23132 EXTENSIONS OF REMARKS August 11, 1992 EXTENSIONS OF REMARKS PROPOSAL FOR REFORM OF THE in which patients choose their doctors and tives for controlling costs in the high-tech­ AMERICAN HEALTH CARE SYSTEM pay for each visit-cost $3,400 in 1991 per em­ nology, disease-oriented health care system ployee in Cleveland and nationwide $3,600. which we have today. 2. ACCESS IS DECLINING The competitive model developed in the HON. DENNIS E. ECKART The roster of uninsured and undersured in­ early 1980's in the expectation that it would OF OHIO dividuals grows longer day by day. In Great­ control costs, has been a major disappoint­ IN THE HOUSE OF REPRESENTATIVES er Cleveland 13-15 percent are uninsured-in­ ment to many of us. Instead of resulting in operating efficiencies or the development of Tuesday, August 11, 1992 cluding a disproportionate number of chil­ dren. Many of these people live in poverty, market "niches" resulting in regionalized Mr. ECKART. Mr. Speaker, Thomas C. have little knowledge of basic health care services, many hospitals continue to believe Westropp, the chairman emeritus of Women's and often lack the know how to access what­ they have to be all things to all people in Federal Savings Bank and current chairman of ever services may be available to them. order to compete effectively for contracts­ Moreover, the poor are often forced to live in at times unnecessarily duplicating services. the Health Systems Agency of North Central Mergers, while offering some hope in the fu­ Ohio, recently presented a unique proposal for conditions which work against establishing a healthy longevity, but rather foster chronic ture for reduced administrative costs, have reform of the American health care system. and debilitating disease. not to this time reaped any measurable cost His proposal would provide opportunities for As if to add insult to injury, the State has savings. cost savings, protect the physician-patient re­ imposed additional barriers to care for the Reimbursement policies focus on treat­ lationship, and ensure access to quality health poor by denying the small assistance avail­ ment of diseases rather than prevention, a care for all Americans. In light of the Con­ able through the General Medical Assistance far less costly proposition. This in turn has gress' current concern with h9alth care reform, Program. In Cuyahoga County alone, this encouraged doctors to pursue expensive spe­ means that 36,000 people are denied basic cialties instead of primary care. As a result, I am happy to submit the following presen­ many areas of the country have no access to tation by Mr. Westropp to the Congress. health care services. The new Disability As­ sistance Program will be able to assist some primary care while other areas-witness HEALTH SYSTEMS AGENCY OF NORTH CENTRAL of these people-at most 6,000. It is clear, northeast Ohio-have what appears to be an OHIO however, that in spite of all the political abundance of specialists. (Presentation of Thomas Westropp) rhetoric to the contrary, the government's Fearing malpractice litigation, doctors As this will probably be my last presen­ ability and willingness to pay for health care order many unnecessary or inappropriate tation to HSANCO's Board, I want to use has been diminished. tests and procedures adding significantly to this opportunity to discuss some of the Some of the actions taken by businesses health care costs. things that have impressed me and some of and insurance companies have included prac­ And, finally the last contributors to the the thoughts I have had during my six-year tices that selectively insure only healthy problems of cost, access and quality are we tenure. young people and screen out the sick. consumers. I would like to share my concerns about Because of the costs, businesses have had Americans have greatly increased their our health care system-a system compris­ to reduce health care coverage or increase awareness of health and many rank good ing consumers, providers, and payors who co-pays. In some cases businesses are afraid health as their most important source of sat­ should work together but instead function in to begin to provide a health benefit that isfaction in life. In addition, an increasing ways that have resulted in increased costs, they might have to rescind later because of number of people have come to regard "free" reduced access, and concerns about quality. costs. health care as every bit as much a birthright And, finally, there is overwhelming anxi­ as public education. The system has become so complex that it ety among all income classes. An increasing seems unable to move in any productive di­ Everyone knows we're spending more and number of people are afraid to change jobs or more on health care. Total national expendi­ rection toward solving these problems. to take entrepreneurial risks because they I. First, I will discuss the crisis in health tures in 1970 were $75 billion; today we spend fear losing health coverage for themselves or more than $500 billion. But while awareness care that the nation is facing today; then their families. consider some of the factors that brought us and expectations have been heightened, to this point over time; and finally propose 3. OUR QUALITY OF LIFE IS UNDER SIEGE many people fear exclusion from treatment what I believe needs to happen to change The field of medicine lacks the reserves to because of its cost or loss of insurance cov­ this situation for the benefit of the health deal with the fact that it is a dynamic, rap­ erage. Anger and disillusionment often are care system-the consumers, the payors and idly changing discipline and one that is full the result of this exclusion from care even the providers. of unpleasant surprises. Consider, for exam­ though the fact remains that the need for ex­ We are all painfully aware that the nation ple, the emergence of two horrendous con­ pensive health care could be avoided by the is grappling with a monumental crisis in temporary problems-AIDS and cocaine ad­ American public simply choosing healthier health care and one for which the best and dicted babies. These problems alone are life styles. the brightest among us have been hard draining the resources of institutions across Meanwhile, vendors capitalizing on peoples pressed to offer viable solutions. Many pro­ the country at the very time we're strug­ heightened awareness of health are providing posals have been proffered during this elec­ gling to provide all people with simple basic a variety of health products ranging from ex­ tion year, but no workable consensus has health coverage. ercise machines to fitness spas, from emerged. We find ourselves caught in a quag­ The population is aging and the elderly "healthy" frozen entrees to vitamin pills, mire of self-interest, political expediency, need and use more health services than any from diagnostic kits to diet plans. They con­ and refusal to face the prospect of inevitable other age group. Our current health care sys­ vey the impression that anyone with the difficult decisions. tem is not yet geared up to provide the kinds money can buy good health. A few facts can demonstrate the depth and of services needed by people who are living The paradox is that while people generally scope of today's crisis: into their eighties and nineties, the so-called are more aware of what it takes to stay frail elderly. Medicine has made great gains healthy, they continue to eat, drink, smoke, 1. COSTS CONTINUE TO INCREASE with acute care and most infectious diseases drive and use drugs recklessly. They end up From 1980 to 1991 the average health pay­ but can claim little progress in dealing with going to doctors and hospitals for problems ments by families nationwide rose from the chronic debilitating problems resulting they might have avoided by changing their nearly $2,000 to over $4,000, a 145 percent in­ from longevity. Most of these problems can behavior, and this in turn adds to the overall crease. The estimate for the year 2000 is be managed best and at least cost outside of cost of health care. $9,000, an increase of nearly 440 percent since acute care settings. III. I've talked about the genesis of the 1980. II. At this point, I'd like to take a look at current health care system and how costs The expense of providing health care for some of the factors that have brought us to have compounded over the years and about workers jumped 10 percent in 1991 for Cleve­ this crisis point over time: people's heightened awareness of health and land employers and 13 percent nationwide. The payors-usually government or insur­ the belief of many that health care is a basic The cost of indemnity medical plans-those ance companies-have provided few incen- and the belief of many that health care is a

• This "bullet" symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor. August 11, 1992 EXTENSIONS OF REMARKS 23133 basic human right. At this point, at the risk and loans stay in business. By controlling tern. At present our system clearly does not of belaboring the obvious I'd like to suggest the cost of funds the Federal Reserve has a work. Although we have the best health care some ideas that can make the health care positive impact on the banking industry­ in the world it is not necessarily applied to system work better. and by extension, the people who entrust or available to patients better than any­ The Certificate of Need review program their life savings to these institutions are where in the world. We must correct these which is implemented by us and the State protected. gross inequities of access. We must initiate Department of Health has certainly been and By controlling the payments for health workable ways to control costs through effi­ will continue to be helpful in giving guid­ services-capping operating and capital costs ciencies of operation. We must continue to ance and direction regarding the need for fa­ on a regional basis, the American Health Re­ provide the very best health care we can. I cility or service expansion; however, it ad­ serve would provide the financial impetus to believe it is up to those of us who care about dresses only a small part of an enormous promote a more cost effective health system health care delivery to direct our efforts to­ problem. with appropriate mandated regionalized ward developing a workable solution. I believe that the health care industry is of services and alternatives. such importance to our