a/In March 1977 the responsibility for Medicare and Medicaid programs was transferred to the Health Care Financing Administration. The Social and Rehabilitation Service was also abolished. a/In March 1977 the responsibility for Medicare and Medicaid programs was transferred to the Health Care Financing Administration. The Social and Rehabilitation Service was also abolished. 105009 25-122 - 78 - pt. 2 - 19 STATEMENT on HEALTH PLANNING AND RESOURCES DEVELOPMENT AMENDMENTS (S. 2410) for submission to the SUBCOMMITTEE ON HEALTH AND SCIENTIFIC RESEARCH of the SENATE COMMITTEE ON HUMAN RESOURCES for the CHAMBER OF COMMERCE OF THE UNITED STATES by JAN PETER OZGA⭑ The Chamber of Commerce of the United States welcomes this opportunity to present its views on the "Health Planning and Resources Development Amendments" (S. 2410). Our membership of more than 71,000 business firms, trade and professional associations, and state and local chambers of commerce is deeply committed to improving the Nation's health planning capabilities. Our support is based on the conviction that local health planning represents one of the best ways to control rising health costs. In general, we believe that S. 2410 is a step in the right direction in coordinating the existing authority for local, state and national health planning. With some minor changes, we support the passage of this bill. BUSINESS AND HEALTH COSTS Business' interest in health care is underscored by the fact that it is the largest private purchaser of health care in the United States. Last year business invested about $60 billion in health care. This figure includes some $33 billion spent by employers on group health insurance for employees and their dependents and workers' compensation medical benefits. Over the last quarter century employer contributions for health-related benefits have risen such that now 80 percent of all private health insurance is bought through the workplace. About 70 percent of this insurance is paid * Associate Director, Health Care, Chamber of Commerce of the United States 2 by employers. In 40 percent of the cases, employers pay for the entire cost of health insurance. In only 10 percent of the cases is the employee required to pay the entire bill. This is the reverse of the situation about 25 years ago. Although wages increased about 85 percent between 1965 and 1975, health-related benefits rose nearly 200 percent during the same time period. Health benefits now represent about six percent of employee costs. Business spends another $27 billion on taxes for public health programs (e.g. Medicare, Medicaid), company-sponsored health programs (e.g. drug abuse treatment, mental health counseling and physical fitness projects) and corporate philanthrophy. All told, business pays for about 40 percent of the Nation's $160 billion health bill. Clearly, business has a major stake in American health care. BUSINESS AND HEALTH PLANNING Business people are involved in the health planning process at all levels throughout the Nation. Ohio, in particular, is a showcase for the value of having management officials on health planning boards. For example, the Summit-Portage County Health Systems Agency between August 1974 and February 1977 was responsible for the denial or withdrawal of nearly $80 million in unnecessary health projects. Significantly, the president of the local health systems agency is Richard M. Martin, Manager of Health Services Industry Relations for Goodyear Tire and Rubber Company in Akron. Mr. Martin also is an active member of the National Chamber's Special Within the same state, the Central Ohio River Valley Association for Health Planning and Resource Development (CORVA) has been responsible for saving its area some $60 million in unneeded health investments since 1974. Last year alone, CORVA cut $8.5 million in proposed hospital spending. CORVA's current president, James F. Sandman, ascribes the agency's success to several major industries in the area including Proctor and Gamble, Kroger Stores, and Cincinnati Milacron. CORVA's past president is John Bullock, |