GRASSROOTS

"Grassroots Activism." This is the motto of the C O.G.G. Task Force. Not exactly the Boston Tea Party, but spiritually, we're treading down the same road in the belief that as individuals we can - and should - make a difference.

This edition of the FORUM features a detailed look at the Health Care issue. Whether rea1 or perceived, this issue is being characterized as a "National Crisis" and, with rhetoric flying in all directions, has been elevated to a level of public prominence not seen in a very long time. The "Health Care Crisis" has captured the moment, is center stage, and has elicited a11 manner of proposed "solutions," from both sides of the aisle. Regardless of whether or not the administration's proposals are rooted in worthy motives, their result is nothing short of a classical bureaucratic power grab, with its attendant high cost and grief factor. I think you'll find the committee's report on this matter very informative and enlightening,

In addition, our other Task Force committees have been at work since the publishing of our first edition. We have included an update from the Water Policy Committee in this edition; more committee updates will appear in the next edition. It is interesting how a little research, investigation and probing can be so revealing!

If you have comments, criticisms, observations, or would like to contribute to the Task Force in any way, we invite your participation.

John Musial
FORUM EDITOR

TASK FORCE PROGRESS & WHAT'S AHEAD

In July of last year Jeannie Austin, Co-Chair of the RNC, was the COGG guest speaker. As a result of her disappointing performance, I wrote a personal letter to Chairman Haley Barbour requesting that he take action to remove the abortion plank and other so-called 'morality issues' from the party platform or "lacking the ability to accomplish that formally prior to 1996, there must be a method by which the party can articulate a definitive position that will be representative of the majority of our party, not just of the Christian Coalition." His initial response was disheartening. He merely reiterated that "the party platform cannot be changed prior to the 1996 convention". However, in late January it was reported in Bob Novak's column that "Chairman Haley Barbour took a tentative first step toward distancing the party from the abortion issue. Barbour revealed the preliminary results of a massive survey the RNC is conducting of some 800,000 Republican activists. They put other issues well above the question of abortion, the chairman said, and would just as well avoid it."

What caused the Chairman to adjust his position? What prompted the massive survey? I'd like to think that these actions were initiated, at least in part, by the COGG Task Force letters sent last October to each of our 176 Republican representatives in the House and to each of our 44 U.S. Senators which requested that they "join with us in this critically important undertaking by writing to the RNC in the net few days and strongly urging them to show us leadership in this matter, and make the necessary changes to party position, so that we can concentrate our energy on the important economic and international issues facing our country and our people." We can make a difference! We have made a difference! Well done all. Keep up the great work.

Fred J. Ferrazzano
TASK FORCE CHAIRMAN

HEALTH CARE

Chaired by: Dodie Drew

HEALTH CARE FOR ALL PROVIDED BY: A FREE ENTERPRISE PROGRAM

In addressing the Health Care issue, we must remember that the U.S. still has the best Health Care in the world for its citizens. And, it is driven by free enterprise. According to President Clinton our goal should be changed to "Care for all Citizens", and we should offer them managed care by the Government which will manage huge regional health alliances or co-operatives. They call it "managed competition" but that is not a true statement. A better name is socialized health care.

In this regard, C.O.G.G. has taken the following position; "Health care should be available to all citizens via a free enterprise oriented cost management and delivery system. Government involvement should only be as a provider of last resort, and only to assist in the formulation of health care policy."

We are led to believe our Health Care is in "crisis". But according to Democrat Senator Daniel Patrick Moynihan from N.Y., "we don’t have a health care crisis in this country". According to the Wall Street Journal, 1-14-94, "Health outlays are moderating - both private and public. Spending rose just 5.4% last year - the lowest (increase) since 1973." It is also important to note that 98% of our workers are now covered and 86% of all citizens are now covered by some form of health insurance. This leaves 6-10 million not covered.

As good as our health care system is now, there are still reforms and improvements that need to be made. The primary concern is the 6-10 million not presently covered. Our national goal should be to provide universal care for all citizens.

Additional objectives:

- Health Insurance must be stable and portable

- No limit on pre-existing conditions.

- No change or increase on cost of insurance after a serious illness.

- Tort/Malpractice claims which have increased our costs must be limited.

- Paperwork must be reduced and standardized.

Here are some interesting cost statistics related to this $900 billion industry that need to be addressed:

Technology & Drugs - $95-100 billion

Malpractice claims - $10-20 billion

Hospital Charges (which are shifted to those who can pay)- $40 billion

Paperwork - $270 billion

Social Problems (AIDS, Crime, Alcohol, Drugs, etc.) - $40 billion

Patient Demand for Care -

Medicare $134 billion

Medicaid 5 60 billion

The Republican Party has put forth three major free enterprise driven plans for Health Care Reform espousing our ideal of freedom of choice: 1. Consumer Choice Health Security Act of 1993 (S-1743, HR-3698), introduced by Senator Don Nickles of Oklahoma and Representative Cliff Stearns of Florida. It is the leading alternative so far and is only 6 votes short of the current tally for Clinton’s bill. This plan is based on a 34 year old Federal Employees Health Benefits Program. It has been very successful for 9 million workers and families plus members of Congress and Administration Officials. It was also influenced by input from the Heritage Foundation. See Appendix A for particulars and a comparison of this plan to the Clinton Plan..

2. Senator Phil Gramm from Texas has a Plan partially conceived by the Cato Institute Sec Appendix B for a brief description of certain plan features, and a comparison to some other plans being offered.

3. Senator John Chaffee from Rhode Island and Senate Minority leader Bob Dole have written up a plan similar to number 1 and 2 above. Also see Appendix B.