citizens and the na­ Further, by assuring consistent payment I would like to leave the Board by chal­ tional economy that we must address it on a amounts, providers would be better able to lenging it to take the lead in addressing comprehensive, national basis. I am there­ project their budgets and could perhaps di­ these problems and working to establish a fore proposing that a national health care rect more of their creative energies toward system such as the one I described tonight. A system be established having broad author­ serving the unique needs of all their patients system with the clear potential to curb spi­ ity and political independence and designed rather than marketing their services to at­ raling costs, to deal with the dynamics of to function in ways similar to those of the tract only the high-paying portion of the changing demographics and new medical Federal Reserve System. As a model of a na­ health care market. Thus, by stabilizing the challenges, to confront the ethical dilemmas tional policy generating institution, the Fed­ health care industry, we would serve the in­ posed by new medical technologies and last eral Reserve has much to tell us about an ef­ terests of both the providers and the con­ but not least-to provide basic health care to fective long-term approach to solving a na­ sumers who entrust their lives to the sys­ one and all. tional problem. The proposed system might tem. be called the American Health Reserve. Another instance of how we might benefit Structurally, the twelve regions served by from the Federal Reserve's experience is fi­ the Federal Reserve System could be the nancing strategy. The Federal Reserve is same twelve regions serviced by the Amer­ partially funded by banks for its check proc­ MONROE COUNTY BAR ASSOCIA­ ican Health Reserve. Likewise, local mon­ essing activities. Funding for the American TION CELEBRATES CENTENNIAL itoring and assistance with cost, access and Health Reserve could be generated in four quality strategies could be provided by exist­ ways: ing health planning agencies such as by payments from private insurance com­ HON. LOUISE M. SLAUGIITER HSANCO. panies for claims processing; The American Health Reserve would com­ through Medicaid and Medicare taxes OF NEW YORK prise experts from various components of the which would be forwarded to it for manage­ IN THE HOUSE OF REPRESENTATIVES health care system-consumers, insurers, ment rather than the current system that is doctors, nurses, hospitals, etc. constrained by a myriad of regulations and Tuesday, August 11, 1992 The purpose of the American Health Re­ in the case of Medicaid, differences among serve would be to provide a national center states; Ms. SLAUGHTER. Mr. Speaker, it is our for developing policies and implementing by channeling all taxes on alcohol, tobacco pleasure to take this opportunity to commemo­ strategies to address health cost, access and and environmental polluters-the source of quality issues. The American Health Reserve some illnesses-to the American Health Re­ rate the 1OOth anniversary of the founding of would have these specific responsibilities: serve; and the Monroe County, New York Bar Associa­ 1. to control all reimbursement for health additional taxes could also be considered tion. This group of our constituents has ably care including payment to traditional pro­ from other sectors of the economy. served our community and legal system and viders as well as pharmaceutical and equip­ In regard to the American Health Re­ we are proud to salute its efforts. ment suppliers, serve's function as a center for national de­ 2. to guarantee a minimum level of health bate on problems surrounding resource use, In 1892, 25 attorneys gathered together to care for all, starting with newborns and cov­ there are many examples, but two very con­ form this association, then known as the ering the entire life span, and troversial issues stand out. They are the Rochester Bar Association. Today, over 2,000 3. to provide a basic benefits package tai­ elimination of malpractice insurance and the members work for equal access to legal reJr lored to the needs of specific age groups. trauma and high cost associated with dying. resentation, for an impartial judiciary, for fair A few examples will serve to illustrate how 1. Malpractice insurance should be discon­ the system might work: tinued. This would not only eliminate direct dispute resolution, and for the provision of The Federal Reserve acts as a clearing insurance and legal costs, but also the much­ law-related educational programs. In addition, house for all checks-the American Health discussed incentives to overtest. This could the Foundation of the Monroe County Bar has Reserve could function the same way. All be accomplished in an American Health Re­ generously contributed more than $1 million to health payment forms would be processed serve that is completely independent from local community organizations. through the American Health Reserve, inas­ political pressures. Providers would be eval­ much as information needed to process uated annually against mutually agreed The goals of the Bar Association, as re­ claims is fairly standard. Clearly a common upon criteria. The penalty for non-compli­ flected in its mission statement, are to "im­ form/central processing approach should re­ ance with these criteria would be loss of li­ prove the quality and accessibility of justice; sult in administrative cost savings. Auditing cense-loss of the ability of an individual or promote respect for and understanding of the for coverage, fraud and abuse-a high cost of facility to earn a living or to operate. (In re­ law; enhance professional growth, fulfillment, doing business by insurance companies­ ality, one payment to a patient who experi­ excellence, collegiality and diversity among its could also be centralized. A standard basic enced neglectful treatment is not of much benefits package would minimize the need to value to other patients who are treated simi­ members; and serve as the voice of the pro­ check for coverage; fees and payment sched­ larly by the same incompetent provider.) fession." the Monroe County Bar Association ules would be set; and by cross checking Perhaps the estimated $2 billion paid in mal­ has ably risen and met each of these chal­ using such sources of data as social security practice premiums could be put to better lenges. information, high users would be identified. use. Intervention in those instances could result 2. Just as we help people come into life at It is our pleasure to represent such capable in managed care or investigation for fraud. birth, we must help people pass from life to and dedicated attorneys and to take this occa­ The Federal Reserve has political inde­ death in a more humane way. It goes without sion to applaud their outstanding work. As a pendence and is given authority by the saying we need to provide every comfort we Member of the Bar Association since 1947, in­ President to increase or decrease the money can throughout the dying process. Having cluding a stint as secretary from 1953 to 1957, supply and interest rates in order to develop done so, we should not then go on to torment Mr. Horton can personally attest to its high policies that help stabilize the economy. Re­ people with needless and often unwanted life level of professionalism. We are confident that cently it pushed interest rates down; savings prolonging (but not life saving) procedures. and loans are now earning a 3% spread be­ A national network of hospices should be de­ the next century will bring continued success tween costs of funds and the average yield on veloped. and expansion to the Monroe County Bar As­ assets rather than the traditional 2% rate. In conclusion, I want to reiterate the ur­ sociation. This organization is truly a shining This "invisible tax" has helped some savings gency of building a better health care sys- star in the Rochester community. 23134 EXTENSIONS OF REMARKS August 11, 1992 A CONGRESSIONAL SALUTE TO which celebrates its 22d anniversary and its For all of his past and in anticipation of his MRS. MARGARET BLAIR commitment to the Flatbush community. future efforts on behalf of the citizens of Phila­ Founded in 1970, the Church of God origi­ delphia, I join with his family and friends in HON. GLENN M. ANDERSON nated as a place of prayer and worship for honoring Sam Scheiner. OF CALIFORNIA Christian immigrants, predominantly Jamai­ IN THE HOUSE OF REPRESENTATIVES cans. Thirteen Jamaicans joined together to erect a church at Bayridge Church of God and LIBRARIES NEED ADEQUATE Tuesday, August 11 , 1992 installed Reverends Guy Notice and Peter FUNDING Mr. ANDERSON. Mr. Speaker, on Saturday, Gayle as pastor and assistant pastor respec­ August 29, 1992, the Long Beach chapter of tively. HON. TIMOTHY J. ROEMER the Gray Panthers Coalition will honor Mrs. After 4 years of unexpected difficulties and OF INDIANA Margaret Blair. This occasion affords me the a series of relocations, the church settled at its IN THE HOUSE OF REPRESENTATIVES final and present location of 409-15 East 95th opportunity to express my sincere gratitude for Tuesday, August 11 , 1992 the work and services she has provided to all Street. The congregation grew tremendously citizens in the Long Beach community. It is a and begin to expand beyond the Jamaican Mr. ROEMER. Mr. Speaker, it troubles me pleasure to introduce you to this remarkable culture to include the present congregation of to report that our Nation's educational institu­ gentlewoman, who is my friend. 