The Real Story

COVERDELL CONTINUES TO LIE ABOUT HMO REFORM

How far will Paul Coverdell go to cover up his shameful record on Healthcare?

ATLANTA, GA -- In a press release dated September 23, 1998, Paul Coverdell once again has lied to the voters of Georgia about his record on HMO reform. This latest round of falsehoods proves that Coverdell’s record on HMOs is so indefensible that he must resort to distorting his own record and lying about Michael Coles.

In the release, Coverdell is untruthful about his own position on HMO reform, Michael Coles’ plan for HMO reform and Michael Coles’ business records:

Coverdell’s Claim: The “‘Coverdell plan’ supports patients rights that maintains the right of patients to sue their health plans.”

• Fact: False. The plan that Coverdell supports does not give patients the right to sue their HMO. In fact, the plan backed by Coverdell does not even apply to HMOs or insurance companies, but rather only to large corporations who supply health care directly to their employees.¹

Coverdell’s Claim: The Coles plan “means more regulation, more mandates and more bureaucrats.”

• Fact: False. The plan that Coverdell supports would expand federal regulations over group healthcare plans by adding at least 19 new federal mandates.² The Coverdell plan would even create a new federal agency to devise “quality ratings” for HMOs.³
  
  Michael Coles’ plan to reform HMOs differs in many significant respects with Coverdell’s plan and Ted Kennedy’s plan. Michael Coles’ plan has no new federal mandates. Michael wants to reduce the power of Washington bureaucrats and return the power to regulate the health insurance industry to the states. The Coles plan would eliminate the federal ERISA provision that preempts the Georgia laws that allow patients sue the HMO or insurance company.

Coverdell’s Claim:  “Coles denied health care benefits to 65% of his employees.”

• Fact: False and misleading. All employees of the Great American Cookie Company who worked at least 30 hours a week, including hourly waged and salaried employees, were offered health care coverage. Sixty-five percent of employees of the company, most of them high school students, worked part time, and as part time employees, were not offered health care through the company.⁴

Coverdell’s Claim: “retained the right to cancel his employees health care when and if he felt like it.”

• Fact: False and misleading. The Cookie Company did maintain the right to switch the group health care plan from one provider to another, as do most businesses throughout the country. Four years ago, when the Cookie Company switched providers, no employee suffered a lapse in coverage.⁵ In fact, during the entire time Michael was with the Cookie Company, not a single employee lost their healthcare coverage.

Coverdell’s Claim: “Coles made his employees pick up the tab for their healthcare if they took leave to care for a sick relative.”

• Fact: False. The Cookie company maintained the right, but never made employees pay both their share and the company’s share of coverage premiums if they took leave for family or medical leave.⁶ As a practice, employees only had to pay their share of the premium to maintain coverage during leave.⁷

“Paul Coverdell, who made millions as an insurance salesman, has repeatedly failed the hard-working families of Georgia by denying them a right that he himself enjoys,” stated Coles. “It’s easy to see why Coverdell is spreading lies and falsehoods about our positions on HMO reform -- if I had his record on health care, I would avoid talking about the real issues too.”
______________________________

¹ Associated Press, “Plans Differ on Patients Rights,” 7/17/98.
² New York Times, “Senate Republicans introduce their own bill to protect patients rights,” 7/16/98; AP, “Details on managed care legislation,” 7/15/98 Atlanta Journal Constitution, “Dueling bills target HMO ills; Both parties urge more regulation.” 7/17/98
³ Macon Telegraph, “Senate Republicans propose tighter controls over managed health care.”
⁴ Great American Cookie Company Annual Report to the Securities and Exchange Commission, 1996, page 8.
⁵ Source: David Barr, Former President and CEO of Great American Cookie Company. Contact: 404 295-1541.
⁶ Source: Your Group Insurance Plan, Great American Cookie Company, page 66.
⁷ Ibid.

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