[Congressional Record Volume 140, Number 104 (Tuesday, August 2, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: August 2, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                           HEALTH CARE REFORM

                                 ______


                           HON. LARRY COMBEST

                                of texas

                    in the house of representatives

                        Tuesday, August 2, 1994

  Mr. COMBEST. Mr. Speaker, I would like to address some of my biggest 
concerns with the ongoing debate on health care reform.
  I believe that the proposed Clinton health care reform plan mandating 
insurance coverage, in any of its many guises, would devastate the 
economy of this Nation.
  Currently, many of the strengths of our economy are based upon ``Mom 
and Pop'' enterprises--small businesses. They employ an ever increasing 
number of workers, while the percentage of the employment provided by 
the great multinational corporations continues to shrink. Yet the 
successful small business is a rare and fragile organization. Right 
now, only 3 of 10 new small businesses will survive their first 5 
years.
  Another threat is now held over fledgling enterprises in the form of 
employer mandates.
  Small businesses generally pay 10 to 40 percent more for health 
insurance than large companies. The majority of small businesses spend 
more than 12 percent of their payroll on health insurance. One can see 
very easily that when a small business with a small fixed labor cost is 
forced to pay more for their employees' health insurance, that firm 
will need to lay off employees to make up the difference. But that is 
not just my opinion; several studies evaluated the effect the proposed 
mandates would have on our Nation's economy. The following statistics 
are startling:
  Estimates have been made that between 1 and 2 million workers would 
lose their jobs in this country;
  The State of Texas alone would lose between 51,000 and 68,000 jobs;
  Nearly half of all jobs lost nationally would occur in firms with 
less than 100 employees;
  One-third of small businesses say any mandate would put them out of 
business;
  Those most likely to lose their jobs would be low-wage workers with 
families;
  Nationally, we could see a drop of as much as $93 billion in lost 
wages;
  Personal income would drop for Texans by more than $7 billion.
  Many of the issues that are key to successfully reforming our health 
care system already enjoy bipartisan support: optional medical savings 
accounts; health insurance portability; the elimination of the ban on 
preexisting conditions; medical malpractice reform; product liability 
reform for FDA approved drugs and devices; incentives to eliminate 
waste, fraud, and abuse in the health care system; and the reduction of 
paperwork. All this could be achieved without additional Federal 
spending, thereby eliminating the need for costly employer or 
individual mandates.
  I believe that we should proceed with caution in enacting any reforms 
to the health care system. We stand to lose far more than we might 
gain.

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