Madam Speaker, we are here tonight to continue the discussion of health care. Before I get started, I am a freshman here in Congress, and I am going to tell you a little about myself and why I'm here to discuss this. I grew up in the rural…
Madam Speaker, we are here tonight to continue the discussion of health care.
Before I get started, I am a freshman here in Congress, and I am going to tell you a little about myself and why I'm here to discuss this.
I grew up in the rural south in a small, rural community. My father was a factory worker. I went to college, I went to medical school in Memphis, Tennessee, at the University of Tennessee--the real UT, I might add, for my Texas friends--and I spent 2 years in the military. I trained in an inner-city hospital, an urban hospital. I spent time in an infantry division in a medical battalion in Korea near the DMZ. I served in a military hospital, in a VA hospital. I practiced in Johnson City, Tennessee, an area in Appalachia in northeast Tennessee, and taught medical school with residents and interns. I really have had a varied experience, 31 years in private practice. My specialty was obstetrics and gynecology, where I delivered almost 5,000 babies. So I bring a rather unique experience to the House floor, and I am very privileged to be part of this debate.
I think before, as a physician, what I would try to do in any case that I saw was try to identify the problem. In America, we are trying to identify a problem with health care. And certainly, I think we have heard it on both sides of the aisle that we do need health care reform. I think the main reasons for that are two: One is costs--health care costs are escalating beyond the average person's ability to pay for the care--and access to adequate care for all of our citizens.
In this country, about 170 million of our citizens are covered by their job. Their health insurance is provided by their job. And this started where your employer provided health insurance after World War II as an incentive to get workers to come work for a particular company. And it has, of course, grown since that time, and I think it has been a good thing for most people. We have been able to provide a level of care in this country that has been unequaled anywhere in the world.
What I have been able to see since 1970, when I graduated from medical school, were advances that I didn't even dream of. The one advance that we haven't seen come to fruition that I thought would is the cure for cancer. We haven't done that, but we have made tremendous strides in cancer and heart disease, diabetes, and so on.
So we have a cost issue, and we have an access issue. We have approximately 47 million of our citizens in this country that are not covered currently by health insurance. Who are they? Well, the Census Bureau believes that approximately 10 million of these folks are illegally in the country. We also believe that probably 9 million or so have incomes above $75,000 a year and choose not to buy health insurance--their own choice. About 8 million people make between $50,000 and $75,000, and they may be families where this does stretch them, where they're a small business, and health insurance premiums-- again, the cost factor has gotten so expensive that these folks can't afford it. So we really are looking at about 20 million people in this country who are working poor who don't have access to care.
How are we providing the care in this country now? Well, we're using private health insurance. Many people use their own employer, a small business, their health savings account. There are variations that people use to buy their health insurance.
We have the government now which provides about 46 cents of every dollar spent on health care with Medicare and Medicaid and the VA. So we have government taxpayers approaching 50 percent of the care, and then we have the rest, the 15 percent, who don't have coverage at this time.
So how do we go about keeping the cost down, quality high, and the access? We are joined here this evening--and I am going to stop, having framed the debate--with my good friend from Louisiana, Dr. John Fleming. And John, I am going to turn this over to you to sort of continue this thought that I put forward.
We have also been joined this evening by our colleague from Wyoming, Cynthia Lummis. We appreciate you being here, and I would like to now yield time to you.
Thank you, the gentlewoman from Wyoming. Excellent comments.
Health care decisions should always be made between patients, their families and their physicians, not the insurance companies and not the Federal Government. I believe that, and I have used that in my practice for many years. It's one of the reasons I was a very successful practitioner. I knew who I worked for--my patients--and I looked after their benefit.
Now, one of the things I want you to think about in this bill--and this is the bill here. It's H.R. 3962. They've changed the number because H.R. 3200
has become so tainted now. It's two parts. As the gentlewoman pointed out, it's 1,990-pages long. I've only been through the first 1,000 or so pages, and it's going to take me a few more wakeful nights to go through it, but I will. In the Senate's Baucus plan, for instance, it's an alleged 1,500-page bill. It gets you to 91 percent coverage.
You can do two things on one page and get to 91 percent coverage, which is to allow young people who have graduated from high school or from college and who are not yet covered by insurance plans at their work or who can't afford it to stay on their parents' plans until they're 26 years old. You can cover 7 million young people by doing that.
