[Congressional Record Volume 140, Number 45 (Thursday, April 21, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: April 21, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
         HOW CAN WE KEEP PAYING EVER HIGHER INSURANCE PREMIUMS?

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                        HON. FORTNEY PETE STARK

                             of california

                    in the house of representatives

                        Thursday, April 21, 1994

  Mr. STARK. Mr. Speaker, the American people cannot continue to afford 
the ever increasing medical insurance premiums nor can they tolerate 
the threats of policy discontinuation. While we strive for universal 
coverage, high insurance premiums counteract this goal. I have received 
innumerable letters and phone calls from people telling their stories 
of insurance woes. They have told me about premium increases, threats 
of cancellation, preexisting condition clauses, and so on. We need to 
pass legislation to alleviate these problems and fears. The following 
are excerpts from one letter that demonstrates these problems. It is 
from Dr. Susan Schrager of South Weymouth, MA:

       I just received a bill from State Farm Health Insurance in 
     Ballston Spa, New York for my annual premium. Are you ready? 
     It is for a lump sum of $7,712.00 plus an additional $145.60 
     for a hospital indemnity. This is not a family premium. It is 
     for one person. How can we keep paying ever higher premiums? 
     This bill is up more than a thousand dollars from last year! 
     Also, most of my prescriptions aren't even covered!
       Why don't I go to another insurance company? In 1985, my 
     work took me to India where I picked up a bug. I finally had 
     to resign from my work in November of 1989. My doctor said 
     that if I didn't rest and follow his prescribed regimen, I'd 
     be dead in five years. I did and I am well now and will 
     return to work in the Fall. State Farm paid very little 
     towards my medications. I paid thousands out of my own 
     pocket. However, I now have a ``pre-existing condition'' 
     (even though I am cured) and may not get other insurance. On 
     top of this, State Farm threatened to cancel my policy last 
     year!

  Mr. Speaker, how can we hope for universal coverage if it is not 
affordable or accessible? H.R. 3600, would include a single deductible 
of $500 per individual/$750 per family and coverage of outpatient 
prescription drugs, with an additional $500 deductible, 20 percent 
cost-sharing, and $1,000 out-of-pocket cap. It would also prevent 
health plans from denying coverage to any eligible group or individual. 
Under our reform bill, Dr. Schrager's annual health insurance bill 
would be under $2,000 and she would not have the fear of loss of 
coverage.

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