March 6', 1986 EXTENSIONS OF REMARKS 3989 EXTENSIONS OF REMARKS

MEDICARE CONTINUING CARE health benefits more equitable and cost effec­ aries continue to be protected until an alterna­ EQUITY AND QUALITY ASSUR­ tive and by protecting the beneficiary's rightful tive system, such as that offered by CCEQA, ANCE ACT OF 1986 access to quality medical, hospital, post-hospi­ can be put in place. tal and restorative care. Among the other prominent changes HON. EDWARD R. ROYBAL The legislation I am introducing today is the CCEQA makes in 's continuing care OF CALIFORNIA most recent of three companion bills that ad­ benefit and quality assurance system are the IN THE HOUSE OF REPRESENTATIVES dress the problems of access and quality following: which elderly patients are now facing. CONTINUING CARE PROVISIONS Thursday, March 6, 1986 The first of these companion bills, the The current waiver of liability for nursing Mr. ROYBAL. Mr. Speaker, today I rise to "Quality Assurance Act of 1985" [QUARA]­ home and home health care is replaced by a introduce the "Medicare Continuing Care (H.R. 1970) was introduced April 3, 1985. This system of prior authorization. Where the ad­ Equity and Quality Assurance Act of 1986" legislation builds upon the current quality as­ ministration stops at dropping the waiver, [CCEQA]. CCEQA is a comprehensive reform surance system by requiring that the Depart­ CCEQA replaces it with a more equitable al­ package that addresses serious problems of ment of Human Services [DHHS] and its con­ ternative; access and quality which beneficiaries now tract Peer Review Organizations [PRO] Current restrictions on beneficiary appeals face under Medicare's continuing, long-term expend at least as much effort and resources are lifted to make all Medicare claims appeal­ care and acute care benefits. It substantially for quality as for cost containment; by extend­ changes the way continuing care benefits are ing quality assurance activities to all providers; able and to permit providers to represent managed and upgrades the quality assurance by involving patients, local consumer boards beneficiaries in all cases of appeal; system for the entire Medicare Program. and States in the quality review process; and Independent PRO review of medical neces­ The House Select Committee on Aging, by developing improved methods for measur­ sity and practical considerations is built into which I chair, has taken a hard look at prob­ ing and assuring quality across service set­ the current appeals process for continuing lems of access and quality resulting from tings. care claims; health care cost containment over the past The second bill, the "Medicare Beneficiary Uniform criteria and protocols are estab­ year. In 1985, two major hearings were held Protection Act of 1986" (H.R. 4065), was in­ lished to make claim determinations more that showed that: First, elderly patients are troduced January 29, 1986, to prevent the ad­ equitable and predictable within and across in­ being discharged sooner and sicker due to ministration from dropping the Medicare termediaries and over time; pressures on hospitals to shorten lengths of waiver of liability that helps to protect benefici­ The performance criteria for fiscal interme­ stay under prospective reimbursement; and ary access to needed home health and skilled diaries, now heavily weighted toward cost-sav­ second, actions by the administration are se­ nursing services. The Medicare waiver gives ings, are changed to give equal weight to ac­ verely limiting beneficiary access to essential limited financial protection to health providers curacy as to savings; and nursing home and home health care. who accept patients they have good reason to A vehicle is created to directly involve con­ These hearings confirmed that health care believe are eligible for Medicare coverage, but sumers, providers and intermediaries in the cost containment is putting America's elderly whose claims are subsequently denied. If this development and implementation of CCEQA in a classic catch-22 bind. While, on the one provision is eliminated without reforms to pro­ provisions and other continuing care policies hand, we are seeing older patients being dis­ tect beneficiary access, providers will have at the national level. charged sooner and sicker from our hospitals, every reason to limit their participation in Med­ QUALITY ASSURANCE PROVISIONS this is only half the story. Efforts by the ad­ icare, to pull out of the program altogether or PRO's are required to expend at least as ministration to contain the cost of continuing to turn patients away whenever there is any much effort and resources for quality as for long-term care are also limiting the elderly's question of Medicare coverage. cost containment; access to the home health and post-hospital H.R. 4065 reflects congressional opposition PRO's are required to extend quality assur­ skilled nursing home services-care they need to dropping the waiver by containing language ance activities to all providers, including nurs­ now more than ever. Follow-up studies by the identical to that agreed to by Senate and ing home and home health providers; committee also revealed problems inherent in House conferees in the "Consolidated Omni­ Patients, local consumer boards and States how Medicare's acute and continuing care bus Reconciliation Act of 1985"-an act are involved in the quality review process benefits are administered. As a result, I have passed by the House just minutes ago. through local consumer advisory boards; called through CCEQA for a major restructur­ Since H.R. 4065 was introduced, the admin­ Improved methods are to be developed for ing of the Medicare Program. istration has issued a final rule to drop the measuring and assuring quality across service What has become clear is that efforts to Medicare waiver of liability, effective March settings through a new national council on contain provider costs are, instead, taking a 24, 1986. Also since this time, a companion quality assurance; and direct toll on the Medicare beneficiary's bill to H.R. 4065 has been introduced by the For the,first time, standards are set for dis­ access to quality physician, hospital, nursing Honorable Senator GLENN in the Senate (S. charge planning that must be met by all Medi­ home and home health care. The alarming re­ 2122). One of the primary provisions of the care hospitals and that will protect against ality is that for the first time in the history of legislation I am introducing today is to pre­ premature discharge and promote the pa­ public health policy, concerns for quality and serve the Medicare waiver of liability in the tient's smooth transition into post-hospital access to care have become