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[Sanders, Bernie] [103rd Congress] [loose]
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26082323
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[Sanders, Bernie] [103rd Congress] [loose]
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Records of the First Lady's Office (Clinton Administration)
Pam Cicetti's Subject Files
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THE WHITE HOUSE
May 12, 1994
The Honorable Bernard Sanders
U.S. House of Representatives
Washington, D.C. 20515
Dear Congres Bornie Sanders:
Thank you for writing about the
current dispute over whether ERISA affects
the ability of states to implement single
payer systems. I am aware that while
opponents believe that ERISA currently
precludes states from setting up single
payer systems, courts have found that
ERISA does not preempt state laws taxing
citizens to provide medical benefits to
them.
I have forwarded your letter to the
Attorney General.
Sincerely yours,
Hillary Idillary Rodham Clinton
BERNARD SANDERS
COMMITTEES:
MEMBER OF CONGRESS
BANKING, FINANCE AND
URBAN AFFAIRS
VERMONT, AT LARGE
GOVERNMENT OPERATIONS
213 CANNON HOUSE OFFICE BUILDING
WASHINGTON, DC 20515-4501
Congress of the United States
1 CHURCH STREET. SECOND FLOOR
TELEPHONE: 202-225-4115
BURLINGTON, VT 05401-4417
FAX: 202-225-6790
house of Representatives
TELEPHONE 802-862-0697
TOLL FREE: 800-339-9834
FAX: 802-860-6370
Washington, DC 20515-4501
January 7, 1994
The Honorable Hillary Rodham Clinton
The White House
Washington, DC 20500
Dear Mrs. Clinton:
As you know, I am one of over 90 members of the House who
has co-sponsored Rep. Jim McDermott's single payer health care
proposal. I have also been supportive of the provision of the
President's legislative proposal which provides a local option
for each state to establish a single payer system. Some states
like my state of Vermont are considering health care reform
legislation right now, well before Congress has the opportunity
to take up the President's proposal.
As that state-level battle heats up, opponents of the state
single payer option have been claiming that ERISA (The Employee
Retirement Income Security Act, 29 U.S.C. § 1001 et.seq.) stands
in the way of immediate implementation of single payer health
care reform in the states. They claim that the provisions of 29
U.S.C. S 1144 (a) which provides that ERISA supersedes "all state
laws insofar as they may now or hereafter relate to an employee
benefit plan" will also apply to a state single payer plan, and
that we must await Congressional amendment to proceed.
It is my view that this ERISA preemption argument is part of
a serious disinformation campaign being advanced to thwart
momentum toward health care reform. I am writing to enlist the
immediate assistance of the Clinton Administration in helping to
stop this disinformation.
A formal legal Opinion of the Attorney General concurring
with our analysis that ERISA does not stand in the way of
immediate implementation of health care reform, is vital. The
Hawaii health care case has already decided this issue. Standard
oil vs Agsalud 5663 F.2d 760 (9th Cir. 1980), aff'd 454 U.S. 801,
102 s.ct. 79, 70 L.Ed. 2d 75 (1981). While ERISA was held to
supersede Hawaii's employer mandate legislation, the court was
quick to distinguish it from "a state administered fund rather
than funds established or maintained by employers" such as the
Rhode Island Catastrophic Health Insurance Plan which required
the payment of money "to the State as a State." 633 F.2d at 765.
PRINTED ON RECYCLED PAPER
Hon. Mrs. Clinton
January 7, 1994
page two
Other Court decisions have held that a state tax of general
application which applies to employers or employees with ERISA
plans without regard to their status as ERISA participants, is
not preempted by ERISA. Firestone Tire and Rubber Co, vs, Neusser
810 F.2d 550, 556 (6th Cir. 1987). Where a state statute of
general application does not affect the structure, the
administration, or the type of benefits provided by an ERISA
plan, the mere fact that the statute has some economic impact on
the plan does not require that it be invalidated and is not
preempted by ERISA. Rebaldo vs Cuomo 749 F.2d 133 (1984).
In a single payer plan, a State uses its taxing and spending
powers to establish a benefits plan to which all citizens are
entitled. The states currently assess taxes on employers,
including those with ERISA health plans, to fund school nurses,
public health programs, state hospitals, and the states' share of
Medicaid. In our view a single payer system is simply more
comprehensive -- akin to public education where taxes are levied
to support a system in which everyone is entitled to participate
and would be unaffected by ERISA.
I recognize that the Justice Department cannot speak for the
Courts, and that in their final analysis this issue can and
should be settled by the President's health care reform
legislation. However, we need the administration's involvement
now. An opinion letter by the Attorney General concurring with
our analysis would be given great deference and respect, and
would be helpful in keeping my own and other states on the health
care reform track.
Thank you for your consideration.
Sincerely,
Bernard Sanders
Member of Congress
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