[Congressional Record Volume 140, Number 58 (Thursday, May 12, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: May 12, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                    FACES OF THE HEALTH CARE CRISIS

  Mr. RIEGLE. Mr. President, I rise once again in my continuing effort 
to put faces on the health care crisis in our country. Today, I want to 
share the story of Darwin and Helen House from Greenville, MI. Mr. and 
Mrs. House are early retirees who are no not yet eligible for Medicare 
and are currently facing a 250-percent increase in their health 
insurance premiums.
  Darwin, age 63, and Helen, 58, both worked for the Frigidare Co. for 
many years. Darwin retired in January 1991 after working 40 years with 
the company's service department. Helen retired 2 years later, in April 
1993, after 20 years as a clerk in the Accounting Department. Upon 
retirement, both Mr. and Mrs. House were younger than 65 years old and 
consequently they were not yet eligible for Medicare health benefits. 
Therefore, they kept their employer-based private health insurance 
policy after their retirement.
  Under their retiree insurance policy, the Houses pay half of the 
total cost of the monthly premium and their former employer pays the 
other half of the premium cost. Their policy covers 80 percent of their 
health care costs after a yearly deductible of $150 per person. In 
1993, the Houses' premium share was $96 per month, or one-half of the 
full premium of $192 per month.
  In January 1994, the Houses received a letter from their former 
employer stating:

       As expected, health care costs have continued to increase 
     dramatically. Effective January 1, 1994 the premium for your 
     medical coverage was increased to $481.01 per month of which 
     you are responsible for 50 percent or $240.50.

  This represents a 250-percent increase over the previous year's 
premium cost. The Houses were given no advance notice of this 
increase--the change was effective immediately.
  The Houses live on a fixed income of $2,000 per month from pension 
benefits. The health insurance premium cost absorbs 75 percent of 
Helen's pension check each month. There is no guarantee that next year 
the premiums will not increase again. In fact, the company put a 
disclaimer at the bottom of the most recent premium increase notice, 
giving it the right to terminate, suspend, amend, or modify the group 
health benefits at any time. The Houses have no guarantee that their 
benefits will not be taken away.
  The Houses cannot afford to be without health insurance at a time in 
their lives when they may need it the most. Fortunately, both Darwin 
and Helen are relatively healthy. Darwin must take medication to 
control his cholesterol levels and Helen requires ulcer medication to 
treat a stomach problem. Their policy covers 80 percent of the $180 
total cost per month for the two prescriptions.
  Mr. President, it is important that early retirees, like Helen and 
Darwin House, have access to affordable health insurance that can never 
be taken away. The President's health reform plan contains provisions 
that guarantee that all early retirees would have affordable health 
care coverage. It would also end the outrageous increases in premiums 
that threaten early retirees living on fixed incomes. I will continue 
to work with the administration and my fellow members of Congress to 
make sure that comprehensive health care reform that includes relief 
for early retirees is enacted this year.

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