secondary to short term and, over a 30-month period, re­ care. concerns for cost. place it with a system of prior and concurrent Only through changes such as these can Where Congress and the administration in authorization for skilled nursing home and we adequately protect Medicare beneficiaries particular have moved quickly to contain home health claims. Where the administration from the adverse effects of cost-driven public health care costs, there has not been a corre­ stops at dropping the Medicare waiver, policy. Only through such changes can we sponding push for a solid system of quality as­ CCEQA goes further to replace it with a more build an equitable and high quality system of surance to monitor cost containment and pro­ equitable alternative that protects benefici­ acute and chronic care. Only through such ac­ tect beneficiaries from the adverse effects of aries while also maintaining cost-controls. tions can we move beyond the notion of cost­ a system that has been squeezed too hard. With the date on which the Medicare waiver efficient to cost-beneficial health care. And, The continuing long-term care and quality will expire just days away, the House has only with these reforms in mind can we assurance reforms in CCEQA take a major acted well to pass a reconciliation bill with the begin-as I have begun-to finish the unfin­ step forward to correct these deficiencies by waiver of liability provision intact. If passed by ished agenda of Medicare and Medicaid by making Medicare's nursing home and home the Congress, this will ensure that benefici- making comprehensive health care coverage

e This "bullet" symbol identifies statements or insertions which are not spoken by the Member on the floor. 3990 EXTENSIONS OF REMARKS March 6, 1986 available to Americans of all ages. I refer here boards and creates "hot-lines" for Medicare Secretary of DHHS on the design, imple­ to my plans to introduce, in the next several providers and consumers. mentation and evaluation of the continuing days, the "USHealth Act" which provides cat­ Promotes the development of improved care provisions of this Act; on the develop­ astrophic and basic health protection for all methods for measuring and assuring quality ment and interpretation of definitions, poli­ through a new national council on quality cies and regulations under Medicare's con­ Americans regardless of age or income. assurance. tinuing care benefit; on the allocation of re­ The reforms in CCEQA are not minor-but Establishes guidelines and standards for sources for the administration of these ben­ neither are the health care needs and related hospital discharge planning to prevent pre­ efits; and on the management of other Med­ financial risks of older and younger Ameri­ mature discharge and ensure a smooth tran­ icare and Medicaid continuing cans. In this spirit, the Congress cannot move sition to post-hospital care. care benefits. quickly enough to correct the deficiencies of THE ISSUE Council members include persons with ex­ our current health care system that have put During 1985, the House Select Committee pertise in geriatrics and rehabilitative prac­ the nation's elderly in a catch 22 bind. The on Aging held two major hearings on the tice representing for-profit and not-for­ Congress must move forward to create a impact of cost containment on the quality profit hospital care services. planners; legal services personnel; State om­ I therefore urge the Congress to demon­ These hearings clearly showed that (1) el­ budsmen; PROs; and consumers cost containment measures by the Ad­ ministration on Medicare's already limited Establishes and annually updates a uni­ Mr. Speaker, I insert the bill summary for form assessment protocol and assessment the Medicare Continuing Care Equity and continuing care benefit are put­ ting the elderly in a "Catch 22" bind-re­ tooI for claims review that includes (1) Quality Assurance Act of 1986 in the RECORD: leased sooner and sicker from our hospitals patient characteristics, <2> medical condi­ MEDICARE CONTINUING CARE EQUITY AND and unable to get the home and skilled tions, (3) physical and cognitive functional QUALITY ASSURANCE ACT OF 1986 nursing home care they need. capacity, <4> practical considerations, (5) [CCEQA] These findings confirm that under the services required, (6) and cost/appropriate­ ness of service setting to ensure greater PURPOSE present system, concerns for quality and access are secondary to concerns for cost. equity, reliability and predictability of claim To ensure equity in beneficiary access to determinations within intermediaries, across quality continuing care services What has become clear is that it is the bene­ ficiary-not the provider-who is feeling the intermediaries and through time. Sets quali­ and to promote the quality and continuity fications for personnel employed to perform of care across service settings through re­ impact of cost containment both in the quality of their care and in their access to medical reviews under Medicare. forms in Medicare claims review and appeals Permits intermediaries to consult with procedures, in intermediary performance post-hospital and restorative services. Added to problems of early discharge and continuing care providers, in conjunction evaluation criteria and in Medicare's quality with the patient and attending physician, assurance system. access to continuing care services are serious limitations inherent in Medicare's continu­ and approve substitute, Medicare-eligible Continuing care reforms ing care benefits such as the lack of uniform services when medically indicated, when ap­ Creates national council of continuing claims review criteria, the lack of continuity propriate to the beneficiary's needs, and care providers, intermediaries in the transfer from acute to post-hospital when substitution of services will not result and consumers to make recommendations to care, and inadquate protection of the bene­ in additional costs to Medicare. the Secretary of Health and Human Serv­ ficiary's right to appeal. III. Prior authorization ices on the implementatoin of this Act and THE SOLUTION on other continuing care policies under Establishes a system of prior and concur­ Medicare and Medicaid. Problems of quality and access resulting rent authorization for Medicare nursing Replaces the current Medicare waiver of from health care cost containment demand home and home health claims that replaces liability with a system of prior and concur­ that provisions for quality assurance is the (1) A presumptive eligibility period introduced by Con­ provider based on a beneficiary's perceived terminations within and across intermediar­ gressman Edward R. Roybal, Chairman of elibibility for