600 members from other Caribbean Islands, tions continue to be victimized by insufficient Born in Spokane, WA in 1909, Margaret is Europe, South America, and the United funding and general neglect. While this year's descended from a long line of political leaders States. Higher Education Act amendments do much to and reformers. Her grandfather was the Gov­ The Church of God of East Flatbush has increase investment in education, this Con­ ernor and Senator from Nebraska. Her uncle made a commitment to its youth and hopes to gress must still address the deteriorating con­ following in his father's footsteps also served retain the young people comprising the 18 dition of our Nation's libraries. Since the time as a Senator. Margaret's mother was a mem­ Sunday School classes, children's church and of ancient Greece, libraries have offered wis­ ber of the Daughters of the American Revolu­ baby nursery. A total of 14 new churches have dom and enlightenment to those who seek tion from Cape Cod, MA. With this impressive stemmed from the congregation, of which the greater knowledge. History shows that acces­ family history, it should come as no surprise mother church gives full support. sible information is the hallmark of any demo­ that Margaret Blair, upon relocating to Long I am pleased to announce that the Church cratic society, for if knowledge cannot be free­ Beach, founded the Long Beach Gray Pan­ of God of East Flatbush will be celebrating its ly gained, freedom of thought and action is se­ thers. As cochair of this organization, Margaret 22d anninversary with special services on verely shackled. has been indefatigable in organizing senior Sunday, August 23. The theme for the occa­ Inadequate funding has prevented libraries citizens to work toward the common goal of sion reads "Awake! It's Harvest Time", taken across the Nation from providing needed serv­ peace, equality, and brotherhood. She most from the scripture Jonah 9:1-1 0. I would like to ices to our citizens. In my own State of Indi­ clearly demonstrates that age should not be a commend the Church of God for sincere devo­ ana, school libraries continually have had trou­ barrier to a productive and active life. tion to its community and I wish its congrega­ ble providing new books for their pupils. Be­ Mrs. Blair is also an active opponent against tion and staff continued success. cause nearly half of their nonfiction books are nuclear weaponry. Troubled by the threat of a over 20 years old, Hoosier children are pre­ nuclear catastrophe, Margaret participated in a vented from learning relevant facts about a peaceful demonstration to prevent the storage A TRIBUTE TO SAM SCHEINER rapidly changing world. For example, in the of nuclear weapons at the Seal Beach Naval area of space exploration, over 50 percent of Weapons Station. More recently, Mrs. Blair HON. THOMAS M. FOGUETTA the books were written before the United learned that a shipment of nuclear fuel rods OF PENNSYLVANIA States landed a man on the Moon. In the area was to be unloaded at the port of Long Beach IN THE HOUSE OF REPRESENTATIVES of geography, most books show the world as it existed almost 40 years ago. Children can­ and shipped across the country. Again, she Tuesday, August 11 , 1992 sounded the alert to local authorities and the not even get current information about career Long Beach community of the dangers of such Mr. FOGLIETTA. Mr. Speaker, I rise today opportunities, since outdated materials fail to an undertaking. to recognize the fine efforts of Sam Scheiner include women in many professions except Additionally, duly concerned about our Na­ on the occasion of his retirement after 32 formerly traditional ones, such as teaching and tion's declining health care, Margaret was in­ years of dedicated service to the city of Phila­ nursing. strumental in forming the Long Beach Area delphia as the director of the Mann Older Many school libraries in my State also suffer Health Coalition, an organization dedicated to Adult Center. from gross understaffing. One Indianapolis creating a national health plan. Under the Sam's tenure at the Mann Center spans nu­ high school has only a single librarian for a guidelines of the coalition's plan, quality medi­ merous milestones and expansions. Under his student body of 2,400, and another high cal care would be available to all people. direction, the center instituted groundbreaking school in Fremont, IN, is unable to employ any Mr. Speaker, since 1981, when Margaret innovations such as dual language program­ professionally certified personnel for its library. Blair moved to Long Beach, she has been a ming to meet the needs of its growing multi­ Because inadequate funding forces Indiana force with which to reckon. Despite an infirmity ethnic population. One of Philadelphia's first schools to cut back on professional librarian that impairs her mobility, Margaret continues senior centers, the Mann Center has often services, students lose out on a variety of to fight for what she believes. On this her served as a model and leader for other cen­ educational opportunities. most special day, my wife, Lee, and the peo­ ters. Mr. Speaker, the same story is heard over ple of California join me in extending this con­ Sam continues to be an outspoken leader in and over again across the country. In New gressional salute to Mrs. Margaret Blair. We Philadelphia's aging network, widely recog­ York City, three-quarters of the public library's wish her all the best in the years to come. nized for his efforts to involve and empower 82 branches are closed 3 or more days per the elderly. He is described by colleagues and week. During the 1970's, the Chicago Public senior center participants as a democratic Library was large enough to employ over THE CHURCH OF GOD OF EAST manager, compassionate social worker, and 2,300 employees. Since then, the public li­ FLATBUSH CELEBRATES ITS 22D strident activist. He is credited as one of the brary staff has been reduced by almost 1,000 ANNIVERSARY key advocates behind the fight to defeat people. In Atlanta, library services have been means testing for senior center services. denied to some 30,000 at-risk children-un­ HON. EDOLPHUS TOWNS Although retiring from his administrative post derprivileged youngsters who depend on an OF NEW YORK with the city of Philadelphia, Sam maintains education to escape a cycle of poverty and IN THE HOUSE OF REPRESENTATIVES that he will remain vocal and vigilant in his disadvantage. role as social activist, especially on the issue And while expenditures for libraries have Tuesday, August 11, 1992 of national health care reform. This is his top been plummeting, the costs of library materials Mr. TOWNS. Mr. Speaker, today I rise to priority issue and he is sure to be in the front have been soaring. Since 1977, the cost of a recognize the Church of God of East Flatbush lines as it gains in national prominence. hardcover book has increased 100-percent, August 11, 1992 EXTENSIONS OF REMARKS 23135 and the average price of periodicals has near­ know it, too. Every time I go into her class­ lost on the leadership of this Nation. As Con­ ly quadrupled. The widening gap between room, the kids have enthusiasm for what gress considers the North American Free costs and expenditures is represented by she's teaching." Trade Agreement [NAFTA], I would urge my Enthusiasm is what Garner tries to cul­ colleagues to consider the efforts of President school libraries' spending of $5.48 per pupil­ tivate. She teaches her subjects in terms her an amount that is less than one-half the aver­ students understand and involves them in Salinas, and the dramatic results he has age cost of children's books. the teaching process. achieved through his leadership of Mexico. I am also reminded of my frequent visits to "I like that she lets us decide how we want WE HAD TO REACT QUICKLY our local library in South Bend and Mishawaka to learn," said lOth-grader Terri Phelan. (An interview with President Carlos Salinas) as a young child. Saturday mornings were a Garner lets the students pick some topics GEORGE BUSH apparently had no idea how joyous time to pick up a few biographies or they want to work on or read about. They supermarket checkout counters worked. The sports books, learn what books my mom and are allowed to speak whenever they want to, media had a good time with that one and dad read at any age, and even attend special and Garner always listens. Bush lost a few more votes. Mexican Presi­ "I learn a lot from the kids," she said. dent Carlos Salinas de Gotari would never events designed for children. Libraries are tre­ "When I decided to be a teacher, I knew I mendous resources for families, for learning, pull a boner like that. would be a student, too." Though he's a dapper, polished man with a and for the future. Last year, she coached Sunset's Odyssey of Harvard Ph.D. in political economy and gov­ For some Americans, a decrease in library the Mind team in a competition where kids ernment, Salinas has worked hard at keeping services may be seen only as a lost luxury. come up with creative solutions to modern in touch with ordinary Mexicans. Since he But for others, a closed library is more than an problems. Two teams, Classics and Struc­ was inaugurated in 1988, Salinas has spent empty building. To the underprivileged, it rep­ ture, placed first in the state and the group Thursday and Friday of nearly every week resents another door that has slammed shut­ advanced to the world competition. on helicopter visits to towns and villages in "I like coaching OM because I get to teach the remotest corners of his sprawling coun­ a lost opportunity to improve one's status in teamwork. It doesn't matter how talented a society. For those who endeavor to enlighten try. person is, the important thing is that he's Until a few generations ago, Chalco was a their minds, it is like an unlit candle that sheds able to work with others," said Garner, who­ sleepy, crumbling little town in the Valley of darkness on the world. also sponsors the Future Educators of Amer­ Mexico. In recent years, with Mexico's bump­ Mr. Speaker, if we can afford to spend bil­ ica club at the school, 13125 SW 72nd St. er crop of babies spilling into cities, Chalco lions on weapons systems, space stations, In the classroom, Garner uses lots of exam­ was swallowed by Mexico City and became and foreign aid, surely we can find the re­ ples to spark interest. one of the worst squatter slums, with half a sources to support these precious sources of That hooked science-minded Michael Abra­ million people in shanties without running ham, 17, who said he never thought he would water, paved streets or electricity. learning. If we fail to invest in the education of like English very much. our people, no amount of spending can ad­ No surprise that Carlos Salinas was booed "I probably wouldn't be reading J.D. Sal­ and jostled when he made a campaign visit dress the challenges that confront our Nation. inger if it weren't for her lesson," the Sunset to Chalco in July of 1988. Salinas managed to senior said. "I found myself really wanting shout a promise over the microphone: Within to pay attention." six months of his inauguration Chalco would A TRIBUTE TO ANNE GARNER, "She draws interests from students they have electricity and running water. More SUPER EDUCATOR didn't know they