[THIS IS THE PERIODIC BRIEFING FROM THE WHITE HOUSE TO ITS OFFICIALS AND OTHER SUPPORTERS OF ITS HEALTH-REFORM PROGRAM. IT PROVIDES AN INSIDE LOOK AT HOW THE ADMINISTRATION IS PROMOTING ITS PLAN. THIS ITEM WILL ALWAYS HAVE THE SAME SUBJECT LINE (WITH DIFFERENT DATES) SO YOU CAN EASILY SKIP IT IF YOU DO NOT WISH TO READ IT. -- Steve Freedkin , LIST.HEALTHPLAN Administrator (*not* a government official)] The White House Health Care Reform Today December 9, 1993 * In response to the Lewin-VHI study released yesterday, Deputy OMB Director, Dr. Alice Rivlin said: "The Lewin-VHI study essentially verifies our estimates and the soundness of the financing of our proposal. The study confirms that the Health Security Act is fully financed and that it will reduce the deficit over the period from 1995-2000." * "Our initial review of the Lewin-VHI study indicates that it substantially confirms our estimates of the financial impact of the Health Security Act. Because of slightly different assumptions, the study yields slightly different results. Despite these differences, the important point is that Lewin-VHI's estimates of the costs of the Health Security Act are roughly the same as the Administration's estimates; and their estimates of the savings that will be realized from the Health Security Act are roughly the same as the Administration's." * "Lewin-VHI's estimates of the cost of the discounts for small, low-wage employers and for low-income workers are slightly lower than our estimates. Therefore, the Lewin-VHI analysis confirms that the entitlement caps we have placed in the Health Security Act are not likely to be exceeded. We look forward to having an opportunity to review the Lewin-VHI study more thoroughly." * The Lewin press release appears to contain an inadvertent factual error. The Lewin estimate of the discounts is $153 billion; the Administration's estimate is $161 billion. Therefore, contrary to a statement in the Lewin release, the study actually concludes that the cost of the discounts for individuals and businesses will not exceed the entitlement cap in the legislation. * Lewin and the Administration agree that the majority of Americans will pay less after reform. The Administration estimates that 70 percent of privately insured Americans will pay the same or less in premiums and out-of pocket expenditures for more or better benefits. Lewin estimates that 52 percent of all Americans will pay the same or less. Nothing in their report disputes our claim that 70% of the privately insured will pay the same or less. * Our estimates do differ due to the fact that the Administration focused its analysis on the most relevant group for comparison purposes -- those who get employer-provided insurance all year. Lewin includes Medicaid and Medicare recipients and the currently uninsured, and those with coverage only part of the year -- many of whom pay nothing now -- in their calculation, making a comparison less meaningful. Obviously, those without insurance and only part of the year will be paying more after reform, but in exchange, they will receive guaranteed comprehensive benefits.