[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 31, 1994 * There is a crisis in health care: Governors, mayors and other state officials feel it every day. * Today's system forces states to bear the burden of skyrocketing health care costs. States are unable to increase spending in areas like crime and education due to the rising number of uninsured and the increases in Medicaid spending. Without guaranteed private insurance for all Americans, the states will continue to bear the burden of skyrocketing health care costs. Here are some of the problems that our states are facing today: * Medicaid costs have climbed 440% since 1980 -- the program now absorbs 17% of state budgets. (Washington Post. 6, 1994, Journal of American Health Policy, Nov./Dec. 1993) * In 1992, Medicaid spending totaled $102 billion, a 33% increase over 1991. By 1995, Medicaid spending is expected to reach $198 billion. (National Association of Budget Officers) * In 1993, for the first time, states spent more money on health care than they did on tax financed higher education. (National Association of State Legislatures) * The net health care related tax increases amounted to over $190 million in 1993 legislative sessions. (State Budget and Tax Actions 1993, NCSL) * Medicaid's share of state spending has grown from just over 10% of state spending in 1987 to 17% in 1992 -- estimated at 25% of state budgets by 1995. (National Association of State Budget Officers) * 12 states had Medicaid spending above 20%, with some states as high as 27% and 34% of total state budget, while the share for education has been decreased -- from 23% of total budget in 1987 to 21% in fiscal 1992. (Journal of American Health Policy, Nov./Dec. 1993, National Governor's association and National Association of State Budget Officers, Fiscal Survey, Oct. 1993.) * 44 states experienced double-digit growth in total Medicaid expenditures between 1991- 1992, and state Medicaid spending is projected to nearly triple between 1990 and 1995. (National Association of Budget Officers) * State employee health insurance costs increased 10% in 1992. (State Legislatures, Oct.1993)