000 after new regulations\nKan., argued for cautious\nOn the other side of the aisle,\n\"has too many taxes for me\"\nmake insurance more accessi-\nhealth-reform action as some\nsome Democrats are less con-\nand probably would not win\nble and affordable.\nDemocrats pushed for moving\ncerned with details.\nsupport among a majority of\nIf the goal isn't reached, a\nahead without GOP backing.\nSen. Tom Daschle, D-S.D., is\nRepublicans.\ncommission would set specific\n\"Let's get it right,\" Dole in-\nurging Moynihan to pass a bill\nHe says he'll write his own\nsteps to achieve it.\nsisted in a TV interview on C-\nand send it to the floor -\nplan with Sen. Bob Packwood,\nThe steps would take effect\nSPAN. \"I think we can do a lot\nwhere the Democratic major-\nR-Ore., ranking Republican on\nautomatically unless Congress\nof things this year, but if we try\nity can rewrite it to the presi-\nthe Finance panel, and prom-\nvoted them down.\nto take the whole loaf, it may\ndent's liking and pass it, with or\nises it will be one most Republi-\nWhite House economics ad-\nbe that no health-care bill\nwithout Republican votes,\ncans can support.\nviser Robert Rubin stressed\npasses this year.\"\nwhile the public looks on.\n\"That would be straight\nSunday that Clinton stands by\nDole's argument comes at\nThe \"employer mandate\"\nalong partisan lines,\" Pack-\nhis insistence on universal\nthe start of a week when both\nClinton proposes has been ap-\nwood says.\nhealth-insurance coverage as\nthe tax-writing Finance Com-\nproved by two committees -\nSuch a bill, he says, risks sti-\n\"an integral part\" of his overall\nmittee and its counterpart, the\nthe Senate Labor and Human\nfling bipartisan efforts and\neconomic strategy.\nHouse Ways and Means Com-\nResources panel and the House\ncould end in passage of a weak-\nHealth-reform spokeswom-\nmittee, will be immersed in\nEducation and Labor panel.\nly supported law that gets re-\nan Lorrie McHugh said Clinton\nwriting outlines of the health-\nBackers of Clinton's employ-\nvised every couple of years.\nis flexible on the route to uni-\nreform legislation to be voted\ner mandate also are expected\n\"Unfortunately,\" Packwood\nversal health coverage but not\non by each chamber.\nto hold sway in the Ways and\nsays, \"it may end up that Dole\non the destination.\nMany senators look to the Fi-\nMeans Committee, where all\nand (Senate Majority Leader\n\"Chairman Moynihan is try-\nnance Committee for political\ntax bills originate.\nGeorge) Mitchell end up writ-\ning to move the process for-\nguidance because the panel's\nThe president and first lady\ning\" the health-reform bill.\nUSA TODAY MONDAY, JUNE 27, 1994\n85\nChafee stakes out middle ground\nBy Judi Hasson\nregulations imposed by the government.\nUSA TODAY\n\"It is a centrist effort,\" says Chafee, 72.\n\"On both sides there are extremists who\nSen. John Chafee is known on Capitol\ndemand that what they want be it, and\nHill as a bridge-builder and a longtime\nthat's why it seems to me the progress in\nhealth-care crusader.\nhealth-care reform in the Congress of the\nLast week, those traits merged as the\nUnited States to date has been total chaos.\"\nRhode Island Republican forged a health-\nSen. David Durenberger, R-Minn., part of\ncare reform compromise among fence-sit-\nChafee's small group of Democrats and\nters on the Senate Finance Committee who\nRepublicans who came up with the plan,\noppose requiring employers to pay for\nsays it was Chafee's persistence that\ntheir workers' insurance.\nbrought about the compromise some law-\nChafee's plan - which drops the most\nmakers hope will break the Senate logjam.\ncontroversial part of President Clinton's\n\"I give John Chafee the credit for all of\nproposal, the so-called employer mandate\nit,\" Durenberger says.\n- is attracting the attention of Sen. Daniel\nBut Clinton allies say the Chafee com-\nPatrick Moynihan, D-N.Y., the Finance\npromise is no plan at all because it doesn't\nCommittee chairman. Today Moynihan is\nguarantee coverage for everyone.\nexpected to introduce his own version of\nSays the Consumers Union's Bob Car-\nreform, without a mandate of any sort.\nolla: \"We're appalled. It's legislative gim-\n\"There is no point in coming out with\nmickry at its worst. The mainstream is ac-\nsomething no one is for,\" says Chafee.\ntually selling consumers down the river.\"\nDecades before Clinton put health re-\nRon Pollack, spokesman for Families\nform at the top of the national agenda, it\nUSA TODAY\nUSA, a liberal consumer group, calls the\nwas on Chafee's. As governor, he worked\nplan \"Chafee minus.\" He says Chafee and\nin the 1960s to provide prenatal care for\n\"\nother moderate Republicans were pres-\nwomen who couldn't pay for it and to pro-\nsured by hard-line Republicans, including\nvide health insurance for the elderly be-\nfore Congress passed Medicare in 1965.\nThere is no point in coming out\nSenate Minority Leader Robert Dole, R-\nKan., not to come up with a workable plan.\nThree years ago, he began meeting with\nwith something no one is for.\n\"It is clearly a hard-line Republican par-\nGOP senators weekly to educate them\n\"\nty position to try to do what they can to dis-\nabout the nation's health-care problems.\nrupt and frustrate any attempt to get some-\nNow Chafee has pulled together a small\n- Sen. John Chafee, R-R.I.\nthing through,\" Pollack says.\nbipartisan group to stake out a centrist po-\nChafee is mindful that whatever bill\nsition on the finance panel.\npasses must have overwhelming support.\nThat's the committee responsible for de-\nance. But the individual mandate fell flat.\nOtherwise, it will be attacked, revised and\nciding how things will be paid for, and\n\"There was no constituency for it,\" Cha-\nweakened over time.\nmany believe it is where the health-care\nfee says. \"The right was against it. The left\n\"If you pass it 56-44, that means 44 sena-\nplan ultimately will be crafted, because it\nwas against it.\"\ntors are going to be going around the coun-\nreflects the makeup of the Senate.\nIn its place is a compromise designed to\ntry saying what a lousy bill it is,\" Chafee\nGone from Chafee's plan is any talk of a\nattract committee moderates like David\nwarns. \"It's not beyond the realm of possi-\nmandate. After Clinton proposed requiring\nBoren, D-Okla., who wouldn't go for a man-\nbility that the whole thing will collapse.\"\nemployers to pay at least 80% of workers'\ndate under any circumstances, and John\nChafee hopes there will be reform this\npremiums in order to achieve universal\nBreaux, D-La., who argues competition in\nyear, but says there are unrealistic expec-\ncoverage, Chafee had countered with a\nthe marketplace and insurance reforms\ntations about what Congress can do: \"I'm\nplan to require individuals to buy insur-\ncan be used to drive down prices without\nnot as optimistic as I was six months ago.\"\nClinton, Chafee\nplans compared\nMEDICAID\nUNIVERSAL COVERAGE\nBENEFITS\nChafee: Medicaid patients\nChafee: If 95% of all Ameri-\nChafee: National board\ncould be folded into private in-\ncans don't have insurance by\nwould establish two benefit\nsurance, but welfare recipients\n2002, national board would rec-\npackages: one based on Blue\nwould keep their extra health\nCross-Blue Shield standard op-\nbenefits.\nommend ways to achieve uni-\ntion under federal employees\nClinton: Same.\nversal coverage. Congress\nwould have to act on the recom-\nplan, and one lower-premium\nmendations but would not have\nplan with higher copayments\nMEDICARE\nto follow them.\nand deductibles, fewer benefits.\nChafee: Elderty could opt to\nClinton: Mandatory cover-\nCoverage would include doctor\nenroll in community plans to gain\nage of all Americans by 1998\nbills, hospital stays, emergen-\nprescription drug coverage, oth-\nthrough employer, individual and\ncies, mental illness, substance\ner benefits.\ngovernment payments.\nabuse, prescription drugs for\nClinton: States could opt to\nthose under 65.\nfold elderly into new system.\nMANDATES\nClinton: Congress would\nspecify minimum benefits avail-\nTAX DEDUCTIONS\nChafee: No mandate on em-\nable to all, including doctor bills,\nployer or individual to buy insur-\nhospital stays, emergencies,\nChafee: Expanded tax\nance. Vouchers to help low-in-\nmental illness and substance\nbreaks: All individuals could de-\ncome families buy insurance.\nabuse, prescription drugs for all,\nduct 100% of insurance costs.\nUSA MONDAY, JUNE 27, 1994\nVoluntary purchasing pools for\nsome long-term care at home\n(Currently, only self-employed\nindividuals and small business-\nand adult day-care.\nmay deduct only 25%.)\nes with 100 or fewer employees;\nClinton: Same.\ncommunitywide rates, adjusted\nFINANCING\nfor age. Insurance market re-\nforms to make coverage more\nChafee: Cigarette tax in-\nMoynihan plan\naffordable and available, includ-\ncrease from 24 cents to $1.24.\nExpected: Won't require individ-\ning guaranteed renewal and no\nSavings in Medicare, Medicaid.\nuals or employers to pay insur-\ndenial of coverage for existing\nNew tax on high-cost health\nance. Would rely on new insur-\nconditions.\nplans. All state and local govern-\nance rules: Renewal would be\nClinton: Employers must\nment workers would pay 1.45%\nrequired, denial of coverage for\npay 80% of workers' premiums.\nMedicare payroll tax.\nexisting conditions would be\nSubsidies for small, low-wage\nClinton: Cigarette tax in-\nbanned. If that doesn't result in\nfirms and low-income individ-\ncrease from 24 cents to 99\nuniversal coverage, a national\nuals. Insurance plans offered\ncents. Savings in Medicare, Me-\nboard would make recommen-\nthrough mandatory purchasing\ndicaid. 1% payroll tax on self-in-\ndations to take effect unless re-\npools. Companies with 5,000 or\nsured companies.\njected by Congress.\nmore workers could remain self-\ninsured, would still pay 80% or\nmore. Same insurance reforms.\n86\nModerate health plan may be placebo\nBid to please all,\nto find but have done little to reach\nplans - will continue to raise\nplan and remain unified behind it.\n- is in reality very small.\nstrenuous opposition from a ma-\nOther Republicans cited politi-\n\"Will the middle hold? That is\njority of Republicans.\nwon't fly on Hill\ncal problems they could have if a\nthe issue,\" said Rep. Rick Boucher\nBut Democrats will have the\nsmall group of their members\nof Virginia, a conservative Demo-\nmost problems with the proposal\nbroke ranks. \"Why should we\ncrat who differs with the majority\nbecause it fails to meet President\nshare the pain with the Democrats\nBy J. Jennings Moss\nof his party on health care.\nClinton's bottom line: It does not\nthat they will feel\" at the polls, said\nTHE WASHINGTON TIMES\nThat middle will be tested this\nguarantee that by a specific date\nRep. Dick Armey of Texas, chair-\nweek when the Finance Commit-\nevery American will have insur-\nThe compromise health plan\nman of the House Republican Con-\ntee takes up the proposal unveiled\nance coverage.\nference.\ncrafted by moderates on the Sen-\nFriday by four Democrats and\n\"You cannot pass through this\nate Finance Committee last week\nthree Republicans on the panel.\nHouse of Representatives an op-\nRep. Al Swift, Washington\nis a good example of what happens\nThe plan makes no guarantee\ntion [for Congress to do something\nDemocrat, agreed that Republi-\nwhen lawmakers from the politi-\nthat every American would have\nin the future]. We have to have uni-\ncans are better off politically by\ncal middle meet behind closed\nhealth insurance in the near fu-\nversal coverage by a date certain,\"\nsticking together. \"Whether or not\ndoors to develop policy.\n[the Senate Finance moderate\nture but sets a target to have 95\nsaid Rep. Mike Synar, Oklahoma\nThe plan borrows ideas from\nDemocrat and one of the presi-\nplan] creates any new problems\npercent covered by 2002 through\nDemocrats and Republicans. It\nthe use of insurance reforms and\ndent's health care cheerleaders.\nfor us, I don't know,\" Mr. Swift said.\npunts on the\nother measures. If the nation fails\n\"It leaves us pretty much with the\nRepublicans know any health\ncontentious is-\nsame splinters we've always had so\nNEWS\nto meet the goal, a commission will\nbill with a strictly GOP stamp has\nsue of insurance\nwe don't have any more political\nANALYSIS\nrecommend solutions to Congress,\nno chance of passage, but it could\nmandates. It\nand lawmakers will be forced to\nproblems, we've still got the old\nbe a good political document on\nwould protect\nconsider them but not bound to en-\nones. It's the Republicans with the\nwhich to challenge Democrats.\nAmericans from losing their in-\nact any changes.\n\"I'm not adverse to the notion\nnew problems.\"\nsurance. It would reach to cover 95\nLawmakers from both parties\nthat the election might tell us\nThe moderates who negotiated\npercent of the public.\nanticipated the proposal would\nsomething about what the Amer-\nthe compromise understand more\nBut it most likely would not pass\ncontain a mandate on individuals\nican people want.\" said Sen. Pete V.\nthan most the delicate nature from\nin Congress.\nto buy insurance if other reforms\nDomenici, New Mexico Republi-\nboth a political and policy view-\nLiberals will blast the plan be-\ndid not work in the future. The\ncan.\npoint of the tradeoffs involved.\ncause it does not have an automatic\nindividual mandate is not an ap-\nMr. Domenici said the feeling\n\"From the standpoint of myself\ndevice to force businesses to pro-\npealing concept for either side, al-\namong many Republicans was\nand, I think, probably other people\nvide insurance coverage. Conser-\nthough for different reasons.\nthat they would have preferred not\nas well, we're nervous\nnervous\nvatives will balk at the new taxes\nBy dropping mandates entirely,\nto see the moderate GOP members\nabout unintended results, nervous\nimposed and are likely to say it is\nthe moderate lawmakers made it\nnegotiating with like-minded\nthat in attempting to do something\nstill a big-government solution.\nmore attractive to conservatives,\nDemocrats. Instead, they wanted\ngood, we do something bad,\" said\nThe middle ground that place\nalthough other items - such as a\nto let Senate Minority Leader Bob\nSen. John C. Danforth, Missouri\nboth sides profess a sincere desire\ntax on the more expensive health\nDole work out a GOP concensus\nRepublican.\nAnd he is almost certain to be-\ncome the second president, after\nTroubled\nJimmy Carter, to visit black Af-\nrica. Speculation is centering\naround a trip early next year.\nIn his speech today, Mr. Clinton\nAfrica\nis expected to describe a new era\nof possibilities for U.S. policy on\nAfrica.\nGone is the Cold War in which\nfascinates\nAfrican states lined up on the U.S.\nor Soviet side. And gone is the\nhated apartheid system, now that\nSouth Africa has a multiracial\nClinton\nelected government.\nAlready, the administration has\nsponsored a conference - last\nmonth in Atlanta - on South Afri-\nca's political and economic devel-\nBy Julia Malone\nopment.\nMONDAY, JUNE 27, 1994 The Washington Times\nCOX NEWS SERVICE\nThis week's conference with\nIt's far more than a passing\nabout 150 academicians, relief\nfancy, say President Clinton's\nworkers, business leaders, and\naides.\nlawmakers is billed as an attempt\nThe president, who today will\nto gather fresh ideas on how to\naddress the unprecedented two-\nhelp Africa.\nday White House conference on\nThe United States \"has two\nAfrica that opened yesterday, has\nstark options,\" President Nelson\nMandela of South Africa said in a\nquite simply fallen in love with\nthat populous, troubled continent.\nvideotaped message on the confer-\nTo be sure, he has yet to overhaul\nence's opening day. \"On the one\nU.S. foreign policy toward Africa.\nhand, to succumb to the pessimism\nCritics score him for shortchang-\nof the false perception that Africa\ning the continent on aid, for bun-\nis on a permanent decline,\" or\ngling the Somalia aid mission and\n\"take the cudgels and become a\nfor indecisiveness on the Rwanda\nleading partner\" in the revival of\nmassacres.\nthe continent.\nThe White House conference it-\nMr. Clinton's focus on the sub-\nself almost became a public rela-\nject inspires both hope and skepti-\ntions calamity. White House aides\ncism.\nneglected to invite the Congres-\n\"I'm looking at previous admin-\nsional Black Caucus, long a\nistrations,\" said Melvin Foote, ex-\nstaunch defender of Africa aid, un-\necutive director of the advocacy\ntil the last minute.\ngroup Constituency for Africa, a\nNone of this could dampen Mr.\nparticipant in the conference. \"We\nClinton's abiding fascination with\ndidn't have this kind of opportu-\nAfrica, say aides. At the drop of\nnity to talk to the president about\nthe hat, he can tick off the names\nAfrica.\"\nof successive regimes in remote\nEven so, Mr. Foote has been dis-\nAfrican states.\nsatisfied with the Clinton adminis-\nWhen Atlantic Monthly pub-\ntration until now. \"He's been\nlished Robert D. Kaplan's article\ncaught up in his campaign prom-\n\"The Coming Anarchy\" in Febru-\nise to focus on the domestic\nary, Mr. Clinton pored over it,\nagenda,\" Mr. Foote said, adding\nscribbling furiously on the mar-\nthat there's \"a lack of talent\" on\ngins to rebut the bleak future it\nthe foreign policy team.\npredicted for Africa.\n115\nDear co eagt e' e ers wir VO\nBy Keith Glover\nEducation was the most popular\nof the Congress\" on issues impor-\nCONGRESSIONAL QUARTERLY\ntopic in the year ending June 2,\ntant to his constituents, and he\nwith letters about President Clin-\nsays he owes his success in two\nDozens of letters pour into con-\nton coming in a close second.\nhigh-profile victories in part to\ngressional offices each day, but\nOther popular topics included\nthat tool.\nlawmakers pay particular atten-\nhealth care, the environment, the\nMr. Mica distributed a series of\ntion to one stack of mail: letters\nmilitary and the North American\nletters when he and other junior\nfrom their colleagues.\nFree Trade Agreement.\nlawmakers sought to abolish four\nRep. Timothy Penny. Minnesota\nSome members compile their\nHouse committees just days after\nDemocrat, says he has found the\nown information for the letters.\nhe took office. The panels were\nletters to be even more effective\nOthers reprint news articles or\nabolished two months later.\nthan floor speeches that are often\neditorials that make their point.\nHe turned to the \"Dear Col-\ndelivered to a near-empty House\nRep. Bill Zeliff, New Hampshire\nleague\" strategy again when try-\nchamber. He has used them to\nRepublican, distributed a pointed\ning to head off a House vote on\nseek support for proposals to cut\n\"Dear Colleague\" letter June 14\nelevating the Environmental Pro-\nannual spending bills and for other\nthat was intended to garner sup-\ntection Agency to Cabinet level,\ndeficit-reduction measures.\nport for a special House session on\nand he succeeded again.\n\"Around here, you can go to the\nspending cuts.\n\"I actually had people sit me\nfloor and give a speech and maybe\nIn the letter, Mr. Zeliff, who is\ndown and say, 'Can you explain this\n20 members will hear the speech,\"\nsponsoring legislation to require\na little bit better? I got your let-\nhe says. \"A 'Dear Colleague' letter\nsuch a session, warns members of\nter,' \"Mr. Mica said of the response\nMONDAY, JUNE 27. The Washington Times\ngets you into 435 offices. And it's\nthe possible consequences of not\nto his EPA letters.\namazing how many members will\nsigning a petition to force a floor\n\"Dear Colleague\" letters are\ncome up and say, 'Hey, I got your\nvote on the bill: \"The people back\nalso popular among more senior\nletter.'\nhome will undoubtedly decide that\nmembers. \"I walk in here in the\nMarwan Burgan, president of a\nyou did not want to force the lead-\nmorning\nand the first thing I'll\ncomputer service called Congres-\nership to let Congress cut wasteful\ndo is grab the 'Dear Colleagues'\nsional Connection, has been track-\ngovernment spending now.\"\nand read them and see what the\ning the use of \"Dear Colleague\"\nRep. John Mica, a freshman Re-\nissues are,\" says Rep. Dick Armey.\nletters. More than 5,400 of the let-\npublican from Florida's 7th Dis-\nThe Texas Republican has sent 126\nters have been distributed in the\ntrict, is one of the most prolific\nsuch letters in the past year, put-\nlast year on topics ranging from\nwriters of \"Dear Colleague\" let-\nting him easily atop the list of\ntaxation and deficit reduction to\nters.\nthose who send the most.\nabortion and civil rights, accord-\nHe says he uses the letters as \"a\ning to Burgan.\ntool to try to tweak the conscience\nDistributed by Scripps Howard.\nIRS to hire 5,000\nin revenue push\nBy Ruth Larson\nIRS agents from the bill.\nTHE WASHINGTON TIMES\nSen. Richard C. Shelby, Ala-\nbama Democrat, supported Mr.