The 30-Something Hour
I thank the gentleman from Connecticut, and I greatly appreciate the opportunity to participate tonight. We could certainly stand here and discuss the merits of the bill, and we will, the bill that has come before Congress already and the…
I thank the gentleman from Connecticut, and I greatly appreciate the opportunity to participate tonight. We could certainly stand here and discuss the merits of the bill, and we will, the bill that has come before Congress already and the bills that we are trying to mold together and what we expect the end result to be. We can have a discussion on the need for health care reform in this country and the merits of the system that we have, what we can do better. We are going to have that discussion. But I did want to come down to agree with the gentleman.
I watched some of the previous hour and Members who I consider to be friends and I work with. I certainly don't question intent, but we did hear a lot of rhetoric that does not in any way match up with the facts of the issues that we are discussing.
I did not vote for the bill. I am not here to defend the bill. But when I hear Members come to the floor and talk about things that are not in the bill as though they are, and then hear them reference portions of the bill and greatly take out of context what they are talking about in that bill, I don't think that's a legitimate discussion on health care reform in this country.
I am someone who wants to pass a health care reform bill. I want to find a way to make it work. I thought the House bill that was before us could have been better. I am hopeful that we are going to make it better. But I don't want to engage in a discussion and talk about how somehow we are in the process of putting together a bill that's going to lead to illegal immigrants getting health care or death panels or some of the other things that we heard over the course of the recess. That's rhetoric that is misplaced.
I think, as the gentleman said, we do have the best health care system anywhere in the world if you have access to it. Our medical innovation, our technology, our research capability far exceeds anything available anywhere else in the world. That's true. And we want to preserve what works in our current system. There is no question about that. But there are things we can do better.
I don't know how many people there are on the other side that think we shouldn't do any reform. I would expect not many, but we should be able to agree on the fact that in large segments of society, people who have insurance, they have access to the best health care system in the world. That's not to say that we can't do better.
I want to engage in a dialogue of how we can improve upon the bill that was put forward. What can we do to achieve consensus, because in America that's where we end up. We start with an idea and we build to a consensus and we get something done. That's how legislation is passed.
It offends me when I hear rhetoric put forth that is just not consistent with the facts of what's in the legislation. And, again, I am not here to defend that bill, but I understand that some of the things that we heard are just not legitimate concerns.
We talk about what's the need for reform. I had an August where I went around and I talked to Rotary clubs and physician groups and hospital boards and went to all the fairs and had town hall meetings, everything that other Members of this House did. And one of the things that stuck out in my mind, I had, in a Rotary Club I was speaking at, a small business owner come up to me and handed me his statements from his previous 4 years, his rate increases, annual statement from the insurance company. The lowest increase he had over an annual period for 4 years was a 28 percent increase. That was the lowest in the 4 years.
He said to me, and he clearly was upset about it, that he was going to be unable to offer health care to his employees because he couldn't sustain this increase, 4 straight years of at least a 28 percent increase. He had to drop coverage. These are the things that we can't allow to happen in this country.
When you have the best health care system in the world, you want everyone to have access to it. We want our
small businesses to be able to offer coverage.
If you are a small business owner who can't offer health care to your employees, it's not because you are a bad person. It's not because you don't want to. It's because you can't.
You can't afford to do it. So we need to bring the costs down for small businesses. Every family in America has had a similar discussion around the dinner table to talk about the increased cost of health care, the impact that's having on their family. Some of them have to make very difficult decisions on what they can afford and what they can't to keep health care. But everyone understands that costs are going up at an unsustainable rate.
We all know the impact it has on government budgets, whether that be the Federal budget--but every State in America has experienced the State budget crisis that Pennsylvania has certainly experienced. And municipal budgets, with their health care costs. So it has an impact on governments at all levels. This is what we need to address when we talk about health care reform.
If I could make a point before you leave that issue. This reminds me of a couple of things that I heard when I've been back in the district. One of them was a gentleman who clearly was uncomfortable with the health care reform bill as he understood it and told me all the reasons why we shouldn't do it.
The point he made was, Look, people who don't have health care, they get insurance and they get high-quality care. And he talked about his 15-year old nephew who had gone to the Children's Hospital of Pittsburgh with a hip injury of some sort, and he didn't have any insurance. His family didn't have insurance. And he got the treatment. And it was great quality, the best he could get. He's fine now. Everything is great.
I said, Well, you said he didn't have any insurance. How did he pay for it? The gentleman said, Well, Children's Hospital paid for it. I said, No, that's not the way it works. You and I paid for it. That's how it works. And he said, What do you mean? And I'll explain what I mean.
But there was a similar story of a woman who came up to me at a meeting, and she was very upset--was not a fan of the President, or me--and told me all the reasons that she thinks we as a Congress are doing a bad job. And she was really getting herself worked up. And she said, And don't you dare take my money to give it to those people who don't have health care, because I've worked hard to get where I am. And I've earned everything that my family has. And we have insurance. And we deserve it. And if those people don't have it, well, that's too bad for them. That's not my problem.