All of the objectives mentioned earlier are addressed by these proposed plans. Most proposals advanced by Republicans have many elements in common. However, there are some additional features of the Nickles - Stearns bill that none of the other leading proposals addresses. Included are the following:

1. Anti-Fraud Measures

2. Anti-Trust Provisions "safe harbors" from federal anti-trust laws for self- regulating medical entities which do not operate for financial gain; permits certain hospital mergers. It would also create "safe harbors" for health care joint ventures which would increase access to health care.

3. Long Term Care - Changes laws on IRA’s, 401 (K) pension plans. Lets money be withdrawn from these and insurance policies without tax penalties to pay long term care or hospice costs.

4. Different House Provisions
The House of Representatives version of the bill contains some slight differences from the Senate version, as follows:

a. Reduces Federal spending by making resident aliens ineligible for public assistance under numerous welfare programs.

b. Permits the Secretary of Health and Human Services to provide increased assistance to community and migrant health centers using any fund identified by the Director of OMB as residual savings to the Federal Government generated by this legislation – up to maximum of $13.1 billion.

Perhaps the most creative concept being forwarded by the leading reform packages including those mentioned above, is a proposal to require all taxpayers to establish and maintain a Medical Savings Account – in essence, a Medical IRA – fully tax deductible for workers. For the unemployed or working poor, this account would be subsidized by insurance companies and/or the government.

This concept would eventually eliminate the insurance coverage now provided by Corporations, and the employer’s only role would be to provide help in program selection and to see that everyone has the necessary "I.D. card" - which would be reported on IRS tax forms as a means of monitoring coverage for everyone. An example of how this plan works is shown below.

Medical Savings Catastrophic Plan
(fully tax deductible to workers)

*Used as needed - Individual choice, also portable

Unused funds in the Medical Savings Account could accumulate and compound in an interest bearing account. For the 6-10 million working poor and unemployed, their needs would be subsidized by the Government and/or by the Insurance Industry (preferably the latter).

Under this proposal, all Americans could elect to keep the health insurance they have now, if desired – i.e., Corporate, Union, Medicare, Medicaid, VA, Champus, private policies. It would be their choice. Any "new" change would be to the new Medical/Savings/Catastrophic Coverage Plan. As for the working poor, each worker would pay a pro-rated portion of his income and the balance would be subsidized by the insurance industry – through re-insurance pools, or via a combination of insurance and government assistance.

In closing remember The President’s plan for government regulation and management of health care would have a seriously detrimental effect on the quality of American medical care. It is an onerous and unnecessary plan.

We in C.O.G.G. can do something about this. Write to your congressmen and tell them you don’t want the heavy hand of government meddling with your Health Care Program. Tell them you want to keep control of your own program, to maintain the high quality of your medical care system, and to maintain the special relationship that now exists between patient and doctor. We don’t need to "Take apart the engine to change the oil." We think a "free enterprise" approach can do it best.

WATER POLICY

Chaired by: Don Wright

The C.O.G.G. Water Committee plans to highlight critical issues and recommend appropriate countermeasures when bureaucrats, and/or elected representatives (i) do not support the principle of equity in the allocation of California’s water supply, (ii) threaten to reduce or limit the flow of water to southern California (iii) threaten to impose undue increases in rates, fees and taxes.

In the past few weeks, the committee has met with State Senators Kelly and Craven and had correspondence with Congressman Ron Packard, Assemblyman Jan Goldsmith, and other officials regarding the issue of water availability. Committee members have been invited to meet with the new head of the Metropolitan Water District and have been invited to tour California’s water distribution system. They have also met locally with David Needham, a desalination expert, to discuss distillation and other options for obtaining potable water from sea water. The committee has also written Mike Madigan, Chairman of the San Diego County Water Authority regarding the projected water shortage in Southern California, and to share the committee’s thoughts and recommendations.

An informational update on the issue of water availability is set forth below.

CRITICAL ISSUE #1: UPSIDE DOWN PRIORITIES

Both the Endangered Species and clean Water Acts are scheduled for reauthorization They are both causing undue financial pain, a lot of anguish and a serious threat to the flow of water to Southern California.

The EPA intends to mandate new water quality standards to protect the Delta smelt and the health of the San Francisco Bay-Sacramento-San Joaquin Delta estuary. The Delta is a major source of Southern California’s life sustaining share of California’s water supply. Thanks to EPA, water normally destined for drought strained southern California will, instead, flow through the delta and on into the Pacific Ocean - all in the name of the aforementioned environmental laws.

The EPA is also demanding, in Federal Court, that San Diego, be forced to comply with a $12 billion secondary sewage treatment system pursuant to the Clean Water Act. Even ocean scientists say this is not needed. "It’s the law," says EPA’s regional administrator and former environmental activist – exhibiting a total disregard for the scientific facts and for the huge financial burden on taxpayers. Misguided environmental interests prevented San Diego from building a critically needed emergency water storage reservoir in the North County in 1988, again in the name of the Endangered Species Act. Such irrational mandates continue to exacerbate the arbitrary and punitive water conservation measures to which San Diego’s draught strained families, industry, commerce and agriculture are subjected.

Congressman Ron Packard explained during a recent meeting that environmental restrictions caused state highway 76 to be delayed and eventually rerouted. Such irresponsible actions cost taxpayers an additional $10 million – all of this to protect the habitat of 10 birds - the Least Bell’s Vireo. "That’s $1 million a bird." said Packard. The public is very distressed with the myriad of senseless, irrational interpretations and implementations of existing environmental laws by overzealous governmental bureaucrats. The resulting Draconian mandates are adversely impacting our country’s economy, and the economic well-being of its citizens.

Write your elected representatives and ask for change. Tell them - THE TIME HAS COME FOR THE RIGHTS AND NEEDS OF THE ENDANGERED HUMAN SPECIES TO BE RECOGNIZED - AND TREATED AS PARAMOUNT!

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