[Congressional Record Volume 142, Number 43 (Tuesday, March 26, 1996)]
[Extensions of Remarks]
[Page E452]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




REPUBLICAN HEALTH BILL WILL RIP-OFF SENIORS BY PERMITTING SALES OF BAD 
                           INSURANCE PRODUCTS

                                 ______


                        HON. FORTNEY PETE STARK

                             of california

                    in the house of representatives

                        Tuesday, March 26, 1996

  Mr. STARK. Mr. Speaker, the health insurance bill that was approved 
by the Ways and Means Committee last week contains language that 
completely guts the laws against Medigap fraud and abuse.
  The following letter from a consumer advocate explains why.
  It is another reason the House should pass a simple, pure Kennedy-
Kassebaum bill.


                               Senior Health Insurance Issues,

                                Scotts Valley, CA, March 20, 1996.
     Hon. Bill Archer,
     Chairman, House Committee on Ways and Means, Longworth HOB, 
         Washington, DC.
       Dear Chairman Archer: I am very concerned about an 
     Amendment by Mr. Collins that recently passed out of the 
     Committee on Ways and Means on Duplication and Coordination 
     of Medicare Related Plans. I have been a consultant on 
     Medicare, supplemental insurance and long term care insurance 
     for more than eighteen years to both state and national 
     consumer groups. I was very active in a lawsuit brought by 
     the Santa Cruz District Attorney against an insurance agency 
     for overselling duplicative and overlapping coverage to 
     seniors in 1989. We both testified repeatedly in both Houses 
     on this issue prior to the passage of OBRA 90.
       While there is a legitimate reason to carve out a narrow 
     exemption for disabled Medicare beneficiaries who have 
     purchased guaranteed issue major medical coverage that 
     duplicates and coordinates against Medicare, the Collins 
     Amendment does not even address that issue. The proposed 
     amendment language rolls back all federal and state 
     protections since 1980 against selling multiple and duplicate 
     policies to seniors on Medicare. This Amendment would allow 
     companies and agents to sell seniors any amount and 
     combination of policies on top of their Medicare and a 
     Medicare Supplement. This practice has a long and disgraceful 
     public history that led Congress to take action several times 
     over the last two decades.
       Not only would the proposed language repeal all federal 
     protections, it would repeal all existing state laws and 
     prohibit the enactment of any future state laws to protect 
     elderly consumers. In addition to allowing the sale of 
     excessive and duplicative coverage, it would also allow 
     companies to coordinate those benefits against Medicare and 
     other existing health benefits.
       I find it very hard to believe that this Congress would 
     allow these practices to resume and strip states of their 
     rights to protect their own citizens from these abusive 
     practices. Good public policy demands that seniors make the 
     best use of scarce premium dollars and use any excess towards 
     providing for their long term care needs, not the purchase of 
     unnecessary duplicate coverage. I urge you to take a closer 
     look at this issue.
           Sincerely,
                                                     Bonnie Burns,
     Consultant.
                                                                    ____



                               Senior Health Insurance Issues,

                                Scotts Valley, CA, March 20, 1996.
     Hon. Newt Gingrich,
     Speaker, The Speakers Office, House of Representatives, 
         Washington, DC.
       Dear Speaker Gingrich: Enclosed are copies of letters I 
     have written commenting on the recent proposed federal 
     legislation on tax clarification of long term care insurance 
     and on duplication of medical benefits for people on 
     Medicare. I understand that both of these issues will be 
     voted on the floor shortly in one or more bills related to 
     health insurance reform. These legislative proposals are 
     almost identical to language contained in the Budget Bill 
     that garnered many of the same concerns. I hope you will 
     consider the issues I have raised in my letters to the Chairs 
     of the various committees and subcommittees. These are 
     extremely important issues that have profound repercussions 
     for older consumers.
       Stripping states of their rights to regulate consumer 
     protections within their borders for their oldest and most 
     vulnerable citizens is not consistent with your desire to 
     allow states more flexibility and choice. Is it your public 
     policy position that overinsurance for health care costs in 
     the oldest and sickest populations is a desirable outcome? I 
     can't imagine that you want to see seniors using their scarce 
     health care premium dollars that should be spent on long term 
     care coverage used to purchase unnecessary and excessive 
     health care coverage.
       Please take a careful look at these issues.
           Sincerely,
                                                     Bonnie Burns,
     Consultant.

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