Testimony of-Continued Page Lee, Philip R., Assistant Secretary for Health, Department of Health 540 Lott, John R., Jr., assistant professor of Business, University of Penn- 815 Love, James, director, Taxpayer Assets Project, Center for Study of Re- 820 McConnell, Stephen, senior vice president, Alzheimer's Association Marshall, Robert P., CEO, California Pharmacists Association Meyers, Abbey S., president, National Organization for Rare Disorders Miller, Donna, chief executive officer, Memphis Business Group on Mossinghoff, Gerald J., president, Pharmaceutical Manufacturers Asso- O'Kane, Margaret, president, National Committee for Quality Assurance Perkins, Joseph, member, board of directors, American Association of 597 Perry, Daniel, executive director, Alliance for Aging Research Pollack, Ronald F., executive director, Families U.S.A. Foundation Raab, Kirk, president, Genetech, Inc., on behalf of the Biotechnology 666 Regula, Hon. Ralph, a Representative in Congress from the State of 199 Reid, Orien, member, national board, Alzheimer's Association, also on 288 Singer, Sara, Graduate School of Business, Stanford University Sanders, Charles A., chairman and CEO, Glaxo, Inc Smits, Helen, Deputy Administrator, Health Care Financing Administra- 540, 542 677 837 80 Stone, Robyn I., Deputy Assistant Secretary of Aging, Disability, and Thomas, Hon. William M., a Representative in Congress from the State 272 Young, Anthony J., on behalf of Consortium for Citizens With Disabil- Ziegler, Ronald L., president, National Association of Chain Drug Stores, on behalf of The Community Retail Pharmacy Health Care Reform Material submitted fr the record-Continued George Washington University, letter to Chairman Waxman dated February 2, 1994, from Sara Rosenbaum, study for Kaiser Commission on Future of Medicaid and The Commonwealth Fund Page 264 Life Sciences Industry Services, letter dated February 7, 1994, from Kenneth B. Lee, Jr., to Carl Feldbaum, re analysis, strength and nature of capital markets for biotech companies 708 National Association for Sickle Cell Disease, Inc., statement 874 539 Vucanovich, Hon. Barbara F., a Representative in Congress from the 262 HEALTH CARE REFORM WEDNESDAY, FEBRUARY 2, 1994 HOUSE OF REPRESENTATIVES, COMMITTEE ON ENERGY AND COMMERCE, Washington, DC. The subcommittee met, pursuant to notice, at 10:15 a.m., in room 2123, Rayburn House Office Building, Hon. Henry A. Waxman (chairman) presiding. Mr. WAXMAN. The meeting of the subcommittee will come to order. Today's hearing continues our examination of alternative approaches to health reform. Yesterday we heard testimony on the proposal offered by Mr. McDermott, H.R. 1200, that would achieve universal coverage through a single payer approach. We also received testimony on H.R. 3080, sponsored by Representative Michel, that would require all employers to offer but not contribute to health insurance to their workers and dependents. This morning we are going to look at H.R. 3222, the Managed Competition Act of 1993, introduced by our colleague Mr. Cooper, and cosponsored by several other members of the committee. Unlike President Clinton's proposal and unlike Mr. McDermott's bill, H.R. 3222 would not guarantee health coverage to all Americans and would not establish limits on increases in health care costs. This afternoon we will hear from members with other proposals relating to health care reform. Among the witnesses will be our colleagues, Mr. Rowland and Mr. Bilirakis, testifying in support of H.R. 3573, the Community Health Improvement Act of 1993. In addition, Mr. Stearns from the subcommittee on Commerce, Consumer Protection, and Competitiveness will testify on H.R. 3698, the Consumer Choice Health Security Act. Before calling on our first witnesses, I would like to recognize the distinguished ranking member of the subcommittee, Mr. Bliley, for any opening statement he may have. Without objection, all members' opening statements will be inserted in the record at this point in full. Mr. BLILEY. Thank you, Mr. Chairman. It has been a little over a week since the State of the Union address in which the President showed us his "veto pen" and threatened to veto any bill which does not employ immediate universal coverage through a nationalized system. Rather than responsibly attempt to accomplish bipartisan reform which will fix the prob (1) lems in the insurance marketplace that the President himself identified, such as preexisting conditions, continuity of coverage, guaranteed renewability and no medical underwriting, he would rather hold out for a nationalized, command and control, "one-size-fits-all" health care system which relies on rationing and limiting individual choice. The only two bills which meet these criteria are his Health Security Act and the McDermott Canadian single payer bill. Both these bills lead to a national health care system with global budgets, price controls and new payroll and individual taxes. These bills terminate every American's current health insurance coverage and place everyone permanently in government-controlled entitlement programs run by Federal and State bureaucrats. Fourteen percent of our economy would be under the command and control of a National Health Board located in Washington, D.C., and now we can look to the experience of our Canadian neighbors, who had to shut down their hospitals for 3 weeks during Christmas because the government ran out of money. When asked about this shutdown, the President of the largest hospital in Toronto stated, "This is not about health care; this is about the deficit." One example of the treatments affected by the shutdown is described by one of Toronto's leading orthopedic surgeons, Dr. Robert Bell. He stated that three of his bone cancer patients had to be sent elsewhere for 2 weeks during the shutdown. He states that "The delay will not reduce the patient's life span, but it will extend the duration of their pain. Their discomfort level has been increased by weeks." Dr. Bell, who practiced medicine for 2 years in Boston, further stated, "If you said to an American patient, 'We are going to delay your surgery for 2 weeks because costs are involved,' they would never accept it." Well, Dr. Bell, I hope you are right. Yesterday, the distinguished Minority Leader, Bob Michel, testified with my colleagues, Congressmen Hastert and Thomas, on H.R. 3080, the Affordable Health Care Act of 1993. This bill has 138 cosponsors, more than any other health reform bill. It provides targeted fixes for specific problems in the health care marketplace. It is a bill which provides universal access for all Americans without rationing health care and taking away every American's private health insurance. Today, our first three panels will discuss H.R. 3222, the Managed Competition Act of 1993, cosponsored by our distinguished colleague, Congressman Cooper. This bill is particularly interesting for several reasons. First, it is truly the only current bill which has some limited bipartisan support in both the House and Senate. And because this bill has some bipartisan support, the administration has sent out "its storm troopers" and public interest group "hacks" in a "search and destroy" mission to kill it. But so far the administration's efforts have more of the "look and feel" of the "old Keystone Kops." In today's environment, it seems that it is a punishable offense to sponsor a health care reform bill that does not guarantee immediate universal coverage for everyone. Today, respected members from both parties are given failing marks if they refuse to embrace a universal entitlement program for health care, particularly one |