[Congressional Record Volume 140, Number 48 (Thursday, April 28, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: April 28, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
               AN EMPLOYER MANDATE WILL STIFLE INNOVATION

  Mrs. JOHNSON of Connecticut. Mr. Speaker, if an employer mandate were 
enacted, my State would lose 14,300 jobs. That is more jobs than at 
Pratt & Whitney or more jobs than Electric Boat.
  As Congress discusses the use of an employer mandate as a means to 
finance health care reform, it is important to highlight the 
implications of imposing a new fixed cost on America's employers.
  Many of my colleagues will address the job impact of employer mandate 
further, so I want to touch on a critical component of reform, 
maintaining the innovative cost containment strategies that are working 
in the market today.
  We have heard a lot about preserving what works in our system. The 
issue of an employer mandate will separate those who really believe we 
should preserve our system's strengths from those who would rather 
throw out the system and start from scratch.
  Under our current 100 percent voluntary system, employers are engaged 
in many activities aimed at ensuring their employees are receiving the 
highest quality, cost effective care available in today's market. 
Rather than drop employee coverage altogether as costs increase, 
employers are actively engaged in programs aimed at reducing the rate 
of growth in their insurance and medical costs. These include wellness 
programs emphasizing healthy lifestyles, smoking cessation and employee 
assistance programs. Each and every one of these programs is offered 
under a 100 percent voluntary program. A mandatory system would cut 
them out.

            H.R. 4013 IS A RESPONSIBLE PIECE OF LEGISLATION

  (Mr. ROWLAND asked and was given permission to address the House for 
1 minute and to revise and extend his remarks.)
  Mr. ROWLAND. Mr. Speaker, H.R. 4013, which will come up for a vote 
later today under suspension of the rules, is a responsible piece of 
legislation. It is not a blanket exemption, but only protects services 
provided by the VA health care system. If we fail to pass this bill, 
the effect of OMB employment cuts on the 3 million veterans that are 
served will be devastating.
  Defeat of this bill may close up to 22 major hospitals. It can close 
clinic doors which serve millions of veterans. It may close specialized 
training programs for treating post-traumatic stress disorder, 
Alzheimer's disease, and AIDS.
  H.R. 4013 does not freeze employment levels. In fact, it specifically 
calls on VA medical centers to streamline where possible.

                              {time}  1210

  But it properly exempts those facilities from arbitrary cuts that 
will hurt our veterans.
  Now listen to this: the President's proposed Health Security Act 
calls on the VA to compete under a national health care reform. But 
within months after that legislation was introduced, OMB in the fiscal 
year 1995 budget proposed the first round of cuts of more than 25,000 
VA health care employees. The administration cannot have it both ways. 
The VA health care system cannot gear up for health reform if it must 
slash its employment levels. That just makes sense.
  The responsible vote today is a vote for H.R. 4013.

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