[THIS IS THE DAILY 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.] The White House Health Care Reform Today November 19, 1993 * PENNY-KASICH AMENDMENT HARMS CHANCES FOR HEALTH REFORM: The Penny-Kasich amendment would severely limit the prospects for health care reform in this country. Almost every serious health reform proposal out there relies on savings from Medicare to help finance reform. But Penny-Kasich would prevent $37 billion of the Medicare savings for being used to pay for reform. In fact, the proposal explicitly forbids the use of any of its cuts for financing new initiatives, including health care reform. By denying the use of these savings, Penny-Kasich reduces the flexibility needed for passage of health reform and fractures the growing consensus that these bold steps are essential. * RISING federal health COSTS ARE MAIN deficit problem: Medicaid and Medicare have been growing at astronomical rates -- 11% and 14% respectively. If they continue to grow at these rates, they will be responsible for almost two-thirds of the increase in government spending in the future. * HEALTH REFORM IS BEST HOPE FOR REDUCING DEFICIT: The President's economic plan -- signed into law this summer -- will reduce the deficit by $500 billion -- 5 times the amount in the Penny-Kasich plan. And the best hope for reducing the long-term structural deficit is passage of fundamental health reform legislation to bring spiraling Medicare and Medicaid costs under control. In fact, the President's Health Security Act will cut the deficit by $58 billion by the year 2000. More important, health care reform fundamentally lowers the growth of health care spending -- and thus lowers the structural deficit in the years beyond the year 2000. * MEDICAID/MEDICARE SAVINGS ARE INTEGRAL TO HEALTH REFORM: Most of the other health care proposals under consideration -- sponsored by both Democrats and Republicans -- rely on significant savings from Medicare and Medicaid. All of these legislators will find it difficult -- even impossible -- to start off $40 billion dollars behind. * EXPERTS AGREE -- HURTS HEALTH CARE BUT DOESN'T HELP DEFICIT: The Washington Post maintains that: ". . . [the Penny-Kasich] proposal, too, is inflated and deceptive . . . After the five year period, health care costs would begin to drive spending and deficit up again. To curb them, the President is proposing health care reform. That's the real solution to the long-term [deficit] problem . . . " [11/18] Center for Policy and Budget Priorities: "the [Penny-Kasich] plan would create difficulties for the Administration's health care plan, as well as most other health care reform proposals..."