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H.R. 1200, American Health Security Act of 1993 1 (May 1993)

handle is hein.congrec/cbo9164 and id is 1 raw text is: December 16, 1993 H.R. 1200, AMERICAN HEALTH SECURITY ACT OF 1993 H.R. 1200 would create a single-payer program of national health insurance modeled after the Canadian system. The bill, coauthored by Congressmen Jim McDermott and John Conyers, was introduced in March 1993 and has 91 current cosponsors. This memorandum provides a preliminary estimate of the effects of H.R. 1200 on government outlays and national health expenditures. It does not include an estimate of revenues, because many of the revenue-raising provisions of H.R. 1200 were included in the Omnibus Budget Reconciliation Act of 1993. The estimate assumes that the bill would be enacted in 1994 and that the program would begin in 1997. A recent CBO paper, Estimates ofHealth Care Proposals from the 102nd Congress (July 1993), summarizes CBO's methodology for estimating the effects of health reform proposals and emphasizes the uncertainty of such estimates. SUMMARY OF THE BILL H.R. 1200 would make all legal residents eligible for comprehensive health benefits with no out-of-pocket payments for acute care or preventive services. People would pick their own health care providers, and providers accepting payments from state programs would be prohibited from billing patients for covered services. The national health insurance program (called the American Health Security Plan) would be financed largely by the federal government and would be administered by the states under the direction of a federal Health Security Standards Board. The board would develop most of the policies and regulations required to carry out the program. It would also establish a national health budget, which would grow no more rapidly than the economy plus the rate of growth of the population.' States that established a health security program would 'As noted below, H.R. 1200 defines the limit on the growth of health expenditures in two different ways. The alternative definition would limit the growth of health spending to the rate of increase of GJDP. 1

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