[Congressional Record Volume 141, Number 138 (Thursday, September 7, 1995)]
[Extensions of Remarks]
[Page E1734]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                HEALTH INSURANCE HORROR STORY FROM TEXAS

                                 ______


                        HON. FORTNEY PETE STARK

                             of california

                    in the house of representatives

                      Thursday, September 7, 1995
  Mr. STARK. Mr. Speaker, over the years, I've entered a number of 
letters from fellow citizens detailing the outrageous failures of our 
current health insurance system.
  I'd like to share with you a letter from the Carawan's of Aransas 
Pass, TX, which details the crushing increase in health insurance 
premiums for a family which has had health problems but which has 
incurred little health expense in the last few years. Clearly, their 
insurance company wants to force them into giving up their policy--but 
with no protection against pre-existing condition exclusions, the 
Carawan's have no where to turn.
  Their family policy started 8 years ago at $3,096 a year with a 
deductible of $2,000. It is now $3,645.90 a quarter with a $3,000 
deductible.
  Mr. Speaker, I regret we did not pass H.R. 3600 last year. It would 
have required the kind of open enrollment, no-pre-existing condition, 
community-rated policies which would save the Carawan's and millions of 
other Americans from being priced-out of the insurance market. 
Following is their moving letter on why we so desperately need health 
insurance reform:

       Dear Congressman: Today we received notice that our health 
     insurance was going to be increased by 30% on July 1, 1995. 
     In January, 1994, our quarterly premiums for my husband and I 
     for a $3,000.00 deductible were $1,770.00. The quarterly 
     premium on July 1, 1995 for the same coverage will be 
     $3,645.90 or $14,583.60 a year. Eight years ago when we 
     purchased this plan for our family the premiums were $258.00 
     quarterly or $3,096.00 a year. (Note the deductible at that 
     time was $2,000 and has been increased not by our choice to 
     $3,000.00). I have spoken to my insurance carrier and they 
     claim the large increase is due to the high loss ratio in the 
     group we are in. Since January, 1994, my husband and I have 
     paid in a total of $12,641.00 in premium and had a total of 
     $584.10 in claims.
       The stress from this impossible increase will surely 
     increase our chances of recurring illness. My husband and I 
     both have had cancer and we know what a financial strain a 
     serious illness can cause with health insurance coverage and 
     we can't imagine how we could handle such a situation without 
     any protection. We also realize that we cannot qualify for 
     another plan even though it has been over six years since 
     either of us have been hospitalized. Do we pay the increased 
     premiums until we deplete all our financial resources or do 
     we save the premiums and try to self-insured knowing we could 
     not possibly save enough for a possible needed heart or liver 
     transplant. There is not a simple answer.
       My husband who is age 55 and I, age 54, are both self-
     employed. I am an insurance agent and my husband is a 
     commercial shrimper. My husband is a veteran of the Vietnam 
     war with 8 years service to our country. We have always 
     worked, paid our taxes, and tried to be responsible 
     Americans. We have always tried to protect our family with 
     insurance coverage and have never asked for a free handout 
     from our government. It is not fair at this time in our life 
     to be faced with such a dilemma from no fault of our own.
       As a representative of our country, I plead with you to 
     take note of the health care problem and act on what is 
     happening. We cannot keep on much longer the way things are 
     now. If something is not done soon, only the rich and the 
     poor (those on disability or very low income supplemented by 
     our government) will be able to receive medical care. What 
     will happen to the middle class worker that has no company 
     benefits?
           Respectfully,
                                               Frances R. Carawan,
                                                 Aransas Pass, TX.
     

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