Medicare and for a specific ies and over time. the House Select Committee on Aging, that class of Medicare benefits and during make all claims appealable and to permit elderly patients are now facing. CCEQA is a which Medicare will pay the costs of eligible providers to represent beneficiaries in all comprehensive reform package that incor­ services within that class of benefits. cases of appeal. porates many of the provisions of the first <2> A concurrent, 10 day claims review Builds PRO review of "medical necessity" two bills and introduces major, new reforms period for services claimed within a class of and "practical considerations" into the cur­ to ensure the beneficiary's rightful access to benefits care ben­ viders will cover the costs of ineligible serv­ ing care benefits. efit, to provide incentives for provider par­ ices provided within a class of benefits at Changes performance evaluation stand­ ticipation and to ensure high quality care. any time during the 10 day review period or ards for fiscal intermediaries to balance in­ This legislation was developed in consulta­ presumptive eligibility period. centives for cost savings with accuracy. tion with hospitals, skilled nursing facilities, Requires that DHHS monitor the accept­ Promotes research in the use of Medicare home health agencies, legal services person­ ance of Medicare patients by continuing continuing care benefits in a manner that is nel, discharge planners, and fiscal interme­ care providers to ensure that placement is cost-effective and most appropriate to bene­ diaries, as well as with consumers. not delayed until the results of prior and ficiary needs. CCEQA makes the Medicare continuing concurrent review are known. Quality assurance reforms care benefit more equitable and cost effec­ rv. Medicare continuing care appeals, tive and protects the beneficiary's rightful special exceptions, and special benefits Requires that Peer Review Organizations access to high quality hospital, post-hospital expend at least as much effort and and restorative care-care they need now Requires, on enactment, that all Medicare resources for quality as for cost contain­ more than ever. continuing care claims be appealable; sets ment. requirements for informing beneficiaries of Extends PRO functions to cover all Medi­ CCEQA PROVISIONS: MEDICARE CONTINUING CARE their right to appeal; and lifts current re­ care health and continuing care services and REFORMS strictions on the provider's right to repre­ to include problems of access. I. Continuing Care Policy Council [CCPCJ sent beneficiaries in the appeals process Involves patients and states in quality Establishes Continuing Care Policy Coun­ when approved by the patient or the pa­ review through local consumer advisory cil to make recommendations to the tient's respresentative. March 6, 1986 EXTENSIONS OF REMARKS 3991 Builds PRO review of "medical necessity" out compromising quality and without urge all Members to give thought to this and "practical considerations" into the ap­ adding to the costs of Medicare. plague. peals process for Medicare continuing care QUALITY ASSURANCE REFORMS Drug usage has reached epidemic propor­ claims at the point at which a request for I. Increase PRO emphasis on quality tions among our young people. More than reconsideration of a denied claim is upheld assurance by the fiscal intermediary based on pre­ one-third of our high school graduates have scribed "triggers" for PRO reviews. Grants Requires that PROs extend at least the admitted to trying marijuana, beginning a pat­ special exceptions to beneificiaries who are same amount of effort and resources on tern of abuse that continues to spread later in certified by the PRO as needing a given quality assurance as on cost containment. life. The cycle recurs again and again, ruining level of care based on medical necessity. II. Expansion of PRO scope of work and the lives of many young adults. level of effort Grants special benefits to Medicare bene­ If we wish to halt the tidal wave of illicit ficiaries who are eligible for skilled nursing Expands PRO scope of work in quality as­ drugs entering our country, we must commit care, but for whom a bed is not available. surance and board membership to cover all Requires that DHHS, in conjunction with Medicare health and continuing care provid­ ourselves to cutting the demand for these the CCPC, set standards, assessment criteria ers including hospitals, physician offices, drugs. And if we wish to reduce the demand, and payment rates that: nursing homes, home health agencies, and we must commit ourselves to a program of <1 > Ensure that allowances to hospitals for hospices. Also expands PRO functions to in­ educating our young people about the dan­ "days awaiting placement" protect the bene­ clude review of continuing care claims ap­ gers of drug abuse. We must mobilize every ficiary's right to a continued hospital stay peals that are denied and upheld by fiscal sector and every level of society. We have no intermediaries at reconsideration. beyond that associated with a given diagno­ alternative, Mr. Speaker, lest we lose every­ sis until a skilled nursing home bed becomes Ill. Local consumer advisory boards and thing we stand for. available or is no longer needed. hot-line I insert the following article into the CON­ (2) Permit Medicare-certified home health Requires that each PRO have a Consumer providers and licensed intermediate nursing Advisory Board to conduct ongoing GRESSIONAL RECORD, and urge my colleagues home providers to provide care only if the oversight of the PRO, to provide input into to read it carefully. possibility of continued hospital stay is the award and evaluation of PRO contracts, The article follows: ruled out, only when the PRO certifies that and to receive input from Medicare benefici­ [From USA Today, Feb. 10, 19861 the patient's health and safety can be rea­ aries and other parties. sonably assured at the lower level of care, Creates 24 hour hot-line for receiving WE JUST CAN'T LIVE WITH DEATH BY DOPE only when the patient or the patient's questions and complaints from Medicare through the Office of dency in 1984. He and his wife, Jacaqueline, DHHS on their review activities under the are the parents of five children. Jackson Medicare continuing care appeals process Technology Assessment to oversee the oper­ ations of the quality assurance system and to make rec­ ommendations to DHHS for its improve­ USA Today: Are drugs a big problem in V. Performance standards for fiscal ment. the USA's schools? intermediaries Requires that DHHS provide such infor­ Jackson: Yes. Whether it's in San Diego Requires that DHHS, in consultation with mation as is needed by the CQA to carry out