[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] The White House Health Care Reform Today January 11, 1994 * As we head into this week, it's important to keep in mind the distinction between price controls and premium caps. The President's plan uses premium caps -- limits on how fast your health care premiums can go up each month -- to control costs. * We have considered -- but specifically rejected -- a policy imposing price controls on health care. Our primary strategy for cost containment is private sector competition -- creating the right economic incentives to bring costs in line and encourage health plans to compete on price and quality. * We strongly believe that, regardless of how quickly or how firmly competitive reforms take hold, we need to build some discipline and certainty into our system -- so that businesses and consumers know that their health insurance premiums will not be allowed to suddenly spiral out of control one year, and that the federal government will not spend without accountability. That is why we reinforce the competitive system with a limit on health care premium increases. * This is the most sensible approach to ensuring cost control. As Stephen Zuckerman and Jack Hadley, two leading health policy analysts wrote, "...it seems far preferable that insurance companies that are responsible to their subscribers make these decisions than having the federal government involved in detailed price negotiations and review procedures with individual hospitals and physicians." * In contrast to our plan, price controls call for government micro-management of every health care service, drug, technology and product. Price controls would have the government substitute its views for the markets in hundreds -- maybe thousands -- of decisions. We reject that type of micro-management in favor of letting a market that truly competes work. * Last week, New York Newsday reported that many NYC-area small companies "...feel the high cost of health care is their most serious problem but surprisingly many business owners expect Clinton's health plan to provide help by controlling costs. Chemical Bank surveyed 932 small businesses with annual revenues ranging $1-million - $10-million and found over 80% described health care costs for employees as a serious or somewhat serious problem and rated it higher than other problems including government regulation and taxes. (Source: Healthline)