The point of both those stories and what I said to both these people was, It is your problem. Because we can have a discussion about whether it's a moral imperative to offer coverage to people who don't have it. Is it our obligation as a country to make sure that whatever number of uninsured we can agree on, if it's 47 million or 31 million or 1, should we, as a country, have an obligation to cover those people?
That's an interesting philosophical argument, but I'll tell you what the moral imperative is. The moral imperative is that we, who are insured, the people that I was talking to, we're already paying for them. The moral imperative is we're subsidizing them right now. And the people who don't have insurance get their treatment and their health services in the most inefficient, most costly setting--the emergency room--which leads to increased rates for us.
The woman who I told you about who said that she didn't want to pay for other people's health care had an interesting story when I started to explain to her that she was already paying. She said, Oh, it's interesting that you mention that because, she said, she just had surgery done at a hospital in February and the insurance company denied part of her claim, and she had to pay $18,000 out-of-pocket, and because she was paying for it, she read that bill very closely and she noticed everything cost a lot more than it should have.
So she called the hospital, she told me, and she said, Why does an aspirin cost $10? Why does everything on this bill cost five times more than it should? And the hospital said to her, Well that's because we have so many people who come through here who can't pay at all, we have to shift those costs to make up for the difference with the people who can pay. And she got it. And so did the gentleman who talked about the Children's Hospital.
The point of those stories is that's why we're going to pass a reasonable, rational bill that's going to improve the health care system in this country when all is said and done, because everyone in America, even those who have great concerns about this administration and this bill and those who are never going to support the administration or this Congress for political reasons, they have had a situation in their lives that has demonstrated for them why we can do better or how we can do better.
The woman I'm talking about with her $18,000 bill--but everyone has had something happen. They had to wait 9 months for an appointment with the dermatologist. They had a bad quality experience with a nursing home for their grandparents. They're that small business owner who just had his fourth straight year of 28 percent increase in his rates. Everyone has had something happen.
We've all had to spend time on the phone, maybe upwards of an hour, haggling with an insurance claims adjustor who has just denied our claim or is arguing with us about that.
So when you hear these stories, and you hear about how we shouldn't pay for people who don't have insurance and that that's not our problem, it is our problem. We're already paying for them. What we're trying to do by reforming the system is making sure everyone has coverage that wants it in a rational way so that we're not going to subsidize them in the least efficient, most costly setting, as we do today.
The gentleman said a couple of things that I wanted to comment on. I will get to the public option momentarily. But I agree with the way the gentleman characterized the discussion about Canada and Great Britain, the two countries that we most often hear the horror stories from.
Look, I don't live in Canada. I don't live in Great Britain. I don't know what it's like to live under those systems. But I do know this. I have a master's degree in health care administration. I've spent a career in health care policy.
I can tell you it is interesting to study what other countries do-- not just Canada and Great Britain, but other countries around the world--and everyone has a different system. That's a nice political science or health policy discussion to have. But, as the gentleman talked about, that has nothing to do with what we're doing in this bill.
This bill doesn't in any way bring to America what Canada does, certainly. It's not even close. There's no comparison to be made. It doesn't do anything close to what Great Britain does, which is even more to the left of Canada.
And so we can watch the TV and hear the horror stories. And they're interesting to listen to, but it has no place in this discussion because it has nothing to do with the proposals that we're voting on.
With regard to the public option--and I'm going to use another example from when I was back in the district. I continued to hear people say, You know what? The government is inefficient, it's bloated, it can't do anything right. They would say, You can't name one program that the government has ever run that's worth anything. Everything it touches is bad. And if you have them touch a public option, it's going to cost too much, it's going to be inferior care.
And I would say, Look, the public option is going to be self- sustaining. We do need to work out the details of what exactly it's going to look like, but it's going to be self-sustaining, with no taxpayer subsidies. It's going to compete on a level playing field with the insurance companies. It'll have to meet all the same regulatory requirements that they meet.
And there is some disagreement on this. I would like to see it have negotiated rates like the insurers. There are other opinions on that. But the point is it's going to be a fair fight. And it'll have to meet all the same requirements as the private insurers.
If you believe that the government can't do anything right, that they're going to mess up everything that they touch, and it's going to be inferior quality at a higher cost--and, under the terms of the bill no one is forced into the public option; it's voluntary--then what are you afraid of if you believe the private market can do everything better?
I'm not afraid of that competition. I think the private market can't compete and win. I think there are some families and businesses that would choose the option and feel that's a better deal for them--not because it has an unfair advantage, but if it's a level playing field and you don't think government can do anything right for those that have that belief, then why are you afraid of the competition?
I agree with the gentleman on those points.
