HEALTHCARE

WHEREAS, per-capita healthcare costs have increased about 33 percent over the last four years, while wages have risen only about 12 percent; and

WHEREAS, the rise in healthcare costs is a national problem that affects every public and private employer and is beyond the control of any one employer or union.  This problem has been exacerbated by the increased consolidation of the suppliers of care—insurance companies, hospitals, physicians, drug manufacturers and labs.  This consolidation results in geographic and/or product monopolies that dictate higher prices while purchasers of care, employers and unions continue to buy health insurance on an employer-by-employer basis; and

WHEREAS, the spectacular and prolonged rise in healthcare costs, coupled with historically tight state budgets, has overwhelmed the ability of even the most skilled union and management negotiators in every industry from holding the line on cost shifting over the last four years; and

WHEREAS, healthcare cost hikes have led to an estimated 100 percent increase in the amount of out-of-pocket expenses for workers and retirees, averaging about $1,261 over the last four years, and also resulted in the loss of an employer subsidy and/or coverage for many retirees and dependents; and

WHEREAS, patients, hospitals, physicians, drug companies and other providers of care are typically disconnected from employers, unions and governments who pay for care, which results in little or no accountability by providers for the money they receive; and

WHEREAS, the number of people covered by private employer-based health insurance has declined by 19 million between 1993 and 2003, according to the latest figures from the Bureau of Labor Statistics; and

WHEREAS, there are now 44 million uninsured Americans—the highest recorded number in recent history and an increase of about four million over the last four years; and

WHEREAS, the Kaiser Family Foundation reports that there has been a catastrophic percent drop in the percent of large private employers that offer retiree healthcare benefits; and

WHEREAS, continuing cost increases will force more employers to drop employer-based health insurance coverage, shift more low-paid workers on to the Medicaid rolls, and increase uncompensated care for those not eligible for Medicaid, which further raises the cost of health insurance; and

WHEREAS, according to the latest report of the Kaiser Commission on Medicaid and the Uninsured, the number of children without health insurance remains deplorably high at nine million, or 12 percent of all children.  This problem is intensified by cuts made by the Bush administration in Medicaid and the State Children's Health Insurance Program (SCHIP); and

WHEREAS, the Bush administration policies support a rise in the number of the uninsured by reducing federal support for Medicaid and SCHIP; and

WHEREAS the Bush administration has encouraged the demise of employer-based healthcare by pushing through the IRS and Congress several tax incentives designed to force individual workers and retirees to pay the full cost of their own healthcare; and

WHEREAS, John Kerry proposed to support the employer-based healthcare system by providing direct federal relief to employer-sponsored health plans; and

WHEREAS, that achieving our vision of national healthcare reform will be enhanced by the election of John Kerry and a Congress that supports our goals; and

WHEREAS, proposals to improve the quality of patient care by creating voluntary reporting systems and consumer-based initiatives have not been widely accepted and concerns about the quality of patient care continue to mount; and

WHEREAS, that the AFT recognizes the imperative need to organize the unorganized so that we have the power needed to enhance our ability to maintain and expand employer-sponsored health insurance for workers and retirees and to press political leaders for national healthcare reform:

RESOLVED, that the AFT reaffirm its support for national healthcare reform, including universal coverage and access to quality healthcare at a reasonable cost, and call on the president and Congress to make fundamental reform of our healthcare system a legislative priority for our country; and

RESOLVED, that until a national health insurance plan is adopted, the AFT continue its efforts to:

·         Work inside the AFL-CIO to create one comprehensive labor position on a national reform of health insurance and press for its passage.

·         Work with the AFL-CIO, NEA, state and federal legislators, Alliance for Retired Americans and other retiree groups, religious, civil rights, consumer and provider groups to build a coalition for national health insurance reform.  This coalition should develop educational programs for their membership.

·         Work cooperatively with our employers to develop base-line information on how members use health plan benefits, the associated cost of the benefits, and identify a strategy and vision for providing high-quality coverages and benefits to workers today and in the future.

·         Press for immediate coverage of all children.

·         Educate members about the intertwined problems of cost, access and quality and help locals and state federations develop pro-active bargaining and legislative strategies designed to control the rise in costs without cost shifting or negatively affecting the quality of care.

·         Educate union leadership at all levels about ways to effectively consolidate their purchasing power to bargain with large insurers and large provider groups by providing specific examples and encourage participation of all organized labor in this effort.

·         Educate members to become better consumers of healthcare and create a platform for members to collectively and individually demand accountability for the cost and quality of care they receive.

·         Educate members about the waste and inefficiencies in the healthcare system and help them develop strategies to confront these problems in their communities.

·         Support efforts to promote patient safety and high-quality healthcare such as safe staffing legislation, restrictions on mandatory overtime and public disclosure of quality indicators.

·         Support John Kerry's initiative to have the federal government shore up the employer-based financing system, to make healthcare affordable for employers and workers.

·         Support Senator Kerry's plan to cover up to 99 percent of all American children by federalizing Medicaid coverage for children in poverty and expanding SCHIP for the near-poor.

·         Oppose the Bush administration's tax incentives that will destroy employer-based group coverage and force individual workers to pay the full cost of their own insurance.

·         Oppose the Bush administration's plans to decrease funding for Medicaid and SCHIP, which would increase the number of uninsured and place further financial strain on hospitals and other health providers who care for the uninsured.

·         Oppose the Bush Medicare changes and work with members of Congress to provide a guaranteed prescription drug benefit inside Medicare, which would help employers retain retiree health benefits.