[Congressional Record Volume 140, Number 71 (Thursday, June 9, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: June 9, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                              HEALTH CARE

                                 ______


                           HON. SCOTT L. KLUG

                              of wisconsin

                    in the house of representatives

                         Thursday, June 9, 1994

  Mr. KLUG. Mr. Speaker, I rise today to thank the members of my Small 
Business Advisory Council, who working in Wisconsin for nearly 8 
months, have developed their own recommendations for health care 
reform.
  While Washington lobbyists and policy analysts are greatly involved 
in the current debate, I asked the people who would be most directly 
affected by the changes to offer their suggestions. As small business 
owners in Wisconsin's Second Congressional District, they are on the 
front lines dealing with health care concerns every day. That's why 
it's especially important to listen to what they have to say.
  I congratulate the 39-member working group for their diligence and 
hard work. In Congress, we know how difficult it is to craft new ideas, 
reach a consensus and draft a plan. My constituents shared many of the 
same frustrations we face in Washington, but were committed to 
producing a product that would add to this debate. Their concepts and 
conclusions, which follow, clearly meet that goal. I wanted to share 
their work with you and have forwarded the report to President and Mrs. 
Clinton for their review.

Wisconsin Second District Small business Advisory Council Offers health 
                          Care Recommendations


                              introduction

       The Health Care Working Group of the Second Congressional 
     District Small Business Advisory Council finalized its 
     recommendations to Congressman Scott Klug and his colleagues 
     on March 9, 1994. This ended several months of hard work. The 
     group met four times to develop its proposal.
       The group worked under the assumption that health care 
     system reform will occur in the near future. Under these 
     circumstances the group felt it was not only necessary to 
     offer a critique of the Administration's plan, but to offer a 
     framework and constructive alternative of its own. As the 
     health care discussion continues in Washington, the group 
     hopes that the concerns of small business will be heard 
     throughout the debate.


                                concepts

       Discussion began on what the group felt should be included 
     in health care reform:

                    (1) Universal access to coverage

       There was a strong feeling that access to reasonable health 
     care coverage be available to everyone that wants it. 
     Barriers should be removed and direct assistance should be 
     provided to the poorest families who would have the most 
     difficulty in attaining coverage.

                            (2) Portability

       Members of the group agreed that portability is a necessary 
     part of any plan. If an individual changes a job, his/her 
     insurance should follow them to the new position. There would 
     be a ban to barring one's access to insurance based on pre-
     existing conditions.

                     (3) State control/flexibility

       Members recognize that most programs are more efficiently 
     managed at the state and local level rather than by the 
     federal government. Federal regulations should not damage a 
     state's ability to tailor its health care policies to the 
     needs of its residents. If a state has devised a plan with 
     good standards, the federal government should do nothing 
     to stand in its way. The group recognized that there will 
     have to be certain national standards to cover issues such 
     as portability when an individual takes a new job in 
     another state.

                     (4) Individual responsibility

       The health care legislation should not be so comprehensive 
     as to be a burden on the taxpayer and the economy. 
     Individuals should still be partially responsible for their 
     coverage. The group felt it is not unreasonable to provide 
     for deductibles and copayments.

              (5) Target plan to those currently uninsured

       Statistics show that currently about fifteen percent of the 
     population is uninsured. Of those who are insured, about 
     eighty-five percent are relatively satisfied with their 
     coverage. There was a general feeling that under these 
     conditions, it is unnecessary for the entire health care 
     system to be overhauled. Direct subsidies should be provided 
     to those who are uninsured because they cannot afford 
     coverage. Also serious consideration should be given to 
     requiring individuals who do not have insurance (but who can 
     afford it) to purchase some kind of coverage. If these 
     individuals are uninsured, the rest of society ends up paying 
     the bill.