I would say also let's look at the totality of what we're talking about with reform. When we talk about making reforms in the private insurance market that I think everybody agrees with, this is what you're going to get from health care reform: no more preexisting condition exclusions. No more caps for people with chronic diseases, annual caps or lifetime caps, out-of-pocket costs. Insurance companies won't be able to deny you coverage or drop your coverage because you get sick or injured. These are all practices that we know exist. They won't be available after this bill passes.
The help for small businesses who can't afford health care to be able to help them, hopefully through tax credits or some other way, to afford coverage for their employees; to do the reforms in the system to incentivize quality of care, not quantity of care. We've talked about this many times on the floor where the current system is a fee-for- service system. The number of times you show up in the doctor's office, the number of tests they run and procedures they order, that's the amount of money that they make. So they have a financial incentive for you to be sick. The more often you're there, the more things you have wrong with you, the more money they're going to make. Well, that's a perverse incentive.
We want to change the reimbursement system to incentivize quality to keep you healthy and keep you out of the system before you get sick. And that's why we're going to incentivize prevention and wellness, to make those services that senior citizens especially can access the Medicare system at no cost so that you can have the diabetes screenings and the mammograms and the flu shots and things that are prevention at no cost. They're going to prevent people from getting sick in the first place.
So these are things that I think we all agree on when we talk about reform.
And on that point, Medicare, as we all know, is scheduled to go bankrupt within 7 years. It's already, as a trust fund, paying out more than it's taking in. It has for the last few years. It's going to be completely insolvent in the year 2016. That's because of rising health care costs which are, unlike Social Security, which is going to be solvent through the year 2040, and because of demographics, it takes a downturn thereafter, but health care costs are unpredictable.
Retirement costs are very predictable. You can generally figure out how long a population is going to live in the aggregate, what kind of money they're going to make, what their salary progression is, and what their retirement benefits look like. That's easily predictable.
Health care benefits aren't. You don't know how much technology is going to change, how much prescription drugs are going to cost, how much high-technology treatments are going to cost, and what the future holds with regard to new innovations and technologies down the road. So for that reason, it's impossible to predict Medicare costs in the same way. The first baby boomer becomes eligible for Medicare in the year 2011. That's a big part of it too demographically.
So what we're trying to say is what can we do to preserve and protect Medicare for the long term? That's the whole point of health care reform, to bring down those costs, to make Medicare solvent, to make the reforms necessary so that it can last into the future and be there certainly for all the current beneficiaries, the baby boomers, for the gentleman and myself, and for our grandchildren. That's why we have to reform the Medicare system, the payment system, and that's why we need to reform our health care system.
But we spend as a Nation $2\1/2\ trillion a year. This year, 2009, we're going to spend $2\1/2\ trillion as a Nation for 1 year on health care. So what are we talking about?
Now, we used to in this House score things over a 3-year period; and then people, I think rightly, said that doesn't give you an estimate of sort of the long-term impact of the legislation; let's do it over 5 years. So for a while, several years, we scored all the bills over a 5- year period. Now in the interest of transparency and to give the public an idea of the full long-term costs, we actually score legislation that comes to this floor over a 10-year period.
And what's the cost of this bill going to be? The President of the United States stood right behind where the gentleman stands about a month ago and told us that it's going to cost somewhere in the neighborhood of $900 billion over 10 years, which is going to be fully paid for. It's not going to add to the deficit. We'll talk about that. But $900 billion over 10 years. So on average, that's $90 billion per year in a system where we're spending $2\1/2\ trillion this year, and it's going to go up exponentially every year for the next 10 years.
Is there anyone out there who doesn't think we can find inefficiencies in the system and waste that we can squeeze out to the tune of $90 billion a year in a $2\1/2\ trillion system, that we can't make it more efficient and save enough money to make the reforms that we're talking about?
I just think that the American people, when they think about these numbers, need to remember that we're talking about reforms that are going to increase quality, that are going to increase benefits for people, but that we are talking about in the aggregate a relatively small portion of the health care system as a whole when you talk about this stuff.
I agree with the gentleman. I have said that I will not support a bill that adds one penny to the deficit. Even more important than that, the President of the United States said that from the podium behind you. He will not sign a bill that adds one penny to the deficit.
I heard time and again over the course of being back in the district concerns about the spending that is taking place in Washington and the increase in the debt and the annual deficits over the past 9 years. I have young children, as the gentleman said. I completely agree, we have to do this in a way that is not going to add one penny to the deficit or the national debt.
One of the Senate bills which has been finalized and is being marked up this week, in fact, saves money over 10 years. I don't know if that is going to be the finished product. Certainly it is not word for word, but it is possible to do health care where we might actually bring a bill to the floor that, at minimum, is not going to add to the debt but might even reduce the debt over a 10-year period, or reduce the deficit on an annual basis.
That is something that I think the American people should consider when they talk about the need for health care reform, but also the need to bring down our long-term deficit. We can't ever address our long- term deficit without doing health care reform. It is too big a part of our economy to ignore.