or Phoenix or Albuquerque or Washington, the CCPS, develop new criteria and stand­ its responsibilities. This information shall DC, drugs may be the most universal phe­ ards for evaluating intermediary perform­ include data on Medicare continuing care nomenon in our schools today. The combi­ ance under the Contractor Performance claim denials and reversals by region, in­ nation of drugs and alcohol and access to Evaluation Program that: cluding decisions from Administrative Law guns has made our schools the most danger­ <1 > Give equal weight. to "accuracy" as to Judge and judicial proceedings, for the pur­ ous places in the country to be between 9 "cost savings" in intermediary decisions pose of evaluating the potential effect of and 3 during the day. We're raising the under their medical claims review functions. beneficiary access to continuing care serv­ drug, the violence, and the sex issues. If we <2> Establish "accuracy" and "timeliness" ices on the quality of care and the utiliza­ just deal with a given black issue or a given in medical claims review as critical variables tion of other health services. Hispanic issue, the media says it really is such that failure to meet standards under Requires that the CQA make recommen­ bad but they got a problem. But if it's in a these, as with other CPEP critical variables, dations annually to DHHS for improving surburban school then it's we got a problem. is grounds for termination of contract. quality assurance and access to the Secre­ USA Today: What happens when you visit <3> Replace the current 5:1 minimum tary and the Congress and requires that our high schools and ask the students about standard for cost-savings under both the DHHS take into account CQA input in its drugs? medical claims review and cost report review administration of the PRO and Medicare Jackson: I recently visited a school in San functions with measures of cost-effective­ programs. Diego and asked, " How many of you know ness that are not based on numerical stand­ V. Discharge planning someone in your age group who is dead be­ ards. cause of drugs?" Almost every hand in the <4> Increase the weighting of performance Sets guidelines for discharge planning to room went up. "How many of your know criteria related to the completeness of ex­ protect against inappropriate discharges someone who is in jail because of drugs in planations for denials under medical claims and to ensure a smooth and timely transi­ your age group?" Hand went up, and they review functions. tion to post-hospital care. started laughing. Requires that DDHS provide information Requires that hospitals have in place a USA Today: Then what happened? on overall intermediary performance to the discharge planning process that begins as Jackson: I kept asking questions: "How CCPC annually for the purpose of evaluat­ close to the time of hospital ac4nission as many of you know someone in the school ing and revising criteria under the CPEP appropriate and that alerts nursing home who takes drugs?" Every hand went up.

71-059 0-87-32 (Pt. 3) 4010 EXTENSIONS OF REMARKS March 6, 1986 river designations in spite of such consider­ recent letter to me regarding the dinner, Fred Under the leadership of Scoutmasters Jordan able obstacles. wrote eloquently of the situation in : Hiratzka, Roy Kurahara, Tad Hayashi, and I commend them and this measure to my It is of particular importance at this time David Kakayama, Troop 26 has provided a House colleagues. to sustain our support for those persons special Scouting experience for 500 young trapped and harassed in an environment men during their last 35 years. Regardless of which has become increasingly hostile. The race, religious faith, or financial ability, Troop A TRIBUTE TO FRED SCHWARTZ Reagan/Gorbachev summit and the subse­ 26 has accepted all young men who wished to quent trickle of a few people out of Russia HON. MEL LEVINE has provided a smokescreen for the Rus­ participate and experience the Scouting pro­ sians to escalate their repression of the re­ gram. OF CALIFORNIA fusenik community. The unit has garnered a reputation that has IN THE HOUSE OF REPRESENTATlVES We in Congress agree that this is no time become a tradition in the San Francisco Bay Thursday, March 6, 1986 to give up the struggle, and are extremely area. They serve as role models for other Boy heartened that individuals like Fred are so Scout troops. Their Scouting excellence has Mr. LEVINE of California. Mr. Speaker, this active and committed to this fundamental been demonstrated at Camporees, Scout-0- Sunday, March 9, 1986, in Atlantic Beach, NY, human rights issue. Rama, and other Scouting events with a the seventh annual freedom dinner of the Fred has also been an ardent champion of the State of Israel, and has spared no effort record number of Scouting Presidential Long Island Committee for Soviet Jewry will Awards. In 1975, Troop 26 became a founding honor Mr. Fred Schwartz of Great Neck, NY. I to ensure the continued security and viabili­ ty of the Jewish state. Through his philan­ member of the Berkeley-Sakai Sister City am delighted that Fred has been selected as thropy as well as his political activities, Scout Exchange. This international friendship this year's honoree. Fred has helped to strengthen Israel im­ program provides an opportunity for young Mr. Speaker, the Long Island Committee for measurably. And like all true activists, Fred men and women to travel to Japan, and to Soviet Jewry is a member council of the Union has made it a point to lobby members of host Japanese Boy and Girl Scouts in their of Councils for Soviet Jews, one of the pre­ Congress-including me-on issues of con­ homes here in the United States on a biennial eminent organizations in this country working cern to the Jewish community such as Israel. And, frankly, I appreciate and wel­ basis. on behalf of Soviet Jewry. In Congress, we Troop 26 has also contributed countless have come to rely heavily upon the excellent come his input. Undoubtedly, Fred deserves praise for hours of public service for a number of local information and guidance the Union of Coun­ these accomplishments. However, we cannot community organizations-from assisting cils provides us in our fight for the freedom of overlook the vital role his family plays, par­ senior citizens to mentoring new Boy Scout our coreligionists in the Soviet Union. As one ticularly his lovely wife Allyne. I know it is troops in their development. The U.S. Forest important example, there can be little doubt their strong support for Fred that enables Service and the State of California Parks and that the tireless efforts of the Union of Coun­ him to succeed in all that he does. This Recreation Department has