Members of Congress Offer Prescription for General Motors' Competitive Disadvantage
Washington D.C. (February 19, 2009) — Congressman Dennis Kucinich (D-OH) and two other Members of Congress today sent a letter to the CEO of General Motors, Mr. Richard Wagoner, Jr., to propose a different kind of auto industry rescue plan that eliminates the competitive disadvantage of inflated health care costs.
As health care costs continue to spiral out of control, the brunt is borne in large part by employers that provide health care. General Motors and other U.S. automakers have significantly higher health care costs than their international competitors — as much as $1400 per car. In the letter, Members of Congress point out that the adoption of H.R. 676, the United States National Health Care Act, would level the playing field and stimulate the economy.
Under H.R. 676, all American residents would receive a National Health Insurance card. The card would be good for health care services at all health care facilities across the country in the National Health Insurance system. Families would be able to choose any licensed doctor and any hospital. There would be no premium, deductible or co-payment. No one would receive a bill for any medically necessary health care services, and by eliminating inefficiencies, the plan would cost the same amount of money that is now spent on health care.
Representatives Marcy Kaptur (D-OH) and John Conyers (D-MI) also signed the letter.
The full text of the letter follows:
February 19, 2009
G. Richard Wagoner, Jr.
Chief Executive Office, General Motors
300 Renaissance Center
Mail Code 482-C39-B50
Detroit, MI 48265
Dear Mr. Wagoner:
As part of our ongoing efforts to ensure that the auto industry continues to be competitive, we write to engage you in a discussion about solutions. With a difficult economic outlook, plummeting auto sales, efforts already underway to cut costs relative to the competition, and health care costs rising faster than inflation, there has never been a more prudent time for GM to endorse H.R. 676, the United States National Health Care Act. We invite you to meet with us to discuss the matter in person.
You have convincingly articulated the effect of health care costs on GM’s competitiveness for years. Though the Voluntary Employee Beneficiary Association agreement with the United Auto Workers (UAW) has provided some short-term relief of health care costs by relinquishing financial responsibility for retiree care, the health care costs of current employees remain. Unless those costs are controlled, financial relief will be temporary.
As the nation’s largest provider of health care in the U.S., GM is likely to have captured the majority of the efficiencies that can be gained under a system with multiple, competing insurers. If true, systemic health care reform is the remedy of choice. There is a model for health care finance that has proven in several countries to control costs, provide health care to all, and increase the quality of care: national health insurance, which is embodied in H.R. 676.
One such success story can be found in Canada, where Canadian GM, Ford and Chrysler have publicly declared their support for Canada’s health care system specifically because of the competitive advantage it gives them over their American counterparts.
If H.R. 676 was implemented, the benefits to GM would not be limited to cost control. H.R. 676 would reduce liability insurance & workers compensation costs; eliminate the cost and inconvenience of running a health benefits bureaucracy; eliminate employee concerns about rising premiums and co-pays and conflicts with labor unions over benefit cuts; free up money for consumer spending; reduce absenteeism; and produce a healthier, more productive work force.
Momentum behind H.R. 676 is increasing by the day. It garnered 93 cosponsors in the 110th Congress including multiple Chairs of committees and subcommittees of jurisdiction. Fifty-nine percent of all physicians and about 60% of the American public now support a national health insurance plan like H.R. 676. The California State Assembly has twice passed such a bill in the last three years. National health insurance is supported by the deans of prominent medical schools, a former New England Journal of Medicine editor, a Nobel Laureate, a former Surgeon General, the US Conference of Mayors, the US Presbyterian Church, the League of Women Voters, Consumer’s Union, and the UAW.
Please consider meeting with us at your earliest convenience to discuss the issue further. We look forward to your response.
Sincerely,
Dennis J. Kucinich
Member of Congres
John Conyers, Jr.
Member of Congress
Marcy Kaptur
Member of Congress