U.S. Senate Republican Policy Committee - Larry E. Craig, Chairman - Jade West, Staff Director
Publications Issue List Vote Analysis Main Page
June 22, 1999

RPC Talking Points

Republicans Protect Patients, Democrats Increase Health Care Costs

The High Cost of Health Insurance

  • Despite years of moderate increases, employers are anticipating increases of 7 to 10 percent in the cost of health insurance this year (William Mercer, Inc.).

  • Fully 82 percent of the public want Congress to make health care more affordable, and 14 percent want HMO reform (Public Opinion Strategies).

The Uninsured

  • America's uninsured population has grown from 32 million in 1987 to 43 million in 1997 and continues to grow (Employee Benefits Research Institute).

  • An economic downturn coupled with a return to high rates of medical inflation could push the number of uninsured to 60 million by 2007 (Health Insurance Association of America/National Coalition on Health Care).

A Commitment Not To Cancel Coverage

  • Last year, 98 members of the Senate expressed their belief that Congress should not increase the number of uninsured. Supporters included 29 of the Kennedy bill's (S. 6) 32 sponsors.

Republican Bill Expands Coverage

  • The "Patients' Bill of Rights - Plus" (S. 300) addresses health care quality while increasing costs by less than 1 percent (Congressional Budget Office).

  • The "Patients' Bill of Rights - Plus" will make coverage less costly for those who benefit from expanded medical savings accounts (MSAs), and from full deductibility of health insurance costs for the self-employed.

  • Unlike the Kennedy bill, the Republican bill will reduce the number of uninsured. For example, over one-third of MSA buyers were previously uninsured (General Accounting Office). The Republican bill makes MSAs available to everyone.

  • The Republican bill has the support of a majority of the Senate.

Democrats Expand the Uninsured

  • Less than one-third of the Senate supports the Kennedy bill.

  • The Kennedy bill would increase premiums 4.8 percent (on top of yearly premium increases) within three years (CBO). This would cause 1 million (CBO) to 1.4 million (Lewin Group) Americans to lose coverage. With the uninsured growing by 1 million per year (EBRI), Democrats would add 1 million more.

  • Others say the "medical necessity" provisions alone could uninsure 1.4 million, while the liability provisions alone could uninsure 1.8 million (Barents Group).

  • In a poll, 57 percent of small businesses said they would drop coverage if exposed to the Kennedy bill's liability provisions (POS).

  • For five months, Democrats had a bill that would increase premiums by 6.1 percent. To lower the score to 4.8 percent, they eliminated an existing patient protection (which would resolve disputes quickly), rather than employer liability (which benefits trial lawyers). [See RPC paper, "Their Ship Sinking, Democrats Throw Patients Overboard To Save Trial Lawyers," 6/18/99.]

  • On average, the Kennedy bill would cost employees an additional $183 (Hewitt Associates, CBO) and families $275 more per year (KPMG Peat-Marwick/CBO).

  • The Kennedy bill would cost the economy $58.4 billion over five years (includes liability, which CBO does not consider a mandate).

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