noted many con­ cils and its member councils around the coun­ dinner really honors the entire Schwartz tributions over the years by Troop 26 in main­ try helped create an atmosphere of pressure clan. Mr. Speaker, in conclusion let me say that taining our country's valuable natural re­ on the Soviets which contributed to the re­ sources. lease of Anatoly Shcharansky. Fred Schwartz's legacy to Soviet Jewry, to Israel, and to those causes dear to the Troop 26 of the Boy Scouts of America rep­ I would also like to mention that Lynn hearts of Jews and non-Jews everywhere resents all that is good about the Scouting Singer, former president of the Union of Coun­ will long endure. I salute a man I am proud program and of our great Nation. The young cils and now executive director of the Long and privileged to consider a friend, a man men who have advanced through Troop 26 Island committee, is a fierce fighter in the truly deserving of recognition by the Jewish are prepared to be future leaders of our struggle for Soviet Jewry as well as a good community for his outstanding dedication to human rights and human dignity, a man Nation and many have already assumed re­ friend. She deserves enormous credit and sponsible positions in their local communities. praise for her unstinting efforts over the years truly deserving of the honor the Annual Freedom Dinner bestows, Fred Schwartz. Therefore, I ask you, Mr. Speaker, and my for this vital cause. colleagues to join me in honoring and cele­ The annual freedom dinner of the Long brating the 35th anniversary of Troop 26, Boy Island committee recognizes prominent indi­ BOY SCOUT TROOP 26 Scouts of America. viduals who are committed to the principles of Thank you. human rights and human dignity. In being HON. NORMAN Y. MINETA named an honoree, Fred Schwartz joins the OF CALIFORNIA company of Governor Mario Cuomo of New STATEMENT OF SCOTT WILLIAM IN THE HOUSE OF REPRESENTATIVES York; Robert Abrams, New York State attor­ STUDIES ON POSTSECONDARY ney general; our colleagues JACK KEMP of Thursday, March 6, 1986 EDUCATION CUTS Buffalo, and NORMAN LENT of Long Island; Mr. MINETA. Mr. Speaker, I would like to and speaker of the New York State Assembly ask you and my distinguished colleagues to HON. WILLIAM D. FORD Stanley Fink, to name but a few previous hon­ join me in saluting the accomplishments of an OF MICHIGAN orees. exemplary group of over 500 young men, past IN THE HOUSE OF REPRESENTATIVES Fred Schwartz is particularly deserving of and present members of Boy Scout Troop 26, this honor. Known throughout the greater New sponsored by the Berkeley United Methodist Thursday, March 6, 1986 York area-and beyond-as "Fred the Furri­ Church. On Saturday, March 15, 1986, Troop Mr. FORD of Michigan. Mr. Speaker, today er," Fred was recently featured in an article in 26 will celebrate their 35th anniversary as a my Subcommittee on Postsecondary Educa­ New York magazine. The piece portrayed him chartered unit of the Boy Scouts of America. tion concluded a series of four hearings on as someone who has built up an extremely In the fall of 1949, during the resettlement the impact of the President's proposed fiscal successful fur business-he serves as chair­ period following the internment of Americans year 1987 budget on postsecondary education man of the board and president of "The Fur of Japanese ancestry from the west coast programs. Witnesses arrived from as far away Vault" -while at the same time sustaining a during World War II, a group of community as the populous coastal State of California strong commitment to community affairs. His leaders met to form a Boy Scout troop in and from the outer reaches of rural Montana generosity and energy extends to a variety of Berkeley, CA. Nine Americans-the late to warn us of the very real problems that the social causes. Nonetheless, in both his pro­ Hajime Inoue, Don lwahashi, the late Dick Sa­ administration's proposed cuts would pose for fessional and personal life, Fred has been and kamoto, Sue Nakamura, the late Thomas students, States, and postsecondary educa­ remains most committed to issues affecting Hayashida, Rev. Lloyd Wake, the late Steve tion institutions. One of the most poignant tes­ the Jewish people. Narimatsu, John Nakayama, and the late timonies was presented by a student-Mr. He has been an enthusiastic supporter of Frank Takefuji-became the founding commit­ Scott William Studier-who could not have the Long Island Committee for Soviet Jewry tee members of Troop 26. even considered attending the University of and believes its efforts are essential if we are Starting with 1O boys in January 1950, Michigan, from which he will graduate this ever to save the thousands of Soviets Jews Troop 26 quickly became an important part of August, or a similar institution, without the still imprisoned behind the Iron Curtain. In a Berkeley's Japanese-American community. help of Federal grants and loans. He is a March 6, 1986 EXTENSIONS OF REMARKS 4011 model of the hard-working serious, diligent to attend a local community college on a proposed cuts in financial aid disrupting all student who has taken time out to work full­ part-time basis while working full-time be­ existing programs, nothing is for sure when time to earn money for his education. Yet cause my family was unable, financially, to trying to calculate how one is going to "pay even he could not have made it without Fed­ send me to a four-year college after my high the bills." eral aid. school graduation in 1979. In my three years at The University of I was the first child of four to graduate Michigan I have been the recipient of I am reprinting Mr. Studier's prepared state­ from high school and consider college, but nearly every financial assistance program ment in the CONGRESSIONAL RECORD so that my parents, not having been college educat­ the University has available including Col­ my colleagues will have the opportunity to see ed themselves were unprepared financially lege Work Study, Supplemental Education in very real terms just who these proposed and unknowledgeable about programs then Opportunity Grant and Emer­ STUDENT, THE UNIVERSITY OF MICHIGAN grams because my parents' income of about gency Student Loans. Mr. Chairman, distinguished members of $34,000 at that time "probably would not This year I have received a University the Committee, I would like to thank Sub­ qualify for financial assistance". Due to the Grant, a Pell Grant, a National Direct Stu­ committee Chairman Ford for inviting me perception of very limited funds, I was re­ dent Loan, and a Guaranteed Student Loan. to speak today, and allowing me this oppor­ peatedly informed that only the very needy Some proponents of budget cuts may