[Weekly Compilation of Presidential Documents Volume 30, Number 26 (Monday, July 4, 1994)]
[Pages 1379-1383]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Remarks to the Small Business Coalition for Health Care Reform

June 30, 1994

    Thank you so much, Brian McCarthy, for your testimony and your 
enthusiasm and the incredible work you've done. Thank you, Mike and 
Micki, for what you have said today. Thank you, Butler Derrick, for 
sticking your neck out and going through this big fight. I thank 
Congressman Gephardt, Congressman Bonior, Congressman Fazio, all the 
Members of the House who are here today.
    And I want to say a special word of thanks to Erskine Bowles, the 
Administrator of the

[[Page 1380]]

SBA. You know, when I asked him to do this job, I pointed out that, even 
though he was a supporter of mine, his primary qualification was that he 
was not a political appointment; he was someone who had spent a lifetime 
helping people to start and to expand small businesses. So when he came 
to me and said, ``The biggest winners in this health reform plan will be 
small business; I don't understand why the NFIB is campaigning against 
you,'' I knew if we could get the truth out, the facts, we could have a 
day like today. I thank him for that, and I thank all of you for being 
here, too.
    You know, we have established again today that an awful lot of small 
business people in this country do support universal coverage, are 
prepared to contribute to the health coverage of their employees, and 
understand that without a system that requires everybody to be involved 
in health care, small business will continue to get the short end of the 
stick.
    Now, there are powerful interests in this country and here in 
Washington who have spent millions and millions of dollars to convince 
the American people otherwise. Your presence here today is a sharp 
rebuttal to what they have tried to do. There are about 50 Members of 
Congress here today who have felt the relentless pressure of all that 
organized lobbying, but instead of giving in to it, they've been 
thinking about you and sticking up for you and standing up for you. And 
I think you ought to stick with them and encourage others to join with 
you.
    I do want to reiterate what Brian has already said. The Small 
Business Coalition for Health Reform now represents over 620,000 small 
businesses. That is the most astonishing growth in such a short time. He 
came up with--he knows I love charts, so he gave me a chart to prove 
that. [Laughter] But what that means is that when 4,700 small businesses 
a day come on board to an organization like this, those who claim to 
speak for small business and claim to say it would be good for small 
business if we continue to have the status quo, do not, in fact, do it.
    We know that you're a young organization. You don't have television 
ads on the air. You don't have mass mailings going out, but you 
represent more real American businesses and their employees than the 
NFIB with their intense disinformation campaign about our health care 
reform effort.
    Now, I want to just try to put this in some perspective for all of 
you from my point of view as well as yours. I ran for President because 
I wanted to get the economy going again and I wanted to make Government 
work for ordinary people again, to actually solve problems, and to be a 
partner. I'm about to leave, on July 5th, for the so-called G-7 meeting, 
the meeting of the world's seven big industrial powers. And as I look 
back on the last year and a half, as I go into this meeting, I feel 
pretty good.
    The United States has 40 percent of the annual income of those seven 
countries. But in the last year and a half we've had 75 percent of the 
growth, generated 100 percent of all the new jobs, had 3 times as many 
private sector jobs come into this economy as in the previous 4 years; 
1993 had a record number of new business incorporations in America. Our 
investment is growing more quickly, our productivity is growing more 
quickly than all of our major competitors. Our exports are growing at 
twice the rate of the average of all of our competitors. The economy is 
moving again.
    But as I look down the road and I think about the context in which 
we operate, I know that the economic plan we passed last year and the 
budget plan we passed this year had a lot to do with that. We're going 
to reduce the deficit 3 years in a row for the first time since Harry 
Truman was President of the United States.
    This year's budget eliminates over 100 Government programs, cuts 200 
others, reduces domestic discretionary spending for the first time in 25 
years. The other folks talked a lot about cutting spending and the 
deficit; we are delivering that to you. And still we have increased our 
investment in education, in training, in new technologies. Last year in 
the economic plan there was a 70 percent increase in the expensing 
provision for small business, which made 90 percent of the small 
businesses in this country eligible for a tax cut if they invested more 
money in their businesses.
    Now, I believe that this is the direction we should take. But let's 
face it, if we want to see America strong and growing, if you

