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[HEALTH CARE CLIPS: JUNE 1994-JULY 1994] [4]
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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 ****
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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 ****
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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
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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
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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
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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
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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
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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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