review tunity to present to you a student's view of should consider applying. This uncertainty my award and feel that the student budget the impact of the Administration's fiscal dampened my search for quality schools and outlined by The University of Michigan Fi­ year 1987 budget proposals regarding cuts in it became necessary to "shop around" for nancial Aid Office is more extravagant than federal student aid programs. My name is affordable colleges if I wanted to attend at it has to be for a student to survive at col­ Scott Studier, and I am currently a senior, all. lege. But, it is funny that even receiving majoring in psychology, at The University I can only too grimly imagine how next what appears to be a good deal of support I of Michigan. In August I will receive my year's graduating high school students will still find myself feasting on peanut butter bachelor of arts degree and then hopefully be hindered in their search for quality post­ sandwiches and macaroni and cheese most enter into a business administration pro­ secondary education, and how reluctant ad­ of the time. gram to complete a master's degree in either ministrators and counselors will be to sug­ I cannot even begin to fathom how a stu­ organizational behavior or human resource gest financial aid options, if the proposed dent receiving financial aid will survive if management. To date, my college education cuts to financial programs become a reality. the proposed 1987 cuts are allowed. With has been a long and arduous struggle with I learned a lot about the value of an edu­ every program at The University of Michi­ finances to remain in school, and turning to cation during the time I received my associ­ gan forecast to be slashed drastically , or perhaps even eliminated present, and future would not have been, lor's degree and, hopefully, a master's the possibility of affording the Mr. Chairman, and fellow Committee make an impression in society as a useful quality of education The University of members, I believe that the issue of equality and economically responsible citizen. Michigan has to offer will go to only those in educational opportunity is an extremely Community college was invaluable in al­ with checkbooks fat enough to pay the important one. I appreciate the effort you lowing me to bridge the gap in my postsec­ price. have extended to obtain reactions from all ondary education, without overburdening What do proponents of budget cuts to fi. components of the educational community, me financially. The limitations of an associ­ nancial aid programs suggest as means for especially those of students like myself, re­ ate's degree program, however, despite its making ends meet for students with lower garding how this issue of equal opportunity important role in the community, made me and middle-income backgrounds, who want may be affected by proposed budget cuts to realize the importance of expanding my per­ to have a quality postsecondary education? financial aid programs. Because I am still a sonal experience and increasing my capacity Work more perhaps? From my own personal student, and hope to further my education for knowledge. experience I can tell you, Mr. Chairman, following graduation, my concerns are very I was much wiser when I decided to enroll that too many hours of work outside the real and my views are based on personal ex­ in The University of Michigan in 1983. My academic arena can only obstruct a produc­ perience before and during my attendance. family was still unable to offer much finan­ tive learning process. At a university such as The University of Michigan has a long cial support because my parents' income The University of Michigan where competi­ tradition of academic excellence, interna­ had increased very little due to contract tion is keen continued distractions from tional prestige and a brilliant reputation as concessions and wage freezes, and my sister one's studies is academic suicide. In the fall a forerunner in research. These factors, had begun her college education, but finan­ term of my second year on campus, it was making The University of Michigan an obvi­ cial aid programs I explored opened the pre­ necessary for me to work an outrageous ous choice as an institution of quality con­ viously closed avenue to quality postsecond­ number of hours to having attended a "name" university, how­ choice to develop my personal and academic make up for financial deficits created by a ever, produce a reason for turning away ap­ potential to the fullest. financial disaster at home when my father's plicants-prohibitive college costs. It pres­ I feel fortunate that I was able to take ad­ company went out on strike. Needless to ently costs a Michigan resident more than vantage of these programs to help me com­ say, my grade-point average took the brunt $7,000 per year to attend The University of plete a seven-year goal of a degree from The of the assault. I am not using this to gain Michigan-a state university-and with cuts University of Michigan, of which I will be sympathy for myself in this situation, but to proposed to higher education funding, I can very proud. I cannot help but be sympathet­ exemplify the need for attentiveness to only feel that academic fees may have to increase to cover er brothers when I ponder their futures and Any distractions, especially those brought lost monies. This indeed stresses even fur­ hopes for quality postsecondary education. on by financial anxiety, can cloud thinking. ther the already overburdened financial aid Do the proposed cuts in financial aid At The University of Michigan, as well as programs in existence and cuts the ability to mean they will be denied access to the col­ all institutions participating in federal fi­ successfully help all needy students support lege or university of their choice? Or worse nancial aid programs, the effects of the pro­ their educations. If proposed cuts in these yet, will the lack of federal financial assist­ posed 1987 budget cuts will be deeply felt by federal aid programs are enacted, needy stu­ ance mean they will have to forgo the com­ all financial aid receipients, yet pass lightly dents will probably not even have the pletion, or the start of their college educa­ noticed by those privileged enough to afford chance to be "stressed" because they will 'be tion? whatever it takes. This can only serve to re­ "priced-out" of The University of Michigan. Reflecting on my own financial situation affirm beliefs that only the privileged may When I enrolled at The University of and the proposed cuts, I realize that if I have privileges and deny lower and middle­ Michigan in 1983, I realized what a tremen­ were not graduating, the possibility that I income students the opportunity to prove dous financial strain there would be, but I might not be able to return to the Universi­ themselves equally worthy with the same felt it important that I pursue the highest ty next year is very real, and I certainly advancement potential. In a day and age quality of education for which I might be would not be back for the 1987 school year. when we are continually trying to abolish qualified and try to cope with its financial In fact, in so much as I would like to begin all forms of discrimination, how can we consequences. Prior to attending The Uni­ graduate school after graduation, the finan­ allow a new form of discrimination to be versity of Michigan I had found it necessary cial prospect is bleak at this time. With the created? 