had," said Sunset English boos and whistles. They'd heard that one be­ teacher Marianne Kjos. "She was born to fore. Always around election time. teach." In early fall of 1989, fireworks greeted Sali­ HON. ILEANA ROS.LEHTINEN The kids think so, too. OF FLORIDA nas' cavalcade when it arrived in the newly "She understands us," said lOth-grader paved center of Chalco. "It was in the IN THE HOUSE OF REPRESENTATIVES Maite Urrechaga. "She keeps us in line, not evening," says an observer, "and the crowd Tuesday, August 11, 1992 because she's a teacher, but because she lifted him to their shoulders like he was a fa­ wants to be a friend. I'm glad I'll get to see Ms. ROS-LEHTINEN. Mr. Speaker, I am mous bullfighter. As they carried him her while I'm in high school." through the darkened streets, the lights pleased to call my colleagues' attention to Ms. Ms. Garner not only teaches at Sunset High would go on ahead of them. Jets were Anne Garner, a gifted teacher at Sunset High School, but she also encourages her students streaming from fountains attached to the School in West Kendall, whose students say to participate in other activities. She is the new water system." Using funds from his was "born to teach." Ms. Garner, who was in­ school's sponsor of the Future Educators of government's successful privatization pro­ spired by her educator parents, receives an gram, Salinas had ordered a crash public America club and has also coached the works program for Chalco, with the finances extraordinary amount of praise from her high school's Odyssey of the Mind team to State­ school students. Her unique method of teach­ managed by citizens' committees rather level victories. Now these students, under the than by corrupt and inept political bosses. ing and enthusiastic attitude motivate the direction of Ms. Garner, will compete in the So far Salinas has made only a tiny dent in youths to excel. national tournament. Mexico's ancient poverty but, with hundreds I would like to introduce Ms. Marica Smith's Ms. Anne Garner's commitment to her stu­ of small-scale Chalcos and lots of publicity article in the Miami herald, "Born to Teach." dents is only exceeded by her students' ado­ about them, he has brought new hope to the For Anne Garner, teaching is a family af­ ration of her. She is truly an asset to Ameri­ masses. The promises he has made and fair-Garner, 26, teaches English and heads quickly carried out on these visits are, each up the gifted program at Sunset High School ca's educational system. of them, concrete tokens of the benefits that in West Kendall. Her mother Elizabeth will flow from his almost revolutionary pro­ teaches a gifted program at South Dade High gram of economic liberalization. It is a pro­ and dad Terrence is a former teacher who is THE SALIN AS VISION gram that, dramatics aside, has a lot to now an assistant superintendent with the teach our own politicians. school system. HON. JIM KOLBE FORBES Editor-in-Chief Malcolm S. Forbes Inspired by her parents, Garner has spent OF ARIZONA Jr. and Editor James W. Michaels inter­ the past five years finding her own "mis­ viewed Carlos Salinas and Finance Minister sion" in the classroom. IN THE HOUSE OF REPRESENTATIVES Pedro Aspe. "My job is all about the students and noth­ Tuesday, August 11, 1992 FORBES. Mr. President, I can remember ing else," she said. "When I'm in school, going to Mexico in the 1960s, and if I had they're what's important, and sometimes it Mr. KOLBE. Mr. Speaker, I recommend to pesos left over, they'd still be worth exactly can be easy to lose sight of that with all the my colleagues the following interview with 12.5 to the dollar if I went back a year later. problems facing schools today." Mexican President Carlos Salinas de Gotari You had 13 years of a rock-solid currency. It can be easy to lose sight of Garner, too, that recently appeared in Forbes Magazine. Mexico was an economic miracle, year after because she's almost always in motion. President Salinas has been a progressive year producing 6 percent economic growth. School doesn't end when the kids go home at force in Mexico since taking office in 1988. His · And then everything f~ll apart; you had 2:30 p.m. Usually, Garner is at work until 5 overarching mission has been -to improve the hyperinflation, negative growth, massive un­ p.m. employment, and the peso is nearly 3,000 to Why so late? standard of living for his people through dra­ the dollar. What went wrong? "Dedication," said Sunset principal Dennis matic economic, social, and political reform. SALINAS. The main lesson is that you can­ Davis. "Her every action reflects her com­ Indeed, as the interview describes, his ap­ not spend beyond your means, that the mitment to education. And her students proach to the Mexican economy should not be strengthening of internal savings is essential 23136 EXTENSIONS OF REMARKS August 11, 1992 to sustain the process of growth; that those litical bosses. Have you made it easier for For in Mexico the process of government who live on debt must pay its consequences people to start small businesses? requires intense dialog, using reason and sooner rather than later. Oh, much, much easier. We have deregu­ emotion as well. We must build reform on With the process of privatization [in Mex­ lated, and deregulation has opened the way the basis of a consensus. ico]. we've raised almost S33 billion. Instead for practically anyone who has the means, Is the proposed North American Free of spending that money, we used it to reduce the desire, the resources to do so to open a Trade Agreement essential to your program? the [domestic] national debt. The national business. We 've established a program for Well, I believe that the free trade agree­ debt in the U.S. is 58% of GDP; in Japan, small and medium-size enterprises. Last year ment is inevitable; inevitable in the sense 63%; in Italy, 105%. But the national debt in we provided financial support for more than that the trend of the world is to create trad­ Mexico is today only 13% of GDP. The sav­ 100,000 new small and medium-size firms. ing regions-not trading blocs but trading ings from reduced debt service can now be Also training and technological packages regions. The economic relationship between channeled into social programs and still en­ and commercial education. Mexico and the U.S. is already so strong that able us to keep a tight fiscal policy. This small business program is separate the agreement would [simply] recognize that In the years that Mexico was piling up from Solidarity. Solidarity works with the reality. With Europe getting together, with debt, wasn't the aim of the spending to redis­ slums and the rural communities. The small Japan and Asian-Pacific countries making tribute income? and medium-size enterprises support is a pro­ their own region, the only way to compete If that was the aim, it didn't work, because gram at the Nacional Financiera, the gov­ with them is by getting together. It's a mat­ income distribution didn't improve. We are ernment development bank. ter of [economic] viability in the medium convinced today that the best way to make Something like the U.S. Small Business and long run. It will happen sooner or later. a proper income distribution is, first, Administration? If it's later, the better for our competitors. through creating the conditions for a sus­ Hopefully, better. We are already growing without a free tained recovery. And second, improved edu­ Touche! But Mr. President, to the extent trade agreement. We want the agreement in cation. We are [also] restructuring the edu­ that you spread opportunity at the local order to help us grow at half again [the cur­ cational system. level, you undermine the old bosses who al­ rent] rate. Because' in a country with 85 mil­ In addition to reducing domestic debt, ways delivered the vote for your party, the PRI. . lion people and adding 2 million more every you've also substantially reduced tax rates. year, we have to grow at higher rates. Oh, yes, we reduced tax rates and we in­ Oh, certainly. The social bases of [politi­ Speaking of free trade, your government creased the tax base. We know we have to be cal] support have already changed. I am has been stubborn about oil. Your constitu­ competitive [in tax rates] on an inter­ opening opportunities for the new social tion says that your oil belongs to Mexico and national level if we are to compete for cap­ leadership to participate and to be able to that you cannot share the ownership with ital, which in the Nineties will be the key channel their energies and the capacities to foreigners. And yet, oil requires huge question for economic success or failure. transform the country. It is the responsibil­ amount of capital, and you need every cent We've reduced tax rates and strengthened en­ ity of the party [the long-reigning PRI] to you can get for your social and forcement, and now are getting more reve­ transform itself, to be able to capture for the infrastructural needs. How can you reconcile nue out of [lower] tax rates. Inflation had party these new forms of social organization the monopoly position of Pemex [Petr6leos reached almost 200% three or four years ago; and participation. Mexicanos, the state oil monopoly] with the this year it's going toward 10%. In a private conversation last summer, need for foreign capital and foreign tech­ The main tool for reducing inflation is on Brazil's President Collar said that Chile nology? the fiscal side. This year we're running a could reform its economy because it had a The oil will remain Mexican. But we intro­ [budgetary) surplus for the first time in his­ military dictatorship. He said Mexico could duced recently to Congress a law to restruc­ tory. do its reforms because it had a one-party de­ One thing about your economic program ture Pemex and to form independent compa­ mocracy. But, he claimed, in an open democ­ nies within it. No private businessmen can that has surprised the world is its speed and racy like Brazil it is much more difficult. momentum. Question, Mr. President: Is democracy participate in Pemex ownership, but they are We had to react quickly to the end of the compatible with sweeping economic reform welcome to participate in service contracts­ Cold War. The transformation and change in a developing country? not risk but service contracts. throughout Eastern Europe and the new de­ It is compatible. In fact, democratic proc­ In other words, anything to do with the velopments