\nTaxpayers beware: The Internal\nGrassley's amendment. \"I believe\nRevenue Service is about to put\nthis is a back-ended way of once\n5,000 more enforcement agents on\nagain putting it to the American\nthe beat to make sure you pay up.\ntaxpayer without any assurance\nThe Treasury Appropriations\nthat taxpayers will be protected\nbill passed by the Senate last week\nfrom undertrained or overzealous\nSen. Charles Grassley fears the\ngives $405 million each year to the\ntax collectors,\" he said during\nresults of hiring thousands of new\nIRS to beef up taxpayer compli-\nfloor debate.\nIRS agents to increase revenues.\nance, at a cost of $2.025 billion over\nMaureen Gilman, legislative di-\nfive years. The House passed a\nrector for the National Treasury\ngress gave the IRS $115 million to\nsimilar bill earlier this month.\nEmployees Union, said the bill in-\nincrease its compliance staff, but\nThis way, the IRS hopes to in-\ncluded a provision that the new\nit will actually spend only about\ncrease government revenues by\nIRS employees would be trained in\n$17 million of that on compliance.\nnearly $9.2 billion over the next\nprotecting taxpayers. \"We don't\nThe rest will help pay for a $219\nfive years - without a tax in-\nwant our employees out harassing\nmillion funding shortfall in labor\ncrease. It was unclear, though,\npeople, so we have no problem\ncosts.\nwhether the increased revenue\nwith them being properly trained,\"\nAnother criticism of the IRS en-\nprojections take into account the\nshe said.\nforcement strategy is that it\ncost of hiring the extra agents to\nAn IRS spokesman refused to\ncomes at a time when the rest of\ncrack down on unreported income,\ncomment on any of the provisions\nthe government is under orders to\nincrease the number of tax audits\ncontained in the legislation.\ntrim its ranks. \"The federal gov-\nand collect more delinquent taxes.\nAbout 900 of the positions will\nernment will never be reinvented\nOpponents of the plan, like Sen.\nbe filled by reassigning IRS staff\nwhen we allow agencies like the\nCharles E. Grassley, Iowa Repub-\nmembers from other tasks, ac-\nIRS to add massive numbers of\nlican, fear the \"tender mercies of\ncording to a General Accounting\nnew employees,\" Mr. Sepp said.\nthe IRS\" will get out of hand with\nOffice report in April that said the\nThe IRS maintains that the ex-\nso many agents bent on increasing\nremaining 4,100 agents would be\ntra agents do not represent a net\nrevenues.\nnew hires.\nincrease in its work force, because\nNational Taxpayers Union\nThe GAO appears to have\nit has already saved 3,612 full-time\nspokesman Pete Sepp agrees.\ndoubts about the wisdom of the\nequivalent positions by moderniz-\n\"The worst thing about this appro-\nmove. In response to questions\ning technology and improving ef-\npriation is that it puts the IRS un-\nfrom Mr. Grassley, the GAO said,\nficiency. Beyond that, the agency\nder enormous pressure to show in-\n\"There are steps IRS could take to\nplans to cut 2,544 additional posi-\ncreased revenues. That pressure\ngenerate additional revenues by\ntions, its share of the administra-\nwill inevitably lead to many unin-\nusing existing staff differently and\ntion's proposal to cut nearly\ntended but still very serious viola-\nmore efficiently,\" such as contact-\n273,000 federal workers.\ntions of taxpayers' rights.\"\ning delinquent taxpayers by tele-\nBut the IRS' own figures show\nEarlier this year, the Senate had\nphone earlier in the process.\nits staff grew by more than 30,000\nagreed to funding increases for\nThe GAO also noted that the IRS\nbetween 1983 and 1993 as the\nenforcement only if they were tied\nhad steadily cut its enforcement\nagency expanded to handle more\nto additional taxpayer safeguards.\nstaff since 1988, despite Congress'\nthan 200 million tax returns.\nBut the safeguards provision was\nrepeated funding increases for en-\n\"This is not reinventing govern-\nremoved during a conference\nforcement. The money was appar-\nment,\" Mr. Shelby said. \"This is\ncommittee with the House. Mr.\nently used to pay for funding\nreinventing new ways to increase\nGrassley tried unsuccessfully last\nshortfalls in other programs.\nthe size and the cost of the federal\nweek to eliminate the additional\nThis year, for example, Con-\ngovernment.\"\nDropping GOP's pro-life plank means betraying its grass-roots activists\nIn a June 20 column (\"Should\nwrites Miss Charen, \"of squishiness\nwaivers on the right to life, will it\nRepublicans remain the right-to-\non the pro-life question.\"\nhasten the day when abortion is\nlife party?\"), Mona Charen writes,\nBut it's not absurd at all. They are\nbanished from our society or move\n\"Realists understand that battle\nsquishes.\nus closer to permanently tabling\n[over the right to life of unborn\nBill Kristol is sometimes\nthe issue in favor of the forces of\nbabies] has been lost. The election\ndescribed as a Republican strate-\ndeath?\nof Bill Clinton has postponed the\ngist. OK. What, then, is the strate-\nMr. Weigel, no doubt, has other\nday when the courts would reverse\ngic goal of his effort to play realpoli-\nthings to attend to as a \"renowned\nthemselves on Roe vs. Wade.\"\ntik with the lives of unborn babies?\nCatholic scholar,\" and neither Mona\n\"The Human Life Amendment\nWho is the target of Mr. Kristol's\nCharen nor Bill Kristol need to walk\nidea is dated,\" she adds.\noffensive? Whose influence is he\npoint for pro-life. If they find that\nTherefore, she endorses Bill\ntrying to curtail in GOP politics? Is\nthe Human Life Amendment is\nKristol's and George Weigel's effort\nhe trying to contain Massachusetts\nmorally indefensible, politically\nto trash the Reagan pro-life plank\nGov. Bill Weld and Ann Stone, pres-\nembarrassing or otherwise unwor-\nand move the party left on abortion\nident of Republicans for Choice, or\nthy of the Republican Party, they\n- while taking exception to Bay\nthe grass-roots activists, who won\ncan fall back into the ranks and let\nBuchanan's vigorous defense of the\ndemocratic election as delegates\nothers carry on the fight.\nGOP platform and criticism of Mr.\nto the 1992 convention and who\nKristol and Mr. Weigel.\nadopted the pro-life plank? Not SO\nTERENCE P. JEFFREY\n\"It is absurd to accuse Mr. Weigel,\nlong ago, both major parties in\nExecutive Director\na renowned Catholic scholar, and\nAmerica were pro-life. Now there\nThe American Cause\nMr. Kristol, a staunch pro-lifer,\"\nis one pro-life party. If that party\nMcLean\nRear-guard action on health care reform\nV\nA\n11 that opponents of massive government control\nbe harangued for killing \"reform\" just when it was\nin health care need to know about the work of\nin their very grasp.\nthe Senate Finance Committee \"rump group\"\nBut the work of the rump group is likely to be\nof moderates is that Hillary Rodham Clinton and\nsuperseded today as Finance chairman Moynihan\nSenate majority leader George Mitchell think it is\nintroduces to his committee a new version of his\npromising. This would be like hearing that Kim Il-\n\"mark\" - that is his basic version of a bill. Report-\nsung was perfectly happy with some new set of\ned to be similar in many respects to the rump group's\nnuclear monitoring requirements and eager to sign\nlegislation, the moderate Senators are already mak-\non the dotted line - one would have to assume that\ning noises about falling into line behind the chairman.\nsomething was very, very wrong with the deal.\nFrom the reports, however, Mr. Moynihan's mark\n\"Incredibly hopeful,\" says Mr. Mitchell of the\nis a particularly bad piece of legislation. The key pro-\nrumpsters, five Democrats and three Republicans\nvisions are said to be the creation of a National Health\nwho have cobbled together a health reform plan they\nCare Commission and a National Health Cost Com-\nhope will squeak through the Finance Committee.\nmission, each with broad near-legislative powers.\n\"I'm encouraged by what I hear is a very substan-\nMembers of each commission would be named by\ntive discussion,\" said Mrs. Rodham Clinton, before\nthe president and subject to Senate confirmation. The\nthe group presented their plan on Friday. Mrs. Clin-\nfirst commission would be charged with finding new\nton's comments are the most interesting, given that\nsolutions to the health care problem should, in the\nit was she who earlier this week forced her husband,\nyear 2000, less than 95 percent of the population have\nthe titular president, into an ironclad veto threat\nhealth coverage. The body would not get to propose\nMONDAY, JUNE 27, 1994 The Washington Times\nagainst any plan that didn't achieve universal health\nnew taxes and other mandates, but their \"recom-\ninsurance coverage. So it is hard to imagine that the\nmendations\" would automatically become law if\nrump group's version of reform can be seen as\nCongress did not vote the provisions down within a\nmuch of a threat to the first couple's more radical\nprescribed length of time.\nconcept of health legislation. For example, over the\nOnce again lawmakers look to winkle themselves\nweekend the president continued to rail against any\nout of a jam by tossing away their lawmaking\ncompromise plan that would fall short of his vision\nauthority. Last time we checked, the Constitution\nof insurance for all. \"Make no mistake: measures\nsaid that it was the job of Congress to levy all taxes.\nthat are half-hearted would, at best, guarantee that\nBut now Mr. Moynihan is going to propose that a\nthings stay only about as good as they are now,\" said\ncommission of unelected presidential appointees be\nthe president. \"The poor would get health care, the\ngiven that power. How convenient. And dangerous.\nwealthy would get health care, the middle class\nThe constitution provided that elected officials\nwould get it sometimes and not get it sometimes.\"\nwould be responsible for taxation for the explicit\nAfter the comments, Mr. Clinton's spokesman Dee\npurpose of making taxation difficult. Just wait and\nDee Myers assured one and all that the president\nsee what happens once that little difficulty has\nwas not referring to the work of the rump group.\nbeen removed.\nBut why not? The rump group doesn't mandate\nNot that we haven't already seen this scenario play\nuniversal coverage, so one would think it would be\nout thousands of times. The vast growth of the fed-\nthe object of the Clintons' ire. But they are letting it\neral government has been achieved in the last 50\nhave an uncontested run for now for two main rea-\nyears primarily by the transfer of legislative author-\nsons. The first is that the president needs to have an\nity from the Congress to the bureaucracy. We are gov-\nout, should the rump's compromise be the best he can\nerned now, not by laws made by our elected repre-\nget. If it is, he'll be able to sign the bill and claim he\nsentatives, but primarily by rules and regulations\nis fulfilling his promises - \"I always said that this\ndrawn up by the hundreds of thousands by an army\ncompromise met my goal of universal coverage,\" Mr.\nof unelected officials. When these rules ruin lives and\nClinton will be able to say, even though of course the\nlivelihoods, it isn't Congress that gets the blame, it is\nlegislation would do no such thing.\nthe bureaucrats, and our representatives get to enjoy\nThe second is that the rump group's action has\nthe non-controversial role of fix-it men, plastering\nhelped to break what was shaping up as a deadlock\nconstituent service band-aids on the wounded.\nin the Finance Committee. The Clintons and Mr.\nIt was just a matter of time before lawmakers\nMitchell know good and well that they just need to\nwould try to opt out of the tough choices demanded\nkeep the legislative process going, get a bill to the\nby health care legislation by handing the job over to\nfloor and play with it there. Even if the Senate pro-\nbureaucrats (whom Justice Scalia has devastating-\nduces a mild and somewhat conservative bill, the\nly taken to calling the \"junior varsity Congress\"). It\nHouse can be expected to have produced a liberal\nis hard to see why lawmakers want to be lawmakers\nbehemoth, chock full of mandates and price controls.\nif whenever it comes time to make law they ask some-\nTheir hope is that once in conference committee, the\none else to do it for them. One might get the impres-\nbig-government provisions will prevail. At that point,\nsion that our representatives want to enjoy the plea-\nthe only defense Senate moderates and conservatives\nsures and perks of power without enduring its\nwould have would be to vote down or filibuster the\nresponsibilities. King Lear tried to engineer for him-\nfinal bill. This could prove to be too much for many\nself just that sort of arrangement, /and it should be\nRepublicans and conservative Democrats who would\nremembered that it all ended rather badly.\n133\nfrom Boston GIODE rage 1\nR.I's Chafee\nmay rescue\nClinton's\ncommand a rifle company in Korea. A sense of\nhoblesse oblige 17116 t) retugh all of his political\nhealth plan\ndealings.\nHis ability to survive, however. is another matter.\nstate like Rhode Island. A political centr ist in a GOP\nBy Peter G. Gosselin\nthat has veered sharply rightward. he has been\nGlobe Staff\nejected from party leadership positions for his\nWASHINGTON - Sen. John H. Chafee makes a\nliberal apostasy.\nmost unlikely political infighter. He seems so\nThe combination of these political strands can\nfundamentally decent - as even his most vehement\nproduce dizzying results. During a recent visit home,\ncrities will admit - that it's hard to imagine he has\nChafee was cheered for defending a Medicaid\nmuch fight to him.\nprogram that provides money for Rhode Island's\nBut the Rhode Island Republican is in the\ndisabled against White House efforts to cut it. But\nbiggest battle of his political life, and that of\nless than a year earlier, he was assailed for helping\nDemocrat Bill Clinton's as well. With & key\nto kill the administration's economic scimulus plan\ncongressional committee on which Charge sits all but\nthat would have provided money for Rhode Island\nparalyzed by partisan divisions. the 71-year-old\ncommunities like Warwick, where his son, Lincoln. to\nformer Marine captain suddenly looks like the man\nmayor.\nto save at least a semblance of the 46-year-old\n\"Chafee was born into a difficult political habitat\npresident's biggest initiative - health reform.\nand has learned to thrive. He had to; I mean he grew\nLed by Chafee, a group of centrist lawmakers.\nup in a family that railed against Roosevelt in a state\nRepublicans and Democrats, have worked out a deal\nthat loved him,\" said John E. Mulligan, a reporter\nthat would salvage some elements of Clinton's health\nfor the Providence Journal-Buletin who has covered\nlive.\nthe lawmaker for almost two decades.\nIf it becomes the blueprint for compromise, the\nSome see signs of the instinet for political\nmeasure will represent a huge step back for both\nsurvival in Chafee's embrace of health reform.\nClinton and Chafee, who had proposed a much more\nAt the time he first became involved in the issue\nsweeping plan. But there was a growing sense over\nin the early 1990s. local polls showed his popularity\nthe weekend that only such a retreat can save the\nbeginning to slowly but steadily erode. And until\nhealth reform campaign, which otherwise seems\nClinton's presidential victory, many Chafee staffers\nheaded for a crackup in the Senate Finance\nthought that the lawmaker's 1994 Democratic Senate\nCommittee.\nchallenger might be Ira C. Magaziner. then a\n\"He's clearly the bridge if there's going to he any\nProvidence business consultant engaged in a highly\ncompromise on health in the Senate,\" said Robert\npublicized study of health care in the state and now\nBoston\nBlendon, chairman of the health policy and\nClinton's chief health policy adviser.\nreanagement department at the Harvard School of\nBut if politics played a role in his decision to get\nPublic School.\ninvolved. Chafee has since pursued the health 'ssue\nGlobe\n\"The Finance Committee can't get a health care\nwith a doggedness that has exhausted even bis\nbill without him,\" added Lawrence O'Donnell, chief\nclosest allies and an abandon that might cost him\naide to Democratic committee chairman Daniel\npolitically.\nPatrick Moynihan of New York. Moynihan aides\nAs chairman of a GOP task force. he has cajoled\nwere said to be working over the weekend on a plan\ncolleagues considerably more conservative than\nthat adopted many elements of the Chafee\nhimself into signing onto at least three different\ncompromise.\napproaches to reform in recent years: a 1991\nSuch a man-in-the-middle role did not come to\npackage of tax incentives, beefed-up preventive care\nChafee by happenstance. In some sense, he has\nand malpractice changes; a 1992 measure to set up\nspent his whole career preparing for it. by operating\ninsurance-buying cooperatives similar to those\njust as he is now doing - at the rocky margin\nsubsequently included in the Clinton plan: and, most\nbetween the two political parties.\nrecently. an elaborate proposal with the same end ad\nA pay-as-you-go Republican, he nonetheless\nthe president's - insurance coverage for all\nsupports the kind of big-government social programs\nAmericans - but different means.\nthat remain wildly popular in an old-line Democratic\nOriginally. Chafee won praise for his efforts from\nfellow Republicans. But Senate GOP leader Bob\nIn virtually every fight of his political career he has\nDole, Republican of Kansas, is now trying to\nbeen the beneficiary of a splintered opposition and a\nunderent him, apparently fearful a Chafee\ntough-minded campaign plan.\ncompromise could open the way for a Clinton victory\nRichard Licht, Chafee's 1988 Democratic vival,\non health, something Dole seems intent on blocking.\nsaid that the Republican lawmaker ran a clean but\nThe compromise illustrates the kind of political\nextremely aggressive race. Licht said that he had\nchances Chafee seems ready to take for reform. Like\nworried Chafee might use the fact Licht, like then-\nthe Clinton plan, the Chafee proposal would be\nVice President Dan Quavle, had spent the Vietnam\npartially financed by deep cuts in Medicare, the\nWar stateside in the National Guard, but be did not.\ngovernment health insurance progam for the elderly.\n\"He said. \"The National Guard is honorable service'\nBut unlike Clinton's, it wouldn't promise Medicare\nand left it at that.\" Licht remembered.\nrecipients any new benefits in return. That's quite a\nOf course, that didn't stop Chafee from attacking\nrisk for a politician from a state with the fourth-\nLicht at every turn. \"He put my record in absolutely\nhighest percentage of elderly people in the nation.\nthe most negative light,\" Licht said. The Republican\nChafee has turned such risk-taking into\nlawmaker's likely Democratic rival this year. Rhode\nsomething of a personal and political trademark. He\nIsland State Rep. Linda Kushner, got a taste of the\nis remembered in Rhode Island for calling for a state\nsame medicine last week when she attacked Chafee\nincome tax during his bid for a fourth term as\nfor owning drug stocks while engaged in the health\ngovernor in 1968. The idea lost him the election, but\ndebate only to find herself the target of a Chafee\nhis Democratic successor was forced to enact the\ncounterattack that she too owned drug stocks.\nvery same tax, earning Chafee the reputation as a\nChafee will almost certainly employ similar\ntruth-teller.\ntechniques in the health fight of the coming days and\nAt least in part, his ability to take such unpopular\nwill surely use the fact the battle has moved to the\nstands is the product of his Brahmin background; he\nfamiliar terrain at the margin between the parties.\nis a member of one of Rhode Island's Five Families,\nBut he may press with even greater-than-usual\na group of Yankee clans that exercise considerable\ntenacity, according to observers like Blendon, the\ninfluence over the small state. It was reinforced by\nHarvard professor. That's because what's at stake,\nmilitary service; he was a Marine at Guadacanal and\nsaid Blendon, is Chafee's \"legacy, the mark he leaves\nOkinawa and, as if that weren't enough, went back to\non America.\" It is a prize that can make a tough\ninfighter even tougher.\n138\n6/27/94\n^Abortion issue complicates efforts at health-care reform<\nIf Republicans opt out, Clinton will be depending\nBy Elaine S. Povich< Chicago Tribune<\non the 256 House Democrats to pass his plan. Since 218 votes\nWASHINGTON If the debate over health-care\nare required for a majority, the Democrats cannot afford to\nreform isn't emotional enough, just add the deeply divisive\nlose all of the 98 who voted to keep the Hyde amendment.<\nissue of abortion.