4012 EXTENSIONS OF REMARKS March 6, 1986 As urgent as the need for formulating a Kansas. The permanent commission quotes ties, the press, and so forth, depended entire­ solution to reducing our national debt is, I her remarks to a newspaper reporter in this ly upon prior sovietization of the currency. It is believe that reducing funds in the area of fi­ period: a dubious distinction, to put it mildly, that our nancial aid programs is detrimental to a constitutional belief that everyone should My life has been one of opposition. I never currency today is patterned on the Soviet have an opportunty to advance themselves. could find anyone near me to agree with me. ruble. We have come a long way, demonstrat­ How can it be fair for anyone possessing the Even my husband opposed me more than ed by the fact that the fundamental method of knowledge, the potential, or the desire to anyone. He would not let me read the books Soviet statecraft is openly advocated in our that he himself read, but I did read them. I achieve, be limited in access to their choice press and at our universities, in most cases, of postsecondary institutions? Why should read all sides and searched for the truth, whether it was in science, religion, or hu­ unchallenged. anyone have to settle for an adequate post­ According to Miss Lewis, "the attraction of secondary education, because of economic manity. restraints, if access and choice to develop Arguments in Prudence Crandall's trials gold-based currency for the ultra-conserv­ one's potential to the fullest, both cultural­ later were used in the landmark school deseg­ atives is that it removes from government ly and academically, is available to them? regation case, Brown versus Board of Educa­ both the obligation and the tools for keeping I would be pleased, Mr. Chairman, to re­ tion. But elements of her legacy are even stability in the economy, without cataclysmic spond to any questions that you or the closer to home. In New Britain, CT, there is a booms and busts." This is a travesty of truth members of the Committee may have. shelter for battered women known as the Pru­ and fact. Without accepting the label "ultra­ dence Crandall Center. Its goals are as lofty conservative" for my colleagues and for SALUTE TO PRUDENCE as those of its namesake. It promises suste­ myself, I can state that all the people I know CRANDALL nance and self-respect for all women, the who favor a resumption of the gold standard same work for which the original Prudence are motivated by the ideal of monetary stabili­ Crandall dedicated her life. ty, and by the desire to prevent the cataclys­ HON. NANCY L. JOHNSON I am pleased that Women's History Week mic price and interest rate fluctuations of the OF CONNECTICUT has given me the opportunity to remember past 15 years from recurring. We want to pre­ IN THE HOUSE OF REPRESENTATIVES Prudence Crandall. She is a bona fide Ameri­ vent the price of sugar from going from 3¢ to Thursday, March 6, 1986 can heroine whose life should represent a 60¢ and back to 3¢ per pound, as it did; the Mrs. JOHNSON. Mr. Speaker, before lesson to us all. price of oil from going from $3 to $40 and "Women's History Week" ends, and the sub­ back to $15 per barrel, as it did; and compara­ jects of its commemoration fade into obscurity GOLD AND THE DUTIES OF ble fluctuations in the price of wheat, corn, for 51 more weeks, I want to reflect briefly on GOVERNMENT soybeans, not to mention copper and tin. We the civil rights work of Prudence Crandall, want to prevent the prime rate from going who, if her life had not spanned the previous HON. WILLIAM E. DANNEMEYER from 6 percent to 24 percent and back to 9 century, would have been a constituent of percent, as it did. We want to prevent the mine. OF CALIFORNIA dollar from losing more than two-thirds of its Prudence Crandall began as a Quaker IN THE HOUSE OF REPRESENTATIVES purchasing power, as it did during the past 15 schoolteacher in Plainville, CT, until she was Thursday, March 6, 1986 years, eroding the value of wages and the invited in 1831 by the citizens of Canterbury­ Mr. DANNEMEYER. Mr. Speaker, Flora . v~lue _of sav!ngs;, Miss L~wis, while she takes a town in the far northwest corner of my dis­ Lewis' philippic on the gold standard-New - pnde in having domesticated the beast that trict-to establish a school for girls. According York Times, January 28-injects ideology into lurks in unrestrai~~d capitalism," appears to to the Connecticut Permanent Commission on what ought to be a scientific and juridical be compl~tely obl~v1ous of the Moloc~ of ever the Status of Women, Miss Crandall's school debate. She dismisses the gold standard out- greater pnce and interest-rate fluctuations, the taught science, history, moral philosophy, right as a "dangerous gimmick", designed Moloch . th~t ~a~ set out to devour our free mathematics, and French-an impressive load only "to dismantle what has been achieved economic inst1tut1ons. for any student. over several generations of social and eco- As a Member of Congress, I consider the Prudence Crandall's commitment to educa­ nomic reform," in order "to restore the fang obligation of the Government to furnish the tion extended to everyone, not just the white and the claw of social Darwinism," and to de- basis for economic stability sacrosanct, but I daughters of the townspeople. She accepted liver the unsuspecting American public to the consider stable currency the main tool for Sandra Harris as a student, who was black. At tender mercies of "Puritan morals" and maintaining stability in the economy. The Con­ this time perhaps as many as 3,000 free and "jungle economics." stitution has charged the Congress with the economically independent black families were Paradoxically, it is none other than Miss task of defining what a dollar is. This is a trust residents of Connecticut, and the State pro­ Lewis and her ideological bedfellows who ad- and responsibility that cannot be delegated