in the Asian-Pacific countries, esses are essential to the process of economic ownership of the crude oil must remain in the unification of Europe. At the same time change. That is, if opening the economy Pemex's hands. a clear message was coming from Mexicans doesn't improve the quality of living of the Yes. That's what the constitution estab­ to reform the country. population, then there's always the risk that lishes, and that's how it will remain. Pemex What reassurances can you give that your there can be a reversal in the process of de­ can contract with private drillers, Mexicans liberalization process will continue tliis mocratization. In Mexico, we are working si­ or foreigners, but they are paid in cash, and opening to foreign capital, privatalization multaneously on economic reform and im­ the oil that is found remains in Pemex, as and fiscal discipline? provements in our democratic process. the constitution establishes. We have the political will to maintain the Mr. President, in that respect your task is So crude sharing ... process of reform. As important as the will is not unlike that of Boris Yeltsin in Russia, No. that the population demands this process of who has to build a new economy and a new Joint ventures for finding crude oil? reform to be permanent; and that you can political system at the same time. No. find in Mexico today. There is very broad Well, it's quite different, because in Mexico And you have no desire to change that. support for the process of reform. we've had freedom of the press for many, That's what our constitution says and So it's not just a revolution from above. many years; freedom of speech; freedom of that's how it works. The people know that this strategy bene­ movement; freedom of commerce; freedom of Mr. President. when people in the U.S. fits them. labor. We have a strong business community. think of Mexico, they think of immigration. Speaking of the ordinary Mexicans, what When in Mexico you talk about privatiza­ It's an issue that almost dominates U.S.­ have you done at the local level, where tradi­ tion, you mean privatizing in Mexican Mexican relations. You have said that our tionally a few politically well-connected men hands-and certainly welcoming foreigners Simpson-Mazzoli immigration law ignored controlled everything-business opportuni­ who want to participate. In the former So­ economic reality. ties, credit, politics? viet Union, privatization may mean merely I said that in the sense that the American We have the program we call Solidarity, inviting foreigners because there are no local economy demands this type of labor. Mexi­ which is a grass roots movement, working on businesses. cans are migrating, attracted by the demand the village level, at the slum level and at the You mean that your job is easier than pull from the American economy. But at the community level, to transform the tradi­ Yeltsin's? same time, the Mexicans who go north take tional way of leadership. I wouldn't compare anyone's job. many risks; they are very energetic risk-tak­ Today, with this program to which we are We don't mean to suggest that your job is ers. That's precisely the kind of people I channeling more than $2.5 billion this year. a snap ... want here. That's why I am so committed to we encourage popular participation is solv­ I will tell you something. In Mexico, take generate employment opportunities in Mex­ ing the monumental demands for decent the case of educational reform. We had the ico, so that Mexicans will not go north, com­ water, sewage systems. Once the community teachers' union; we had to change it. One of peting with Americans for their own jobs in organizes itself, new leaders will emerge by the largest unions on the continent-more their own country. That's why we have to sheer force of that participation. This is than 1 million members. It took us three grow faster. That's why it's better to have a changing Mexican leadership and organiza­ years, three years of intense dialog, negotia­ free trade agreement, and we would be able tion at the grass roots level. tion, concentration; and at the end we con­ to export goods and not people. But migra­ It has always been tough in Mexico to go vinced them, and they accepted the process tion will have to be talked about in the bi­ into business without cutting in the old po- of educational reform. lateral relations sooner or later. August 11, 1992 EXTENSIONS OF REMARKS 23137 Does the recent decision by the U.S. Su­ June 16, 1992, hearing on the provision of sophical considerations had caused the cost preme Court in the kidnapping case make health insurance benefits by multiple employer of health care coverage to skyrocket and your position more difficult in regard to ne­ welfare arrangements [MEWA's]. I insert Mr. driven hordes of consumers from the market­ place. gotiating with the U.S.? [The Supreme Court Zinner's statement in the CONGRESSIONAL ruled in Alvarez Machain on June 15, 1992, I was later presented with an opportunity that the U.S. is entitled to kidnap criminal RECORD so that my colleagues, who do not to associate with American Service Life, a suspects from foreign countries for prosecu­ have the opportunity to review the committee large and successful insurance operation. As tion in the U.S., regardless of protests from transcript of his remarks, will have the benefit I studied and learned more about the provi­ the foreign nations or the terms of existing of his comments on this issue. sion of health benefits, I identified ways of extradition treaties.] STATEMENT BY EDWARD ZINNER avoiding some of the unduly costly require­ We consider that ruling unacceptable; in­ ments which had become part of the struc­ Mr. Chairman, ladies and gentlemen of the ture and philosophy of the benefits industry. valid in Mexico. I have introduced a motion Committee. My name is Edward Zinner and I in Congress to consider traitors those Mexi­ currently live in Virginia Beach, Virginia Formation of Atlantic Healthcare Benefit Trust cans who help foreigners kidnap our own with my wife and family. It became evident to me that a properly citizens and take them abroad. It was a mon­ I am the President of National Investment structured MEW A would allow provision of strous decision. sound, necessary coverage to consumers at A personal question. Your father is an Consultants, Inc., a closely held corporation, which serves as the plan administrator for an affordable price. I knew that the cost of economist and served in the cabinets of two coverage could be sharply reduced, and that earlier presidents who followed quite · dif­ Atlantic Healthcare Benefit Trust, a Mul­ tiple Employer Welfare Arrangement doing so would bring countless employers ferent policies. How do the economists· anq and their employees back under some form public servants of your father's generation (MEWA) sponsored by United Healthcare As­ sociates. As a person whose business is de­ of medical benefit coverage. react to changes you are making? During February of 1991, United Healthcare Well, they had their own reality: the Cold voted to the effective and efficient operation and management of a MEWA, I appear before Associates and my company, National In­ War; stable economic markets. It's a world vestment Consultants (NIC), were incor­ that doesn't exist anymore. I work for the you in support of legislation to set reason­ able federal standards for MEW As and pre­ porated and NIC began serving as the plan world in which I live and the one I try to an­ administrator for Atlantic Healthcare Bene­ ticipate for the future. empt redundant and unreasonable state reg­ ulations. fits Trust (AHBT). AHBT is soundly fi­ When we met with President George Bush nanced, based on conservative actuarial in San Diego last month, he must have hoped ACCESS TO MEDICAL BENEFITS IS A PRESSING analysis, and pays benefits regularly and that some of your popularity would rub off PROBLEM rapidly. As I make this statement to the on him. He needs it. I am sure that the Committee agrees with Committee, just eighteen (18) months into [Salinas chuckles.] me that the inability of a large segment of operation, Atlantic Healthcare currently our population to obtain health care benefits provides benefits for thousands of families is one of the most pressing problems facing and over 10,000 individuals. We are now gen­ A TRIBUTE TO CHARLES DELEON our nation today. The financial havoc in­ erating about $10,000,000 in annual premiums. flicted by the unpredictable occurrence of To date we have averaged only fifteen days catastrophic injury, illness or disease has de­ to process a claim from the time it is deliv­ HON. lHOMAS M. FOGUEITA stroyed the financial resources of families ered to our office until a benefit check is OF PENNSYLVANIA throughout our nation and can obliterate paid. We currently do not have a single claim IN THE HOUSE OF REPRESENTATIVES years of hard work and savings in a very that has been in our office for over 45 days. Tuesday, August 11, 1992 short period of time. The only reason that claims are not paid Our medical care system is probably the within 15 days is the need for additional doc­ Mr. FOGLIETTA. Mr. Speaker, I rise today best and most advanced in the world, but umentation. To date we have not had a sin­ to recognize a very special young man­ costs have gotten out of control. With medi­ gle claim resulting in litigation for our re­ Charles Deleon. cal costs rising rapidly, insurance costs are fusal to honor such a claim. I am certain On Tuesday, June 29, at approximately 12 escalating just as rapidly, maybe even more that all of our statistics are well below in­ p.m., Charles saw another person in danger. so. Suffice it to say that the current health dustry averages in the health insurance busi­ Putting aside all cares for his own personal benefit system is just not providing adequate ness and we constantly strive to keep our protection at affordable rates. claims current. safety, Charles came to the aid of a woman I am quite certain that you can tell how who had been attacked and was in the proc­ MEW AS PROVIDE ACCESS TO LOW-COST MEDICAL BENEFIT PLANS proud I am of the service we provide. Addi­ ess of being raped. tionally, this protection is provided at rates Charles, who is a senior at Edison High I will begin my statement by pointing out significantly below those with which you are School and is a member of the Jobs For what a well-run MEWA can do-a MEWA can accustomed. provide