Number two, you can sign up the people who are currently eligible for government programs, which would be SCHIP and Medicaid, and you would then be at 91 percent without all the other bureaucratic morass that this bill goes through.
I want to make this point tonight: this bill right here is almost incomprehensible when you read it, because, when you do read it, you have to refer to the IRS code, to HHS, to Medicare, and so on. It's just almost incomprehensible. So I'm going to go over about four or five things which, I think, could be done very simply--and I want the gentleman from Louisiana to step in--which will allow those health care decisions to be made by families.
Number one, one of the big arguments we hear today, or issues which we deal with, is preexisting conditions, and they're real. I've dealt with patients who've had breast cancer who then, as individuals, could not be insured. Well, in the group market, in large groups, that's not a problem because you just accept those increased risks and spread those risks among large groups of people.
When I was mayor of the city of Johnson City, we had 1,500 people, plus their families, with plans--teachers and employees of the city-- and we were able to spread risk and to buy reinsurance for high-risk patients, but an individual has a real problem. I, as an individual, going in with a problem am not insurable.
Well, how do you do that, how do you make that same group market available for an individual that you have for large businesses?
Well, you eliminate State lines. You take the State lines out, and you allow association health plans to be formed, and then the individual market becomes a very large group market. Costs go down, and the preexisting condition problem goes away.
Number two, I think that a person shouldn't be bankrupted if a person gets ill. I think, if you become ill through no fault of your own, you shouldn't go into bankruptcy. I think that's a fairly simple thing.
What are you going to do for low-income people who can't afford these things? Well, you can have subsidies or tax credits so that people in this income bracket can also join health plans and can share their risks.
I've never understood why the government treats our patients on Medicaid differently than they do from Medicare patients. They're not treated as well, I don't think, because of the payment differences, but they shouldn't be. They should be allowed to take those dollars as a credit that are spent on Medicaid, and they should be allowed to go into an association health plan and also spread those risks. So those are a few little things.
Lastly--and I think it's barely mentioned in this 2,000-page bill--we talked at the beginning of this hour about costs and about how we control costs. You will never ever control the costs of health care unless you begin to do something with tort reform, or with malpractice reform, because, as a physician, if I don't order a test--if I have a patient come to the emergency room and if I don't get a CT scan and if something by chance happens to that patient, then I'm going to be liable for that problem. If I order the test and if there is nothing wrong, there is no penalty to me. So we have to change that. Let me just explain a couple of things that helped me understand this.
We have a terrible tort system in this country. The reason it's terrible is we have no way to compensate injured people. When someone does have an injury due to malpractice, we have no way to compensate him.
In 1975 in the State of Tennessee, we started a malpractice company called the State Volunteer Mutual Insurance Company. Since the inception of that company, over half the premium dollars have gone to attorneys. Now, these are defense attorneys and plaintiff attorneys, but less than 40 cents on the dollar have actually gone to injured people. All the thousands and hundreds of thousands of dollars I have paid in over these years have not gone to compensate injured people. So that's something which, I think, is not in this bill. Until you address that, you're never going to address the ever-escalating costs.
What do you think about it, John?
Will the gentleman yield for a moment?
I just want to give a brief example.
I was home this past week, and I spoke to one of my partners, Dr. Lewis. Dr. Lewis had a patient who had a fertility problem, which he helped her with. She was able to become pregnant, but miscarried. She lost her baby. Her husband worked for the State Department and was sent to England. Apparently, when the American employees are sent to England, they get private insurance. Well, she wanted to move on with her fertility evaluation, so she first had to go through the public system before she could access the private system in England. She went there and she didn't see the doctor. She saw a nurse.
The nurse said, Well, you need to see the doctor for your fertility problem. That will be a year.
She was going to have to wait a year to see the fertility doctor. Well, she had a visit planned back home in a few weeks; and while she was home, she called her doctor, Dr. Lewis, who got her into the office in 1 week. He got her back on her treatment, and she is now back in England. Hopefully, it will be successful.
Those are the kinds of delays that you're going to see. This is just one example. I could spend the rest of the night giving these examples.
Dr. Fleming, I want to get into the cost because that's something that isn't talked about in this CBO report. Now, the CBO report we got said this is going to be deficit-neutral. Well, I want to go back through history a little bit. Let's look at the history of Medicare, of Medicaid, of the TennCare, and of the Massachusetts plan. I'll just briefly and quickly go through them.
