Monday, Aug. 09, 1982
U.S. health bill jumps 15.1%
The U.S. Government confirmed last week what everyone knew: health costs are soaring. In fact, according to the Department of Health and Human Services, the nation's health bill shot up 15.1% in 1981, outpacing the 8.9% inflation rate for the year.
Overall, medical costs, both public and private, rose to $287 billion. The sum represented a record 9.8% of the gross national product, averaging out to $1,225 for each American. The HHS report noted that the rapid increase in medical spending was caused in great part by the routine payment of two-thirds of all medical charges by Government programs and private insurers. "These disturbing figures," said HHS Secretary Richard Schweiker, "are the strongest argument for reforming the existing system of health-care-cost reimbursement."
Medicare and Medicaid expenditures together totaled $73 billion, accounting for 29% of all health spending. The two programs last year paid for more than one-third of all the nation's hospital bills. Since Medicare serves the elderly, and much of Medicaid is spent on long-term care of the elderly poor, these programs will continue to increase rapidly as the U.S. population ages.
The HHS statistics showed that over the past ten years:
Expenditures for hospital care, one of the principal causes of the huge 1981 increases, quadrupled to $118 billion.
The costs of physicians' services more than tripled, to $54.8 billion.
Nursing-home expenses increased more than fourfold, to $24.2 billion.
The Reagan Administration is considering proposals to increase competition among health-care providers and place limits on tax-code provisions that permit excessive use of doctors and hospitals. The White House, however, has not submitted details to Congress, which has been unable to agree on its own plan.
Some states have decided they cannot afford to wait for federal action. California, for example, has just passed a bill that will require state officials to choose the lowest-cost health care for Medi-Cal (Medicaid) recipients. The law will permit private health insurers to do the same for their subscribers. As a result, next year California Medi-Cal patients may be restricted in choosing their doctors and hospitals. William A. Guy, who administers the Medi-Cal watchdog program, sums up his task bluntly. Says he:
"Hospitals are a major part of the cost. The issue is how to hold them accountable."
Nomination of Richard S. Schweiker To Be Secretary of Health and Human Services
January 20, 1981
The President today nominated Richard Schultz Schweiker, of Worcester, Pa., to be the Secretary of Health and Human Services.
Mr. Schweiker was United States Senator from Pennsylvania.
He was born on June 1, 1926. During World War II, he enlisted in the United States Navy and served aboard an aircraft carrier from 1944 until his discharge as an electronics technician, second class, in 1946. He received his B.A. from Pennsylvania State University in 1950, where he was elected to Phi Beta Kappa.
He was a business executive from 1950 to 1960. In 1960 Mr. Schweiker was elected to the United States House of Representatives from the 13th Congressional District of Pennsylvania and served in the House from January 1961 to January 1969. In 1968 Mr. Schweiker was elected to the United States Senate. He was the ranking minority member of the Labor and Human Resources Committee and ranking minority member of its Health and Scientific Research Subcommittee. He was a member of the Appropriations Committee and ranking minority member of its Labor, Health, Human Services, and Education Subcommittee. He also served on the Rules and Administration Committee.
He is an honorary member of the National Council of the Boy Scouts of America and a member of the board of directors of the Schwenkfelder Library. He is the recipient of the Bringer of Light Award of the National Jewish Fund, the Samuel H. Daroff Humanitarian Award, the B'nai B'rith Anti-Defamation League Award, the National Mental Health Association Award, the Prime Minister of Israel's Medal, and the Opportunities Industrialization Center Key Award.
He is married to the former Claire Joan Coleman. They have five children: Malcolm, Lani, Kyle, Richard S., Jr., and Kristi.
President Ronald Reagan accepts Resignation of Richard S. Schweiker as Secretary of Health and Human Services
January 12, 1983
Dear Dick:
It is with great regret that I accept your resignation as Secretary of Health and Human Services.
During the past two years, you have administered the Federal government's largest and most important human assistance programs. More than anyone else, you have been responsible for honoring my firm commitment that society's safety net be maintained, so that Americans who require our help in times of need will receive it.
At the same time, it has been your role to make sure that these huge programs are prudently administered, so that America's taxpayers will know that their dollars are being wisely spent. You have performed both of these tasks with unexcelled competence and compassion.
It has been my privilege to seek your advice on many issues, including those not directly within your area of responsibility. Because of your long experience in government and your recognized devotion to the public good, your counsel has always been of a high quality, and I expect to continue calling upon you in the future.
Your desire to return to the private sector after twenty-two years in public life is, of course, understandable. Nancy and I send you and Claire every wish for success and happiness in your new endeavor, and we look forward to a continuation of our close personal friendship with you.
Sincerely,
RON
January 10, 1983
Dear Mr. President:
Four years ago last week, I announced my intention to return to the private sector after 20 years of public service when my second Senate term ended in January, 1981.
Your gracious invitation to serve as your first Secretary of Health and Human Services was a most high honor and a tremendous challenge which caused me enthusiastically to postpone my plans to leave public service.
In these two years, you have succeeded, despite the tremendous obstacles you inherited, in giving our nation a new beginning. I have treasured this opportunity to serve you and our country as Secretary of the "people's department."
Under you, Mr. President, health and human services spending by the federal government has not gone down. Instead, health and human services spending has increased. In fact, more of your budget—a larger percentage—is aimed at health and social services programs than any previous budget in U.S. history to meet the needs of those most in need.
Unexpectedly, I have just been offered a challenging and rewarding position in the private sector which I did not seek. The opportunity is an unusual one, and it would not be available to me at a later date.
Thus, it is with regret that I respectfully request that you accept my resignation effective early 'next month. Claire and I will forever cherish the warm friendship that developed between you and Nancy and us.
I shall always be ready to give you any help that I can in the private sector, and particularly want to help in your re-election when you make the decision that I hope you will.
Sincerely,
DICK SCHWEIKER
Richard S. Schweiker
Secretary
From 1983 to 1994, Schweiker served as President of the American Council of Life Insurance, now known as the American Council of Life Insurers.
The American Council of Life Insurers (ACLI) is a Washington, D.C.-based lobbying and trade group for the life insurance industry. ACLI represents 300 insurance companies that account for 90 percent of the U.S. life insurance industry's total assets. According to its website, ACLI represents "legal reserve life insurance companies and fraternal benefit societies operating in the United States before federal and state policymakers, insurance departments, and the courts."