access to low-cost, or at least rea­ We can and do provide a good basic medi­ American Graduates Program, anticipates sonable cost, coverage of medical expenses. graduating in June 1993 and continuing his cal benefit plan at less than half the cost of We can and do provide this program to small a comprehensive medical insurance policy studies at a university. businesses. In fact, that is our primary mar­ sponsored by major insurers. Our contribu­ In coming to the assistance of another in ket, small business with less than 50 employ­ tion rates usually run from about 40 percent need, Charles demonstrated true selflessness ees. to 50 percent of a major insurance company and bravery. He has shown us the level of To me, these facts mean that sound policy. caring and involvement that is in all of us, MEWAs are part of the solution, and maybe Important features that make MEWAs work ready to be called upon if and when needed. the only solution to small business coverage. This access is important and it's something Of course, good organization and sound Charles Deleon is a very special young that no one else is doing. We are substan­ management are always essential elements man who simply did what he felt was right. For tially reducing the number of citizens who in the operation of a good business. However, this we join with his friends and family in offer­ have no health insurance, and we are doing there are certain generic features of the ing him a sincere thank you. it willingly and profitably. In my opinion, MEWA which make it an attractive alter­ none of the other existing participants will native to the more familiar health insurance do this voluntarily or cost-effectively. structure. First, Atlantic Healthcare offers a basic MR. EDWARD ZINNER SUBMITS A decade of personal experience in health bene­ medical benefit plan. We cannot solve all of STATEMENT TO HEARING ON fits society's healthcare problems. We do not try HEALTH INSURANCE BENEFITS Approximately ten years ago, I became as­ to cover every eventuality because we must sociated with the health benefits industry as protect the contributions of participating HON. OWEN B. PICKEll a marketing representative with Mutual of employees which are basically assets of the Omaha. After considerable success at that benefit plan. Therefore, in our plan we have OF VIRGINIA level, I moved up the corporate ladder into a cap on maximum coverage amounting to IN THE HOUSE OF REPRESENTATIVES management and was responsible for over­ $250,000 per calendar year. That will cover Tuesday, August 11, 1992 se.eing the sales activities of a large force of virtually every participant, but it will not service representatives. In that position, I offer full reimbursement in truly rare cata­ Mr. PICKETT. Mr. Speaker, a constituent of became intimately involved in the various strophic cases. Medical costs exceeding our mine, Mr. Edward Zinner, of Virginia Beach, aspects of providing health care benefits to cap are extremely uncommon. A serious can­ VA, submitted a statement to the Subcommit­ policyholders. It became evident to me that cer case could normally be treated within tee on Labor-Management Relations during its bureaucracy, inefficiency and certain philo- this amount. 23138 EXTENSIONS OF REMARKS August 11, 1992 Our benefit plan does not cover all possible strengthen these advantages so that MEW As Provide full disclosure of policy limits, ex­ medical events. We have found that certain can provide access to medical benefits to an clusions, claims practices, and assessment illnesses, certain diseases, cannot be respon­ even larger portion of the small business provisions. sibly incorporated in a small business community. Standardize claims performance require­ healthcare plan. ASPECTS OF PROPOSED LEGISLATION WlllCH ments and provide a smoothly functional ap- The various states have overburdened tra­ SHOULD NOT BE ADOPTED peals process. · ditional health insurance with a plethora of Role of the National Association of Insurance ACCESS WILL NOT BE IMPROVED BY RELIANCE ON mandated coverages. Special interest groups Commissioners (NAIC) STATE INSURANCE COMMISSIONS have used their considerable influence to The NAIC role should be minimal. NAIC is There is one key point that I want to leave mandate treatment for a number of very opposed to the very concept of MEW As, and with you in my statement-this Committee high cost but relatively infrequent diseases considers illegal to very existence of mem­ should not adopt legislation which relies on and illnesses, the effectiveness of which is ber-funded MEW As such as my own. Many of the state insurance commissions. questionable in many cases. These mandates the problems commonly associated with None of these negative experiences with pose a substantial cost burden to benefit pro­ MEWAs could be solved by state legislation, MEWAs, such as unpaid claims and fraudu­ viders and have caused many consumers to but NAIC has not developed model state leg­ lent practices, are of primary concern to the Insurance Commissioners in the states that leave the ranks of the insured, leaving them islation to assist the process. We are wary of without coverage for heart disease, cancer, seek to put MEWAs out of business. In fact, administration by the states, as is likely to the States are engaging in unscrupulous fractures and breathing disorders. be suggested by several participants in your Members of the committee must decide practices which are blocking access to bene­ hearings. In addition to the poor track fits and often causing unpaid claim situa­ whether to require the average citizen to record of the insurance commissions, admin­ bear these costs and potentially drive them tions to occur. That is, MEWAs can be per­ istration by the state is likely to degenerate fectly sound but still will be run out of busi­ from any coverage pool, or organize special into inconsistencies and practices biased to­ funds, or to otherwise provide coverage for ness by certain States. ward large insurers. Each state is likely to This Committee and the Congress should catastrophic illness. With only a little re­ be influenced by different special interest flection, Members of Congress will realize not support legislation that will protect the groups, posing numerous hurdles for low-cost market for the major insurance carriers. how difficult it really is to deal with cata­ MEW As. strophic medical events. However, as a Under the watchful eyes of the State Insur­ MEWA we cannot do it and at the same time Mandates for eligibility and coverage ance Commissioners, most MEWAs will be provide low-cost coverage to small groups. The Administration bill, as I unders.tand put out of business, and only a few large em­ Therefore, I urge you to seek another way, it, proposes guaranteed eligibility for all em­ ployers will still be able to access the protec­ another forum, to satisfy our mutual social ployees. We cannot do this. You know that tive provisions of ERISA and avoid the high­ conscience. If you also act to separate out major medical crises exist, the AIDS epi­ cost "insurance" trap. major medical catastrophes, then you will demic for one, and cannot be paid for by rea­ There have been serious problems with the thereby create a larger shared-risk pool sonable-cost benefit plans offered to small full fledged insurance companies, the kind of where our more common medical problems businesses. This is a societal problem as well companies that these very same State Insur­ as a critical medical problem, but employee ance Commissioners want us to emulate. can be dealt with in a financially sound man­ You must have heard of First Executive, ner. benefit plans cannot solve it-that is asking too much. IMC of Florida, Blue Cross of West Virginia, Second, many state agencies require unre­ Maxicare, Total Health, and many other alistically high cash and capital reserves for Other aspects of universal eligibility, such as requiring the provision of open enroll­ health benefit providers. None of these were insurance companies, intended to protect MEWAs, all were under state supervision, against poor management, actuarial analysis ment, acceptance of assigned risks, and cov­ erage of pre-existing conditions appear in and yet thousands of participants were left or risk selection. Of course, there is a signifi­ in the lurch. I ask you to consider whether cant cost to maintaining such reserves. Ex­ some of the legislation under consideration. I submit to you that these requirements can­ protection offered by state commissions was cessive and unnecessary requirements can adequate in those instances. and are causing the health coverage ship to not be part of an actuarially-sound, low-cost sink, Reserves must be reasonable and re­ benefit plan. I know this from years of LEGISLATION IS NEEDED TO CLARIFY PRE­ flect the risk and management of the com­ hands-on experience. EMPTION AND PROTECT ACCESS TO BENEFIT pany so that they do not overburden its fi­ Unreasonable reserve requirements PLANS nancial structure. We could not operate under the current I urge you to develop legislation to cure MEWAs do not have the same operating proposals for reserves as found in Rep. those problems. To continue offering low­ characteristics and do not require the same Hughes bill, H.R. 4919. We are not insurance cost healthcare benefit plans for small busi­ reserves as regular insurers. MEW As need to companies. The function of reserve require­ ness, we need clear Federal pre-emption for ERISA plans from burdensome State require­ be responsibly run and they need to base ments is to assure an adequate asset base. their contribution rates on sound actuarial Our asset base is potentially very large­ ments. We are willing to consider reasonable principles-this will allow claims to be paid provisions for registration and certification through the member assessment vehicle, our by the Department of Labor, and they would regularly and promptly and that is the base is that of our total membership. Forc­ standard which the Committee should seek be helpful if, and only if, coupled with clari­ ing the membership to shift those assets to fied preemption of State regulations. to impose. the trust in advance of an actual dem­ I offer to help you develop the provisions Prompt claim payment does not require onstrated need would be extremely unpro­ that can cure the problems, and I will assist the large reserves contemplated by certain ductive. you to obtain