[Congressional Record Volume 140, Number 94 (Tuesday, July 19, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: July 19, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
               NEW YORK HEALTH INSURANCE COSTS SKYROCKET

  (Mr. STEARNS asked and was given permission to address the House for 
1 minute and to revise and extend his remarks.)
  Mr. STEARNS. Mr. Speaker, I would like to share with you a scenario 
about what can happen when individual insurers are required to charge 
the exact same premium for coverage to anyone who wants it, regardless 
of health status. This is exactly what the State of New York did in 
April 1993.
  Younger, healthier individuals will be overcharged for health care 
insurance while older less healthy individuals will be undercharged for 
their premiums.
  The goal of the New York legislation was to increase access and thus 
increase the number of people who were insured. The consequences, 
however, produced the opposite effect.
  As we strive to reform health care with universal coverage as a major 
goal, we must also have insurance reforms. We must provide certain 
safeguards to insure stability and solvency in the marketplace.
  Let us look at what happened in New York and learn a lesson from this 
as we move forward with health care reform.

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