<\n``It is a problem and one that could be a serious\nThree congressional committees last week either\nproblem for health-care reform,\" said Rep. Richard Durbin,\npassed health-care bills that provide a full range of\nD-III., one of the 98.<\n``reproductive services,\" including government-financed\nDurbin, who believes in access to abortion but is\nabortions, or voted on amendments to do so.<\ntroubled by having the federal government pay for it, says the\nThe Senate Finance Committee, which begins\nissue is more complex than has been articulated so far by\ndebating a health-care plan Monday, has yet to reach a\ncongressional committees.<\nconsensus. The committee's indecision is more representative\n\"I'm frustrated by the lack of options on this issue,\"\nof the Congress as a whole, since it is more moderate than any\nhe said.<\nof the other committees.<\nDurbin noted companies now providing insurance\nAbortion rights activists insist that abortion services\nthat covers abortion services get to deduct the cost of that\nbe covered in any national health-care program, because more\ninsurance from their taxes. That fact, he said, already\nthan two-thirds of private insurance policies and 80 percent of\nconstitutes an indirect government subsidy of abortion.<\nhealth maintenance organizations now cover the procedure.<\nWhile no compromise strategy has yet emerged,\nBut opponents balk at using any taxpayer money to\nand both sides are holding to their steadfast positions, it\ncover abortions, even if most Americans still would get their\nappears an accommodation will have to be made, especially to\ninsurance through private means. Many poorer and\nsatisfy Democrats like Durbin whose votes are crucial to\nmiddle-class Americans would have part of the insurance cost\npassage of health-care legislation.<\nsubsidized by the government, and that's where abortion foes\nConversely, Democratic leaders face a serious\ndraw the line.<\nproblem with abortion rights advocates if abortion services are\n\"Whatever emerges must provide immunization for\nremoved from the health-care bill. The question may come\nthe millions of pro-lifers who don't want their tax dollars\ndown to whether abortion rights supporters or abortion\npaying for abortions,\" said Rep. Henry Hyde, R-Ill., author of\nopponents hold more votes for a Democratic bill.<\nthe Hyde amendment, which prohibits federal funds going for\n\"There are those who are saying there is going to\nabortions.<\nbe a big fight if it's included,\" said Rep. Nita Lowey, D-N.Y.\nCurrently, the government will not pay for\n`What we are saying is that there's going to be a big fight if\nabortions for Medicaid recipients except in cases of rape and\nit's taken out.\"<\nincest or when the woman's life is at risk.<\n(EDITORS: STORY CAN TRIM HERE)<\nIn his health proposal, President Clinton calls for\nThe House Ways and Means Committee and the\ncoverage of abortion and other pregnancy-related services, and\nHouse Education and Labor Committee both voted last week\nso far, congressional committees have agreed to keep\nto preserve abortion services in their health bills, and the\n``reproductive services\" in plans moving through Congress. But\nSenate Labor and Human Resources Committee did likewise.<\nthe issue could tie up the House and Senate when the bills\nA group of Republicans and Democrats on the\nreach the floor next month.<\nSenate Finance Committee drew up yet another version of\nLabor Secretary Robert Reich said the\nhealth-care reform, but left the issue of abortion open.<\nadministration is not worried about abortion becoming a\nRepublicans threaten to keep abortion provisions\ncrunch issue in health care because the \"basic package simply\nout of the panel's bill, but the committee is likely to follow the\ntracks the basic package in Fortune 500 (health insurance)\nlead of the House committees and preserve abortion rights.<\nplans.\"<\nHe acknowledged, however, that some members of\nthe House and Senate who are opposed to abortion ``want to\n^FBI director to travel to Europe to discuss wave of\ntalk about the question.\"<\norganized crime<\n(EDITORS: NEXT 2 GRAFS OPTIONAL)<\nBy Thom Shanker< Chicago Tribune<\nBut Reich could be showing the same kind of\nBERLIN Nuclear gangsters from the old U.S.S.R.\nnaivete that got abortion rights supporters in trouble in the\nNarco-conglomerates spanning Colombia, Italy and Russia.\nHouse last July 1. Then, those supporters failed to estimate the\nHate groups in Germany linked by computer to U.S. racists,\ndepth of the House's opposition to having federal money pay\nstarting a cyber-Nazi network.<\nfor abortions and lost 255-178 on a vote to scrap the Hyde\nThese 21st-century threats already are taken so\namendment.<\nseriously by American law enforcement that FBI Director\nBefore the vote, there was a shouting match\nLouis Freeh travels to Europe this week to discuss an\nbetween Hyde and Rep. Cardiss Collins, D-III., after he\norganized crime spree that he fears will ``threaten the integrity\ninsinuated that she was out of touch with the abortion views of\nof governments.\"<\nher own constituents, notably black ministers. The two patched\nFreeh warns that the `greatest national security\nthings up in a few days.<\nthreat\" to the United States comes from nuclear gangsters: The\n(END OPTIONAL TRIM)<\npossibility that working warheads or plutonium needed to\nThe top House Democratic leadership, which is\nmake them will be stolen amid the economic chaos that\nitself divided over abortion, didn't participate actively in the\nreplaced communism in the former Soviet republics.<\ndebate. Many newer House members of both parties simply\n\"There are several cases of highly enriched nuclear\nassumed that with 114 freshmen and a doubling of the number\nmaterials missing,\" Freeh said. ``We cannot take a chance that\nof women from previous years, the vote to allow federal\nterrorists might steal a nuclear weapon and then use it against\nfunding of abortions would be all but automatic.<\na nation, any nation.\"<\nOn that day, 98 Democrats voted to continue the\nA major goal of Freeh's nine-nation fact-finding\nprohibition against the government routinely paying for\nmission is sharing information on nuclear stockpiles. The FBI\nabortions. If all the House Republicans were to now spurn a\nalso will offer training for east European police battling\nhealth-care reform bill, which is now considered likely, some\ncriminals in a new, free-market environment.<\nof those 98 will be needed to pass Democratic-sponsored\nFreeh's 10-day tour, which begins Tuesday in\nhealth legislation.<\nBerlin, includes all the organized crime capitals of post-Cold\n148\n2nd victory for Clinton health plan\nBy Jessica Lee and Judi Hasson\ncare. Republicans will ensure the rich\nerage premiums. Another idea, to tax\nUSA TODAY\npackage gets more scrutiny.\nemployers who don't insure their\nThe House panel also defeated at-\nworkers, was taken off the agenda.\nThe House Education and Labor\ntempts to strip most abortion cover-\nStill, Sen. John Chafee, R-R.I, said\nCommittee approved a health bill\nage from the benefits. That issue, too,\nhe expects the group to present a fin-\npromising insurance for everyone\nwill remain contentious.\nished plan to Finance Committee\nThursday, becoming the second con-\nMeanwhile, four Democrats and\nleaders today.\ngressional panel to ratify President\nthree Republicans spent the day be-\nBut Senate Republican leader Rob-\nClinton's key health-care goal.\nhind closed doors trying to fashion a\nert Dole, R-Kan., planning to intro-\nClinton, noting that the Senate La-\nbill with enough coverage to be called\nduce his own bill, said the moderates'\nbor Committee had passed a similar\nuniversal without ordering employers\nplan apparently relies too heavily on\nbill, said, \"They have broken the\nor individuals to pay for it.\ntaxes to win many Republican votes.\nchokehold of special interests, and by\nSome points were in flux, but par-\nSen. David Durenberger, R-Minn.,\nchoosing to cover everyone, have\nticipants confirmed details: If 95% of\ncalled the Chafee group's bid the Sen-\nstood up instead for millions of hard-\nAmericans didn't have health insur-\nate's last shot at bipartisan reform.\nworking middle-class Americans.\"\nance by 2002, a commission would\nRepublicans' \"objective is health-\nKeeping options open, the House\nrecommend a plan for achieving uni-\ncare reform, and the president's is\npanel also narrowly approved a Cana-\nversal coverage. Congress would have\nuniversal coverage,\" he said. If Cha-\ndian-style bill that would replace pri-\nto approve It within six months.\nfee's bid fails, he predicted, Senate\nvate insurance premiums with payroll\nIf Congress failed to act, the bill\nDemocrats will try to pass a bill with\ntaxes to pay medical bills.\nwould require individuals to buy their\n51 votes, only one Republican. That\nThe panel's version of the Clinton\nown health insurance.\nwould let Democrats campaign as\nbill requires employers to pay for in-\nFinancing remains in dispute.\nhealth reformers but let Republicans\nsurance, has subsidies for small firms\nOne proposal is to tax top-dollar in-\nblame them for the taxes involved.\nand expands coverage for women's\nsurance policies at 25% to 35% of the\nBy Tim Dillon, USA TODAY\nhealth, mental illness and adult dental\ndifference between their cost and av-\nLOBBY: Hillary Rodham Clinton addresses\nToday's debate, 10A\nhealth-reform backers on Capitol Hill.\nUSA TODAY\n6-24-94\nPHOTOCOPY\nPRESERVATION\nLawmakers' Health Coverage Isn't So Generous\nBy Hilary Stout\nStaff Reporter of The Wall Street Journal\nWASHINGTON -- For President Clinton and his allies on health care, it has\nbecome the one sure-fire applause line: Give every American what Congress\ngets.\n\"You say it and the audience goes crazy,\" says Families USA foundation's\nArnold Bennett, a member of the team helping the administration craft its\nhealth-care message.\nHillary Rodham Clinton uses it in virtually every speech she gives. Just\nthis week a group of Democratic senators, including Labor and Human Resources\nCommittee Chairman Edward Kennedy of Massachusetts, called a news conference\nto demand that the general public get the coverage that \"members of Congress\nhave arranged for themselves.' Sen. Harris Wofford, the Pennsylvania Democrat\nwho won his seat in 1992 by stressing health care and faces a stiff\nre-election fight this year, is circulating a petition demanding a bill that\noffers \"every Pennsylvanian and every American the same kind of guaranteed\ncoverage and choice of private health plans that members of Congress get.\"\nBut while focusing on Congress's benefits may be a stroke of political\nbrilliance, the prospect of actually getting what Congress gets might not\nplease large numbers of Americans, including some of the most vigorous\nsupporters of the president's health-care bill.\nThe federal employees package isn't as generous as most union health plans,\nor the programs of many Fortune 500 companies. For example, many of the\npolicies available to federal employees don't include substance-abuse benefits\nor preventive dental care.\nHowever, Congress's benefits package would be an improvement for a vast\nnumber of Americans, particularly many employees of small and midsize\nbusinesses and, of course, the estimated 39 million people with no health\ninsurance. still, the federal government's share of the premium isn't as\ngenerous as most unions and many big employers -- or, for that matter, the\n80% share the White House would like employers to bear. And as far as the\nscope of the benefits and the patient cost-sharing requirements, Congress's\nplan isn't nearly as comprehensive as Medicaid, the federal-state health\nprogram for low-income people.\nWhat lawmakers -- and indeed all federal employees, including the president\n-- get is the opportunity to enroll in one of an array of health-care plans,\neach offering a comprehensive package of medical benefits, with the premium\npaid in part by their employer: the taxpayers.\nIn the Washington area, members of Congress can choose from among nearly 30\nhealth plans, including 14 health-maintenance organizations and seven\n\"fee-forservice\" plans, which pay at least part of the bill for visits to the\ndoctor or hospital of the patient's choice. The benefits in each plan vary,\nbut generally include hospital and emergency services, doctor visits, lab\ntests, prescription drugs and some dental care. Depending on the policy,\ncoverage may include children's immunizations and some nursing-home benefits.\nUnlike much of the general public, Congress is also free of some of the\nonerous insurance-industry practices that shut some people out of the market.\nUnder the Federal Employee Health Benefits Program, no health plan can drop or\nrefuse to enroll a government employee or dependent because of a medical\ncondition.\nBut as far as cost-sharing goes, Congress isn't getting quite the ride that\nmany working Americans do. According to the Office of Personnel Management,\nwhich runs the federal benefits program, the government pays on average 72% of\nemployee health premiums, and no more than 75%. But for some policies the\nshare is far less.\n(END) DOW JONES NEWS 06-24-94\n6 32 AM\n**** filed by: : TAPE (--) on 06/24/94 at 06:26EDT ****\n**** printed by : WHPR (JEL) on 06/24/94 at 08:01EDT ****\nBC-CLINTON-CRABFEAST\nCLINTONS HOST CRAB FEAST FOR CONGRESS\nWASHINGTON, June 23 (Reuter) - With the fate of their health care reform\nplan uncertain on Capitol Hill, President Clinton and first lady Hillary\nRodham Clinton hosted hundreds of members of Congress and their families and\naides at a crab feast Thursday night.\nThe president told the crowd of about 900 gathered under a huge white\ntent on the White House South Lawn that he wanted the second annual event to\nbe fun, relaxing, non-political, which is almost impossible in Washington.\nThe president, dressed in a green plaid shirt and tan pants, spoke\nbriefly but spent most of the evening posing for pictures with lawmakers and\ntheir friends and aides. The first lady wore\na casual, purple dress\nLawmakers and their families, many dressed casually in the muggy, rainy\nevening, dined on crab salad, marinated tomatoes, cole slaw, herbed potato\nsalad, hard-shell crabs, Rockfish with lump crab stuffing, barbecued chicken,\ncorn on the cob and baked beans.\nCountry music star Trisha Yearwood performed during the three-hour event,\nas did a Marine band called Country Currents.\nSeveral lawmakers laughed when asked if they thought the White House\nbelieves the way to their health care votes was through their stomachs.\nI think you should take a special note of all the fish and the salad\nand the chicken and the fruit, which clearly must be a good omen for health\ncare, because it's good for you, joked Representative Ron Wyden, an Oregon\nDemocrat and Clinton supporter.\nRepresentative Michael Bilirakis, a Florida Republican who is advancing a\nmarket-oriented plan that does not guarantee universal coverage, responded\nmore seriously, saying of lawmakers, I think they re more concerned with how\ntheir constituents are going to look at this in November\nBut Senator Donald Riegle, a Michigan Democrat, took a joking shot at the\nfeast, saying of lawmakers, There's going to be a lot of people that are\ngoing to need health care after they try to digest this dinner.\nREUTER\n****\nfiled by: RB\non 06/23/94 at 22:39EDT ****\n**** printed by: WHPR (JEL) on 06/24/94 at 08:04EDT ****\nBC-House-Panel-Passes-\nAUTOBREAK (2)\nIt has been deadlocked over how to pay for President Clinton's goal of\nguaranteeing health coverage to all Americans, with conservative Democrats\nand Republicans balking at the president's proposal to require business to\npay 80% of the cost of worker health coverage.\nChafee's group of moderates is floating a plan that would seek to expand\nhealth coverage by passing measures to make insurance more affordable. If that\nfailed to sufficiently reduce the number of uninsured over a specified period\nof time, individuals could be required to buy health insurance.\nDole, who sits on Finance, distanced himself from the group, saying he\nhopes to offer his own compromise package. I think we're closer together\nthan we think, Dole told reporters. I'm going to try to put something\ntogether that would attract most Republicans and some Democrats.\nAs you know, he said, everything around here is timing.\nBusiness Supporters\nMeanwhile today, representatives of about 50 major businesses, including\nChrysler, IBM and McDonnell Douglas, met with Democratic congressional\nleaders and Health and Human Services Secretary Donna Shalala to underscore\ntheir support for the president's plan, including the requirement to make\nemployers pay 80% of the cost of their workers' health-insurance costs.\nThese companies currently pay for their employees' health care and end up\nfooting part of the expense for those companies, big and small, which do not\noffer coverage.\nWe need health care reform now -- this year, said Walter Maher,\nChrysler's director of legislative affairs. The longer we wait, the worse\nthings will get.\nAnd Hillary Rodham Clinton attended a Capitol Hill rally in support of\nhealth-care reform hosted by Arthur Fleming, who served as secretary of\nHealth, Education and Welfare during the Eisenhower administration.\nFleming said, We are in the closing days of one of the greatest crusades\nthis nation has ever witnessed.\nClinton reaffirmed the administration's insistence on universal health\ninsurance, saying no other reform will work if we don't achieve universal\ncoverage. \" --Paul Heldman and Tom Ferraro in Washington 202\n434-1800/mk/ba/mfr/\n(For more information on health care; NI HCP, HEA; on insurance: NI INS;\non the Clinton administration: NI EXE; on Congress: NI CNG) -0- (BBN)\nJun/23/94 21:15 EOS (BBN) Jun/23/94 21:15 86\n**** filed by:BB-F(--) on 06/23/94 at 21:24EDT ****\n**** printed by:WHPR(JEL) on 06/24/94 at 08:05EDT ****\nABROAD AT HOME BY ANTHONY LEWIS: ISSUE OR SOLUTION?\n1994 N.Y. Times News Service\nBOSTON - Something strange is happening in Washington, something to\nconfound the skeptics and the cynics. Congress is showing signs that it may\nactually pass a meaningful form of compromise health-care legislation.\nI was a skeptic myself. Health care is so complicated a problem, involving\nSO many legitimate and powerful interests in this large and diverse country,\nthat getting anything serious past all the roadblocks in Congress seemed to me\nunlikely. Moreover, polls showed that the issue was way down on the list of\npublic concerns.\nPresident Clinton and Hillary Rodham Clinton deserve credit - much more\nthan they have been getting - for moving reform this far. They made some\nmistakes, notably the secrecy imposed on the early health meetings. But they\nhave educated the country on why we, like all other industrialized societies,\nneed national measures to assure us medical care.\nThe credit due is the greater because leading Republicans chose to make\nhealth care reform a partisan issue. They demonized the Clinton proposal as\nthey demonized the Clintons, saying falsely that the plan would mean more Big\nGovernment and bureaucracy. (Bureaucracy is what we increasingly have now,\nwith doctors having to get the approval of an insurance company clerk to give\na patient a test or refer her to a specialist.)\nNow some moderate Republicans in the Senate have broken with their\nbitter-end colleagues and joined centrist Democrats in trying to draft\ncompromise legislation. They have created a real possibility of getting a\nbill out of the crucial Senate Finance Committee.\nI like all of them, Bob Dole, the Senate minority leader, said of\nthose moderates. But we've got a party to think of In other words, better\nan issue than a solution.\nBut I doubt that all-out partisanship - the Newt Gingrich, Phil Gramm view\n- is going to prevail and prevent compromise on health reform. I doubt that\nBob Dole himself will take that position in the end.\nThe reason is simple. Too many American families know that they may be one\npaycheck away from no health insurance. They know that if they change jobs,\nthey may not be able to get new insurance because they have a prior medical\ncondition. or their insurance carrier may have terminated their policy because\nthey have been sick.\nSome far-right Republicans tried out the line that the country did not\nneed health care reform. That did not go down with the public. The experience\nmay suggest to Dole and others that blocking reform is not good politics.\nIf the compromise efforts finally succeed, the legislation will plainly\nremove some present evils. Insurance companies will have to offer standard\npolicies to all, at community rates, regardless of individuals' medical\ncondition. Those covered will be able to keep their insurance no matter how\nsick they get or how much they move. If they are poor, a subsidy will help\nthem pay for insurance.