the cooperation and support of legislative proposals before this Committee Most of the proposals for reserve require­ other soundly run MEW As to accomplish for a number of reasons. MEWA benefits are ments reflect a confusion of our benefit plans your very worthwhile objectives. carefully tailored and policy limits estab­ with insurance. Well-run MEWAs want to be, Ladies and gentlemen, as you can see, my lished, by the actions of the group's benefit and my operations are, actuarially sound, experiences over the past few years have committee, to fit actuarially within the con­ and conservatively so. As I stated earlier, made me a believer in the viability of tributions received by the Trust. MEWAs are sound actuarial practices, coupled with an MEWAs. I hope that mature reflection and a true association of employers and can as­ ability to assess the participants, provides study will make the House Education and sess the membership to make up for any sufficient financial security. Labor Committee a convert also, and that shortfalls. The Trust balance must be care­ STRENGTHEN THE GOOD POINTS OF MEWA your committee will develop legislation that fully monitored so need for assessment is BENEFIT PLANS will allow responsible MEWAs to continue to identified early and kept as small as pos­ A small business participant in our benefit serve the small business community. sible. plan gets: A third important feature for MEWAs is 1. Access to affordable coverage. comprised of the benefits which may be en­ 2. Protection against serious economic loss KEEP THE VIGIL: PELTIER IS A joyed by a MEWA versus th~ traditional in­ related to most health conditions. MURDERER surance carrier with respect to taxation. All The improvements that are needed are pro­ of our benefits are provided through a trust, visions that strengthen the natural inclina­ and these trusts are tax-exempt. Therefore, tion of benefit providers to incorporate the HON. MICHAEL G. OXLEY we can put more funds to work providing following characteristics into MEWA oper­ OF OHIO benefits. ations: IN THE HOUSE OF REPRESENTATIVES Because of these three advantages, the in­ Follow sound actuarial standards in Tuesday, August 11, 1992 crease in the number of citizens who will be matching contributions and benefits. able to satisfy their financial obligation for Adopt a sound investment policy for all Mr. OXLEY. Mr. Speaker, a great deal of re­ health care is substantial. I urge you to plan assets. visionist history has appeared in the media re- August 11, 1992 EXTENSIONS OF REMARKS 23139 cently regarding the events that occurred in showed Peltier was the only person at the stand. The U.S. Supreme Court has twice de­ Oglala, SD, on June 26, 1975. I commend the scene with an A~15. It is believed that nied certiorari. What Peltier has been unsuccessful in win­ following article, written by our former col­ Peltier, Dino Butler, and Bob Robideau were the three who approached the car while the ning in a court of law, he and his allies are league Ed Bethune, to the attention of my col­ agents were disabled, and, thereafter, both now trying to win in the court of public leagues. agents suffered the fatal shots. opinion. Their strategy is to change public KEEP THE VIGIL: PELTIER IS A MURDERER Peltier, that same evening, fled the res­ sentiment so they can get a pardon or win at (By Ed Bethune) ervation. retrial, if they can finagle a high court re­ On September 10, 1975, a car loaded with versal. As the FBI changes with the retirement of At Peltier's murder trial his lawyer said: older agents and the hiring of new agents, explosives and weapons exploded on the Kan­ sas turnpike. Peltier's A~15 was recovered "The only question is, did the defendant par­ memories may fade concerning the incident ticipate we concede first-degree mur­ at Oglala, South Dakota, on the Pine Ridge from the vehicle. The weapon was damaged * * * and could not be fired. The bolt, however, der." Thus, the defense wanted the murder Indian Reservation, on a fateful summer day, trial to focus on one dispositive issue: Did June 26, 1975. It was then and there that two was removed and tested, and a .223 cartridge Peltier participate? If so, then he could be young FBI Agents, Ronald Williams and casing found at the murder scene was matched by extractor marks. convicted as an aider and abettor. The jury Jack Coler, in the prime of life, were the vic­ found that he participated. tims of a cold-blooded execution. Leonard On November 14, 1975, Oregon State Police stopped two vehicles near Ontario, Oregon. Now, however, Peltier's lawyers have con­ Peltier was found guilty of participating in cocted yet another gripe over the same issue. the murders of these two agents. He is serv­ Peltier was one of the occupants who fled, firing at the police as he ran. SA Coler's pis­ In a recent petition, they claim the govern­ ing two consecutive life sentences. ment changed its "theory of the case," and Peltier and others were not members of the tol was found in one of the vehicles in a paper bag bearing Peltier's thumbprint. that the change shows that Peltier was Pine Ridge Reservation. They were outsiders treated unfairly. The United States Mag­ who, as part of the American Indian Move­ Peltier then fled to Hinton, Alberta, Can­ ada, where he was arrested by Mounties on istrate Judge didn't buy it and neither did ment (AIM), had gathered on the reserva­ Senior District Court Judge Paul Benson tion. The group had traveled to Pine Ridge February 7, 1976. He said he would have re­ sisted arrest by deadly force if he had known who presided at Peltier's murder trial. On from New Mexico, and Peltier, the leader of December 30, 1991, he accepted the Mag­ the group, was a fugitive wanted for at­ the officers were nearby. With those facts, it is unbelievable that istrate's report and dismissed Peltier's ha­ tempted murder in Milwaukee, Wisconsin. beas corpus petition in its entirety with the This, however, was unknown to the agents Leonard Peltier has become a "cause cele­ bre." Some try to paint him as an American following comment: and, on that day, they were seeking Jimmy "The Magistrate Judge's conclusion cor­ Eagle, wanted for robbery on an Indian res­ native activist who has been mistreated by the system. The former Soviet Union pre­ roborates this trial judge's impression and ervation. understanding throughout the trial that the The agents had reason to believe Eagle was sented thousands of signatures claiming Peltier was a political prisoner (a solid in­ United States was proceeding on a basic the­ utilizing a red vehicle. SA Williams spotted ory that defendant was a principal in the of­ such a vehicle on the reservation shortly be­ dictment from the former experts in propa­ ganda). CBS has provided support on the fense but if the jury did not find him to have fore noon, and he and Coler gave chase. Tes­ been a principal that the evidence would timony proved that the vehicle was occupied West 57th show, and more recently on 60 Minutes. CBS producer James Stolz and CBS clearly support a finding in the alternative by Peltier, Norman Charles, and Joseph that he was guilty as an aider and abettor. Stuntz. (Stuntz was shot and killed later Correspondent Steve Kroft's total disregard of the facts in this case make them can­ The jury was instructed on the basis of that that same day, and was wearing an FBI jack­ theory." et.) didates for employment with The National After the jury found him guilty of murder, The vehicle stopped near a tent city en­ Inquirer, and Senator Daniel Inouye (D-HI)­ who's standing for re-election this year­ Peltier lambasted Judge Benson with a care­ campment and, from long range, the subject fully worded statement which skirted the and others took the agents under fire with wants Peltier pardoned. question of his participation. Peltier said rifles. The gun battle lasted about ten min­ Of course, Hollywood would not want to be this to the judge at his sentencing: utes, with the agents totally outgunned. left out. Western singer Willie Nelson, ac­ "I stand before you as a proud man; I feel Over 125 bullet holes were found in the companied by Kris Kristofferson, Peter Coy­ no guilt! I have done nothing to feel guilty agents' two cars. Evidence indicated that ote, Joni Mitchell, Robin Williams, and oth­ about! I have no regrets about being a Native there were only three pistol rounds dis­ ers, have campaigned and done concerts American activist * * * I do feel pity for charged from the agents' revolvers, and pos­ under the heading of "Justice for Peltier." your people that they must live under such sibly a round from a rifle and shotgun. The Kristofferson likes to wear a T-shirt calling an ugly system." agents were soon hit and disabled. for "Justice for Peltier." And, finally, actor Judge Benson responded: "You profess to SA Coler suffered a potentially fatal wound Robert Redford has been involved in the re­ be an activist for your people, but you are a to the right arm, which nearly severed the cent production of a motion picture entitled, disservice to Native Americans." His com­ arm. He lost blood rapidly and became un­ Incident at Oglala. We have not seen the pic­ ment was supported when the Eighth Circuit conscious. SA Williams was shot in the left ture yet, but we can guess how it come down. Court of Appeals reviewed the case and shoulder, and the bullet lodged in his side. There is talk of other pictures also. William found: "* * * the evidence of Peltier's guilt Although wounded, SA Williams removed his Kunstler, the attorney infamous for his in­ was strong." shirt and attempted to tourniquet SA Coler's volvement in radical left-wing causes, has Peltier's apologists have continually dis­ bleeding arm. SA Williams also took a round also been involved in this case. torted and belittled the government's proof, in the right foot. · So what about Peggy Coler's question: How even to the extent of suggesting Peltier Courtroom evidence proved the brutality can this be? might not have been present that day. Peter of the murder. The following is from U.S. v. The answer is not difficult. It involves pol­ Matthiessen wrote a book about the incident Pel tier (1978): itics, money, and movies. Leonard Peltier titled, In the Spirit of Crazy Horse. (In it, he "These wounds (above) were not fatal. The has become a pawn for a guilt-ridden enter­ audaciously likened Peltier's fate to that of agents were killed with ·a high-velocity, tainment