December 14, 1999
Web posted at: 3:23 p.m. EST (2023 GMT)

CHARLESTON, South Carolina (CNN) -- Calling it a "transcendent issue of the future," Arizona Sen. John McCain offered Tuesday a plan to overhaul the nation's health care system that also reflects his desire to restructure campaign finance.

"We must assure people the health care choice they deserve and the control they demand -- and we must contain costs to make care more accessible and affordable to all Americans," he said. "Getting there does not demand some grand experiment in social engineering, or a death-by-a-thousand-cuts gradual government take over of our health care."

Sen. John McCain offered Tuesday a system to overhaul the U.S. health care system.

McCain, the Republican presidential candidate who is the clearest challenger to GOP front-runner Texas Gov. George W. Bush, castigated Congress for its inaction on the issue, saying congressional gridlock is "a function of bipartisan fidelity to the favored special interests that finance our campaigns."

"Republicans want to protect insurance companies from lawsuits," he said, adding, "The Democrats want to let the trial lawyers sue anyone for anything."

McCain said all changes must be done within the context of reforming campaign finance, including a ban on "soft money," the unregulated donations to the two national political parties.

"The reform we seek is not possible as long as special interests control Washington. As long as the special interests' agenda are greased with unlimited amounts of soft money contributions to our campaigns, the interests of average Americans comes second," he said. "Taking the $100,000 special interest checks is the gateway with which all other reform, including reform of the health care system, must pass."

One of those issues is the right of patients to sue an HMO. McCain's plan would allow an independent third party to resolve disputes between HMOs and patients but if that doesn't work, he said patients must be allowed to sue, a right patients currently don't have.

"If insurance companies and HMOs can't stand behind the decision they make, like every other business must do with their products and services, they shouldn't be making those decisions at all," he said.

But he also said he would demand legislation to rein in "out-of-control trial lawyers who don't care about suing for what's just, but who just want to sue." McCain said legal expenses drive up health care costs through enormous liability premiums and defense medical practices.

"As president, I will not accept reform that undermines an individual's ability to receive just compensation for bona fide damages," he said. "But I will demand reform that tames legal predators and that addresses the problem of runaway punitive damage awards."

McCain's position is similar to a system used in Texas, but McCain's staff points out that the Texas HMO program was allowed to become law without Bush's signature.

The senator proposed spending $2 billion in one year -- and up to $6 billion in total -- for a new program to assist the elderly with pharmaceutical expenses. The money would be offered as a block grant to states that agree to share in the costs to help buy drugs for senior citizens with incomes below 200 percent of the poverty level.

"While the bulk of seniors have prescription coverage, many on fixed income must choose between medicine and food. That's not right," he said.

McCain also proposed a pilot project to aid senior citizens with income levels more than twice the poverty rate who experience catastrophic drug expenses.

McCain was vague as to how he would pay for the programs, saying it could be paid for by cutting waste from the federal budget and eliminating special tax subsidies for special interests.

McCain also called for using at least 70 percent of the federal budget surplus to buttress Medicare and Social Security, again drawing the issue back to congressional gridlock. Instead of working to reform the programs, "Congress and the (Clinton) administration do what we do best: We point fingers and we play politics," he said.

"Democrats want to spend the surplus on bigger government. Republicans want to use it for tax cuts," he said. "Each party cynically strikes its best pose to appeal to favored constituencies. Meanwhile, we lose the precious time and resources necessary to save Social Security and Medicare, a loss that makes the eventual solution all the more expensive."

Bush has proposed using a large portion of the surplus to fund a $483 billion, five-year tax cut.

McCain also said he would change restrictions on the states' ability to enroll children in an existing government-backed health insurance program known as CHIP. Many uninsured children are eligible for the program, but aren't enrolled. For those who aren't eligible, McCain proposed tax relief aimed at helping families pay for child health care expenses.

"There is no good reason that in the United States of America 11 million children go without health care coverage," he said.

McCain, a former Vietnam prisoner of war, also proposed to add $2 billion to veterans' health care programs. Veterans are being cheated by a government that finds it too difficult to keep its promises, he said.

"The bad news is we have betrayed our promise to them when they went out and made the world safe for democracy with their willingness to serve and sacrifice. I will fix that problem," he said.

Tuesday, December 14, 1999

• Alexander endorses Bush
• Bradley attacks Gore's record on campaign finance
• Panel mulls recommendations to Congress on Internet sales tax
• Iowa notebook: Snow forecast of little concern after debate storm
• GOP candidates agree on problems, disagree on solutions in Iowa debate
• McCain proposes health care overhaul
• Des Moines Register: McCain downplays role in forum
• Poll: Gore erases Bradley's lead in New York
• Candidates struggle to define when the personal should become political
• White House 'scandal spokesman' to step down; won't be replaced
• Polls open as Brown seeks re-election in San Francisco
• Judge rules Tripp lacks immunity in case
• In speech, Bradley gives Gore ethics a one-two punch
• Major campaign donor accused of shredding documents to thwart probe
• Pentagon reminds candidates that 'don't ask, don't tell' is law - December
• Corporations help pay for improvements to Gore's residence

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