[Congressional Record Volume 141, Number 70 (Monday, May 1, 1995)]
[Extensions of Remarks]
[Page E892]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


WHY WE NEED NATIONAL HEALTH CARE REFORM: $38,696 FOR A HEALTH INSURANCE 
                                 POLICY

                                 ______


                        HON. FORTNEY PETE STARK

                             of california

                    in the house of representatives

                          Monday, May 1, 1995
  Mr. STARK. Mr. Speaker, we didn't pass health care reform last 
Congress, but the need for it didn't go away.
  I've just received a letter from a midwestern family, which shows how 
the Nation's insurance companies continue to behave in an irresponsible 
and capricious manner. This family of four, which says they have less 
than average health care expenses, had been using the COBRA health 
continuation provisions for 18 months at an annual rate of $5,556.97. 
With COBRA expiring, they wrote Connecticut General Life Insurance Co. 
to ask about converting to an individual rate policy.
  Following is their letter describing what happened. The company sent 
them a printed sheet in which they were invited to continue for the 
annual rate of $38,696.
  Mr. Speaker, Connecticut General obviously has no interest in writing 
policies for individuals. It met the letter of the law requiring that 
COBRA enrollees be offered a conversion policy--but their offer is a 
joke and an insult.
  When the Nation's insurance companies display this type of behavior, 
they are just refanning the flames for health care reform.
  The letter follows:
                                                   April 21, 1995.
     Re health care cost reform.

     Hon. Pete Stark,
     Subcommittee on Health, Ways and Means Committee, Longworth 
         House Office Building, Washington, DC.
       Dear Congressman Stark: I am writing to you because I 
     believe you would want information like this to help you make 
     informed judgments on health care issues that not only affect 
     me and my family, but affect millions of other people.
       I believe it is federal law that requires insurance 
     companies to offer group medical conversion policies to 
     individuals when they are no longer eligible to be part of 
     the group. Surely that legislation didn't intend to allow for 
     an insurance company, in this case Connecticut General Life 
     Insurance Company, to increase a family's premium from 
     $5,556.97 per year to $38,696.00 (over 590% increase) with a 
     higher deductible ($500) and lower R&B daily limit ($250).
       I paid a monthly premium of $463.08 for eighteen months 
     after leaving my teaching position. When I was informed that 
     I was no longer eligible for the group, I requested and 
     received the enclosed conversion quotes. I am sure that 
     Connecticut General Life Insurance Company's attorneys have 
     assured them that they are within the law when they quoted 
     such an unjust rate.
       I would hope that Congress would review and modify any 
     legislation that requires health insurance companies to offer 
     conversion policies, but allows them to do so in such an 
     unconscionable way.
           Sincerely yours,
                                                    ------ ------.
       Enclosure.
CONNECTICUT GENERAL LIFE INSURANCE COMPANY, A GROUP MEDICAL CONVERSION 
                       QUOTE--QUARTERLY PREMIUMS

       Rate quote for:------.
       Your age: 54.
       Your spouse status: Yes, age: 47.
       You have: 2 children.
       Today is: 03/02/95.
       Effective date: 03/01/95.
       Your ZIP: --

                   QUARTERLY COMPREHENSIVE PREMIUMS\1\                  
                                                                        
                                                                        
R&B daily limit......................    $100     $150     $200     $250
Surgical maximum.....................   4,500    6,000    7,500    9,000
                                      ----------------------------------
Deductible:                                                             
    $100.............................   9,959   10,363   10,787   11,208
    $250.............................   9,316    9,694   10,091   10,485
    $500.............................   8,596    8,945    9,310    9,674
    $1,000...........................   7,918    8,239    8,576    8,910
    $2,000...........................   6,915    7,195    7,490    7,782
\1\Choose the benefit provisions from the top of the chart with the     
  deductible from the side of the chart to determine the premium for    
  your particular plan.                                                 


                 QUARTERLY HOSPITAL/SURGICAL PREMIUMS\1\                
                                                                        
                                                                        
Hospital only:                                                          
    R&B daily limit.....................    $100    $150    $200    $250
    Premium.............................   2,781   3,357   3,828   4,189
Surgical only:                                                          
    Surgical maximum:...................   2,400   3,600   4,800   6,000
    Premium.............................     159     238     317     396
Hospital and surgical:                                                  
    R&B daily limit.....................     100     150     200     250
    Surgical maximum....................   2,400   3,600   4,800   6,000
    Premium.............................   2,940   3,595   4,145   4,585
\1\Choose hospital only, surgical only, or hospital and surgical as     
  indicated to determine the premium based on the benefit provisions.   

  

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