In 1965, when Medicare was passed, it was passed as a plan that was going to be about a $3 billion to $4 billion plan. The CBO estimate was that, in 25 years, by 1990, this would be a $15 billion plan. Fast forward to 1990. This was a $90 billion plan. They missed it just a tad there. Today, it's over a $400 billion plan. It's about $428 billion.
The Medicaid program has gone up 37 times since its inception.
The Massachusetts plan had a noble goal, which was to try to cover as many of its citizens as possible. That's absolutely what we should try to do in an affordable way. In Massachusetts now, they're at around 97 percent coverage.
Government spending on health care is up 70 percent since 2006. Between then and 2009, that's just 36 short months. In TennCare--and we will go into that a little bit more. The reason it's important to go into TennCare and what's happening in Massachusetts is because that's basically what the basis of a lot of this plan is that we are debating tonight.
TennCare, which started in 1993 with a $2.6 billion Medicaid plan, by 2004, just 10 years later, 11 years later, it was at 7.5 billion and would go to 8.5 billion in 11 years, which almost bankrupted our State. Today our State is in such dire financial--and this is with the stimulus money that came in--that we can no longer add any further children to the State Children's Health Insurance Plan.
I got a letter from Governor Phil Bredesen, who is a Democrat, who is a health care expert, I might add, and has done a very fine job in Tennessee managing this along with the Republican legislature. They have worked together to try to control these costs. What the Governor said is that in the next 5 years this will add $735 million, which we do not have. If certain other stipulations are placed on this plan, it could be in the billions of dollars. We have seen every single government plan that's out there that didn't meet these cost expectations, and this one won't either.
For our seniors, I know they get it, but I want you to listen, and you can do the math. This plan, according to CBO, is going to be financed by taking $400 to $500 billion out of an underfunded Medicare plan that's going broke by 2017. That's the last number that I saw. That it would be upside down, more money going out than coming in.
We are going to take $400 to $500 billion out of that plan. We are then going to add between 3 and 3.5 million seniors, our baby boomers that are hitting Medicare age, beginning in 2011. That will be between 30 and 35 million new recipients in the next 10 years.
Then in 2 years, in 2011, we are going to cut provider pay by as much as 25 percent. We are going to now add 30 to 35 million more people. We are going to cut $400 to $500 billion and cut our providers. Let me tell what you that adds up to. They get it. I was home this weekend and spoke to many. Our seniors are genuinely worried.
They know, number one, when you do that, you are going to cut access, because when you cut that much money out, you are going to have a very difficult time getting to your doctor. If you can't get to your provider, you are going to cut quality. Number three, to get there, you are finally going to increase your own costs because you are going to have to pay more for the care you are getting; without a doubt, you are.
We have seen it in our State, as I said. We will go into it in more detail, but, Dr. Fleming, I would like to hear your comments about financing this.
Have you had any of your constituent businesspeople come to you and say, if this plan passes as they understand it, they are out? Their business is closed? I have.
I think one of the things I want to talk about now--and we have been joined here by Dr. Burgess, our good friend from Texas--I think, where is the money coming from to pay for this? I think at the end of the day, when a patient comes to me in my office and sees me, am I going to be able to deliver better care when we pass this in the House, if the House does pass this 2,000-page bill? The answer is no. Will access go down? I believe it will. Will costs go up? I believe they will.
You mentioned about the individual mandate. So people understand what that is, you are a person working out there as a painter or you work in a small business or whatever and you don't have health insurance. You choose not to buy it if it's offered at
your group, or you just choose not to. You will pay 2.5 percent of your total income into this exchange as a penalty.
Well, what's happened in Massachusetts? Let me sort of go over that for just a moment. They have a mandate. That experiment is being tried right now in the State of Massachusetts.
The Harvard Pilgrim Health Care plan found from April of 2008 until March of 2009, 1 year, they found that 40 percent of their new enrollees kept their insurance for only 5 months. During that 5-month period of time, the average payment was $2,400 a month; whereas, the average person who just had part of their plan was $350 a month. People were waiting because you don't have any--in Massachusetts, you cannot be denied coverage, and you get a community rating, meaning that everyone pays the same rate. What people are doing is they are waiting until they get sick, at least in this Harvard Pilgrim plan. Then when they get well, they drop their insurance and pay the 2.5 percent penalty.
