[Congressional Record Volume 140, Number 112 (Friday, August 12, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: August 12, 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 in my continuing effort to 
illustrate the need for health care reform. Today, I would like to tell 
the story of Gary and Joann Smith from my hometown of Flint, MI. [Their 
names have been changed at their request.]
  Gary worked as a bricklayer for the Jones and Simpson Construction 
Co. for more than 40 years. He was a member of Brick Layers Union Local 
No. 12 and has been retired for the last 6 years. He is 66 and his wife 
Joann is 69. Joann has never worked outside the home.
  While Gary was employed by the construction company, he and his wife 
received comprehensive health care coverage, including prescription 
drugs, through Blue Cross/Blue Shield of Michigan. They incurred no 
out-of-pocket expenses. When Gary retired in 1988 at age 60, the 
company offered continued health coverage, as a retiree benefit, that 
cost the Smiths only $100 per month.
  With affordable coverage and enjoying good health, Gary and Joann 
felt confident that their health care needs would be met throughout 
their golden years. When Gary became eligible for Medicare, their 
retiree health policy continued to provide supplemental coverage for 
prescription drugs, dental, and vision services.
  But on February 22, 1994, Gary required emergency surgery to treat an 
aneurism. During his hospital stay, Gary was notified that his 
supplemental policy would be canceled as of April 1, because the 
company was going out of business. All retirees would lose their 
coverage.
  This was a terrible blow for Gary and Joann, as well as for all the 
other retirees who lost coverage, who knew the difficulty they would 
face in finding affordable health insurance.
  Since his surgery, Gary has required constant medication. Joann takes 
medication to treat high blood pressure and severe allergies. She is so 
unsettled by their loss of prescription drug coverage that she is 
delaying getting care for a recently diagnosed kidney problem because 
she is afraid that they cannot afford drug treatment for her husband 
and herself.
  Gary and Joann live on monthly income of $2,000. Their drug costs now 
average $400 per month, or 20 percent of their income. The loss of 
prescription drug coverage has left them feeling vulnerable and 
insecure. They are distraught that the savings that were supposed to 
last them through their retirement may be eaten up by ever increasing 
medical costs that they never imagined they would have to pay. Despite 
his fragile condition, Gary has attempted to work doing some small side 
jobs to supplement their income, but such work leaves him utterly 
exhausted.
  Once secure and looking forward to their retirement years, the 
Smith's are now frightened and left wondering how they will afford to 
pay these ever increasing prescription drug costs.
  Mr. President, rising health care costs have forced companies across 
the country to cut benefits to retirees who though their coverage was 
guaranteed. Because Medicare does not cover prescription drug costs, 
our seniors are losing any sense of security for their later years. 
Senator Mitchell's health reform bill would add affordable drug 
coverage to Medicare and guarantee access to comprehensive coverage to 
everyone. Mr. President, I will continue to work with my colleagues to 
pass a health care reform bill this season.

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