\nThe business world succeeded in making employer mandates'' sound bad, so\nthe bill will not require companies to pay for most of their workers'\ninsurance. That is a curious result, for it rejects the conservative approach\nof sticking with the way most Americans get their health insurance now. And\nmaking health care an aspect of employment would be a vital incentive to move\npeople out of welfare.\nWhether any compromise will work in practice without employer mandates and\nsome other features of the Clinton proposal will depend on the details.\nFor example, how will the legislation make sure that, in a voluntary''\nsystem, healthy young people do not go uninsured, thereby raising rates for\neveryone else? The universal coverage envisioned in the Clinton plan would\ndeal with that problem.\nThe ideas being discussed by such senators as Democrat Bill Bradley of New\nJersey and Republican John Chafee of Rhode Island would aim at covering 95\npercent of Americans by the year 2002, when individuals would be required to\nget insurance. A commission would monitor the plan and suggest other ways to\nincrease coverage.\nGradualism on an issue this complex is a good thing. If Congress faces the\nreality. real problems of health insurance, there will be time to adjust hopes to\n23:43 EDT JUNE 23, 1994\n**** filed by:NYT-(--) on 06/23/94 at 23:47EDT ****\n**** printed by:WHPR (JEL) on 06/24/94 at 08:03EDT ****\nHEALTH COALITION\nSTRONGLY OPPOSES\nCOMPROMISE PLAN\nContinued From Page Al\nplans.\nCapitol Hill today, Hillary Rodham\nSENATE MOVE UNDER FIRE\nThe Senate moderates are strug-\nClinton did not mention the Finance\ngling to broker a compromise that\nCommittee proposal. Instead, she\ncan budge a committee polarized for\nstuck to a broad thematic message:\nmonths over the so-called employer\nLabor and Civic Groups Vow\nwhat she described as a need for\nmandate: the requirement in the\nuniversal coverage.\nClinton bill that businesses pay most\nto Fight Any Bill That Puts\n\"No other reform in our health\nof the cost of their workers' insur-\ncare system will work if we do not\nance, a provision that is anathema to\nBurden on Individuals\nachieve guaranteed universal cover-\nRepublicans and many conservative\nDemocrats.\nage,\" she said.\nMrs. Clinton also reiterated the Ad-\nAt the same time, the moderates\nBy ROBIN TONER\nministration's argument that it is\nare trying to assure universal cover-\nmiddle-class Americans who are\nage, which is considered the bottom\nSpecial to The New York Times\nmost at risk if universal coverage is\nline for the Administration and most\nWASHINGTON, June 23 - A broad\ndropped from any health care bill.\nDemocrats. As a result, they have\ncoalition of labor, civic and consumer\n\"If you are rich enough,\" she said,\nbeen discussing a complicated plan\ngroups mounted a counterattack to-\njabbing the air and leaning into her\nthat would set a goal of covering 95\nlectern, \"you will have health insur-\npercent of Americans by the year\nday against the compromise national\nance. If you are poor enough, you will\n2002. If the goal was not met, a com-\nhealth insurance plan emerging in\nhave health insurance. It's the people\nmission overseeing implementation\nthe Senate Finance Committee.\nin the middle, the vast majority, who\nof the plan would make a recommen-\nThe opponents announced that they\nare either losing it and are among the\ndation on how to achieve it.\nwould fight any bill that might ulti-\nnow 40 million uninsured or who are\nIn the absence of further action, a\nmately put a new requirement on\none job, one divorce, one accident, one\nso-called individual mandate would\nindividuals - rather than their em-\nillness away from losing their insur-\ngo into effect, requiring those individ-\nployers - to purchase health insur-\nance.\"\nuals who do not receive insurance\nance.\nthrough their employer to purchase\nTwo Bills Gain in House\ntheir own.\nSuch a requirement would neither\nachieve universal coverage nor pro-\nIn a day of frenetic activity on\nSenator Kent Conrad, a North Da-\nhealth care, another milestone was\nkota Democrat who is a member of\nvide adequate assistance to the unin-\nachieved for the cause, albeit one that\nthe moderate group, said, \"That\nsured middle-income people who, un-\nhad been widely expected. The quite\nwould be a very small slice of the\nder the plan, might eventually have\nliberal House Education and Labor\nAmerican population.\"\nto buy coverage, said the coalition,\nCommittee passed both a version of\nAnother Senator among the moder-\nknown as the Health Care Reform\n-Mr. Clinton's health plan and a bill\nates, John Breaux, Democrat of Loui-\nProject.\nthat would create a system of nation-\nsiana, said today that the plan under\nThat provision is believed to be a\nal health insurance financed entirely\ndiscussion would offer substantial\ncentral feature of the plan being de-\nby taxes.\nsubsidies to help people purchase\nveloped by seven moderate Republi-\nMr. Clinton said the House action\ntheir own insurance. Moreover, Mr.\ncans and Democrats on the Finance\n\"sends a clear signal to the American\nBreaux said, he does not believe that\npeople that Congress is well on its\nthe individual mandate would ever\nCommittee. The compromise plan is\n-way to making health care history\nkick in, since, he said, insurance and\nwidely viewed as the best chance of\nthis year\" and that Congress could\nmarket changes would bring about 95\nbreaking the committee's stalemate\n\"break the choke hold of special in-\npercent coverage. And one aide close'\nover health insurance. But one of the\nterests.\"\nto the talks said there would be no\nmoderates stressed tonight that it\nThe committee vote means that\nreal penalty on those who did not\nwas very much in a state of flux.\nhealth legislation has now made it\npurchase insurance.\nIn a letter to the Finance Commit-\nthrough two of the five major Con-\nStill, many groups long active in\ntee, the Health Care Reform Project\ngressional committees responsible\nthe health care struggle see the legis-\nsaid, \"We strongly urge you to reject\nfor acting on it: Labor and Human\nlative process taking an increasingly\nResources in the Senate, Education\nconservative turn in the Finance\nthis approach or any others that fail\nand Labor in the House.\nCommittee. And today, they chose to\nto meet the test of guaranteeing all\nBut in the Senate, the Finance Com-\ndraw their line in the sand.\nAmericans affordable, comprehen-\nmittee is embarking on formal ses-\nThe Health Care Reform Project\nsive coverage.\"\nsions of debate and voting next week\ndeclared firm opposition to any pro-\nThat was a formidable political\nwith results that are still very hard to\nposal that relies on an individual\nstatement to Democrats inasmuch as\npredict. And in the House, the Energy\nmandate, arguing that it would give\nthe coalition's 56 member organiza-\nand Commerce Committee is consid-\nmany profitable employers \"a free\ntions include important constituen-\nered hopelessly deadlocked.\nride,\" pose a heavy burden on middle-\ncies for health care restructuring,\nThe fifth committee, House Ways\nincome people and fail to guarantee\nincluding the American Association\nand Means, continued its painstaking\nuniversal coverage.\nof Retired Persons, the A.F.L.-C.I.O.\nway through a bill today, and its\nand the Catholic Health Association\nchairman, Representative Sam Gib-\nbons of Florida, said that if the work\nof the United States.\nwas not finished by the Fourth of July\n1994\nThe White House today tried to\nrecess, he would hold the committee\nmaintain official silence on the com-\nin session.\n24,\npromise proposal, which was worked\nIn a telling moment that under-\non into the evening behind closed\nscored the struggle on health care,\nMr. Gibbons said: \"I am constantly\nJUNE\ndoors. The Administration appears to\nbe trying to encourage movement in\nhaving to seek to hold together the 20\nthe Finance Committee, which has\nvotes I need for passage. Believe me,\nbeen deadlocked for months, but to\nthat is not a simple task.\"\nPRIDAY,\nmaintain distance from a plan vehe-\nFull Plan Due Today\nmently opposed by some traditional\nMuch of the attention, however,\nsupporters of the Democratic Party.\nwas focused on the rump group from\nthe Senate Finance Committee,\nTIMES,\nBehind this careful show of neutral-\nwhich is expected to present its plan\nity is the calculation of Administra-\nto the full committee on Friday. \"We\ntion allies that the plan can be fixed\nhaven't nailed it down,\" one member\nlater, as it moves to the full Senate,\nYORK\nof that group, Senator John C. Dan-\nwhere the leadership is expected to\nforth, said as a meeting of the com-\nproduce an amalgam of the Finance\nmittee broke up tonight. \"We're\nNEW\nbill and a more generous measure,\nsleeping on it.\"\ncloser to President Clinton's original\nIt is a measure of how volatile the\nproposal, which was passed earlier\nhealth care struggle is right now that\nTHE\nthis month by the Senate Labor and\nso much reaction was provoked by\nHuman Resources Committee.\nsketchy reports of the rump group's\nIn an appearance at a rally on\nPaul Hosefros/The New York Times\nSenator George Mitchell, left, and Hillary Rodham Clinton at a health care rally on Capitol Hill yesterday.\nAI\nHealthRIGHT\nPaul Hosefros/The New York Time\nSenator George Mitchell, left, and Hillary Rodham Clinton at a health care rally on Capitol Hill yesterday.\nNYT\nEmerging Plan Is Still Costly, Still Complex\nBy ROBERT PEAR\nwill have a strong incentive to say\nat the Brookings Institution, ex-\nSpecial to The New York Times\nthey have coverage even if they do\nplained: \"If subsidies are limited to\nWASHINGTON, June 23 - The\nnot.\nvery low-income people, you don't\nhealth care proposal being developed\nTAXES The proposal under discussion\nsolve the problem of the uninsured. If\nwithin the Senate Finance Committee\nin the Finance Committee would im-\nsubsidies are not so limited, they be-\nrelies on changes in insurance regula-\npose a new Federal tax on \"high-cost\ncome very expensive, and it will be\ntions, taxes on some businesses, sub-\nhealth insurance plans.\" But tax law-\nattractive for employers to drop cov-\nsidies to low-income people and a\nyers say it is very difficult to meas-\nerage. Employers will ask why they\nprovision that could require people to\nure the cost and value of health bene-\nshould pay for health insurance if the\nbuy insurance if they did not get it\nfits. Costs vary with the age of the\nGovernment will pay for it.\"\nthrough their employers. The pro-\nworker, family size, place of resi-\nThe proposal being developed in\nposal, like President Clinton's plan, is\ndence and other factors. Medical care\nthe Senate Finance Committee would\ntechnically complicated, difficult to\nfor older blue-collar workers in high-\nprovide subsidies to people with in-\nadminister and expensive, health pol-\nrisk industries like mining is more\ncomes 2.4 times the official poverty\nicy experts said today.\nexpensive than care for young white-\nlevel. For a family of four, the income\nThe new proposal, devised by con-\ncollar workers in safe, clean indus-\nceiling would be $35,433 a year.\nservative Democrats and moderate\ntries like data processing.\nRepublicans, calls for Federal regu-\nThe new taxes would almost surely\nA Touchy Trigger\nlation of health insurance practices\nbe passed on to consumers, econo-\nand other changes to make insurance\nmists say. Moreover, a tax on high-\nThe proposal to require people to\nmore available. If more than 5 per-\ncost plans would often be a tax on\nbuy health insurance if coverage does\ncent of Americans - about 12 million\ntraditional fee-for-service medicine,\nnot reach a specified goal is known as\npeople - still lacked coverage in the\nwhich tends to be more expensive\na trigger.\nyear 2002, an independent agency\nthan health maintenance organiza-\nRichard I. Smith, director of health\nwould recommend further steps that\ntions. Such organizations provide\nCongress could take to provide cover-\npolicy at the Association of Private\ncare for a fixed monthly premium but\nPension and Welfare Plans, a trade\nage for them.\noften limit the patients' choices of\nIf Congress did not act within six\ndoctors.\ngroup composed mainly of Fortune\n500 companies, said: \"In all likeli-\nmonths of receiving those recommen-\ndations, an \"individual mandate\"\nSUBSIDIES Insurance for a family\nhood, the triggers would be pulled.\nwould go into effect, requiring people\ncan cost $4,000 or $6,000 a year, and if\nVoluntary efforts are unlikely to get\nto buy insurance for themselves. The\nsubsidies were not large enough, peo-\ncoverage up to 95 percent, unless the\nGovernment would subsidize premi-\nple would be unable to afford it. How-\nsubsidies are extremely generous\nums for people with low and moder-\never, if the subsidies were generous,\nand hence expensive.\"\nate incomes. The subsidies would be\nthey would be expensive for the Gov-\nOne purpose of the changes in regu-\nfinanced, in part, by taxing the insur-\nernment. It is not clear that backers\nlations contained in the proposal is to\nance benefits offered by the most\nof the new proposal are willing to\nmake insurance more affordable for\ngenerous employers.\nspend the amounts needed.\nsmall businesses. But there is no\nConcerns about the proposal fall\nFurther, if the Government offers\nguarantee such a result would occur.\ninto several areas.\nsubstantial subsidies but does not\nMr. Wiener, a health policy specialist\nrequire employers to buy insurance\nCOUNTING THE UNINSURED No one\nat the Brookings Institution, said, \"If\nfor workers, it creates a strong incen-\nhas a reliable way of counting the\nyou reform the health insurance mar-\ntive for employers to drop coverage\npeople who have no health insurance.\nket so that everyone can get cover-\nThe Census Bureau does an annual\nthey now provide, specialists say.\nage, many sick and disabled people\nThat would raise the cost of the subsi-\nsurvey, but it is flawed because peo-\nwill come into the insurance pool,\ndies even further because more peo-\nple surveyed often do not distinguish\nraising the price.\" If premiums rise,\nple would need them.\nbetween being without coverage at a\nhealthy young people may drop their\nspecific time and being without it for\nHow Much Is Too Much?\ncoverage.\nan entire year.\nMarilyn Moon, a senior fellow at\nThe Cost for Small Business\nMoreover, health policy specialists\nthe Urban Institute, said, \"The suc-\nsay, if people are required to carry\ncess of this proposal will rise or fall\nhealth insurance and there are penal-\non the generosity of the subsidies.\"\nWilliam S. Custer, research direc-\nties to enforce that requirement, they\nJoshua M. Wiener, a senior fellow\ntor of the Employee Benefit Research\nInstitute, a nonpartisan organization\nwhose members include businesses\nand labor unions, said, \"Premiums\nmay go up for small employers who\nalready have insurance if you put\nthem in a pool with nonworkers and\nMedicaid recipients,\" who tend to\nhave higher health care costs.\nPresident Clinton's proposal would\nrequire employers to pay at least 80\npercent of the cost of health insur-\nance for their workers. Employees\nTHE NEW YORK TIMES, FRIDAY, JUNE 24, 1994\nwould pay a maximum of 20 percent.\nThe Finance Committee group would\nnot require employers to pay any-\nthing; the employees' share could be\nmuch more than 20 percent, and the\ncost of Government subsidies could\ngrow accordingly.\nSubsidies under the Clinton plan\nwould cost more than $100 billion a\nyear. Under the proposal emerging\nfrom the Finance Committee, the\nsubsidies would presumably be more\nexpensive because employers would\ncontribute less.\n8\nBlind Eye Now, Eyeing Victory Later\nDemocrats Tolerate Proposal Making Workers Pay Premiums\nBy ADAM CLYMER\nfrom their workers, pay for health\ning together\" and trying to pass what\nSpecial to The New York Times\ninsurance, than to leave it to the\nthey had put forward, he said.\nworkers alone.\nWASHINGTON, June 23 - The\nA Temporary Evil?\nsudden emergence of a health insur-\nBeyond the Committee\nBut the relatively restrained level\nance proposal that ultimately relies\nBut the Democratic hopes are not\nof criticism from Congressional\non making people pay for their own\nyet supported by any vote counts.\nDemocrats - unlike the angry and\npolicies has given the Administration\nNobody knows how the Senate would\nvocal attacks from outside organiza-\nand its allies a nasty choice between\nvote today, and of course it is even\ntions - shows that most of them\nprinciple and legislative\nharder to know how the Senate will\nbelieve the centrists' plan is little\nprogress.\nvote in a couple of months.\nmore than a necessary if ugly step\nNews\nThe idea of making\nAnd there is no reason to think it\ntoward making a law, and an idea\nAnalysis\nworking people, not their\nwill be easy for Mr. Mitchell, Mr.\nwith little staying power. \"Enough\nbosses, responsible for\nstaying power to get to the floor,\"\npaying for health insur-\nsaid Senator Max Baucus of Montana,\nance is an idea Democrats cannot\nwho dropped out of the centrist group\nembrace with any passion.\nwhich had once included eight sena-\nBut the still unfolding proposal, by\nTo get any health\ntors.\na seven-person group led by Senator\nIn the House, where fear of betray-\nJohn H. Chafee, Republican of Rhode\nbill out of the\nal by the Senate is endemic, there was\nIsland, seems to be the only hope of\nlittle grumbling. Highly placed Con-\ngetting any kind of bill at all out of the\nFinance Committee,\ngressional aides said their bosses\nsluggish Senate Finance Committee.\nwould worry if they thought the plan\nSo pragmatism dictates an Adminis-\ntration response of tolerance, or si-\nleaders swallow\nmight be adopted, but for now seemed\nwilling to rely on Mr. Mitchell to put a\nlence or, \"We haven't seen the details\ndifferent proposition before the Sen-\nso we can't comment.\"\nsome bile.\nate. The majority leader has said he\nMaintaining that noncommittal\nwould work with Mr. Kennedy and\nstance requires a restraint this White\nwith Senator Daniel Patrick Moyni-\nHouse has not always been able to\nhan of New York, chairman of the\nmaintain. But the pressure on the\nKennedy and Mr. Daschle to assem-\nFinance Committee, to decide just\nAdministration right now is not as\nble a Senate majority for making\nwhat combination of the bills backed\nintense as it is on the plan's advo-\nemployers pay for insurance. When\nby their committees should go before\ncates, especially Mr. Chafee and the\nJohn Breaux of Louisiana, one of the\nthe Senate.\nother two Republicans, Dave Duren-\nfour Democrats in the group of seven\nIn the Administration, while there\nberger of Minnesota and John C. Dan-\nbehind the new proposal, said Mr.\nwas plainly some anxiety about what\nforth of Missouri.\nKennedy could never get a Senate\nthe unfinished amendment would\nCriticizing Their Own\nmajority for the bill his committee\ncontain, the general view was that the\nSome of their fellow Republicans\nproduced, he was not boasting idly.\nsooner it could get through the Fi-\naccuse them of selling out by giving\nAnother of the group, Senator Kent\nnance Committee, the better.\nConrad of North Dakota, argued that\nThey argue that once the issue is\nthe Democrats a one-day excursion\nticket, valid only for one trip out of\ntheir proposal, while it may seem\ndebated on the floor of Congress, as it\nthe Finance Committee. They say\nawkward, is the only kind of measure\nnever has been before, then the\nthat on the Senate floor, Democrats\nthat the entire Senate, like its Fi-\nAmerican public will see the merits\nwill brush the plan aside and push for\nnance Committee, would be able to\nof their approach and persuade Con-\nmaking employers pay the bulk of\ngress to vote that way. However, this\nagree on.\nis about the fourth moment in the\ntheir workers' coverage, as other\nCongressional committees have done.\n\"Whatever we do, it cannot just be\nhistory of this legislation when the\na ticket out of the Finance Commit-\n\"They think they are above poli-\nAdministration anticipated a surge of\ntee,\" said Mr. Danforth. \"It would\ntics,\" another Republican said scorn-\npublic opinion on its side. It has been\nhave to be a group of senators stick-\ndisappointed the other times.\nfully.\nIn fact, the hostile Republicans are\nperfectly right about the hopes of the\nDemocrats backing proposals simi-\nlar to the Clinton plan, like Senators\nGeorge J. Mitchell of Maine, the ma-\nHawaii Governor Signs Gay Marriage Ban\njority leader; Edward M. Kennedy of\nMassachusetts, chairman of the La-\nbor and Human Resources Commit-\nHONOLULU, June 23 (AP) - The\nshow a \"compelling interest\" for re-\ntee, and Thomas F. Daschle of South\nGovernor of Hawaii has signed a bill\ntaining it, a very tough legal standard\nDakota, co-chairman of the Senate\nbanning same-sex marriages, a\nto meet.