to vided elementary education to both races. But vocate social Darwinism, by endorsing mone- unelected bureaucrats who are wont to send the decision to open her school to a black tary instability and the destructive speculation prices and interest rates up and down in their was the source of notoriety for Prudence in its wake. Like Lord Keynes, she poses as wild goose chase of M1, M2, M3, and all the Crandall. the guardian angel of free society and its plu- other M's that they may care to invent in the She became a symbol of resistance to the ralistic institutions, as she trims capitalism's future. The call for a return to the gold stand­ New England Anti-Slavery Society, and an more unseemly outgrowths. But in defending ard by this Congressman is not a rejection of international figure, but all of her white stu­ the sovietization of the American currency she the duties of the Government, as Miss Lewis dents withdrew from her school. She estab­ unwittingly paves the way to the sovietization has falsely charged-it is the exact opposite, lished a school for black women, which lasted of all American institutions, including free Fifteen years ago Congress abdicated its only a year and a half. She was publicly vili­ press and pluralistic elections. To be sure, constitutional powers and prerogatives to coin fied, local merchants would not sell to her, there were floating currencies even before money and regulate the value thereof. As a and eventually she was arrested for the crime Lenin's government appeared on the scene, result, usurpers took over and started coining of teaching young black ladies without the but all of them were striving hard to qualify for their own kind of money. They introduced the permission of the local authorities. the gold standard. The Paris commune of floating dollar without the advice and consent Prudence Crandall was tried, and when the 1871 took great pains to instruct the Bank of of the Congress, and without regard to the re­ case ended in a hung jury, she was rearrest­ France to meet its gold obligations punctili- quirements of elementary honesty which de­ ed, tried, and found guilty. Only an appeal to ously. Lenin was the first man in history who mands that promises be met upon maturity. the Connecticut Supreme Court of Errors was boldly and without any hesitation sovietized Today, the Federal Reserve banks can issue successful, and only in that it was dismissed the currency; that is, vested the right of issue bills of credit which they have neither the will­ on a technicality. in the government and abolished any prospect ingness nor the means to redeem. The sug­ After a career of teaching and lecturing on of future redemption. There was little doubt in gestion that this process is innocuous as long the social issues of the day-antislavery, tem­ Lenin's mind that the success for sovietizing as it is subjected to a quantity rule is prepos­ perance, and women's suffrage-she was dis­ other institutions such as the electoral proc- terous. There is nothing in our Constitution covered, in her eighties, living in poverty in ess, the trade union movement, the universi- that authorizes or condones this practice. March 6, 1986 EXTENSIONS OF REMARKS 4013 The market, having noticed this constitution­ est, and we shall see a great resurgence of Rueff's 2:1. So much for yielding windfall prof­ al nihilism, took the commodity, bond, stock, production and trade replacing short term its to your opponents. and real estate prices on a wild roller coaster speculation. It also means eliminating three­ In reality, there would be no windfall. Every ride. Speculators in and out, mostly out, of this quarters of the budget deficit without tax in­ ounce of gold leaving the Soviet Union for the country have made unconscionable profits at creases and without cuts in domestic or de­ United States would be their loss and our the expense of widows and orphans who put fense spending. gain, whatever the official gold price is. Under their faith in the promises of this Government. Miss Lewis would be loath to give the wind­ the international gold standard gold flows to Farmers, small businessmen, and people en­ fall profits to the Soviet Union and to South the place where it can do the greatest eco­ gaged in the export industries have also been Africa, which a gold standard were supposed nomic good. As long as the Soviet Union and victimized, as President Reagan noted in his to bestow upon them as the largest gold pro­ South Africa are losing gold, they suffer a cap­ State of the Union Address. They are all at ducers in the world. I find it hard to treat this ital outflow suggesting that their potential re­ the mercy of the floating dollar and its mas­ objection with respect. When you make your sources, natural as well as human, remain un­ ters. Their plight will not come to an end home fire resistant, you indirectly help your developed to the same extent. The trick, unless Congress asserts its responsibility in neighbors, too; but this is no reason to forgo under the gold standard, is keeping the stuff, the realm of money, and puts an end to the the benefits and expose your home to greater or better still, attracting it; and not getting rid fire hazards. When the dollar was set afloat in usurpation of its constitutional powers. By de­ of it. 1973, the great French economist Jaques fining the value of the dollar once more as a In conclusion, Miss Lewis misses the point Rueff warned that it should be stabilized with­ fixed weight of gold, the unconstitutional float­ when she says that "gold is the symbol of the out delay with gold at $70 per ounce, or twice ing can be stopped. idea that rights are based on wealth and that I introduced bill H.R. 3794 in the House of the old official gold price. Rueff was rebuffed government has no business interfering in the Representatives on November 20, 1985, to by the windfall profit argument. Thereupon ways that wealth is distributed." As a better provide for a resumption of the gold standard. Rueff predicted that the U.S. Government, understanding of the gold standard shows, The bill calls for refinancing the entire public having followed the wrong course, will be debt as long term debt at 2112 percent interest. forced later to yield much higher windfall prof­ gold can be the greatest emancipator of labor This means that businesses, small and large, its to its enemies. Today the payoff to the and capital, opening the way from rags to will once more be able to finance production Soviet Union and South Africa is 10:1, but it riches to everyone who is willing to put in an and inventory at a low and stable rate of inter- has been as high as 23:1, as opposed to honest day's work for an honest day's wage.