(Continued)
Proposal 6 – Endorse Health Care Principles
Trinity Health, 766 Brady Avenue, Apt. 635, Bronx, NY 10462, claiming beneficial ownership of 25,897 shares of common stock, sponsors this proposal. The names, addresses and shareholdings of the co-proponents will be furnished upon request made to the Secretary of the Company. WHEREAS: our company’s products are a major, if not the major, contributor to fatal cancers and heart disease; University of Minnesota Cancer Center researchers report: “users of smokeless tobacco are exposed to higher amounts of tobacco-specific nitrosamines — molecules … known to be carcinogenic — than smokers.”; More than 40 elements in tobacco smoke are cancer causing. Smokers are 22 times more likely to develop lung cancer than non-smokers. Studies show length of tobacco use increases the cancer risk: cancer of the nose (2 time greater), tongue, mouth salivary gland and pharynx (6 to 27 times more), throat (12 times) esophagus (8-10 times); larynx (10-18 times), stomach (2-3 times), kidney (5 times) bladder (3 times), penis (2-3 times), pancreas (2-5 times) colon-rectum (3 times) and anus (5-6 times); In 2007, in a “stark departure from past practice, the American Cancer Society” redirected its entire $15 million advertising budget “to the consequences of inadequate health coverage.” John R. Seffrin, the American Cancer Society’s CEO stated: “I believe, if we don’t fix the health care system, that lack of access will be a bigger cancer killer than tobacco.” He added: “The ultimate control of cancer is as much a public policy issue as it is a medical and scientific issue.”; A 2003 study estimated that one of every 10 cancer patients were uninsured. Health insurance companies are known to provide substantially lower rates to those who do not smoke or use our tobacco products; Our company’s health care costs are higher in the US because it has to cover employees who use tobacco products. If America had universal health care, these would be covered. Consequently, shareholder revenues are diminished when company finances must cover health care costs, many stemming from cancer and heart disease arising from tobacco use; Because access to affordable, comprehensive health care/insurance is the most significant social policy issue in America and has become a central concern in the 2008 presidential campaign. RESOLVED: shareholders urge the Board of Directors to adopt principles for comprehensive health care reform (such as those based upon the following principles of the Institute of Medicine): Health care coverage should be universal, continuous, and affordable to individuals and families. Any health insurance strategy should be affordable and sustainable for society and should enhance health and well-being by promoting access to high-quality care that is effective, efficient, safe, timely, patient-centered, and equitable). Supporting Statement: As shareholders, we believe publicly held companies must account to all their stakeholders vis-á-vis their positions on critical public policy issues, like universal health care, especially tobacco companies because they contribute so much to the health problems of so many. We ask fellow shareholders to support this resolution.
The Board recommends a vote AGAINST this proposal.
The Company shares the proponents’ desire for comprehensive health care reform. However, we do not believe that it is prudent at this time for the Company to become an advocate for specific principles for such comprehensive health care reform. The issue of health care reform is important and complex. Health care reform is continually mentioned by the Presidential candidates and by Members of Congress on both sides of the aisle. Major business trade associations, including the U.S. Chamber of Commerce, the National Association of Manufacturers (NAM), and the National Federation of Independent Business, have designated health care reform as a top legislative priority. The U.S. Chamber of Commerce and NAM, of which the Company is a member, have shown leadership and are actively engaged on the issue. The Company, like every business in the United States, is concerned about the rising costs of health care. The Company provides a generous health care benefit to all employees and certain retirees. Some of the major issues facing policy makers in the health care debate include coverage, costs, competitiveness, liability, and financing. As a member of the U.S. Chamber of Commerce, the NAM and other business trade associations, the Company believes that it is well represented on the question of appropriate health care reform principles. In addition, the financing mechanism for health care reform is a particularly important issue for the Company. In particular, the Company is opposed to tobacco-specific tax increases as a means to finance health care reform. Among other concerns with such a financing mechanism, tobacco taxes are a declining revenue source, while health care costs continue to rise. Accordingly, the use of tobacco revenues to fund health care reform would only result in future revenue shortfalls. For these reasons, the Company does not believe that adoption of this resolution would substantially advance efforts for comprehensive health care reform, nor would it be in the best interests of the Company’s stockholders. Therefore, your Board urges stockholders to vote AGAINST this proposal and proxies received by the Company will be so voted unless stockholders specify a contrary choice in their proxies.
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