\nDemocratic Policy Committee.\nmeasure lawmakers approved after\nThe case, brought by three homo-\nMr. Daschle, a Finance Committee\nthe state Supreme Court ruled that\nsexuals who had been denied mar-\nmember, said he would be willing to\nexisting prohibitions on homosexual\nriage licenses, was sent back to a\nvote for for the emerging plan. \"I\nmatrimony may be unconstitutional.\nlower court for further consideration.\nmay not be excited about it,\" he said,\nThe bill signed by Gov. John Wai-\nA rehearing is scheduled for April\n\"but it's a meaningful contribution\nhee 3d on Wednesday says the ruling\n1995.\nand it keep the process going.\"\nencroached on the Legislature's law-\nThe new law, while denying mar-\nHe and the others want to see the\nmaking function and infringed on the\nriage for same-sex couples, also sets\nproposal emerge from the Finance\nseparation of powers of the respec-\nup a commission to examine extend-\nCommittee onto the Senate floor.\ntive branches of state government.\ning marriage benefits to them.\nClearly, they think that once the issue\nThe court ruled in May 1993 that\nis debated there that they can suc-\nthe ban was \"presumed to be uncon-\ncessfully argue that it is better policy\nstitutional\" because it was sexual dis-\nSHOW A CHILD THE STARS:\nto have employers, with some help\ncrimination, unless the state could\nSUPPORT THE FRESH AIR FUND\nTHE NEW YORK TIMES, FRIDAY, JUNE 24, 1994\nOn My Mind\nAbroad at Home\nA. M. ROSENTHAL\nANTHONY LEWIS\nJournalists\nThe\nIssue\nBut I doubt that all-out partisan-\nor peddlers?\nship - the Newt Gingrich, Phil\nGramm view - is going to prevail\nRemember Attica.\nland prevent compromise on health\nPress and\nH\nOr\nreform. I doubt that Bob Dole him If\nwill take that position in the end.\nThe reason is simple. Too many\nSimpson\nprinting damaging information that:-\nwe say we know, but really don't?\nSolution?\nAmerican families know that they\nmay be one paycheck away from no\nDon't we realize that police and\nhealth insurance. They know that if\nprosecutors often use the press 19,\nthey change jobs, they may not be\nAmong the scores of millions of\nmake a case against the accused?\nable to get new insurance because\nBOSTON\nAmericans who watched the Simpson\nThey would not bother if they did not 1.\nthey have a prior medical condition.\nSomething strange is happening in\nOr their insurance carrier may have\nstory play out on TV and read about it\nbelieve that it would have impact in\nWashington, something to confound\nin the papers were every reporter,\nthe courtroom.\nterminated their policy because they\nIn 1971 New York State police gave\nthe skeptics and the cynics. Congress\nhave been sick.\ncommentator, editor and publisher in\nthe country.\na\nwildly\nexaggerated\nkill22\nis\nshowing\nsigns\nthat\nit\nof\nmay\nactually\naccount\nSome far-right Republicans tried\nings\nby\nrioting\nprisoners\nAttical\npass\na\nmeaningful\nform\nof\nat\ncompro-\nout the line that the country did not\nSince the first day, a sizable num-\nmise\nhealth-care\nber of them have been raising and\nThe New York Times bought it, and IW\nlegislation.\nneed health care reform. That did not\nwas an editor involved. \"Remember^\nI was a skeptic myself. Health care\ngo down with the public. The experi-\nanswering questions about the mean-\ning of the case - what we learned\nAttica\" became my annoying sloganU\nis so complicated a problem, involv-\nence may suggest to Senator Dole\naround the newsroom and is still table\ning so many legitimate and powerful\nabout our social, sexual and moral\nand others that blocking reform is not\ntooed on my mind.\ninterests in this large and diverse\ngood politics.\nmanners, beliefs and customs.\nOne part of the follow-up has been\nThis is written after hearing the 911,\ncountry, that getting anything serious\nIf the compromise efforts fi ly\ntruly important. Maybe wife-beaters\ntapes of 0. Simpson's rage and\npast all the roadblocks in Congress\nsucceed, the legislation will plainly\nNicole Simpson's terror. Those tapes\nseemed to me unlikely. Moreover,\nwill never again feel quite so secure.\nremove some present evils. Insur-\nMaybe judges will not be as quick to\nare fact, not rumor. A jury will decide,\npolls showed that the issue was way\nance companies will have to offer\nwhether this wife-beater became that\ndown on the list of public concerns.\ngive them a \"sentence\" that amounts\nstandard policies to all, at community\nkiller.\nPresident Clinton and Hillary Rod-\nto a knowing wink.\nrates, regardless of individuals'\nMost of the rest has been the usual\nI am sick of cotton-candy justice\nham Clinton deserve credit - much\nical condition. Those covered will be\nas in the case of the two louts in\nmore than they have been getting -\nsocioblather - journalists interview-\nable to keep their insurance no mat-\nCalifornia who killed their parents\nfor moving reform this far. They\ning other journalists or reaching out\nter how sick they get or how much\nfor a specialist to say something, any-\nand have managed to escape convic-\nmade some mistakes, notably the se-\nthey move. If they are poor, a subsidy\nthing, preferably about the discovery\ntion. What's more, it was the report-\ncrecy imposed on the early health\nwill help them pay for insurance.\ning of Dominick Dunne that con-\nmeetings. But they have educated the\nThe business world succeeded m\nthat not all athletes may be heroes.\nvinced me of their viciousness and\ncountry on why we, like all other\nPopcorn - no harm done unless you\nmaking \"employer mandates\" sound\nmistake it for real food for the mind.\nguilt - reporting, long, painstaking\nindustrialized societies, need national\nbad, so the bill will not require com-\nBut as we while away our time\nreporting, not pickup garbage-ped-\nmeasures to assure us medical care.\npanies to pay for most of their work-\ndling.\nThe credit due is the greater be-\ners' insurance. That is a curious re-\nwaiting for the trial, the press might\nask what questions the case raises\nMy concern in the Simpson case is\ncause leading Republicans chose to\nsult, for it rejects the conservative\nabout ourselves.\nnot just for the accused's rights but\nmake health care reform a partisan\napproach of sticking with the way\nAre we journalists or garbage col-\nfor journalism, whose cleanliness and\nissue. They demonized the Clinton\nmost Americans get their health in-\nlectors?\néthics are important to the country.\nproposal as they demonized the Clin-\nsurance now. And making health care\nIf some other journal or broadcast\nIn this, TV has a tougher job than\ntons, saying falsely that the plan\nan aspect of employment would be a\ndistributes unverified rumors - the\npress. In the Simpson case, TV was at\nwould mean more Big Government\nvital incentive to move people out of\nits best and worst. The much-mocked\nwelfare.\nequivalent of journalistic garbage\ndo we just pick it up and peddle it\nlong coverage of the \"chase\" was\nWhether any compromise will\nexactly what TV should do - show\nourselves?\nwork in practice without employer\nlife live.\nDo we care anymore about sourc-\nRepublicans\nmandates and some other features of\nTV could not do much to prevent\ning and double-checking, and that\nthe Clinton proposal will depend on\njust passing on the biased out-of-court\nstuff? If so, why was so much of the\ndemonize\nthe details.\ntrial put on by police and prosecutor.\nmaterial aired and printed simply\nFor example, how will the legisla-\nThat was part of live coverage. But\npicked up from some other station or\nhealth-care\ntion make sure that, in a \"voluntary\"\nTV allowed flocks of reporters and\npaper, which itself had shown no\nsystem, healthy young people do not\nstringers to regurgitate, unchecked\nproof?\nreform.\ngo uninsured, thereby raising rates\nand unevaluated, rumors shoveled up\nIs it excuse enough that somebody\nfor everyone else? The universal cov-\nhot off the street.\nelse did it first and competition is\nerage envisioned in the Clinton plan\nPrint journalism had more think-\ncompetition? Is that all we believe, or\nwould deal with that problem.\ning time. But the thinking has to start\nwere taught, or remember about\nand bureaucracy. (Bureaucracy is\nThe ideas being discussed by such\nlong before a big story breaks\njournalism? Or is competition raised\nwhat we increasingly have now, with\nsenators as Democrat Bill Bradley of\ndeveloping a set of beliefs and prac-\nto a religion simply as excuse for our\ndoctors having to get the approval of\nNew Jersey and Republican John\ntices within the staff about sourcing,\nown lust or advancement?\nchecking, deciding about responsibil-\nan insurance company clerk to give a\nChafee of Rhode Island would aim at\nDo we still recognize any ethical\nity to the accused and the craft.\npatient a test or refer her to a special-\ncovering 95 percent of Americans by\npress obligation not to imply guilt\nist.)\nthe year 2002, when individuals would\nThat is the payback the press can\nbefore the accused is convicted?\nNow some moderate Republicans\nbe required to get insurance. A com-\ngive to the Constitution and country\nIn the courtroom during a trial that\nin the Senate have broken with their\nmission would monitor the plan and\nfor the First Amendment not-im-\nbecomes a legal mandate for judge\nbitter-end colleagues and joined cen-:\nsuggest other ways to increase cover-\nposed by law, but due and decent.\nand jury. Outside, anybody else has a\nWe should stop asking what the\ntrist Democrats in trying to draft\nright to make up his own mind. But\npublic thinks of us and worry about\ncompromise legislation. They have\nGradualism on an issue this com-\njournalists - as people who have\ncreated a real possibility of getting a\nNex is a good thing. If Congress faces\nwhat we think of ourselves. Remem-\nbill out of the crucial Senate Finance\nthe\nreal\nprotected nationwide megaphone put\nproblems\nof\nhealth\ninsur-\nber\nAttica,\ninto our hands by the Constitution\nCommittee.\nance, there will be time to adjust\naren't we obliged to exercise some\n\"I like all of them,\" Bob Dole, the\nhopes to reality.\nrestraint, forgive the word, before\nSenate minority leader, said of those\nmoderates. \"But we've got a party to\nthink of.\" In other words, better an\nissue than a solution.\nTHE NEW YORK TIMES, FRIDAY, JUNE 24, 1994\n7,7\nHealth Bill\nCleared for\n\"Don't force us to pay for abortion if we don't\nHEALTH, From A1\nwant it,\" Klink said. But Marge Roukema (R-N.J.),\nFloor Votes\nPatsy Mink (D-Hawaii) and others said 65 percent\nany plan, and some Democrats on the House Ways\nof women are now covered for abortion in their\nand Means Committee began to complain yesterday\nthat their panel was producing a bill that would be\nexisting health plans and the Klink amendment\ntoo radical to pass the House.\nwould wipe out that coverage.\nBut Many Disputes\nThe House Education and Labor Committee bill\nKlink, Roemer, Dale E. Kildee (Mich.), Austin\nprovides health insurance to all Americans to pay\nJ. Murphy (Pa.) and Scotty Baeslar (Kentucky)\nRemain, Clouding\nfor doctor and hospital bills, prescription drugs,\nwere the only Democrats to vote for the Klink\nmental health and substance abuse coverage and\namendment. Roukema, Susan Molinari (N.Y.) and\nProspects This Year\nsome dental benefits. About 80 percent of the\nMichael N. Castle (Del.) were the only Republi-\nAI\ncost would be paid for by employers, 20 percent\ncans opposing Klink.\nby workers. The poor and small businesses would\nOn the final vote on the modified Clinton bill, all\nBy Spencer Rich and Dana Priest\nreceive government subsidies to help pay their\nDemocrats backed the bill except Baeslar and Rob-\nWashington Post Staff Writers\ncosts.\nert E. Andrews (N.J.). On the \"single-payer\" bill, 22\nThe committee \"has brought us one step closer\nIn a victory for the president, the\nDemocrats voted in favor, while Democrats Baeslar,\nto achieving our goal of universal coverage-\nHouse Education and Labor Com-\nAndrews, Roemer, Kildee, Karan English (Ariz.) and\nguaranteed private insurance for every American\nmittee approved a modified Clinton\nthat can never be taken away,\" Clinton said.\nTed Strickland (Ohio) joined the 15 Republicans in\nhealth bill yesterday that provides\nBut the committee's senior Republican, William\nopposition.\nhealth insurance for all Americans\nF. Goodling (Pa.), said the bill adds burdensome\nIn the Senate, the \"rump group\" of three Republi-\nand compels employers to pay 80\ngovernment mandates, more bureaucracy and will\ncans and five Democrats attempting to write a com-\npercent of the premiums for their\nincrease the federal deficit $120 billion over five\npromise plan that could pass the Finance Committee\nworkers.\nyears, about $50 billion more than the original\nmade a pact to stick together during the public com-\n\"Today\nfor the first time ever,\nClinton bill.\nmittee deliberations next week. They also are work-\na committee in each house of Con-\nThere isn't a chance in Hell that this plan can\ning on a contingency plan they could offer en bloc if\ngress has reported a bill that guaran-\npass the Congress of the United States,\" Rep.\none or more of them feel they are under unbearable\ntees universal coverage,\" President\nSteve Gunderson (R-Wis.) said recently.\npressure to break from the group, members said.\nClinton said, referring to a similar\nAfter approving the modified Clinton bill, the\nThe group, led by Sens. John H. Chafee (R-R.I.)\nbill passed by the Senate Labor and\nEducation and Labor Committee also reported to\nand John Breaux (D-La.), has become the best hope\nHuman Resources Committee three\nthe floor \"without recommendation\" a Canadian-\nfor finding a middle ground in the panel, which is\nweeks ago.\nstyle government-run health insurance plan fi-\nstuck on the issue of how or whether to finance uni-\nThe president said the House Ed-\nnanced by taxes. The vote was 22 to 21, with six\nversal coverage, the bottom-line goal for Clinton.\nucation and Labor Committee had\nDemocrats joining 15 Republicans in opposition.\nBut already Minority Leader Robert J. Dole (R-\nbroken the \"chokehold\" of special in-\nBackers of the so-called \"single-payer\" bill had\nKan.) has promised to come up with a more conser-\nterests, but deadlocks in two other\nthreatened to oppose the Clinton measure unless\nvative alternative. The Chafee group's plan is con-\ncommittees, and increasing difficul-\ntheir plan was also reported and given a chance\nsiderably scaled-down from a bill Chafee proposed\nties in a third, suggested that health\nfor an airing and vote on the floor.\nlast year, and which Dole co-sponsored.\ncare reform this year is far from a\nWhile reporting a bill without recommendation\nThe Finance Committee's counterpart in the\nsure thing.\ndoes not carry the weight of a full committee en-\nHouse, the Ways and Means panel, began to show\nThe Education and Labor Com-\ndorsement, Rep. George Miller (D-Calif.) said,\nstress yesterday. Some members said the acting\nmittee, one of the most liberal com-\n\"The important thing is that it qualifies it to go be-\nchairman, Sam Gibbons (D-Fla), was trying to craft a\nmittees in Congress, approved its\nfore the full House where it will be one of only\nbill that too closely mirrors the liberal Ways and\ncomprehensive bill, 26 to 17, with-\nthree\" major health bills under consideration. \"It\nMeans subcommittee bill passed several months ago.\nout Republican support and with the\nwillkeep it in the mix,\" said Sara Nichols of Public\n\"He's too much in control,\" said Rep. Barbara\ndefection of two Democrats.\nCitizen, a supporter of the,single-payer measure.\nB. Kennelly (D-Conn.) who said she was frustrat-\nThe victory guaranteed that Dem-\nBefore approving the modified Clinton bill, the\ned that one of her amendments to exempt large\nocratic leaders in both chambers can\ncommittee defeated, 25 to 16, an effort by Rep.\ncompanies from government cost control meas-\nbring the president's bill to the floor.\nRon Klink (D-Pa.) to forbid health insurance poli-\nures did not get a full airing. \"Every time you try\nBut the Senate Finance Committee\ncies from paying for abortion, except where the\nto do an amendment that makes the private mar-\nis deadlocked as a \"rump group\" of\npregnancy resulted from rape or incest or endan-\nket work, it gets shot down,\" she said.\nmoderate Republicans and Democrats\ngered the life of the mother. The vote was 25 to\nIn the private caucus meetings, Gibbons is try-\nstruggles to craft a centrist plan they\n16. Klink, Timothy J. Roemer (D-Ind.) and others\ning to get a 20-vote majority on each amendment\nhope could pass the panel. The House\nargued that since all Americans would be required\nbefore going into public session.\nEnergy and Commerce Committee al-\nto buy the health policies provided by the bill,\nGibbons recognized the difficulty he is having\nso is stymied, lacking a majority for\nmandatory inclusion of coverage for abortion\nwith such paper-thin margins for the major parts\nwould require people to finance a procedure they\nof the bill when he took the dais at 4:30 p.m. and\nfind morally repugnant.\nexplained why the committee was beginning its\npublic work so late in the day.\n\"I'm constantly trying to hold together 20 votes,\"\nhe said. \"When you only have two votes to spare, it\ntakes a long time to reach a consensus.\"\nThat was all the sign of vulnerability the Republi-\ncans needed. \"And if you can't get 20 votes for your\nFRIDAY. JUNE 24. 1994 THE WASHINGTON POST\nbill,\" said Rep. Bill Thomas (R-Calif.). Republicans\nstand ready to vote\nfor a reasonable bill.\"\n30\nHealth Form and Re-Form\nO\nN ALTERNATE days for the next few\nneeds in the Senate, he weakens his position-\nweeks-sometimes the same day-you're\ncosts himself votes that he also badly needs-in\ngoing to read that health care reform is\nthe House. He's stuck with repeating the mantra,\nhopelessly bogged down or finally making some\nthat he will only accept a plan that leads to\nprogress; that the Democrats-or was it the\nuniversal coverage. It's a strong enough position\nRepublicans?-are newly united/in disarray; that\nif he sticks to it, but not very lively.\nthe president or chairman of the Senate Finance\nCommittee or Bob Dole, or someone, is getting\nIn the Senate, it appears that the most serious\neither, good or bad marks, most likely for exer-\nwork is now being done by a group of middle-road-\ncising or failing to exercise the proper leadership;\ners on the Finance Committee, members of both\nand that the elderly are (a) off the reservation.\nparties. They're trying to produce a compromise\n(b) back on or (c) split right down the middle\nthat the president will accept or, at any rate, not\nbecause of the latest change in the terms of a\ndenounce and that can still pass the Senate. Atten-\ndrug benefit that will or won't be phased in by the\ntion has mostly centered on the benefits package. In\nyear 2010.\nthe name of increasing coverage, who would get\nIt will all be true, if not on the day you read it\nwhat and how would it be financed?\nthen likely as not within a day or two thereafter;\nWe say again that, hard as this may seem, it's\njust wait. It's not the fault of the journalism but in\nthe easy part. Congress knows all too well how to\nthe nature of the process, now reaching a partic-\nularly complicated stage, that the journalism now\nconstruct new benefit programs. The hard thing\nseeks to record. You need to read, but you also\nto achieve is cost containment. It's also the more\nneed to preserve a sense of detachment for a\nimportant of the two great goals of reform: it's\nwhile. Give them a couple of weeks; then the\nabove all the rising cost of care that is driving\nalternatives may be much clearer.\npeople out of the system in the first place-cost-\nFor better or worse, the administration has\ning them coverage. The measure of these bills\ngotten- itself into a position where, while it is\nhas to be much more than just the percentage of\nobviously a major player, it can't play. If the\nthe population they would likely cover and what\npresident tries to work out the compromise he\nfurther steps would be triggered if they failed.\nMetro's Platform Dispute\nM\nETRO OFFICIALS are in a dispute with\nofficials are requesting more time to test the\nthe federal government involving the\nmaterials. But federal officials respond that it's a\nedges of the rapid rail system's plat-\nmatter of complying-as other urban transit\nforms. To the outrage of some organizations\nsystems are-with the Americans with Disabili-\nrepresenting visually impaired riders. Metro is\nties Act regulation.