Statement of Administration Policy: S. 1028 - Health Insurance Reform Act of 1995

(Senate)
(Kassebaum (R-KS), Kennedy (D-MA) and 55 others)

The Administration strongly supports enactment of S. 1028, as reported by the senate Committee on Labor and Human Resources and amended by the managers of the bill, Senators Kassebaum and Kennedy. The bill represents an important step toward strengthening the health security of the American people which this Administration has made a priority since 1993. Consistent with past Administration policy, we oppose any amendments that could weaken the legislation or undermine potential enactment of the Kassebaum/Kennedy legislation.

Certain provisions included in the House-passed bill are so controversial and so potentially damaging to the health care system that they jeopardize enactment of the insurance reform that Americans want signed into law this year. Specifically, the inclusion of amendments that (1) provide for Medical Savings Accounts (MSAs), (2) deregulate Multiple Employer Welfare Arrangements (MEWAs), (3) impose Federally-defined caps on punitive and non-economic medical malpractice awards, (4) undermine Medicare fraud and abuse efforts, and (5) weaken the ban on the sale of duplicative insurance policies to Medicare beneficiaries would call into question the seriousness of the commitment of the Senate to health insurance reform this year. The Administration views such provisions as an effort to undermine a bipartisan consensus on health reform. If such amendments are adopted, they would create a grave risk to the passage and enactment of this bipartisan legislation.