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POLICY OF SUPPORT FOR HMOs CONTINUED BY PRESIDENT'S REFORM PROPOSAL

POLICY OF SUPPORT FOR HMOs CONTINUED BY PRESIDENT'S REFORM PROPOSAL
 WASHINGTON, Feb. 6 /PRNewswire/ -- Group Health Association of America is gratified that the president's health care reform proposal announced today shows continuing support for HMOs and coordinated care.
 "We look forward to working with this administration and the Congress to ensure timely action on addressing the nation's health care problems and assuring a key and appropriate role for HMOs," said GHAA President James F. Doherty.
 Doherty pointed out that a policy of support for HMOs began in the early 1970s when Elliot Richardson predicted that 90 percent of Americans would have access to HMOs by the end of the century; this policy was continued through Democratic and Republican administrations alike and reinforced in the president's proposal.
 The president's White Paper recognizes the value of coordinated care, its quality, its cost-effectiveness and the benefits it provides. According to Doherty, it is a measure of the success of the HMO industry that HMOs are such a key part of the president's proposal.
 The president's plan would encourage growth in Medicare and Medicaid participation by HMOs and remove barriers, such as state anti-managed care laws, which limit access to HMOs in the private sector.
 Another measure, Doherty said, of the credibility and influence of HMOs, is that GHAA's president would be called to the White House three times in the last two weeks to participate in high level discussions on the best ways to encourage use of coordinated care, and to advise in important areas, such as small employer group reform, that can help create a level playing field for HMOs.
 GHAA, the oldest and largest trade association for health maintenance organizations, has represented the HMO industry since 1959. Its member HMOs enroll more than 25 million people nationwide.
 -0- 2/6/92
 /CONTACT: Susan Pisano of Group Health Association of America, 202-778-3245/ CO: Group Health Association of America ST: District of Columbia IN: HEA SU: EXE


TW-DC -- DC048 -- 7925 02/06/92 16:57 EST
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Date:Feb 6, 1992
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