\nfighting a federal order to install new warning\nedges. Transportation Secretary Federico Pena\nWe don't know who's right about the best\nhas told Metro to remove the white granite\nedges, but the concerns of Metro general manag-\nplatform edges in use for 18 years and to replace\ner Lawrence G. Reuter do not strike us as either\nthem with wider strips of brightly colored rubber\ncallous or stubborn. Mr. Reuter notes that Metro\nwith raised bumps. Metro officials argue that the\nhas the best safety record of any transit property\nnew edges create new problems-people could\nin the country. Even at that, he says, Metro is\ntrip on them. They have proposed a widening and\nwilling to consider any changes \"as long as\nretexturing of the existing granite to make it\nimprovement for one group does not result in a\nmore easily detected by disabled riders.\nreduction of safety for others.\" Before spending\nStill other organizations representing the visu-\nlarge amounts of precious federal, state, District\nally impaired share Metro's concerns about the\nand regional money to make a change. why not\nsafety of the bumpy strips. The transit system\nallow closer study?\nFRIDAY. JUNE 24. 1994 THE WASHINGTON POST\nPanel in House\nFrustrated by Business\nContinued From Page A2\nscribed state reimbursement schedule for\nStiff opposition from business remains\na major problem for the administration.\nproviders, but they would be permitted to\nDespite appeals from the president this\nmaintain their own health-care delivery\nApproves a Bill\nweek, Democrats are frustrated by their\nsystem as many do today.\ninability to win more support or weaken\nCommittee debate this week over the\nOn Health Care\nbusiness's grip on the GOP.\nstandard health benefits package some-\nAt a Capitol breakfast yesterday de-\ntimes has had the atmosphere of an auc-\nsigned to energize business support,\ntion, with the Congressional Budget Office\nHealth and Human Services Secretary\ncalling in estimates of the cost of bids\nDonna Shalala emphasized the need to\nto add such items as chiropractic services\nAmbitious Measure Faces\ncurb rising health expenditures and the\nor hearing aids for young children. The\nshifting of costs from people who don't\nnew prescription-drug benefit set off skir-\nPressures to Cut Back,\nhave insurance to those with insurance,\nmishes pitting such large companies as\nBig Opposition on Floor\nwhich imposes a burden on many em-\nPfizer Inc. and Merck & Co. against\nployers. But when she appeared later at a\neach other and bringing former Demo-\nnews conference with South Dakota Sen.\ncratic aides and members of the committee\nBy DAVID ROGERS\nThomas Daschle, a member of the Demo-\ntolobby on each side. The retail druggists,\nStaff Reporter of THE WALL STREET JOURNAL\ncratic leadership, the two were joined\nwith grass-roots membership in law-\nlargely by familiar faces from older, heavy\nmakers' districts, proved one of the most\nWASHINGTON-Th House Education\nindustries-like auto and steel-and other\npowerful lobbies, even though its lead\nand Labor Committee approved an ambi-\nchampion, Rep. Bill Brewster (D., Okla), a\ntious health-care reform bill that would\ninterests that have won concessions from\nrequire employers to help pay for their\nthe administration.\nformer pharmacist, is almost certain to\nworkers' insurance, and would expand on\nSpeaking on behalf of small business,\nvote against the underlying bill.\nbenefit levels promised by the Clinton\nfor example, was the National Association\nWays and Means Democrats have filed\nof Retail Druggists, which has won a series\nat least two dozen potential amendments to\nadministration.\nThe 26-17 vote represents a liberal\nof victories this week in the House Ways\nthe revenue section of the bill, which may\nhigh-water mark in the prolonged health-\nand Means Committee regarding the pric-\ncome up for debate this weekend. Some\ning of drugs under a new federal prescrip-\namendments would add to taxes on tobacco\ntion-drug benefit. And the list of \"compa-\nand ammunition, but others seek conces-\nWhat Congress Receives\nnies\" at the breakfast included Amtrak,\nsions in the form of expanded tax credits or\nFor President Clinton, it has become the\nthe passenger rail system that depends on\nexemptions for segments of the health-\none surefire applause line: Give every\nAmerican the kind of health coverage\nfederal subsidies, and an array of Wash-\ncare industry.\nthat Congress gets. But the prospect of\nington lobbying firms with political ties to\nNo less than Geraldine Ferraro, the\nactually getting what Congress gets\nDemocrats.\nformer congresswoman and Democratic\nmight not please large numbers of\nFormer Ways and Means Committee\nvice presidential nominee, has made calls\nAmericans. Article on page A12.\nChairman Dan Rostenkowski (D., III.) of-\non behalf of a group health insurance firm\nten spoke of the need to find \"some\ncare debate. But the bill faces major\nin New York. And Hank Gutman, who was\ncheerleaders\" from business while he was\nopposition on the House floor, and is sure\nstaff director of the Joint Committee on\ncrafting his early version of a health-care\nto be overtaken by pressures to cut back on\nTaxation until early this year, is represent-\nbill. And Rep. Sam Gibbons (D., Fla.), who\nthe administration's reform agenda.\ning Par Pharmaceutical Inc., a New York-\ntook over the chair after Mr. Rosten-\nEven as the House committee acted,\nbased generic-drug company. The generic-\nkowski's indictment on corruption charges\nmoderates on the Senate Finance Commit-\ndrug industry is seeking to reverse an\nlast month, has followed much the same\ntee struggled to complete negotiations on a\nInternal Revenue Service ruling that would\npath with concessions to tobacco and\ncompromise plan that anticipates provid-\ncurb their ability to benefit from the\ninsurance interests.\ning much lower benefits in order to\nresearch and development tax credit.\nIn action yesterday, Rep. Jim McDer-\nstretch funds available to subsidize cover-\nmott (D., Wash.), a strong advocate of a\nPressed by Rep. Gibbons to complete\nage for lower-income families.\ngovernment-run, single-payer health sys-\naction by the July Fourth congressional\nEasier on Employers\ntem, conceded he lacked the votes to\nrecession, the Ways and Means Committee\nSen. John Chafee (R., R.I.), who has\noverturn a partial exemption backed by the\nworked into the night yesterday. The panel\ntaken a lead role for the Finance Commit-\ncommittee leadership for multistate corpo-\nnarrowly approved an amendment that\ntee moderates, said the group hopes to\nrations with more than 5,000 workers. If a\nwould force most health plans to accept\npresent the outlines of its plan to the\nstate should adopt a single-payer system in\nany doctor, hospital or other provider who\ncommittee leadership as early as today.\nthe future, the bill would require these\nagrees to the plans' rates and other operat-\nUnlike the Education and Labor bill, the\nlarge corporations to conform to the pre-\ning terms. The committee also approved\ncompromise avoids the most burdensome\nPlease Turn to Page A12, Column 5\non a voice vote another amendment aimed\nrequirements the Clinton plan would im-\nat widening patient choice. It would re-\nquire all managed-care networks to allow\npose on employers, and instead relies on a\nmore voluntary system of market reforms\npatients to go to doctors outside of the\nand subsidies to be financed by added\nnetwork provided they pay a slightly\nhigher fee.\ntaxes and savings from the Medicare and\nMedicaid programs.\n-Mary Agnes Carey and Hilary Stout\ncontributed to this article.\nThe goal would be to provide about 95%\nof Americans some insurance by the year\n2002. Although this stops short of the White\nHouse's standard of universal coverage,\nthe moderate bloc is seen as the adminis-\ntration's best hope of breaking the current\nstalemate in the Finance panel.\n\"The idea is to move, not stand pat,\"\nsaid Finance Committee Chairman Daniel\nPatrick Moynihan (D., N.Y.), who ex-\npressed encouragement last night. While\ndivisions remain, the moderates- by their\nnumbers and ideas - have already helped\ndefine the political framework for the\ncommittee debate. And rather than being a\nTHE WALL STREET JOURNAL FRIDAY, JUNE 24, 1994\n\"rump\" group, the bloc of seven or eight\nRepublican and Democratic senators is\ncloser to a majority than any of the rival\ncamps on the left or right.\nTo maximize the number of people who\nwould have insurance, while operating\nwith limited funds, senators are discussing\na set of benefits packages that would be\nmore modest than proposed by the presi-\ndent. One would be about 25% below the\nstandard level, and would serve chiefly to\nprotect families against large out-of-pocket\nexpenditures or catastrophic costs.\nThe plan also would delay and phase in\nRepublican-backed proposals to expand\ncertain tax deductions for health expendi-\ntures by individuals. But small-business\ninterests have lobbied successfully against\na Democratic-backed proposed \"free-\nrider\" assessment on employers who fail,\neven in the future, to make any contribu-\ntion to their workers' insurance.\n70\nTHE WALL STREET JOURNAL FRIDAY, JUNE 24, 1994\nPOLITICS & POLICY\nA Look at Lawmakers' Medical Plans Suggests\nCongress's Health Coverage Isn't So Generous\nBy HILARY STOUT\n75%. But for some policies the share\nStaff Reporter of THE WALL STREET JOURNAL\nWhat Congress Gets\nis far less.\nWASHINGTON- President Clinton\nFor example, the government's share\nand his allies on health care, it has become\nHighlights of the Blue Cross/Blue Shield\nof a family policy for a Blue Cross/Blue\nthe one sure-fire applause line: Give every\nStandard Option Plan, one popular health plan\nShield \"high option\" fee-for-service plan is\nAmerican what Congress gets.\nin the Federal Employee Health Benefits\n$306.41 a month, or less than half; the\n\"You say it and the audience goes\nProgram\nemployee pays $343.24. For a Blue Cross\ncrazy,\" says Families USA foundation's\n$200\nstandard option plan - which has higher\nAnnual deductible\nArnold Bennett, a member of the team\ndeductibles and generally pays 75% of\nhelping the administration craft its health-\nAnnual Inpatient\n$250\nmost doctor bills instead of 80% - the\ncare message.\nhospital deductible\ngovernment pays $303.77 for a family\nHillary Rodham Clinton uses it in\nOut-of-pocket limit\n$3,250\nplan and the employee pays $101.25.\nvirtually every speech she gives. Just\nLawmakers Are Flustered\nthis week a group of Democratic senators,\nInpatient hospitalization\n100% coverage\nincluding Labor and Human Resources\nThe political thrust and parry over\nDoctor services\n75%\nCommittee Chairman Edward Kennedy of\nthe \"what Congress gets\" argument flus-\nMassachusetts, called a news conference\nOutpatient hospital\n75%\nters some Republicans. For instance,\nto demand that the general public get the\nservices\nHouse Minority Whip Newt Gingrich, a\ncoverage that \"members of Congress have\nstaunch foe of the president's health-care\nPrescription drugs\n$50 deductible,\narranged for themselves.\" Sen. Harris\nproposals, was taken aback on NBC's\nthen 60% coverage\nWofford, the Pennsylvania Democrat who\n\"Meet the Press\" Sunday when a reporter\nwon his seat in 1992 by stressing health\nTotal premium\n$405.02 per month\nasked him, \"Why can't the average citizen\ncare and faces a stiff re-election fight this\nhave the same health-care plan that Con-\nMember's share\n$101.25\nyear, is circulating a petition demanding a\ngressman Gingrich has?\" The Georgia\nbill that offers \"every Pennsylvanian and\nGovernment share\n$303.77\nRepublican replied, \"I have a Blue Cross\nevery American the same kind of guaran-\nplan that I pay for every month.\nI\nthink it's about $400.\"\nteed coverage and choice of private health\nplans that members of Congress get.'\nget is the opportunity to enroll in one of an\nNot exactly. The total monthly pre-\nPackage Isn't That Great\narray of health-care plans, each offering a\nmium for the standard-option Blue Cross\nBut while focusing on Congress's bene-\ncomprehensive package of medical bene-\nplan Mr. Gingrich and his family are\nenrolled in is just over $400. But on Monday\nfits may be a stroke of political brilliance,\nfits, with the premium paid in part by\nthe prospect of actually getting what Con-\ntheir employer: the taxpayers.\na spokesman for Mr. Gingrich said the\ncongressman only pays about $100 a\ngress gets might not please large numbers\nChoice of 30 Plans\nmonth. The government picks up the re-\nof Americans, including some of the most\nIn the Washington area, members\nmaining $300.\nvigorous supporters of the president's\nof Congress can choose from among nearly\nAmong other things, Republicans are\nhealth-care bill.\n30 health plans, including 14 health-main-\nespecially irked that Democrats seldom\nThe federal employees package isn't as\ntenance organizations and seven \"fee-for-\nmention that the president gets the same\ngenerous as most union health plans, or\nservice\" plans, which pay at least part of\nbenefits as lawmakers. (The Clintons have\nthe programs of many Fortune 500 compa-\nthe bill for visits to the doctor or hospital of\nthe same plan Rep. Gingrich has.) Senate\nnies. For example, many of the policies\nthe patient's choice. The benefits in each\nMinority Leader Robert Dole of Kansas\navailable to federal employees don't in-\nplan vary, but generally include hos-\nthis week denounced the argument as a\nclude substance-abuse benefits or preven-\npital and emergency services, doctor\n\"cheap shot,\" and said he plans to propose\ntive dental care.\nvisits, lab tests, prescription drugs and\nthat the president and members of Con-\nHowever, Congress's benefits package\nsome dental care. Depending on the policy,\ngress pay their entire premium costs them-\nwould be an improvement for a vast\ncoverage may include children's immuni-\nselves. Democratic Sen. Wofford, though,\nnumber of Americans, particularly many\nzations and some nursing-home benefits.\nhas already gone him one-up: He says he =\nemployees of small and midsize businesses\nUnlike much of the general public,\npay the full cost of his health insurance\nand, of course, the estimated 39 million\nCongress is also free of some of the\nuntil Congress passes coverage for all, and\npeople with no health insurance. Still, the\nonerous insurance-industry practices that\nis challenging his GOP opponent. Pennsyl-\nfederal government's share of the pre-\nshut some people out of the market. Under\nvania Rep. Rick Santorum, to do the\nmium isn't as generous as most unions and\nthe Federal Employee Health Benefits Pro\nsame.\nmany big employers - or, for that matter,\ngram, no health plan can drop or refuse to\nIn addition, the president's allies are\nthe 80% share the White House would like\nenroll a government employee or depen-\nalready planning a sequel to the \"what\nemployers to bear. And as far as the scope\ndent because of a medical condition.\nCongress gets\" line, says Mr. Bennett of\nof the benefits and the patient cost-sharing\nBut as far as cost-sharing goes, Con-\nFamilies USA. If moderate and conserva-\nrequirements, Congress's plan isn't nearly\ngress isn't getting quite the ride that many\ntive lawmakers continue to tout a bill that\nas comprehensive as Medicaid, the fed-\nworking Americans do. According to the\nwould cover 91% of the American popula-\neral-state health program for low-income\nOffice of Personnel Management, which\ntion as a worthy achievement, he says, the\npeople.\nruns the federal benefits program. the\nretort will be: \"Which nine senators\nWhat lawmakers - and indeed all fed-\ngovernment pays on average 72% of em-\nintend to give up their health insur-\neral employees, including the president-\nployee health premiums, and no more than\nance?\"\n71\n2nd victory for Clinton health plan\nBy Jessica Lee and Judi Hasson\ncare. Republicans will ensure the rich\nerage premiums. Another idea, to tax\nUSA TODAY\npackage gets more scrutiny.\nemployers who don't insure their\nThe House panel also defeated at-\nworkers, was taken off the agenda.\nThe House Education and Labor\ntempts to strip most abortion cover-\nStill, Sen. John Chafee, R-R.I., said\nCommittee approved a health bill\nage from the benefits. That issue, too,\nhe expects the group to present a fin-\npromising insurance for everyone\nwill remain contentious.\nIshed plan to Finance Committee\nThursday, becoming the second con-\nMeanwhile, four Democrats and\nleaders today.\ngressional panel to ratify President\nthree Republicans spent the day be-\nBut Senate Republican leader Rob-\nClinton's key health-care goal.\nhind closed doors trying to fashion a\nert Dole, R-Kan., planning to intro-\nClinton, noting that the Senate La-\nbill with enough coverage to be called\nduce his own bill, said the moderates'\nbor Committee had passed a similar\nuniversal without ordering employers\nplan apparently relies too heavily on\nbill, said, \"They have broken the\nor individuals to pay for IL\ntaxes to win many Republican votes.\nchokehold of special interests, and by\nDetails were in flux, but partici-\nSen. David Durenberger, R-Minn.,\nchoosing to cover everyone, have\npants confirmed key details: If 95% of\ncalled the Chafee group's bid the Sen-\nstood up instead for millions of hard-\nAmericans didn't have health Insur-\nate's last shot at bipartisan reform.\nworking middle-class Americans.\"\nance by 2002, a commission would\nRepublicans' \"objective is health-\nKeeping options open, the House\nrecommend a plan for achieving uni-\ncare reform, and the president's is\npanel also narrowly approved a Cana-\nversal coverage, and Congress would\nuniversal coverage,\" he said. If Cha-\ndian-style bill that would replace pri-\nhave to act within six months.\nfee's bid falls, he predicted. Senate\nvate Insurance premiums with payroll\nIf Congress failed to act, the bill\nDemocrats will try to pass a bill with\ntaxes to pay medical bills.\nwould require individuals to buy their\n51 votes, only one Republican. That\nThe panel's version of the Clinton\nown health insurance.\nwould let Democrats campaign as\nbill requires employers to pay for In-\nFinancing remains in dispute.\nhealth reformers but let Republicans\nsurance, has subsidies for small firms\nOne proposal is to tax top-dollar in-\nblame them for the taxes involved.\nand expands coverage for women's\nsurance policies at 25% to 35% of the\nhealth, mental Illness and adult dental\ndifference between their cost and av-\nToday's debate, 10A\nBirths-welfare link is disputed\nBy Margaret L Usdansky\nhave looked into whether out-of-wedlock child-\nUSA TODAY\nMany on welfare\nbearing is higher in states with generous welfare\nbenefits than in those with smaller payments.\nWelfare benefits aren't the main reason out-of-\nstarted families early\nHigher payments had no effect on whether black\nwedlock births are rising, 76 leading poverty ex-\nwomen have children outside of marriage, the\nperts argued Thursday, as the controversy over\nChildren on welfare, Ald to Families with\nstudies found. and the effect on white unmarried\nwelfare reform and illegitimacy heated up.\nDependent Children, are more likely to have\nwomen was small or non-existent\n\"Welfare may be on the list of explanations, but\nyoung mothers, who are more likely to be\nWelfare can't be the main factor in rising out-of-\nit's way down the list,\" social psychologist Kristin\nunmarried than older women. Mothers'\nwedlock births, said Northwestern University\nMoore said at a press conference.\nages, when they first gave birth:\neconomist Rebecca Blank, because illegitimacy\nThe statement came as the Clinton administra-\nAFDC recipients\nAll mothers\nhas risen while the real value of welfare benefits\ntion defended its welfare plan, sent to Congress\n9.1%\nhas dropped, from $900 in AFDC payments and\nthis week, against conservatives who want a plan\nUnder 16\n2.9%\nfood stamps for the average woman with three\nthat cuts off all welfare benefits to young. unmar-\n23.0%\nchildren in 1970 to $700 in 1990.\nried mothers.\n16-17\n10.3%\nMore relaxed attitudes towards sex, poor job op-\nOne conservative group, Empower America,\n26.2%\nportunities and increasing acceptance of single\nbegan running radio ads this week attacking Clin-\n18-19\n18.7%\nparenthood had more effect on the rise of illegiti-\nton's plan as \"cynical and deceptive.\" Thursday,\nmacy, the academics said. Out-of-wedlock birth\n33.7%\nHealth Secretary Donna Shalala fired back, saying\n20-24\nare rising among middle-class women, too.\n43.6%\nthe conservative's proposals were \"un-American\"\nThe researchers said they support welfare re-\nand would \"create a generation of children who\n25-29\n6.7%\nform. but they sharply criticized cutting off wel-\n19.6%\nwill grow up on the streets.\"\nfare benefits for young. unmarried mothers.