[Congressional Record Volume 140, Number 92 (Friday, July 15, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: July 15, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                    FACES OF THE HEALTH CARE CRISIS

  Mr. RIEGLE. Madam President, I rise again today to put a human face 
on the health care crisis in this country. Today, I want to tell you 
about Jim Teichert of my hometown of Flint, MI. Jim and his wife 
Phyllis, both age 61, are life-long residents of the Flint area. They 
have raised four children, and have three grandchildren. Jim is a 
framing carpenter by trade.
  In January 1980, the building company Jim worked for went out of 
business, as did many other businesses in Flint at that time. After he 
lost his job, Jim was stunned to discover that the company had already 
stopped paying the premiums for his employee health insurance, so he no 
longer had access to group coverage. Because of the poor economy, jobs 
were scarce. Jim decided to start his own contracting business, so he 
sold his house in the small town of Davidson and moved to Flint, and 
got his builder's license. He also looked into health insurance 
coverage and obtained a plan for himself and his wife at a cost of $198 
per month. The price was low because the plan only covered 80 percent 
of major medical expenses and did not include a deductible.
  Doctor's visits and prescriptions were not covered. But because they 
remained in good health, Jim and Phyllis were basically satisfied with 
their coverage. Phyllis did require some surgical procedures over the 
dozen years that they had the policy, including some major abdominal 
surgery, but they kept their out-of-pocket expenses to a minimum.
  The past 4 years have been difficult for the Teicherts, since the 
economy in Flint has not fully recovered from the recession of the 
1980's. In 1993, the Teichert's net income was less than $19,000. And 
although Jim had just signed contracts on two big jobs, he and Phyllis 
were forced to cut back on their expenses, including health insurance 
coverage.
  The premium had risen to a costly $308 per month, and so they decided 
to suspend their policy. Because the insurance company required 2, and 
then 3, months payment at a time, they just did not have the cash flow 
necessary to maintain coverage. Jim expected to reinstate their health 
coverage once he was paid for the jobs he had lined up.
  On March 4, 1994, just 6 months after canceling their health 
insurance, Jim suffered a heart attack while out on a job. Incredibly, 
he managed to drive himself the short distance to his doctor's office. 
He was immediately taken by ambulance to a hospital where he spent 6 
days, at a cost of $14,000. On March 23, the day before he was 
scheduled for triple bypass surgery, Jim suffered another heart attack. 
The bypass surgery was performed on March 25. Jim's medical charges now 
stand at a whopping $56,824. His ongoing needs include an $86 per month 
prescription medication to lower his cholesterol level, and costly 
periodic follow up visits.
  Although he is recovering, Jim's doctor advised him that he should 
not return to his remodeling and home repair business for at least 12 
months because the work is too strenuous and stressful.
  Since his heart attack and surgery, Jim has had to cancel two 
important jobs--essentially he has gone out of business. Phyllis has no 
income. Although she used to work at a department store, for the last 6 
years she has cared for her granddaughter in her home so that her 
daughter can work. The couple are now living on $600 a month from a 
disability insurance policy Jim purchased and paid off over 30 years 
ago. They also now receive food stamps. Jim is trying to work out a 
payment plan with the hospital, but without earnings or other 
assistance he does not have any means to offer reimbursement. Just 
after his first heart attack, hospital officials recommended that Jim 
apply for Medicaid. But his $600 a month disability policy makes his 
income too high for assistance.
  He has applied for Social Security Disability, and his case is still 
being considered. He has also applied for cash assistance from the 
Veteran's Administration. As a Korean war veteran, Jim would be able to 
go to a VA facility for any planned hospitalization he may require in 
the future. But he does not want to leave the care of his current 
doctor and cardiologist.
  For the past 44 years Jim Teichert has been a hard and honest worker, 
and a supportive and responsible spouse and father. Hard economic times 
forced him to gamble on going without coverage. He lost that gamble, 
and now he has not only lost his livelihood but he and his wife are 
overwhelmed by debt. They do not see how they can ever recover 
financially. Phyllis and Jim now live in fear of losing their house and 
everything they own.
  And the hospital is forced to charge more to their other patients, 
just to recover the cost of caring for Jim without payment.
  Madam President, we need to pass comprehensive health reform 
legislation that provides affordable health insurance coverage to 
struggling small business people and their families. We need to control 
the rising costs of health care so that coverage remains affordable, so 
that couples like Jim and Phyllis are not forced to choose between 
maintaining their coverage and paying other urgent expenses. I will 
continue to work with my colleagues in the Senate to pass comprehensive 
health legislation this year.

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