The other is an 8 percent penalty on business, which is a payroll tax. Basically, a business will pay 8 percent of its payroll into this exchange or into the government. Well, if you are paying 10 or 12 percent now, then what you are going to do is you are going to drop that if you can and get into the public option.
Well, I started thinking about this the other night. It's the first time before, in my business, in my medical practice, I negotiated the health insurance policy every year as a separate cost than payroll. Now what's going to happen is your health care costs are tied directly to the payroll, meaning that if you give your employees a raise, you have also just raised your health care premiums. You put those linked together for the first time, and I think that's not good for the person out there working.
I am going to yield now to my good friend, Dr. Burgess from Texas. Thank you for joining us, and we have been joined also this evening by Dr. Cassidy from Louisiana.
Dr. Burgess.
Dr. Burgess, thank you for your comments. Also, just so people understand, it is not just an insulin pop. It is any medical device that we are talking about. It could be a wheelchair; it could be a prosthetic device, if you have a leg that is a prosthetic device; if you have stents in your heart or hip replacements. And who is going to pay that? The consumer is going to pay that, we know that, the person that is getting that device. What we don't want to see is this unbelievable amount of innovation that has occurred.
Dr. Burgess, what comes to mind for me is the equipment we use for a laparoscopically assisted hysterectomy. When we first started, those took us 5 to 6 hours because we didn't have the equipment to do it with. Now it is a 1-hour procedure because of the new equipment that is there. Patients have benefited tremendously from this. Did it cost money to do this? Yes, it did. But I look at the advantages for the patient. I don't want to see that innovation brought to a halt, and I fear it will be.
I thank the gentleman.
We have been joined by Dr. Cassidy from Louisiana. I yield to Dr. Cassidy. We thank you for being here this evening.
If the gentleman will yield for a moment, you are absolutely dead right on this. In my district, I visited four businesses, one is the City of Johnson City, Tennessee, where I was mayor. Another is Holston Munitions, or BAE Corporation.
They have instituted a wellness program that in the last 5 years they have not had a premium increase. What they have done is they have basically incentivized behavior, for instance, smoking.
If you smoke, and one of my good friends had a patient come to him the other day, and he said last spring, and this was in June, she said I have to quit smoking by the first of July. He thought, that is pretty good. I am glad to hear that. They've been trying to get you to quit for several years. But why are you going to quit? She says well, my insurance changes and they are going to penalize me if I smoke. It is going to cost me money.
So, if you don't smoke, or you get your hemoglobin A1C, which is the way we monitor your sugar and diabetes, to get your hemoglobin A1C down, you lose weight, they will pay you for that. So you can earn the money back. And they have done that with their wellness program and been wildly successful.
To tag-team into your health savings account, just me personally in 2 years, and people will say that, well, you can't use that in Medicaid or you can't use that, I absolutely disagree with that. In our own medical practice, of the 294 people that get insurance through our practice, 84 percent use a health savings account. These are the folks that check you in at the front and draw the blood and the nurses that assist us and so forth. So it works very well for everybody. We all respond.
Reclaiming my time, I would also say it takes away personal freedom to decide what is best for your family. For instance, in my family now we don't need fertility evaluations that maybe other families do need. They should be able to purchase those if they need to.
I want the viewing public tonight to take a peak at H.R. 3962, which is a new name for H.R. 3200. I would encourage you to begin to read this. It will take some time. But the American people did read H.R. 3200. They actually did. I had hundreds that came to me at town halls that printed it off the Internet and read it. It is probably just out on the Net.
It is amazingly complex, and the devil is in the details. When you start reading the details, and I did begin the details today, that is where you begin to see what you lose in this.
I think, in summary, in closing up this evening, what we have got this week is a discussion, I think the single biggest social discussion we have had in this Nation in 50 years, since Medicare. The challenge is how do we make health care affordable, and how do we provide it for the citizens now who don't have it?
I think, as Dr. Burgess stated just a moment ago, that right now, the bill before us, they are not our solutions. We keep hearing there are no Republican solutions. There absolutely are. They are not on the table. They are not being discussed. This bill right here, H.R. 3962, all 1,990 pages, that is what we are discussing this week, and, as Dr. Fleming said, we are probably going to vote on this week.
So I think that this needs to be looked at as quickly as we can by the American people to try to peel this onion back, so to say, and look at what's there. I appreciate my colleagues being here tonight, and we'll be here throughout this week to further discuss this bill and what is in this bill.