[Congressional Record Volume 140, Number 71 (Thursday, June 9, 1994)]
[Senate]
[Page S]
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]

 
                    FACES OF THE HEALTH CARE CRISIS

  Mr. RIEGLE. Mr. President, I rise today to discuss the health care 
crisis facing our Nation. Yesterday, Senator Mitchell announced the 
support of over 1,300 businesses and groups for an employer based 
system. I have been a long-time supporter of universal health care 
coverage. In this letter, small and large businesses acknowledge their 
responsibility for providing health care coverage for their workers. 
And they recognize their role in making sure all Americans have 
coverage.
  For over a year now, I have been presenting the stories of Michigan 
individuals and families to put real faces on the health care crisis. 
These faces illustrate the absolute need for us to pass health reform 
legislation that provides universal health coverage.
  Today I want to share with you the story of Sherry Hamilton of Boyne 
City, MI., to illustrate the struggles of people whose employers do not 
offer insurance and must find individual coverage on their own.
  Sherry is a 48-year-old secretary and the mother of two grown 
children. Working full time, Sherry's annual salary is $17,000. She 
works in a small, two person ecology consulting firm that does not 
provide health insurance coverage, so she does not have insurance 
through her job. Her employer is covered under his wife's insurance 
plan, offered by her workplace.
  Until her divorce in 1988, Sherry received health insurance coverage 
through her husband. After the divorce, Sherry continued this coverage 
by paying the monthly $200 premium. The coverage was expensive for her, 
but she valued the comprehensive benefits.
  Then Sherry began experiencing numbness in her hands. In January 
1989, she was diagnosed with multiple sclerosis [MS], a chronic, 
disabling disease. Soon after, when her option to use her former 
husband's group rate expired, the insurance company raised her premium 
to $600 a month. This was a premium increase of 300 percent and 
represented over 40 percent of her income. She somehow managed to pay 
this outrageous price for 3 months while she looked for more affordable 
coverage.
  In March 1990, Sherry found and purchased a more affordable policy 
through Blue Shield. The premium is only $138 a month. But it does not 
cover her regular doctor visits or prescription drugs. Fortunately, 
Sherry's case of MS is not severe right now. She does, however, 
experience mild attacks and endures daily the general weakness that can 
characterize the disease. And it is not possible to predict whether her 
symptoms will worsen and disable her permanently.
  Last summer, the drug Betasron which relieves and prevents the 
symptoms of MS, became available on a limited basis. MS patients may 
enroll in a lottery for the drug through their physicians. The drug is 
then distributed to patients as their lottery number comes up. Sherry 
enrolled in the lottery and her number is due to come up early this 
summer. But Sherry's insurance does not cover prescriptions, and the 
drug treatment costs $10,000 a year, close to 60 percent of her current 
income.
  The drug manufacturer does have a program to assist individuals 
without insurance. But Sherry is not eligible for this assistance, 
because she is not uninsured. Sherry falls into the terrible category 
of the underinsured. She purchased the only coverage she could afford, 
a catastrophic policy that does not cover her actual treatment needs. 
But having that coverage makes her ineligible for the manufacturer's 
assistance program. Sherry faced poor options: to go without the drug 
which would relieve her symptoms or to impoverish herself to become 
eligible for some type of assistance.
  Last month Sherry was telling a friend of her dilemma. He suggested 
an insurance agent in town who might be able to help. To her surprise 
and great joy, the agent found an affordable, comprehensive group 
policy which was available to businesses, not individuals, through the 
Chamber of Commerce of a neighboring town. If Sherry's employer would 
subscribe to the program, Sherry could get affordable coverage which 
included prescriptions.
  As I tell this story, Sherry, her employer, and the insurance agent 
are negotiating a strategy for financing a heath insurance policy which 
will adequately cover Sherry and her employer. Sherry considers herself 
very lucky. She knows she could never expect to secure drug treatment 
if it were not for the help of her friends and her employer.
  Mr. President, Sherry is indeed very fortunate to be associated with 
so many caring people. But individuals should not be forced to depend 
on the kindness of friends to finance the health care they need. 
Working people with chronic illnesses should not need to consider 
impoverishing themselves to qualify for public assistance for health 
care coverage. When health coverage is not provided uniformly by all 
employers, larger groups get better coverage at cheaper rates. It then 
makes sense for people like Sherry and her employer to get their 
insurance through their spouses, rather then directly through their own 
workplace. But this leaves them vulnerable.
  I recently heard from B.M. Siegel, a jeweler from Grand Rapids, MI, 
who owns a small business. He wrote to let me know that he supports 
health reform with an employer mandate. He has been providing health 
insurance to his employees for several years. I quote from Mr. Siegel's 
letter:

       We feel that having employer payment for the plan would 
     only level the playing field. Our competitors, who do not 
     have a plan, have a cost advantage over us that is unfair . . 
     . It hasn't put us out of business to provide a health care 
     benefit and it shouldn't affect others . . .

  Everyone, including workers in small businesses, deserves 
comprehensive and affordable health care coverage. Small business 
owners, like Mr. Siegel, want to provide this for their workers and are 
asking for our help to level the playing field. An employer-based 
system builds on what works today and gets rid of the cost shifting 
that penalizes the businesses that voluntarily provide coverage. Mr. 
President, I will continue to work with my colleagues in the Senate to 
pass a health reform bill that provides universal coverage.

                          ____________________