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want our deficit to continue to come down, if we want to see every year 
a record number of small businesses starting, we have got to find a way 
to deal with this health care problem.
    The only thing that's going up in the budget, folks, faster than the 
rate of inflation, is the cost of Medicare and Medicaid. That's it. 
We're bringing down everything else. And yet, still, those of you who 
cover your employees are paying for cost shifting for people who don't 
cover their own and for inadequate compensation in some of the 
Government programs. So from my point of view, your long-term financial 
health and your Nation's and your Government's long-term financial 
health depend absolutely on dealing with this issue.
    Now, let me say one other thing. Every single group of experts who 
has testified before any committee of Congress has always said you have 
got to find a way to cover everybody in America, get them in the health 
care system if you want to control costs, stop cost shifting, and 
preserve quality. We have 100 members of academic health centers here 
this week saying the same thing, saying you cannot preserve what is best 
about American health care, providing the doctors, the nurses, the 
technology, unless you fix what is wrong with it, the financing system, 
and get everybody involved.
    Now, we've been at a terrible disadvantage in this fight before 
right now. Because while 70 percent of the American people or more will 
say, ``We are for coverage for everybody; we believe in shared 
responsibility; we want small businesses to get a break and be able to 
organize so they can buy health insurance on competitive terms; we 
believe people should not be discriminated against because someone in 
their family has been sick,'' because they will say that, doesn't mean 
we've been able to keep up support for our plan. Why? Because we've been 
the only kid on the block. Everybody else is out there criticizing, 
looking for an easy answer, and lobbing rockets at our program.
    You've seen all those ads. They say, ``Well, it's a Government-run 
program.'' It isn't, is it? It's a private insurance program. They say 
we're going to ration health care. Folks, we don't ration health care--
we're rationing health care now. There are 39 million Americans without 
it. There are 3 million people who have lost their coverage in the last 
3 years. And every one of you who is providing health insurance on your 
own is having to ration it because you can't buy it on the same terms as 
big business and Government.
    They say that you will lose benefits if our plan passes. But the 
truth is our plan doesn't take anything away from anybody; it puts a 
floor under what you can lose and gives everybody some protection, some 
real protection for middle class people and for small business people 
for a change. What's happening is today, as you know, every year people 
are losing more and more--more benefits, more choices, paying more. It's 
a myth.
    Then they say, well, our cost figures aren't right. The truth is 
we've got the only plan in town where the costs have been verified, 
validated, and supported. And for very small businesses in this country, 
operating on a modest margin, the cost of this plan will be less than 
the cost of the minimum wage bill passed by Congress and signed in the 
previous administration. And that is the fact.
    So the support for the fundamental principles is strong. I have said 
to people in the Congress of both parties, if you don't like some detail 
of our plan, come forward. What we're interested in--cover everybody, 
have shared responsibility, have a private system, put a floor under it, 
and give small business a break--that's all I care about. If you've got 
a better way to do that, come forward, let's talk about it.
    Well finally, finally, we're seeing enough action so that there will 
be alternative plans. Yesterday Senator Dole offered a plan. Well, let's 
just talk about it. Small business and middle class families are not 
affected by it, except they lose more under the plan if it passes. It 
leaves small business at the mercy of insurance companies, who can still 
discriminate against certain businesses, still charge small business 
more than big business, still leave millions of workers in small firms 
uncovered.
    Under the proposal there are no discounts for small business, 
nothing to end the cost shift from big firms to small ones, nothing to 
guarantee that the buying clout will be evened up. And since millions 
will remain

