[Congressional Record Volume 144, Number 94 (Wednesday, July 15, 1998)]
[House]
[Page H5585]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 REPUBLICAN TASK FORCE TO RELEASE LANGUAGE ON MANAGED CARE REFORM BILL

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from New Jersey (Mr. Pallone) is recognized for 5 minutes.
  Mr. PALLONE. Mr. Speaker, this week the Republican health care task 
force here in the House is supposed to release the language for its so-
called managed care reform bill. And we know from what the task force 
has already released publicly that this bill will be a farce, a 
cosmetic fix that lacks some of the most important patient protections.
  Despite an avalanche of real-life examples of people who have died 
because their HMOs refuse to approve needed care, the Republican 
leadership has kowtowed to the insurance industry. The Republican plan 
will not allow patients to sue their HMOs when they are denied needed 
care.
  This weekend Senate majority leader Trent Lott announced that 
Republicans in the Senate are following suit. The Senate Republican 
bill will also deny patients the right to sue their HMOs. Unlike the 
Republicans' proposals, the Democrats' patient bill of rights would 
give patients the right to sue their HMOs.
  Although this provision is included in the Patient's Bill of Rights, 
support for giving patients a legal mechanism to hold HMOs accountable 
is hardly limited to Democrats in Congress. Federal judges around the 
country are increasingly frustrated by the Employee Retirement Income 
Security Act, or ERISA law, which is the source of the problem. ERISA 
shields HMOs and insurance companies from being sued by patients.
  I would like to give some examples, Mr. Speaker. Take the case, for 
example, of a Louisiana woman named Florence B. Corcoran. Miss Corcoran 
brought suit against her HMO after her fetus died following the HMO's 
refusal to hospitalize her for a high-risk pregnancy. After the suit 
was thrown out, the U.S. Court of Appeals for the fifth circuit in New 
Orleans said the Corcorans have no remedy for what may have been a 
serious mistake.

                              {time}  2300

  The court observed that the death of Mrs. Corcoran's unborn child 
would seem to warrant a reevaluation of ERISA so that it can continue 
to serve its noble purpose of safeguarding the interests of employees.
  There are other courts around the country, other Federal courts, that 
have also been critical of ERISA and the fact that patients cannot 
bring suit against their HMOs.
  In Boston, Judge William C. Young of the Federal court expressed his 
deep concern by the failure of Congress to amend the statute that due 
do the changing realities of the modern health care system has gone 
conspicuously awry. ``It is deeply troubling,'' Judge Young said, 
``that in the health insurance context ERISA has evolved into a shield 
of immunity which thwarts the legitimate claims of the very people it 
was designed to protect.''
  I could give other examples. I will give one more, Mr. Speaker. In 
San Francisco, the U.S. Court of Appeals for the Ninth Circuit ruled 
just last month than an insurance company that denied Ms. Rhonda Bast 
from Seattle treatment for breast cancer. She had died from the 
disease. ``This case presents a tragic set of facts,'' said Judge David 
R. Thompson. ``Without action by Congress,'' he added, ``there is 
nothing we can do to help the Basts and others who may find themselves 
in the same unfortunate situation.''
  I think that these examples clearly demonstrate the severity of the 
problem. From coast to coast, Federal courts are forced to tell 
patients and families of patients who have died that they would like to 
help but cannot. The law does not allow for it. The law does not allow 
for a patient to bring suit effectively for damages against an HMO.
  And this, I would remind my colleagues, is what the Republicans now 
are ardently defending. No matter what the cost, the Republican 
leadership will not break its alliance with the insurance industry and 
allow for adequate enforcement of patient protections.
  Giving patients the right to sue HMOs is an absolutely vital 
component of managed care reform. The right to sue is the enforcement 
mechanism through which all the patient protections we are advocating 
are to be protected. President Clinton summed it up best when he said 
the other day that ``a right without a remedy is not a right.''
  The public's support, Mr. Speaker, for true managed care reform I 
think has translated into an enormous amount of support for the 
Patients' Bill of Rights, the Democratic proposal, which offers the 
most comprehensive set of protections of any managed care reform bill 
in Congress today.
  Currently, the Patients' Bill of Rights has the support of over 175 
patients, physicians, consumer medical and public health groups. It has 
190 cosponsors in the House, including some Republicans.
  Despite this groundswell of grassroots support, the Republican 
leadership is still throwing up roadblocks to progress. Their are 
reports today that the Republican leadership may bring its sham 
proposal directly to the floor for a vote as early as next week.
  This week, supporters of the Patients' Bill of Rights will be working 
hard to gather support for the bipartisan Dingell-Ganske discharge 
petition, which was introduced before Congress adjourned for the July 4 
recess. This discharge petition would force the Republican leadership 
to allow the Patients' Bill of Rights to come to the floor for a vote. 
The discharge petition will play a crucial role in ensuring Members of 
this body are given the opportunity to vote on the Patients' Bill of 
Rights if the Republicans bring their sham proposal to the floor next 
week.
  I think, Mr. Speaker, it is time that we all took stock of the fact 
that if we are going to pass patient protections, and we certainly 
should, that it should be patient protections that is real managed care 
reform.

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