As a nation.

As a nation, we are approaching a crossroad in the public policy debate through how to control rising health care preciousnesss and make fundamental changes in the health care order to keep it functioning well into the nearest century.

Unless Congres passes legislation to offer a lid on rising health prices organized labor will experience at the bargaining table the devastating drifts of the nation's health care crisis. Employer will push for drastic cutbacks in collectively bargained helath care benefits. Working men and women who have fought hard to win adequate protection against the high charge of getting sick will find themselves paying higher and higher out-of-pocket richnesss and may find coverage for preventive care, diagnostic testing, physics and eyeglasses, dental care and other essential services dropp from their policies altogether.

The AFL-CIO believes there three basic approaches for solving our health care crisis: federal legislation, local health care coalitions, collective bargaining.



Trade unionists can furnish their powerful support to federal legislation which would require each state to establish a comprehensive, across-the-board price containment system for all payors, public and private, doctors as well as hospitals. The AFL-CIO is supporting bills introduced according to Sen. Edward M. Kennedy (D-Mass.) and Rep James Shannon (D-Mass.) that would accomplish these goals.

on the other hand we cannot afford to wait for Congres to act. The AFL-CIO has commited that its affiliated unions and state and local bodies join local health care coalitions. Up to now, these organizations have been business or provider-dominated, and their accomplishments have been minor. Union members are finding it useful to work with each other and, when appropriate, to form their confess health care coalitions to combat employer efforts to strait collectively bargained health benefits.

Trade unionists can also take initiative in bargaining to allude to viable alternatives to management proposals to chisel health care benefits. Rising Costs

Last year as a nation we exhausted $322 billion on health care. This averaged revealed to $1,365 for every man, woman and child in the U For the first time, health care spending rose above 10 percent of our gros national effect (GNP). If current turns continue, the U.S. Dept of Health & Human Services contrives that by 1990 the nation will part with a whopping $756 billion in health care. That is approximately equal to what was part with on last year's total federal budget

Conservatives use those numbers to make their case that we are spending too often for health care and that Americans cannot afford a national health care program similar to those in place in each other industrialized country. Ironically, the rate of sprouting in health care expenditures is lower in almost each country that does have a national health care theory As an example, Canada has had a comprehensive national health care scheme since the late 1960s and has ensueed in holding health care spending to 7 percent of GNP for almost 10 years while at the same time provinding universal coverage to all citizens and a becoming wage to hospital workers. The Reagan Administration's Response

The Reagan Administration clearly will not take the decisive stairs needed to control runaway health care outlays Its approach is to carve services, not control costs. Since taking office, the Administration has substantially weakened community health care services for aged sick, jobless and disadvantaged Americans. As if this were not enough, the Administration tried to press Congress to pass legislation which would have doubled the amount Medicare beneficiaries now pay for a basic hospital stay. Had the Congres enacted this proposal, many senior citizens would have been required to pay forward the average an amount which have consum nearly pair months of benefits for the average widow forward social security.

In addition, the Reagan Administration has tried to make it harder for the economically disadvantaged to qualify for Medicaid and to force active workers to begin paying federal taxes forward their collectively bargained health care benefits. The Administration sought to place a limit $175 for family per month on the amount of tax-free contributions employer could make to workers health insurance plans. Anything from one side of to the other this amount would be taxable as income to employees

The Reagan Administration claims its employee health tax proposal is designed to make workers more "cost conscious." In reality, it would be the effect in drastic reductions in coverage for preventive care, outpatient diagnostic services, and other benefits which save wealth But the Reagan scheme would leave intact coverage for hospital and surgical benefits, which have been the chief source of health-cost inflation and sumptuous over-utilization--factors over which patients have little control

The Administration's health tax proposal would also penalize older workers, workers living in high expense areas and those who fix upon more comprehensive benefits plans, so as health maintenance organizations (HMOs) It would be an unprecedent intrusion into the collective bargaining proces and would transfer back the clock on decades of progres made through workers in winning comprehensive health care protection. At the same time it would increase taxes for a single group: workers with high health care costs

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