Health insurance group proposes coverage retorm plan
NEW YORK (AP) — The insur
ance industry look a big step toward
shaping health-care reform Tlwsday
by proposing a sweeping plln for
universal coverage that would be fi
nanced partly by taxing Americans
with generous benefits.
The Health Insurance Association
of America said the draft proposal
approved by its board will “jump
start health-care reform.”
A cornerstone of the plan is to cut
costs and provide a package of “es
sential” benefits to all Americans.
Those arc goals championed by Presi
dent-elect Clinton.
Clinton spokesman George
Slcphanopoulos said it was a break
through for the insurance industry
trade group to “come around and say
that we need a national health-care
system.”
ThcasSociation’sproposal reflects
insurance-industry thinking long be
fore Clinton’s victory, as it became
clearer that the nation’s $8(X) billion
health-care system was out of control.
The proposal should give insurers a
more influential voice in the reform
process.
Stcphanopoulos said the group has
a right to try to influence future legis
lation.
‘if there is strong support across
the country for national health insur
ancc with real cost containment, and
that is causing the insurance industry
to cooperate with us, we want to work
with them.”
Private insurers would agree to
provide coverage to every American.
People would be covered either
through thcircmploycrs or “their own
means.” The essential-benefits pack
age would pay for catastrophic ill
ness, as well as primary and preven
tive care.
Showing they are wiiiing to com
promise, insurers would accept people
with pre-existing conditions. Such
people typically arc rejected for cov
crage because they arc considered
expensive risks.
The plan also includes cost con
trols that would discourage excessive
doctor visits, as well as unnecessary
testing and hospitalizations.
Private and public studies indicate
that 25 percent to 33 percent of all
medical procedures and tests per
lormed are unneeded, said Stephen
Young, director of the association’s
New York office.
Some experts contend the United
States is a leader in medical technol
ogy partly because of the tendency for
insurance companies lo pay lor any
trcauncnl without regard to cost.
For employed Americans who con
tinue lo receive generous benefits,
anything beyond the value of the es
sential benefits package would be
taxed as income.
“If people want the Cadillac,”
Young said, “then they’have to pay
extra.”
Those tax revenues would help the
government foot the bill to cover the
poor. Private insurers and health pro
viders would give people below the
poverty line primary and preventive
care.
Job wanted
Ousted Congress members vie for spots in new Clinton administration
WASHINGTON (AP) — Less than a month
after losing his re-election bid, Rep. Tom
Downey, D-N.Y., was already working on a
new government project — helping Bill
Clinton’s transition team.
Rep. Dennis Eckart was a latcClinton backer,
but he pitched in to help Vice President-elect A1
Gore prepare for h i s debate. Sen. W ychc Fow lc r,
D-Ga., on the night of his runoff defeat, said his
future would include doing whatever he could
to help out the new president.
This year’s tumultuous national election has
created a large talent pool of ex-legislators for
President-elect Clinton as he begins to put
together the first Democratic executive branch
in 12 years.
Three Democratic senators and 30 House
Democrats lost cither their primary or general
election campaigns, and others retired rather
than face almost certain defeat. Now, many are
making it known they are available for work.
Choosing an election loser for a Cabinet post
may seem like dredging, but in fact there arc
advantages over choosing an incumbent.
If Clinton chooses Senate Finance Commit
tee Chairman Lloyd Bcntscn for Treasury Sec
retary, as he apparently is considering, he might
solve one problem but cause others.
The Democrats could easily lose that Texas
Senate scat to the Republicans in a special
election. In addition, Clinton’s key economic
programs would have to be sent to a new
Finance Committee chairman, probably Sen.
Daniel Patrick Moynihan, D-N.Y., who is
untested in that job.
If Sen. Bill Bradley, D-N.J., moved over to
Secretary of State, as has been rumored, his seat
could fall to the other party.
President Bush, whose cabinet included sev
eral former House members including HUD
Secretary Jack Kcmpand Labor Secretary Lynn
Martin, also plucked a couple of incumbents
out of their congressional posts, including Sec
retary of Defense Dick Cheney. But Rcpubli
canskncw they could hold Cheney’s Wyoming
scat.
Losing re-election campaign often says little
about a lawmaker’s knowledge or talent. Rep.