\n30+\n1.3%\nSuch plans would cut off a lifeline to very poor\nThe Clinton plan would limit women born after\n0.5%\nchildren and amount to \"a drastic social experi-\n1971 to just two years of benefits, then require\nthem to find a job. Although states could deny ad-\nSource: Census Bureau\nTODAY\nment,\" said University of Michigan economist\nSheldon Danziger.\nditional benefits to women who have more chil-\nthree out of 10 births today. About half of women\nBut American Enterprise Institute lawyer Doug\niren while on welfare. unmarried mothers\nreceiving Aid to Families with Dependent Chil-\nBesharov attacked the researcher's conclusions.\nwouldn't automatically lose aid.\ndren are unmarried; a majority were teen-agers at\n\"The research is quite ambiguous,\" Besharov said.\nOut-of-wedlock births have soared in recent\nthe time of their first birth.\n\"Whether or not welfare causes illegitimacy, it\nyears, rising from 10.7% of all births in 1970 to\nThursday, the researchers said many studies\ndoes nothing do discourage it.\"\nFRIDAY.\n24.\n1994\nUSA\nTODAY\nJUNE\n2nd victory for Clinton health plan\nBy Jessica Lee and Judi Hasson\ncare. Republicans will ensure the rich\nerage premiums. Another Idea, to tax\nUSA TODAY\npackage gets more scrutiny.\nemployers who don't insure their\nThe House panel also defeated at-\nworkers, was taken off the agenda.\nThe House Education and Labor\ntempts to strip most abortion cover-\nStill, Sen. John Chafee, R-R.I., said\nCommittee approved a health bill\nage from the benefits. That issue, too,\nhe expects the group to present a fin-\npromising insurance for everyone\nwill remain contentious.\nished plan to Finance Committee\nThursday, becoming the second con-\nMeanwhile, four Democrats and\nleaders today.\ngressional panel to ratify President\nthree Republicans spent the day be-\nBut Senate Republican leader Rob-\nClinton's key health-care goal.\nhind closed doors trying to fashion a\nert Dole, R-Kan, planning to intro-\nClinton, noting that the Senate La-\nbill with enough coverage to be called\nduce his own bill, said the moderates'\nbor Committee had passed a similar\nuniversal without ordering employers\nplan apparently relies too heavily on\nbill, said, \"They have broken the\nor individuals to pay for it.\ntaxes to win many Republican votes.\nchokehold of special interests, and by\nSome points were in flux, but par-\nSen. David Durenberger, R-Minn.,\nchoosing to cover everyone, have\nticipants confirmed details: If 95% of\ncalled the Chafee group's bid the Sen-\nstood up instead for millions of hard-\nAmericans didn't have health Insur-\nate's last shot at bipartisan reform.\nworking middle-class Americans.\"\nance by 2002, a commission would\nRepublicans' \"objective is health-\nKeeping options open, the House\nrecommend a plan for achieving uni-\ncare reform, and the president's is\npanel also narrowly approved a Cana-\nversal coverage. Congress would have\nuniversal coverage,\" he said. If Cha-\ndian-style bill that would replace pri-\nto approve it within six months.\nfee's bid fails, he predicted, Senate\nvate insurance premiums with payroll\nIf Congress failed to act, the bill\nDemocrats will try to pass a bill with\ntaxes to pay medical bills.\nwould require individuals to buy their\n51 votes, only one Republican. That\nThe panel's version of the Clinton\nown health insurance.\nwould let Democrats campaign as\nbill requires employers to pay for in-\nFinancing remains in dispute.\nhealth reformers but let Republicans\nsurance, has subsidies for small firms\nOne proposal is to tax top-dollar in-\nblame them for the taxes involved.\nBy Tim Dillon, USA TODAY\nand expands coverage for women's\nsurance policies at 25% to 35% of the\nLOBBY: Hillary Rodham Clinton addresses\nhealth, mental illness and adult dental\ndifference between their cost and av-\nToday's debate, 10A\nhealth-reform backers on Capitol Hill.\nUSA TODAY\n6-24-94\nToday's debate: HEALTH\nKeep up the push for\nreal health-care reform\nMillions of Ameri-\nOUR VIEW\ncould choose to ignore the mandate, or it\ncans are denied ba-\ncould simply fail to fund the subsidies. It\nsic primary care. That's\nhas done that before.\nIf so, the reform would fail to attain the\nIntolerable.\ngoals that have put it at the top of the na-\ntion's political agenda.\nSomewhere toward the misty-murky\nStill, the deal has undeniable political\nmiddle of the health-care debate stands -\nmerit. As a bipartisan proposal from the in-\nor, more aptly, sits - the Rump Group.\nfluential Finance Committee, it may well\nIt is a coalition of moderate senators, all\nmove the debate to the full Senate.\nmembers of the powerful Senate Finance\nThat's a crucial service, for even if in-\nCommittee, and their\ncomplete, some type of reform that moves\nwork on a health-care-\nus toward health care for all is needed.\nreform compromise\nMore than 38 million Americans still lack\nmay well offer the best\nhealth insurance at any moment.\nhope for meaningful\nReform\nSuch high levels of uninsurance are un-\naction on health reform\nFRIDAY, JUNE 24, 1994 USA TODAY\nacceptable twice over. In this nation, no\nthis year.\nTheir plan is simple.\n$\none should be denied basic health care.\nS\nM\nAnd no one should pay outrageous prices\nEnact market reforms\nin order to cover the cost of somebody\nto make insurance\nelsc's unreimbursed care.\nmore available. Then,\nThat is, in part, why President Clinton\nif fewer than 95% of all Americans remain\nintroduced his health-reform legislation\nuninsured by 2002, impose an \"individual\nlast fall. His plan, however, requires em-\nmandate\" requiring all consumers to buy\nployers to provide insurance for their work-\ninsurance. Subsidies for the near-poor -\ners, a strategy that is bitterly opposed by\nthose earning up to 240% of poverty level\nconscrvatives. They are wrong, but they\n- would be financed by taxing those who\nhave neverthcless managed to force the re-\nget better-than-basic insurance benefits.\nform process to a grinding near-stop.\nThe compromise is useful but risky.\nTime is running out for this year, and the\nFor the first eight years, it won't provide\nnext Congress may be even more ambiva-\nuniversal coverage, and thus it cannot as-\nlent. So even if the latest compromise plan\nsure health-care costs will be brought under\nis incomplete, its bipartisan character\ncontrol. During that time, if private sector\npromises to help drive the debatc forward.\npressures fail, national health spending\nOther proposals lack that quality, and\ncould double, exceeding $2 trillion. And\nwithout it, you can kiss real health reform's\nmillions would remain uncovered.\nRump\ngoodbye.\nMoreover, there's no guarantee Congress\nwill obey its own 2002 deadline. Congress\nCongress & health care, 8A\nNo need for this 'reform'\nImpact of\nthey got there. President Clinton is asking\nOPPOSING VIEW\nmany of\nlegislators and the American people to trust\nhim on this one.\nthese proposed cures would be\nThough the people seeking to foist a\nfar worse than the disease.\nmassive federal intrusion into the U.S.\neconomy clearly have no idea what they\nBy Armstrong Williams\nare about, it is at least clear that any rushed\nHealth care is showing some vital signs\noverhaul of this magnitude could be a ca-\nas Congress rushes to pass legislation be-\ntastrophe that we can never unmake.\nIt would institute a national health board\nfore the fall elections. Before inflicting\nthat would make medical decisions for in-\nwidespread damage for political gains,\nCongress should remember the principal\ndividual Americans and their doctors, and\naxiom of medicine: first, do no harm.\nit would devastate a struggling economy.\nPassage of a rushed package this summer\nBusinesses will cut jobs, wages or both to\nout of the current chaos on Capitol Hill\ncompensate for the increased expenses they\nwould be an unmitigated disaster for our\nwill incur under almost any form of federal\nhealth care.\neconomy and our medicine.\nThink you're confused about health\nA study by the state of California esti-\ncare? Members of Congress and their staffs\nmates job losses due to employer mandates\ndon't know any more than you do. There is\nalone at up to 3.8 million jobs. Wage earn-\ners and small businesses will be hardest hit.\nno plan.\nThe federal Office of Technology Assess-\nThe rest of the costs will be borne by con-\nment has determined that it is impossible\nsumers who will no longer be assured a\nchoice of doctor or even treatment.\nto even make a \"reasonable guess\" about\nthe costs of the various loose concepts\nThe medical system does not need a\nfloating around.\nhasty and radical overhaul. Public support\nThe Clinton administration's advocates\nfor the \"Hillary plan\" has dwindled to 33%.\nof change have never presented anything\nLet the monstrous plans percolating in the\nlike a detailed implementation program or\nlegislative committees die there, for the\nhealth of all Americans.\nspecific cost estimates for their plan. Nor\nhave they detailed how they plan to cover\nArmstrong Williams is a Washington busi-\nthe costs. They have offered only a bottom-\nnessman, writer, radio talk-show host and edi-\nline net figure with no evidence for how\ntor of The Right Side newsletter.\n98\n6/24/94\nLos Angeles Times first-edition\nHouse Panel Approves Health Care Plan Similiar to\nPage 1 for Friday, June 24, 1994:\nClinton's (Washn) By Karen Tumulty and William J.\nEaton= (c) 1994, Los Angeles Times=\nTop of page:\nWASHINGTON President Clinton's beleaguered effort to\noverhaul the nation's health care system took a step\nCol 1: La Mamma is the same dominant figure in Italy\nforward in Congress Thursday, when the House Education and\ntoday that she was in Caesar's time, but she is raising\nLabor Committee became the first committee in the House to\nfewer \"bambini\" than ever, and her changing role is\napprove a health plan that closely resembles the\nforcing a social revolution in a country that is running\nadministration's.\nout of children. (ITALY-BIRTHRATE, will move overnight).\nElsewhere on Capitol Hill, however, the fate of health\nlegislation remained in question. In the Senate, a\nCols 2-4: Photo of developments in Rwanda. (refers to\nbipartisan group of moderate Finance Committee members\nstory inside).\nencountered stiff resistance from both the left and the\nright as they attempted to fashion a bill that carries the\nCols 5-6: Giving President Clinton's health care plan a\nthreat of imposing a government requirement that uninsured\nneeded boost, the House Education and Labor Committee\nindividuals buy health coverage.\nbecomes the first committee in the House to approve a\nPassage of a bill similar to Clinton's was never in\nhealth reform plan that closely resembles the\nquestion in the Education and Labor Committee, the most\nadministration's. (HEALTH-TIMES, moved).\nliberal of the three House panels considering health\nlegislation. Indeed, it also narrowly approved Thursday\nAbove fold:\nthe most radical of the health care options before\nCongress: a Canadian-style, government-financed health\nCols 2-3: Top law enforcement officials huddle in the\ncare system known as ``single payer.\"\nDistrict Attorney's office as a grand jury convenes for a\nBut the committee's 27-17 vote in favor of a plan that\nfifth day to hear witnesses in the murder case against\nhews to Clinton's goal of guaranteeing coverage for every\nO.J. Simpson. (SIMPSON-TIMES, moved).\nAmerican nonetheless marked a milestone and assured that\nhealth legislation can reach the House floor. The vote,\nCol 4: Both men and women are flooding domestic\ngenerally along party lines with two Democrats defecting,\nviolence hotlines as a result of news coverage surrounding\nfollowed similar action earlier this month by the Senate\nthe O.J. Simpson case. (SIMPSON-HOTLINE, moved).\nLabor and Human Resources Committee.\nCol 6: A top cigarette company executive rejects\n(Begin optional trim)\nallegations by Food and Drug Administration Commissioner\nDavid A. Kessler that the company concealed efforts to\n\"With today's action, for the first time ever, a\ndevelop a high-nicotine form of tobacco. (TOBACCO-TIMES,\ncommittee in each house of Congress has reported a bill\nmoved).\nthat guarantees universal coverage,\" Clinton said in a\nstatement issued by the White House after the vote. ``They\nBelow fold:\nhave broken the chokehold of special interests, and, by\nchoosing to cover everyone, have stood up instead for\nCol 3: Senior officials at the Treasury Department and\nmillions of hard-working middle class Americans.\"\nthe White House have been told by their attorneys that\nAdded Chairman William Ford, D-Mich.: \"It's going to\nthey do not expect special counsel Robert B. Fiske Jr. to\nbe on the floor in a matter of weeks. Everyone's going\nseek any criminal indictments against them for their\nto get the chance to put up or shut up.\"\ncontroversial meetings linked to the Whitewater scandal.\nThe Education and Labor Committee bill is significantly\n(WHITEWATER-TIMES, moved).\nmore generous than Clinton's. Over five years, it would\nadd an extra $30 billion in health benefits and subsidies\nCols 5-6: Los Angeles Raiders agree to reamin in the\nfor the poor and small businesses.\nColiseum for the 1994 season.\n(End optional trim)\nBottom of page:\nMeanwhile, the Ways and Means Committee plodded\nCols 1-2: With no warning and after claiming that\nthrough\nactress Faye Dunaway would be an apt fit to replace Glenn\na series of minor amendments to its health bill, but\nClose as the star of the Andrew Lloyd Webber musical\nacting Chairman Sam Gibbons, D-Fla., called the lawmakers\nSunset Boulevard,\" the composer's Really Useful Company\ninto unusual weekend sessions in a drive to finish work by\nannounces that the show will close in Los Angeles this\nnext Tuesday.\nSunday because Dunaway cannot meet the musical demands of\nSo far, with a single exception, the Ways and Means\nthe role. (with art). (SUNSET, moved).\npanel has kept to its chairman's call to match spending on\nbenefits with new revenues to pay for them. The biggest\nCols 5-6: Feature on permits to carry a concealed\nchallenge ahead appears to be the financing provisions,\nweapon in Los Angeles County.\ncoming up for votes early next week.\nThe third House committee considering health\nSent: 10:25 p.m. EDT. For questions, call (800)\nlegislation Energy and Commerce appears hopelessly\n283-NEWS, ext. 77832.\ndeadlocked, and unable to even begin producing\nlegislation.\nLos Angeles Times-Washington Post News Service=\nUltimately, House leaders will have the task of melding\nthe committee bills into a single piece of legislation\nthat they hope to bring to a vote this summer.\nMany in the House are watching the Senate and\nspecifically its Finance Committee with a wary eye. They\nare reluctant to take a dangerous political stand on\nhealth care until they are confident that the Senate will\n99\n6/24/94\nnot undercut them by insisting on something more\nResolution Trust Corp. to the Justice Department that\nconservative.\nnamed President Clinton's 1984 gubernatorial campaign as a\nHopes for a compromise in the Finance Committee are\npossible beneficiary of criminal acts at a failed Arkansas\nriding on the group of moderates, who say they are close\nthrift.\nto agreement. Their plan would first put into place a set\nBut administration sources say they are increasingly\nof changes in insurance practices that are aimed at making\nconfident that Fiske will conclude that portion of his\nhealth coverage more affordable.\ninvestigation without seeking any criminal charges against\nPresumably, those measures alone would expand the\ncurrent or former officials of the Clinton administration.\nnumber of people who have health coverage now roughly 85\nAlthough administration sources stress that they have not\npercent of all Americans. But if 95 percent of the public\nbeen given any information by Fiske's office on the status\ndid not have coverage by the year 2002, a so-called\nof his investigation, they say that attorneys hired by\n``individual mandate\" would kick in, forcing people to\nadministration officials who have been subpoened and\nbuy health coverage, just as state law now requires them\ninvestigated by Fiske are now certain that Fiske will not\nto buy insurance for their cars.\nmove against them.\nThe moderates' approach is an effort to reach Clinton's\n\"Based upon my understanding and assessment of what is\ngoal of universal coverage without his proposal to require\ngoing on, I don't see the basis for any criminal\nbusinesses to pay for 80 percent of their workers'\nindictments,\" said Steven Tabackman, an attorney who\ninsurance. That has proven the single most controversial\nrepresents Jack Devore, the former chief spokesman for the\nprovision of the Clinton plan, with business groups\nTreasury Department who testified about his involvement\nwarning that the additional cost would force many small\nbefore the Whitewater grand jury earlier this year.\nfirms to lay off workers or shut down entirely.\nThe Treasury Department became embroiled in the\nHowever, it is far from certain that there would be any\nWhitewater controversy because of the administration's\nmore support for a bill that could force middle-class\ninability to name someone to run the RTC on a permanent\nfamilies to spend thousands of dollars a year on health\nbasis. In the interim, deputy Treasury Secretary Roger\ncoverage. Moreover, it is unclear whether such a\nAltman became acting RTC chairman last year, and other\nrequirement could be enforced.\nsenior Treasury aides helped him work on RTC issues on an\nad-hoc basis. The duality of their roles as Clinton\n(Optional add end)\npolitical appointees and running an independent regulatory\nagency raised questions about their actions after they\nPoor and low-income people would receive government\nheld a series of meetings with White House officials to\nsubsidies to help them afford the coverage. However,\ndiscuss the Whitewater case.\npaying for those subsidies could mean hundreds of billions\nin new taxes.\n(Begin optional trim)\nConservatives already had expressed opposition to the\nindividual mandate. On Thursday, liberal groups chimed in\nFiske has been moving to conclude the Washington\nas well.\nportion of his investigation first in order to allow\nThe Senate Finance Committee is moving toward\nCongress to begin hearings this summer on the controversy.\nabandoning millions of American health care consumers,\"\nThe Arkansas portion of his probe covering the origins of\nsaid Robert Carolla, legislative counsel to the Consumers\nthe controversy including the Clintons' investment in the\nUnion.\nWhitewater real estate development and the failure of a\nIn a letter to each member of the Finance Committee,\nLittle Rock, Ark., thrift owned by their Whitewater\nthe Health Care Reform Project a coalition of 56\npartner is likely to take much longer.\norganizations that support the president's plan also said\nSeparately, the White House said it would comply with a\nthat it opposes the alternative being crafted by the\nrequest by the Senate Banking Committee for\nmoderates.\nWhitewater-related documents, which the committee wants in\nWe strongly urge you to reject this approach or any\npreparation for the start of Whitewater hearings, probably\nothers that fail to meet the test of guaranteeing all\nin late July. Presidential spokeswoman Dee Dee Myers said\nAmericans affordable comprehensive coverage,\" the groups\nthe White House received a letter Wednesday night from\nwrote.\nSenate Banking Committee Chairman Donald Riegle, D-Mich.,\nand Sen. Alfonse D'Amato, R-N.Y., the ranking Republican\non the panel, asking for documents already turned over by\nthe White House to Fiske. The committee said in a statement\nthat it wants documents from current and former officials\nAdministration Officials Not Expecting Whitewater\nat the White House and other agencies, who may have had\nIndictments(Washn) By James Risen= (c) 1994, Los\nsome involvement in the Washington aspects of the\nAngeles Times=\nWhitewater case.\nWASHINGTON Senior officials at the Treasury Department\n``It was not a subpoena. Just a letter,\" said Myers.\nand the White House have been told by their personal\n`We will cooperate.\"\nattorneys that they do not expect special counsel Robert\nFiske to seek any criminal indictments against them for\n(End optional trim)\ntheir controversial meetings linked to the Whitewater\nscandal.\nThe growing sense that no indictments will be\nFiske is said to be close to completing the first phase\nforthcoming from Fiske has had a positive effect both at\nof his Whitewater investigation, focusing both on the\nthe White House and the Treasury Department, and has\nsuicide of White House deputy counsel Vincent Foster Jr.