Health Care - From Truman to Clinton

October 18, 1993, Monday, CITY EDITION ; VIEWPOINTS; Pg. 41

By Al Gordon.  Al Gordon is a Viewpoints editor.

IT IS SAID that the best is the enemy of the good, and the history of national health insurance would seem to prove the point.

Now that President Bill Clinton has put the issue back on the national agenda, we would do well to recall what happened the last time Washington seriously tackled the health issue - 20 years ago.

A 1975 staff report from the House Ways and Means Committee disclosed the then-shocking statistic that health-care expenditures in the United States had climbed to $ 104.2 billion in 1974 from $ 25.9 billion in 1960, with the share of the Gross National Product going to health spending soaring to 7.7 percent from 5.2 percent.

The experts warned that, if nothing was done, things would only get worse. Nothing was, and they did. Today, health-care costs exceed $ 800 billion and consume more than 14 percent of the GNP.  The first major moves toward national health insurance in the United States date back to the ‘40s, when some liberals regarded it as a logical extension of the New Deal. President Harry S. Truman made it a key plank of his political platform. But his initiative never went anywhere. 

A decade and a half later, President John F. Kennedy advocated health-care coverage for the elderly, but was battered by opposition from the American Medical Association, the insurance industry and most of Big Business for advocating “socialized medicine.” It wasn’t until 1965 that President Lyndon B. Johnson could find the votes in Congress to pass Medicare, and also to restructure federal medical assistance to the poor as Medicaid.

In the late ‘60s, Sen. Edward M. Kennedy (D-Mass.), backed by organized labor, took on comprehensive national health insurance as his cause. He sought to create a single federal program that would replace the existing patchwork system of public and private plans.

During the 1971-72 congressional session, President Richard M. Nixon endorsed a program of “catastrophic” health coverage. Rejecting Kennedy’s plan, Nixon called instead for sheltering Americans against crushing health bills. He proposed a mixture of existing and new plans, and a bigger role for the states.

To read the yellowing committee reports describing the various bills today is to be struck by the fact that the differences were not so important as the overall agreement to make a major change in the way Americans financed their health care.

Still, the two sides failed to reach a compromise on federal authority over health care.  It is hard to believe that, if the Nixon proposal had become law, Congress would have resisted the temptation to sweeten it during the last 20 years.

Clinton clearly has been influenced by the historical record. He has declined to propose the single-payer federal health-insurance plan favored by many Democratic constituencies, seeking instead a plan with broader support. In particular, Clinton makes less of a frontal assault on the health and insurance industries than prior Democratic efforts.

This year is very different from 1972.  Neither organized labor nor Big Business has the clout today that it had 20 years ago, and many elements of the business community now see national health insurance as essential to their economic competitiveness. The health-care and insurance industries are a little less hostile.  There is an apparent public consensus that, as the president put it in his speech to Congress, “Our health care system is badly broken, and it’s time to fix it.”

But we should not forget it took 50 years to get to this point. The question that should be asked is not whether the Clinton plan is perfect, but whether it is better than another 20 or more years of delay.

Copyright 1993, Newsday Inc.