                           (6) Tax incentives

       The working group recognizes that it is far more preferable 
     to create incentives for coverage rather imposing mandates. 
     Tax incentives should be offered to encourage contributions 
     and saving for health insurance. This could be very similar 
     to the medical IRA proposal currently introduced in Congress. 
     Currently there are Cafeteria Plans or Section 125 Plans 
     which utilize this principle. The proposal should preserve 
     and expand on what is working in the current system. The plan 
     should not destroy the incentives this creates for 
     individuals merely for the sake of trying to find additional 
     revenue sources to fund a new bureaucracy.

      (7) Standardization of forms/reductions of excess paperwork

       The group firmly believes that health insurance 
     applications and claim forms should be standardized. This 
     would save time and money both for individuals and businesses 
     who file these forms. Hopefully this would result in less 
     paperwork. Other initiatives to achieve greatly reduced 
     paperwork should also be aggressively pursued.

                       (8) Meaningful tort reform

       The group understands that a significant contributor to 
     rising health care costs is exorbitant awards being provided 
     in malpractice and liability lawsuits and the associated 
     increase in premiums physicians and other health care 
     professionals must pay for insurance. It is no surprise that 
     much of this cost is passed along to the health care 
     consumer. While members agree that reasonable monetary 
     redress should be given to individuals who suffer damages, 
     they also feel that many of these awards have gotten out of 
     hand. Limits and stricter guidelines should be established on 
     these awards.

            (9) Personal responsibility for one's own health

       There was some disagreement as to who will set the 
     standards which determine what is healthy behavior and what 
     is not, and how far the legislation should go in promoting 
     this. For example, people who do not smoke should have lover 
     premiums (as is currently the case in many health insurance 
     policies). But how would one determine what is overweight or 
     what level of exercise a person should do every day? While 
     many felt that some incentives should be offered, others 
     cautioned that the wording in any such legislation should be 
     limited and carefully written so not as to abridge individual 
     rights or privacy. Some believed this should not be a part of 
     the legislation at all.


                               proposals

       After discussing the basic framework of the plan, the group 
     wanted to go on record to make sure policy makers knew what 
     pending health care legislation should avoid:

                   (1) No new mandates/payroll taxes

       The group unanimously opposed the imposition of any new 
     mandates on business or new payroll taxes. Members feel that 
     these would cause one or any combination of the following:
       (a) Businesses closing down.
       (b) Layoffs.
       (c) Reductions in other fringe benefits.
       (d) Salary/wage cuts.
       (e) Increased prices for consumer goods and services.
       This is the part of the Administration's plan which is most 
     fervently opposed. Many of the business owners cannot 
     understand why they would be targeted with increased taxes 
     and mandates at a time when they are struggling to break 
     even.

              (2) Do not penalize firms with own solutions

       If there is a business that has found a creative solution 
     to provide health care coverage to its employees, the 
     government has no business interfering with that company's 
     operations. One example is Stoughton Trailers, Inc. which has 
     developed a system of its own. The company pays for half the 
     premiums of its employees. There is a $100 deductible per 
     person and $300 per family. There is a 200% co-pay required 
     for the first $2000 per person. Everything is covered beyond 
     that figure. With a few exceptions, most health care services 
     are included in Stoughton Trailers' plan. Cost for an 
     individual is approximately $62 per month or $150 per family. 
     Company officials estimate that the Administration's health 
     care proposal will cost them $1,000,000 more per year and be 
     a significant financial burden.

                         (3) No new bureaucracy

       Council members feel that any new plan should result in 
     less bureaucracy and red tape. They are particularly 
     concerned about the National Health Board and vast regional 
     alliances that will be established if the Administration's 
     plan becomes law. Members feel this will only create a 
     massive new bureaucracy and will result in increased costs, 
     just the opposite of the intended effect.