\nhelped heal wounds between officials in the two buildings\nand the way in which administration officials responded to\nthe news of a Whitewater-related criminal referral by\nIndeed, the pressure from the scandal this spring had\nfederal regulators.\nled to a quiet round of finger-pointing about news leaks\nThat aspect of the probe will focus in part on a series\namong White House aides and Treasury staffers. And it\nof meetings between Treasury and White House officials in\nseemed to make officials on both sides wary of informal\nthe fall of 1993 and early in 1994 to discuss how to\nconversations and spur-of-the-moment meetings.\nrespond to a criminal referral from investigators at the\nNow, Treasury Secretary Lloyd Bentsen believes that his\n$100\nHawaii\nMassachusetts\nOregon\nWashington\nUnder a 1974\nemployers\nIn 1\nbecame the first state\nEnacted its own \"play or\nIn 1\nenacted guaranteed\nmust pay at\n50 percent\nto enact a\nor\nman\nin 1\nIn\n1\nI,\nthe\nuniversal\ncoverage,\nof their employees health\nmandate requiring employers\neffective date was delayed\nrequiring all employers to\ninsurance premium. The\nto either provide private\nuntil 1995, and in 1993 it was\ncontribute at least 50 percent\nrequirement doesn't include\ncoverage directly to their\ndelayed again to March 1997\nof the premium charged by\ndependents or part-time\nemployees or make payments\nfor firms with 26 or more\nthe lowest-price health plan in\nworkers.\nto a public fund. In 1991, the\nworkers and to January 1998\nan area beginning in 1997.\nimplementation date was put\nfor firms with 25 workers or\noff to 1995 due to concerns\nless.\nabout the economy and a\nchanged political\nclimate. Gov. William\nWeld will propose repeal\nof the mandate later\nthis year.\nEmployers block efforts by states\nto mandate health care payments\nBy Karen Riley\nTHE WASHINGTON TIMES\nSTATES\nMassachusetts Gov.\nThey call themselves the States That\nFrom page B8\nWilliam Weld has\nCouldn't Wait - states that have en-\nacted some form of health care reform\nsaid he will propose a\nthese state examples show how\nahead of any federal action.\nhard it will be to get a federal em-\nrepeal of the mandate\nA few officials from some of these\nployer mandate.\nstates recently came to Capitol Hill to\n\"It's extremely difficult, no\nthis year.\ngive a pep talk to Democratic law-\ndoubt about it,\" he said.\nmakers who have been frustrated by\nBut observers point out that\nthe lack of progress on a federal health\nthere are special problems at the\nmandate, seems even further from\nbill.\nstate level that don't exist nation-\nuniversal coverage.\nIn separate meetings with House\nally.\nIts play-or-pay mandate cleared\nand Senate members, the state offi-\nStates are skittish about passing\nthe legislature in 1988 with little\ncials told them not to yield to intense\nlaws viewed as contributing to a\nscrutiny because lawmakers\nbusiness opposition to achieving uni-\nbad business climate; critics insist\nwanted to give Gov. Michael Du-\nversal health care coverage by requir-\nemployer-mandated programs\nkakis, the Democratic candidate\ning employers to pay their workers'\nwould create such problems.\nfor president, an issue to run on.\nhealth insurance premiums.\nAnd a federal law bars states\nMs. Buell, who is co-chairman\nVoting for employer-mandated in-\nfrom regulating self-funded\nof the Massachusetts legislature's\nsurance, in which employers are the\nhealth plans, which are carried by\nJoint Standing Committee on\npayers of health insurance premiums,\na majority of companies. Thus, for\nHealth Care, said the potential\nis not tantamount to political suicide,\nstate mandates to be effective,\nramifications weren't immedi-\nthe officials said.\nstates must get a waiver from fed-\nately apparent. Moreover, the plan\n\"We got re-elected anyway,\" state\neral law; such legislation is on hold\nwas backed by major employers\nRep. Carmen Buell, Massachusetts\npending national reform.\nbecause they believed it would re-\nDemocrat, recalled saying in meetings\nHistory suggests that \"passing\nduce their own health care costs\nwith the House Democratic Caucus\na bill doesn't guarantee that debate\nby shifting the coverage of some\nand the Senate Democratic Policy\nis over,\" said Jim Weidman, a\ndependents.\nCommittee, congressional Democrats'\nspokesman for the National Feder-\nBut in the next few years the\ntwo chief policy-making arms.\nation of Independent Business\nstate's economy soured rapidly,\nBut as enthusiatic as the state of-\n(NFIB), the main organized oppo-\nand legislators decided that it\nficials are, the realitv is that none of\nnent of the mandate at the state\nwasn't the time to push ahead with\nthe states has implemented laws that\nlevel.\nthe mandate, she said. And big\nwould force employers to foot much of\nConsider the case of Oregon.\nbusiness decided to oppose the\nthe bill for health insurance.\nThe Oregon legislature enacted\nmandate, fearing it would discour-\nIn the past eight years, the employer\na plan in 1989 for achieving univer-\nage business formation and eco-\nmandate has been enacted in three tra-\nsal coverage based on \"play or\nnomic growth.\nditionally liberal states: Massachu-\npay\" rules for employers. Compa-\nThe reform law had set 1992 as\nsetts, Oregon and Washington.\nnies were required to play along\nthe effective date for the mandate.\nA glance at those three shows how\nand pay their workers' premiums\nIn 1991, Massachusetts law-\ndifficult it is to achieve reforms that\nor pay into a public fund that\nmakers voted to postpone the im-\ninclude the mandate.\nwould finance coverage for their\nplementation until 1995 after re-\nOregon has twice delayed the date\nemployees.\njecting a repeal of the reform.\nwhen employers must begin insuring\nWhen the bill passed, Demo-\nMassachusetts Gov. William\ntheir workers.\ncrats controlled the government,\nWeld has said he will propose a\nMassachusetts has never imple-\nand business was devoting most\nrepeal of the mandate this year,\nmented its health reform plan and is\nits attention to a fight over a pro-\nand that proposal may prevail.\nlikely to kill it this year.\nposal to raise the minimum wage.\nThe history of the employer\nIn Washington state, reform based\n\"It was a mistake,\" said Fred\nmandate in Washington state has\non an employer mandate passed last\nVan Natta, a lobbyist with the Or-\nbeen shorter.\nyear largely because Democrats had\negon State Homebuilders Associ-\nRep. Dennis Dellwo, a Demo-\ntaken control of the Statehouse.\nation.\ncrat who heads the House Health\nHealth reform measures have been\nBut Republicans took over the\nCare Committee, said the state's\nintroduced in nearly every other state\nstate House of Representatives in\ncomprehensive proposal for guar-\nin the past few years but have not been\n1991, and business focused on the\nanteeing universal health cover-\naccepted.\nmandate. Business interests tried\nage was approved last year largely\nHawaii has had an employer man-\nto repeal the mandate but settled\nbecause of Democratic control of\ndate since 1974. But health reform ob-\nfor a postponement of the effective\nboth houses and the governor's of-\nservers say that happened too long ago\ndate from 1992 to 1995. Last year,\nfice.\nin a state isolated from the mainland to\nthey won a delay until March 1997\nEven then, intense business lob-\noffer much of a lesson for the current\nfor companies with 26 or more\nbying forced lawmakers to scale\nnational debate.\nworkers and to January 1998 for\nback the benefit package and re-\nDick Merritt, the director of George\nfirms with fewer employees.\nduce the amount companies would\nWashington University's intergovern-\n\"It's been as volatile out here\nhave to pay, he said. The proposal\nmental health policy project, said\npolitically as it has been in Wash-\nwent from requiring companies to\nington, D.C.,\" said Barney Speith,\npay 80 percent of their employees'\nsee STATES, page B9\nexecutive vice president of Blue\npremiums to 50 percent.\nCross and Blue Shield of Oregon.\nThis year, as the possible effects\nA factor in the delay was that\nof the law have seeped in, business\nsome specifics of the plan had not\nopposition to the mandate has\nbeen worked out by a health care\nrisen, said Carolyn Logue, direc-\ncommission. These included such\nFRIDAY,\ntor of the Washington state office\nthings as what would be in the\nof the National Federation of Inde-\nbenefit package and what relief\npendent Business.\nwould be available for small, mar-\n\"We've got a lot of scared people\nTimes\nginal companies.\nright now,\" she said, adding that\nPublic sentiment on the man-\nsome lawmakers are rethinking\ndate may be tested in Oregon this\ntheir votes. \"We're talking to legis-\nfall because the architect of Or-\nlators who are going, 'Oh, my gosh,\negon's health plan, Dr. John Kitz-\nwhat did I vote for?'\nhaber, former president of the\nMr. Dellwo disagrees about the\nSenate, is the Democratic candi-\npolitical impact. \"People almost\ndate for governor.\nunanimously believe there's need\nMassachusetts, which once\nThe\nfor a change in health care. It's not\nclaimed bragging rights as the\ndeveloping into a campaign\ne,\"\nfirst $ : to e reform with a\nhe\n\"I have no oppo\nyet.\"\nHillary\nIn what was described as a\nstant kowtowing to accommodate\nhappens. \"Eventually, there will\nrhetorical removal of the gloves,\npolitical and personal needs.\nbe enough of us that we'll just\nFoley: 'No vacancy\n\"Evenings are a treadmill of\nBob Dole slammed Hillary\nsay, 'Enough of this stuff.' But it'll\nreceptions and fund-raising\nRoll Call reports that House\nRodham Clinton for taking a\ntake a while,\" said Rep. Patricia\nevents. The leader's personal po-\n\"C\nshot\" at Congress to win\nSchroeder, Colorado Democrat.\nSpeaker Thomas S. Foley is at-\nlitical agenda must usually\ntempting in a series of intimate\nsupport for the Clinton health\nmarch in lockstep with the party\ndinners to squash rumors he will\ncare plan.\nThe Los Angeles Times said\nline, however ill-plotted and tortu-\nThe Carter mission\nnot be a candidate for party\nthat in a closed session of the Fi-\nous it may be\nIn contrast to other former\nleader in the next Congress.\nnance Committee on Wednesday,\n\"The vote for majority leader,\npresidents, Jimmy Carter's ef-\nAs he dines with small groups\nthe angry Senate minority leader\nset for next January, is a pitiless\nforts as a troubleshooter seem\nof House Democrats, however,\nand public judgment of each can-\n: so far as to ask the panel to\n\"particularly selfless,\" wrote col-\ntwo potential successors - Ma-\ntake the extraordinary step of\ndidate's worth by his peers. It is\numnists Jack Germond and Jules\njority Leader Richard A. Gep-\nnot a race for the weak-kneed.\"\npublicly criticizing the first lady.\"\nWitcover.\nhardt and Rep. Charlie Rose of\nHis North Korean visit may\nNorth Carolina - are seeking fa-\nMrs. Clinton had said on a tele-\nvision program Tuesday night\nLimits loves Rosty\nhave moved everyone back a bit\nvor with a new crop of freshman\nfrom military confrontation. \"If\nmembers.\nthat it is \"only fair\" that Amer-\nU.S. Term Limits is so happy\n8 should have health care\nso, he will have demonstrated\nBoth men are contacting\nabout the indictment of Rep. Dan\nbe\nts \"as good as those en-\nonce again why he may\nbe\nDemocratic candidates in open-\nRostenkowski that it issued a\nbetter remembered for his time\nseat races or likely-pickup dis-\njoyed by members of Congress.\"\nRosty poster, the National Jour-\nThe Kansas Republican was\nafter leaving the White House\ntricts. In keeping with tradition,\nnal reported.\n\"incensed\" because he felt Mrs.\nthan for his time in it.\"\nthey do not mention the\nThe former head of the Ways\nClinton was trying to exploit pub-\nMeanwhile, the administra-\nspeakership. Instead, each offers\nand Means Committee is \"our\nlic dissatisfaction with Congress\ntion's shift from chagrin to cau-\nhelp with fund-raising and re-\n1994 poster child for term limits,\"\ntious optimism over the talks\nsearch.\nand because the congressional\nsaid Ronald Nehring, the group's\nIn his dinners Mr. Foley quells\nplan is the same one that covers\nonly underscores a public per-\ndirector of congressional affairs.\nception of drift in the Clinton\ntalk he will become secretary of\nPresident and Mrs. Clinton and\nU.S. Term Limits will distribute\nall other federal employees.\nconduct of foreign policy gener-\nstate or an ambassador, Roll Call\nsome 100,000 copies of the poster,\nally, the two men wrote.\nsaid. Some observers think Mr.\nThe Times' Karen Tumulty\nwhich features \"Rosty, the Post-\nRose is angling to replace GOP\nsaid, \"The new, more personal\nman\" on a mock postage stamp.\nSen. Jesse Helms, who is not ex-\ntone in the health care debate re-\nThe National Journal adds that\nFutures\npected to run in 1996.\nflects the make-or-break point\nthe organization's efforts are at-\nthat the deliberations have\nIn Missouri, state Rep. Steve\ntracting attention.\nreached, as well as lawmakers'\nCarroll, considered among the\nPundit Leno\nIt so vigorously supported win-\nfront-runners in the crowded\nsensitivity to the low regard the\nning Republicans in special elec-\npublic now has for Congress.\"\nfield seeking the Democratic\nNBC's Jay Leno on \"the big\ntions in Oklahoma and Kentucky\nSenate nomination, dropped out\nstory\" in Washington: \"We've fi-\nthat the Democratic Congres-\nminutes before deadline and filed\nnally got a president with a for-\nToday's quote\nsional Campaign Committee has\nfor a state Senate seat.\neign policy, willing to stand up on\n\"I don't know what would have\ncomplained to the FEC.\nprinciple and confront the North\nKoreans, I think it's great\nhappened had I not met with Kim\nHollywood\n\"But enough about Jimmy\nIl-sung,\" Jimmy Carter said in a\nToday's quote II\nCNN interview.\nOne of the insights from the\nCarter.\"\n\"Everybody in town is trying to\nCommon Cause report on Presi-\nOf course there are extremely\nFeel your pain?\nfigure out where Bob Dole is [on\ndent Clinton's raising of \"soft\nconservative candidates this year,\nhealth care],\" Sen. Dave Duren-\nmoney\" despite pledges of re-\nbut their agendas seem more\nSingapore may yet pay dearly\nberger, Minnesota Republican\nform was the degree to which the\neconomic than social, he said. \"To\nfor rapping Michael Fay - the\nand health care moderate, told\nWhite House has tapped the en-\nthe extent that the religious right\ncost of feeding President Clinton.\nthe Wall Street Journal.\ntertainment industry.\nis having a dramatic impact on\nWord from the White House is\n\"Just because it's good for Re-\nShow biz trails only the finan-\nthe political scene, my impres-\nthat he will visit the caning capi-\npublicans doesn't mean it's good\ncial industry and organized labor\nsion is that it is on intraparty\ntal in November\nlegislation\nBut if we had\nas a soft-money contributor to\nmatters and in local elections.\nThe honor of a presidential\nBob Dole [on our side], we'd add\nDemocrats, said the Los Angeles\n\"Many Democratic attacks\nvisit - in conjunction with his\n12 people.\"\nTimes. Over a 21-month period, it\ndo come awfully close to reli-\ntrip to Indonesia and Australia\ngave more than $2.6 million.\ngious intolerance, however.\"\nmay seem at odds with threats\nAcquittal\nAmong the contributors: Time\nof diplomatic retribution for the\nWarner Inc., $508,333; Walt Dis-\nLoves veggies\nFay caning, but there's prece-\nA former Pennsylvania state\nney Co., $250,000; recording pro-\nsenator was acquitted of charges\nducer David Geffen, $220,000;\nHillary Rodham Clinton said\nPresident Bush went there\nhe illegally opened voting ma-\nSony Corp., $175,000; director\nher husband gets \"a bad rap\"\nwith smiles on despite\nchines and absentee ballots.\nSeven Spielberg, $100,000; actor\nwhen it comes to food: Sure, he\nSingapore's refusal to abide by\nWilliam G. Stinson, 50, had\nChevy Chase, $35,000.\nlikes to eat, but it's not just junk\nhis administration's intercession\nbeen stripped of his office be-\nThe law permits corporations,\nfood.\nto lift censorship sanctions on the\ncause of fraud by his campaign\nlabor unions and individuals to\n\"My husband has good eating\nAsian Wall Street Journal and\nin the Nov. 2 special election.\nmake unlimited \"soft\" donations\nhabits,\" the first lady said as she\nother U.S.-related publications.\nThis week he was cleared of re-\nto the national parties for \"party\nparticipated in front of the White\nlated charges by a judge who\nbuilding\" while limiting direct\nHouse in a ceremony denoting\nClinton zaps GOP\nheard the case without a jury.\ncontributions to candidates for\nFruit and Vegetable Month.\nA former Stinson aide pleaded\nfederal office.\n\"He really does love fresh\nPresident Clinton has accused\nguilty Monday to absentee-ballot\nfruits and vegetables\nHe's not\nRepublicans of trying to divide\nfraud, and a second aide awaits\ntrial on election violations. Re-\nThe Christian right\na big sweet eater or any of that,\"\nthe American people with a \"cul-\nshe said in a tone that was de-\ntural war\" over moral, racial and\npublican Bruce Marks sued after\nIn Roll Call, analyst Charles E.\nscribed as playfully defensive.\nethnic issues.\nelection results showed him los-\nCook says the \"validity\" of the\n\"He got a little bit of a bad rap, I\nThe president sounded the\ning to Mr. Stinson by 461 votes.\nDemocratic attack on the reli-\nthink.\"\n1\ne in partisan speeches at\nA federal judge said the Stin-\ngious political activists may be a\n\"He's got good [eating] habits,\ntwo Democratic fund-raisers that\nson campaign had coerced, in-\n\"little dubious\":\nand they include fresh fruit and\nnetted $3.5 million for party ac-\ntimidated and deceived voters\n\"I've met with plenty of\nvegatables - and broccoli,\" she\ntivities - and drew criticism\ninto casting absentee ballots, an\ncandidates from both parties over\nsaid in a swipe at former Presi-\nfrom campaign finance reform\noption restricted by law to voters\nthe last 18 months, and I've seen\ndent Bush, who banned the vege-\ngroups.\nunable to make it to the polls.\nvery few that I would describe as\ntable from his White House.\nHe said Republicans believe\nvery closely associated with the\nShe was asked to say what food\nthey can pick up seats in Con-\nin the fall elections by pro-\nPotty parity redux\n'religious right' - even though a\nMr. Clinton likes best. \"Well,\ng\nlarge number of conservative\neverything,\" she said, smiling\nmoting cynicism, bombarding\nMark Z. Barabak of Copley\ncandidates will receive support\nbroadly.\nAmericans with negativism and\nNews Service noted in his report\nfrom such forces.\"\nfocusing on \"process and conflict\non the gains women have made in\nins\nof substantive product.\"\nCongress that bathroom avail-\nWatch out, Rush\nKennedy organizes\nHe also seemed to be lashing\nability remains a point of consid-\nerable annoyance.\nThe Chicago Sun-Times re-\nFacing his toughest re-election\nout at conservative Republican\never, Sen. Edward M. Kennedy is\ntalk radio shows like that of con-\nMen's facilities are just off the\nports that Ross Perot is\nlaunching a new career as a talk-\norganizing an early attack on his\nvative Rush Limbaugh for\nHouse floor. Female members\nbi\nng divisiveness.\nmust leave the chamber, cross a\nshow host and commentator for\nlikely GOP opponent, Mitt Rom-\nTribune Radio Networks. Starting\nney.\nhallway and hike into the re-\nOct. 1, the Texas billionaire will\nThe Boston Globe reports that\nThe leaders'job\ncesses of the speaker's office, a\nhost a live, weekly call-in show.\ncampaign insiders say the strat-\njourney that takes several min-\nIn its account of the \"subterra-\nutes, Mr. Barabak reported.\nThe deal also calls for Perot to\negy is dictated by a flurry of ag-\nThis inequity is a matter of\ndeliver commentary pieces five\ngressive reporting and the antici-\n\" struggle between Sen. Tom\nDaschle and Sen. Jim Sasser to\nor six days a week.\npation of being the target of a $1\npersistent grumbling, but nothing\nbecome the next Senate majority\nDan Fabian, general manager\nmillion advertising campaign.\nof WGN radio in Chicago, said:\nThe Globe added: \"At 62, Ken-\nleader, the New York Times re-\n\"If it is purely issues and politi-\nnedy must also allay concerns\nported \"the ugly truth\": The job\nis anything but pleasant.\ncally oriented, there will be those\nthat he's no longer up to the job\nhe has held since 1963. A cam-\n\"The chamber's 99 other sen-\nwho polarize. But if the format\nators, any of whom can bring\nallows his wit, charm and insight\npaign scrap with Romney is one\nway to show he is still vigorous\nlawmaking to a halt, demand con-\nto come through, it's impossible\nand engaged, said one source.\"\nnot to be ingratiated by him.\"\nThe Washing\nCi\n00 FRIDAY. JUNE 24, 1994\n124"
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