[[Page 1382]]

uncovered--millions and millions--small businesses who do offer 
insurance will continue to pay higher rates to give others who are 
competing with them directly a free ride.
    Now, I've heard time and time again that we've got to do something 
about this. That's what small businesses say they want. I've had so many 
small businesses say what Micki said, ``If all my competitors had to do 
it, and I could buy it on affordable terms, I would be happy to do 
this.''
    Now we have an alternative plan. And the alternative plan is really 
old-style Government, the same thing you used to get really from both 
parties. It does a little bit for the poor. It leaves all the powerful 
vested interest groups with everything they've got, and it walks away 
from the middle class and small business. It is politics as usual. And 
now we have a choice, so the American people can make up their mind. Do 
you want everybody covered? Do you want something done about the cost? 
Do you want a break for small business? Or do you want us to appear to 
do something and not do anything to change the fundamental problems of 
this system? I think Americans will vote for the real thing if you will 
help us lobby for it and you will help us.
    Let me say something else. This is not a partisan issue anywhere in 
America except Washington, DC. You don't have to declare, because I 
wouldn't want to embarrass you or me, but I know that there's plenty of 
Republicans in this audience today. I know that. I know there are 
independents. There may be people in this audience that voted for Ross 
Perot. I don't care. I just want you to have a chance to be part of a 
thriving, growing American economy. It is not a partisan political 
issue.
    My fellow Americans, now that the debate will be shifting into the 
public arena and votes will be cast and amendments will be offered, let 
me say again, I want the most flexible possible plan. I want the plan 
that has the Government doing the least possible. But I know that our 
objectives must be secured. We have to find a way for full coverage for 
the American people. We have to find a way for people to bear a fair 
share of responsibility for providing that coverage. And we have got to 
find a way to find a break for small business people and not to bankrupt 
folks just because they've had somebody in their family or because they 
have been sick.
    There are more than one or two ways to do this. But there are 
difficult decisions involved. And that is the last point I want to make. 
Hillary and I have often talked about the small businesses we worked in 
when we were younger and how brave we thought the owners of those 
businesses were to take out their life savings, to put their necks on 
the line, to be personally at risk year-in and year-out, often until the 
business got up and going. And how many small businesses go under every 
year in the churning, competitive marketplace?
    One thing I know about you is that you have no place to hide. You 
have to face whatever the realities of your situation are. And you have 
to make decisions. And you know that when you have a difficult decision 
to make, making a decision that may not be 100 percent right is better 
than walking away and letting your whole business go under.
    Too often the political system, when the going gets rough and the 
tension is intense and the pressure is hot, just walks away. And so I 
say to you this finally: You and this coalition should impress upon the 
United States Congress that even though this is an election year and 
even though this has become too partisan an issue in Washington, it is 
not a partisan issue where you live; it is not a partisan issue when you 
need a doctor or you're in the hospital; and it is not a partisan issue 
when you calculate how in the wide world you are going to deal with your 
health care costs and keep your business going.
    And we must not walk away. We need to show the same discipline and 
maturity in doing the people's business this year in Washington that you 
have to show simply to survive and certainly to prosper.
    That is what I implore you to tell the Members of the Congress. We 
can do this, folks. Just because we've been trying for decades and have 
not been able to do it before doesn't mean we can't do it this year. And 
if it gets done, it will be done in no small measure because there are 
hundreds of thousands of small business people who said, ``This is not a 
partisan issue. This is an Amer- 

[[Page 1383]]

ican issue. Do something; do it right; and do it now.''
    Thank you very much, and God bless you.

Note: The President spoke at 10:39 a.m. on the South Lawn at the White 
House. In his remarks, he referred to Brian McCarthy, owner, McCarthy 
Flowers, Scranton, PA, and founder of the coalition; Michael Oakley, 
vice president, Oakley Industries, Clinton Township, MI; Micki 
Schneider, owner, Spirals, Palo Alto, CA; and Representative Butler 
Derrick. A tape was not available for verification of the content of 
these remarks.