Stephen Solar/., D-N.Y., a recognized expert in
foreign affairs whose name often appears on
guest lists of the Clinton administration, was
sloppy with his House bank account but lost
mainly because of rcdistriciing.
Downey, chairman ofasubcommittccoflhc
powerful House Ways and Means Committee,
is considered a sure bet for an administration
posL Although he was a late supporter of Clinton,
he is a close friend of Gore’s.
For the Clinton transition, Downey heads a
group that is preparing a report on the Depart
mentof Health and Human Services. He has let
itbc known hc’dconsidcr deputy dircctorof the
Office of Management and Budget.
Les AuCoin, D-Ore., a House colleague of
Downey’s who narrowly failed to unseat in
cumbent Republican Sen. Bob Packwood, has
quietly put his name on the market too.
Poll finds consumers more hopeful m
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optimism has begun to outpace pessi
mism as substantial numbersof Ameri
cans gain hope from falling interest
rates and the election of a new presi
dent, according loan Associated Press
poll.
The poll of 1,002 adults Friday
through Tuesday found that 47 per
cent feel more hopeful,compared with
28 percent less hopeful, since Bill
Clinton’s election.
Even one in five Republicans feels
more hopeful since Clinton won.
Overall, 29 percent believe the
economy is improving, up from 5
percent in a comparable poll a year
ago. The pessimistic share that thinks
the economy is getting worse fell to
27 percent from 69 percent.
Those from high-income house
holds were most likely to be in the 43
percent who said they feel more hope
ful because of lower interest rates.
The poll was taken by ICR Survey
Research Group of Media, Pa., part of
consultants, kcsuiis nave a
margin of sampling error of plus or
minus 3 percentage points.
The number intending to spend
more money on gifts this Christmas
season compared with the last few
years has almost doubled to 13 per
cent, from 7 percent in a comparable
poll a year ago.
Those who plan to spend less
dropped from 40 percent to 32 per
cent. The rest plan to spend about the
same amount as in past years.
Another change this year is a much
stronger tendency of women than men
to expect to spend less this holiday
season.
Optimism about the nation’s
economy is lower among women than
men. While 37 percent of men believe
the economy is improving, only 23
percent of women do.
A majority of men, 53 percent,
said they expect to have more money
in their household next year com
pared with this year. But only 44
percent oi women have the same hope.
Overall, 48 percent of Americans ex
pect their personal finances to im
prove, 23 percent expect to have less
money. The rest expect little change
or don’t know.
Economists would tell people that
since personal income after inflation
has been falling on average around
the country, their best hope of having
more money is to take advantage of
lower interest rates. Lower mortgage
rates, for example, spur home sales
and free up money for consumers to
spend on other goods, helping the
whole economy.
But more than a third of those
polled said the fall in interestrates has
no effect on their hopefulness about
the economy.
Seventeen percent said the lower
rates make them less hopeful, a view
especially strong among those over
age 65 and in the lower-middle in
come category.
EMamwD Hiring
»ppy, hip people for an exciting
e, high energy night club,
and part-time openings for
Little King Corp.
operating under
bankruptcy rules
OMAHA (AP) — The Little King
Restaurant Corp. of Omaha is operat
ing its 18-stale chain of submarine
sandwich shops under thcumbrcllaof
a Chapter 11 bankruptcy filing.
The company filed for reorganiza
tion on Nov. 25 in Phoenix, where
Mammoth Resources Inc., Little
King’s owner, is located.
Robert Cook, an attorney repre
senting Little King, said he is confi
dent that the company will emerge
successfully from bankruptcy court
proceedings.
“The company has good cash flow
and a good product,” he said from -
Phoenix. “The surviving company will
be able to serve the franchiscs and will
have controllable debt.” *
Sidney Wertheim of Omaha, Little
King’s founder, sold the company to
Mammoth Resources Inc. A dispute
followed involving a group of busi
nessmen, including two former Little
King executives who were fired last
summer.
However, Cook said the Chapter
11 filing had nothing to do with that
dispute. He said Little King received
notice Nov. 23 from Douglas County
Bank & Trust of Omaha that the res
taurant company was in default in
repaying its major operating loan,
Cook said.
Dennis Bocsen, bank assistant vice
president, declined comment Thurs
day.
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