                           status in congress

       In the spring of 1994, the Administration and the 
     Congressional leadership had set a goal of Memorial Day for 
     the legislation to be reported out of the various committees. 
     Memorial Day passed and the Administration was unable to 
     achieve this goal. The date for committee action has been 
     revised to come before the July 4th recess with votes taken 
     by both Houses prior to the August recess. Most of the delay 
     appears to center around the opposition of many members of 
     Congress from both sides of the aisle to an employer mandate 
     as envisioned by the Administration. The Administration has 
     given no indication as of this writing that it will drop or 
     substantially modify the employer mandate requirement.
       Plans have been reported out of the House Ways and Means 
     Committee and the House Education and Labor Committee on the 
     subcommittee level. The full committees are expected to act 
     shortly. The House Energy and Commerce Committee is currently 
     deadlocked. Similar committee work is processing in the 
     Senate.


                                summary

       The Working Group believes that serious health care 
     problems exist in this country. The group wants to be part of 
     the debate and offer constructive solutions. The foundation 
     of the plan should be universal access to coverage and should 
     include portability and a ban on pre-existing condition 
     exclusions. Personal responsibility and prevention should be 
     key parts of the plan. The plan should target those who are 
     uninsured, rather than try to impose solutions on those parts 
     of the system which are currently functioning well. The 
     program should result in less bureaucracy and no new mandates 
     or payroll taxes should be imposed on small business.
                                  ____


  Second District Small Business Advisory Council Health Care Working 
                                 Group

       Jeff Raymond, Madison (Chairman), The Raymond Group.
       Stephen J. Byrne, Monroe Bytec Management, Inc.
       Richard Zondag, Randolph J.W. Jung Seed Co.
       Ray Francois, Belleville Francois Sales and Service.
       Mike Flint, Madison Mallatt Pharmacy.
       James Eldridge, Madison America Family Insurance Group.
       Carol Koby, Madison Koby Communication Services, Inc.
       Michael Sherry, Stoughton Sherry Pharmacy, Inc.
       Ron Birkett, Blanchardville Ron Birkett Insurance.
       Rick Unbehaun, Richland Center Pratt Funeral Service.
       Gary Fusch, Reedsburg Farmers and Merchant Bank.
       Marv Conney, Madison Conney Safety Products.
       William Meddings, Madison Ray W. Baer and Sons, Inc.
       Hans Lenzlinger, New Glarus New Glarus Hotel, Inc.
       Donald Pierce, Baraboo Pierce's Pic-N-Save, Inc.
       Don Wahlin, Stoughton Stoughton Trailers, Inc.
       Byron Wickham, Lodi Wickham's Water Service, Inc.
       Jack Crescio, Randolph Jack's Pride Farm, Inc.
       Larry Swalheim, Cottage Grove Cenex.
       Gerry Ayers, Ridgeway Ayers Furniture.
       Ken Kopp, Madison Kopp's Grocery.
       Donald Lichte, Reedburg Lichte Insurance, Inc.
       Neil Kruschek, Waunakee Neil's Village Liquor.
       Paul Paulson, Monroe Paul's Mens Wear, Ltd.
       Brian Mitchell, Spring Green.
       Mitchell Construction.
       Marge Powell, Madison Marge's Amoco.
       Jim Isenberg, Baraboo Isenberg's Hardware.
       Dennie Jax, Mazomanie Mazomanie Quick Stop.
       Daniel Kessenich, Cottage Grove, Kessenich's General Store.
       Mr. Jerry Fabick, Madison, Mr. J. Gibbons, Fabco Equipment, 
     Inc.
       Jan Fedler, Madison.
       Marly Van Camp, Mt. Horeb Her Closet.
       John Jeffery, Middleton Winter Silks.
       Paul Meyer, Sauk City.
       Paul Ernst, Middleton Harbor Athletic Club.
       Steve Slinde, Stoughton, Tom Kosmicki, Nelson Industries.
       Paul and Annie Brewer, Sun Prairie C.R.S.I.
       John Ingrisano, Mazomanie Custom Communications.

                          ____________________