[Congressional Record Volume 140, Number 26 (Thursday, March 10, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: March 10, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                   STATE SAVINGS UNDER HEALTH REFORM

  Mr. KENNEDY. Mr. President, one of the principal aspects of the 
health care crisis we face is high costs that today's patchwork health 
care system imposes on all aspects of our economy--the public sector 
and the private sector alike.
  We all know the burden on the Federal budget. But for years, State 
budgets has suffered, too, from the soaring cost of Medicaid and the 
equally soaring health care costs for State employees and retirees. 
State spending on Medicaid nearly tripled in the past decade, consuming 
a greater and greater portion of limited State budgets. In 1992, 
Medicaid absorbed 17 percent of State spending, up from 10 percent just 
5 years earlier. In fact, with the exception of education, States spend 
more on health care than any other item in their budget.
  Like other employers, States have seen the cost of health insurance 
continue to escalate. Nationally, States spent almost $11 billion to 
insure their workers and retirees last year, up 45 percent over the 
past 3 years. In Massachusetts, the cost of insuring State workers more 
than doubled over the past 7 years, from $200 million in 1986 to $465 
million in 1993.
  When our patchwork health care system fails, it is often State and 
local governments are left holding the bag. Despite Medicaid and other 
measures, nearly 40 million Americans are uninsured today. Two million 
more lose their health insurance every month. Every day, doctors and 
nurses in the emergency rooms of public hospitals, in community health 
centers, and in local public health departments see the costs of not 
guaranteeing insurance coverage for all our citizens.
  We cannot afford to continue down this road. States need the relief 
that only universal coverage and cost control can bring. The national 
Governors Association recognized this when they overcame partisan 
differences earlier this year to endorse a resolution calling for 
Congress to pass a health care reform bill this year.
  We constantly hear critics of the President's plan talking about the 
high costs of health reform. But few of those critics talk about the 
even higher costs of doing nothing. No one can afford the status quo. 
States, employers, and families are all struggling under the weight of 
ever-increasing health care costs in a system where so many Americans 
fall through the cracks.
  Opponents of the President's plan argue that we cannot afford to 
guarantee health insurance to all Americans. I say, we can't afford not 
to reform the system.
  President Clinton's plan offers essential relief to everyone, and 
especially to hard-pressed State and local governments. The report 
released by the administration last week clearly shows that the 
President's plan will save State governments alone more than $45 
billion between 1996 and the year 2000. Every State will participate in 
these savings if the President's plan is enacted.
  In Massachusetts, the plan will save the State government $2.1 
billion during that period. Independent evaluations released by the 
Congressional Budget Office, Lewin-VHI, and the Urban Institute confirm 
that the President's plan will result in substantial savings for State 
governments.
  With health care costs under control, States can more effectively 
balance their budgets, provide tax relief for citizens, and invest in 
other pressing needs.
  Although the latest administration report focuses primarily on 
savings to State governments, it also demonstrates that comprehensive 
reform is in the best interests of business and workers. Nationally, 
employers who now buy health insurance for their employees will save 
almost $60 billion in the year 2000 alone under the President's plan, 
and workers in these firms will save almost $30 billion that year. 
These large savings means more investment by business, higher wages for 
workers, and a stronger economy for our country.
  The inexcusable toll exacted by our current health care system can no 
longer be ignored. Tinkering around the edges is not enough. 
Comprehensive reform is needed, and it is needed this year.

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