industry. For years, producers, di­ Sitting Bull in 1876.) Here's the spin he put small-caliber weapon fired at point-blank rectors, and actors misportrayed Indians, on the question of Peltier's participation range. Williams attempted to shield his face making millions in the process. Now, in a after he read the testimony of an agent who from the blast with his right hand, turning misbegotten effort to make amends, Holly­ identified Peltier through a telescopic sight: his head slightly to the right. The murderer wood and others are willing to ~ewrite his­ "* * * [T]he sighting did not tend to show placed the barrel of his gun against Wil­ tory. They convert Peltier The Murderer to that Leonard Peltier had participated in the liams' hand and fired. The bullet ripped Peltier The Hero, The Warrior. They trample killing or even in the shooting, but simply through Williams' hand, into his face, and the honor of fallen FBI men. If they, the law­ that he was among those on the property carried away the back of his head. He was yers, the political activists, and others can that day * * * Peltier himself has never de­ killed instantly. The murderer shot Coler, make a buck in the process, then so much nied this (despite the point made by his at­ who was unconscious, across the top of the the better. torneys that no hard evidence of his presence head. The bullet carried away a part of his They have a right to their opinion, even if on June 26 was ever produced)." forehead at the hairline. The shot was not it is misguided. The FBI is a protector of One wonders if Matthiessen and Peltier's fatal, however. The murderer then lowered that right, but we who have carried the lawyers will change their "theory of the his rifle a few inches and shot Coler through badge also have the right to disagree and call case" riow that Peltier himself has made a the jaw. The shell exploded inside his head, it as we see it. Peltier has been found guilty damaging admission about his participation. killing him instantly." of murder by a jury; his case has been a-p­ On September 22, 1991, Peltier responded to a Autopsies and testimony tied the fatal pealed and reviewed many times; and all question by Steve Kroft during the course of shots to an A~15 (.223 round). Testimony have agreed that the conviction should the 60 Minutes show: 23140 EXTENSIONS OF REMARKS August 11, 1992 Kroft: "Did you fire at those agents?" many good friends we have made at Indiana W. Johnson, longtime community activist and Peltier: "Yes, I fired at them." University. I wrote about Dick Stoner and humanitarian, whose life was devoted to help­ So much for the question of Leonard Herman Wells in my last letter to you. Both ing those who were disenfranchised, alienated Peltier's participation! Is that aiding or are good friends and extraordinary mentors. abetting or what? I could comment at length on faculty I have and needy. She died on August 2, 1992, after Assistant United States Attorney Lynn come to know-women and men who are a long illness. Crooks, who has been on this case from the close personal friends as well as colleagues. During her lifetime, Mildred Johnson found­ beginning, said recently: "Peltier's admis­ Their friendship relates to my joy in enter­ ed the Virginia Wilson Interracial and Helping sion that he fired at the agents underscores taining ideas, for they have taken the time Hands Center, Inc., named in honor of her the truth. The government's evidence was and trouble to teach me about an extraor­ mother and dedicated to feeding, clothing, and very strong and credible. Peltier was rightly dinary range of fields and to give me a daz­ sheltering the poor. Her quest for justice made convicted." zling array of insights. her an outspoken advocate for an efficient Unlike the young agents who were mur­ There is a special dimension of excitement dered, Peltier lives on. His dupes keep clam­ at IU because so much of what is occurring court system that treats everyone fairly. She oring for his release and the chant will con­ here involves the interaction of teachers and was also one of the founders of Rochester's tinue, because it is driven hard by politics, scholars in many disciplines, each bringing a local NAACP Chapter. money, and movies. special focus to common questions. These She has been the recipient of numerous We must not let this tragedy fade from our collaborative efforts across fields are the awards and honors: Rochester Rotary Award, memories. Special Agents Jack Coler and hallmark of our University, made possible by Greater Rochester Metro Chamber of Com­ Ronald Williams were heroes then, and they extraordinarily talented faculty working in merce Social Services Award, Loftus C. Car­ are heroes today, and they will forever be re­ the spirit of One University. The creative membered as such by the FBI. son Human Rights Award, Lena M. Gantt mind is not restricted by the boundaries of Award, and many others. In 1986, Mildred academia: bridges across disciplines create ideas and insights. Johnson made national news when she was TRIBUTE TO TOM EHRLICH Finally, coming to IU has helped teach me listed as one of Newsweek magazine's 100 to entertain not only friends and ideas, but Unsung Heroes. She took every opportunity to HON. ANDREW JACOBS, JR. also myself. I have come to appreciate, far communicate her philosophy of living-helping OF INDIANA more clearly than could have been possible others. As a regular columnist in the Frederick before, what an extraordinary opportunity I IN THE HOUSE OF REPRESENTATIVES Douglass Voice she championed human rights have to help lead a great university, to help and civil rights. Tuesday, August 11, 1992 make it even greater. I have grown in count­ We honor Mildred Wilson Johnson today, Mr. JACOBS. Mr. Speaker, W. Somerset less ways and intend to keep on growing as long as I have the good fortune to be in this and pay tribute to her for a lifetime of helping Maugham wrote that education is of value only position. others. Perhaps the greatest tribute of all is to so far as it ennobles. Many times I have felt comfortable with learn from her, to continue her good works, Tom Ehrlich, president of Indiana University, my views on an issue only to find myself and to carry her message forward. is certainly one of God's noblemen. challenged-frequently by students. Time The following is an example of how wonder­ and again, I have said to myself, "They have fully he seemlessly weaves humor and profun­ a point and I can learn from that point." My AID TO PRIVATE SCHOOLS dity into his thoughts and writing. greatest single pleasure is as a teacher, and Our nation, indeed our world, is the richer when I leave the presidency of Indiana Uni­ HON. WilliAM D. FORD because of his civility and his contributions to versity I intend to return to my prior role as full-time teacher and scholar. In the interim, OF MICHIGAN the civilizing process. however, I continue to delight in how much IN THE HOUSE OF REPRESENTATIVES INDIANA UNIVERSITY, I learn from students. This is true in the Tuesday, August 11, 1992 PRESIDENT'S PARTNERS, courses I teach regularly, but no less true in Mr. FORD of Michigan. Mr. Speaker, on Bloomington, IN, August 1, 1992. my contacts with students in arenas outside DEAR PARTNER: I recently read the results the classroom. Wednesday, the House is scheduled to debate of a Time!CNN poll of adults who were asked In all events, in the process of learning H.R. 4323, the Neighborhood Schools Im­ what they would most like their children to about how to be president of Indiana Univer­ provement Act. A fundamental issue which we be when they grow up. These were the re­ sity, and trying to be the best president I am will consider at that time is whether we should sults: president of a university, 38%; head of able to be, I have learned a good deal about a large corporation, 28%; sports star, 11 %; provide vouchers or other aid to children or myself-my limitations as well as my parents of children attending private schools. U.S. President, 7%; movie star, 4%. strengths. The most important single lesson My wife, Ellen, and I would have had trou­ In preparation for that debate, I have asked is how carefully I must listen-to students, my committee staff to summarize the Supreme bles if these were the only options; we have to faculty, to staff, and to alumni and always wanted our children to be whatever friends of the University. Court decisions in this area going back to they wanted to be. One is an airline pilot fly­ For this reason, among many others, I par­ 1947. I hope the Members will take the time ing 747s to the Far East, one is a social work­ ticularly urge you to give me the benefit of to read about these cases because they make er counseling young children and their par­ your counsel, your ideas, your suggestions, clear that the Court will not rule in favor of the ents, and one is a newly minted lawyer about your criticisms, your concerns, and your to start private practice. We rejoice that constitutionality of any voucher or similar aid thoughts about our University and how it to private schools. each is happy. But I admit to some surprise can best meet the challenges we face. Wheth­ that others put being a university president President Bush has told parents of parochial er you and I ultimately agree or disagree school children that his Gl bill for children will a good 10 points above leading a large cor­ about any particular issue, I am confident poration and well before being ~ movie star. that I will benefit from your counsel, as I help them to pay for tuition at their schools. Ellen and I just returned from a hiking trip have so often over the past five years. Mr. Bush is perpetuating a fraud on these in Switzerland, where en route we had the I write with gratitude and appreciation for people. The Court will rule as unconstitutional good fortune to visit Audrey Hepburn at her your support and with optimism for the any such scheme. home outside Lausanne. Having seen her years ahead. The spokesman for the White House was world, we wonder about those who put that Cordially, quoted several weeks ago as saying that they life last on their list. THOMAS EHRLICH. To be serious, however, as I conclude five realized there was no chance of passage of wonderful years as president of Indiana Uni­ any such proposal in the Congress this year. versity, I find myself asking what it is that A TRIBUTE TO MILDRED W. Marlin Fitzwater asserted that the voucher pr