I am so glad we are doing this, and I am glad to be with both of you. Dr. McDermott has been working on this for so long, and he brings a clear voice of experience, not congressional but medical. That's what makes this so important. Of…
I am so glad we are doing this, and I am glad to be with both of you.
Dr. McDermott has been working on this for so long, and he brings a clear voice of experience, not congressional but medical. That's what makes this so important. Of course you, Mr. Ellison, are a young person who has jumped into this in a way that makes me very proud that you grew up in Detroit, probably in my district.
I have something that just came in from the 14th Congressional District in northwest Detroit.
We had an examination of how many seniors in my congressional district hit the doughnut hole in the bill, the current legislation. There were 5,400 seniors that were forced when they hit that doughnut hole to pay their full drug costs, despite the fact that they had part D medical coverage.
And the current bill before us that we are working on, H.R. 3200, it would cut brand-name drug costs in the doughnut hole by half and ultimately eliminate the doughnut hole. That is very important, especially in this day and age.
We found that there were 2,230 health care related bankruptcies in my congressional district alone. At our next Special Order, I am going to have these same numbers for the whole State of Michigan. So 2,230 people in the 14th Congressional District had to go into bankruptcy court in the year of 2008, primarily caused by the costs of health care not covered by their insurance.
In 2008, health care providers in the district were provided $31 million worth of uncompensated care, care that was provided to individuals who lacked insurance coverage and who were unable to pay their bills.
How many people don't have insurance, my colleagues, in the 14th District, have no health care coverage at all. This is last year's figures, which have undoubtedly gone up since 2008: 1,300 people in my district are uninsured. How many are uninsured, my colleagues, in your districts? That is 17 percent of all of the people in the district that are uninsured, and the Congressional Budget Office estimates that 97 percent of all Americans will have insurance coverage if H.R. 3200 takes effect.
Now, if this benchmark is reached in the district, 85,000 people who currently do not have health insurance will receive coverage. There is another factor I would like to introduce. I haven't discussed it with you, but this as good a time as any to do it.
There is a stress factor coming into this whole discussion of health coverage in America because of all of the people that are losing their jobs, especially in Michigan and Ohio, industrial States that are hit the hardest. We have the highest unemployment rates. But there is something else that kicks in. When you lose your job, you, of course, lose your income; and, frequently, if you have a mortgage payment, you could end up losing your house.
One of the things, Dr. McDermott, I was in a shelter in midtown Detroit off Woodward Avenue at Peterboro, and both of you have been there. I went into the shelter in the morning, and they were having breakfast. I was astounded by this one visual picture I got. These were not people that were
homeless, wandering around or were disheveled. These were well-dressed people being fed in a shelter who had just recently lost everything. When you get hit, you lose your house, your car, your job, your insurance, your pension. So you come into a shelter, you're dressed like we are, but you don't have anywhere to eat, you don't have anywhere to stay. I have never experienced that phenomenon before in my life.
One other factor that is up to date and in real-time is that with all the people suffering under this economic--well, it's called a severe recession, but I call it a depression--there are people now that are working who have jobs, who have health insurance, but there is a little something beginning to bother them: Maybe this could happen to me too. We all know people who were going along quite well; and all of a sudden their company announced at 3 p.m. on Friday that, You don't have to come back anymore, or, We're closing down in 2 weeks. Sorry about that. We can't explain it now, but this is it.
There are people now--and you may be able to comment on the stress factor--there are people that are working. Nobody said they were going to close their job down. Nobody has heard any rumors about anything. But they can't help but think about all the other people that were going along smoothly, and they lost their jobs. People are beginning to worry about the fact that--I know it's not me. I know I'm working. I know I've got insurance, but it could be me next month. It could be me in December. It could be me in January. What about that?
But, Dr. McDermott, I'm talking about the people that didn't lose their jobs, income and health insurance. I'm talking about the folks that are working, and they know about that. They can't help but think, That could happen to me. I don't know what you call this, but you start another stressful situation from that. There is nothing happening to them, but it's happening to people around them. It happens, like these people that I saw in this shelter in Detroit, where if we weren't in a shelter, they would be people I would expect to see at Starbucks.
Well, when you say 130 percent increase, that's more than double, isn't it?
A 100 percent increase would be double. A 130 percent increase is one and a third more than what they're paying. Is this an annual increase rate?
Oh, I see. It's a period of over 10 years. What it's saying to me is that these folks don't have any option of changing insurances or doing anything. What are their alternatives? If you don't pay, where are you going? Is there some private insurance company offering a lower premium? Can we call up insurance companies and say, My insurance has more than doubled over the last 10 years, and I want out. What happens then?
Will the gentleman yield?
More and more Members of the Congress are coming on our universal single-payer health care bill. I'm very pleased about that.
The judiciary, one of the subcommittees, we had a hearing about this McCarran-Ferguson bill that exempts from antitrust obligation insurance companies, and health insurance companies in particular. And I received a letter, a nice letter, from the CEO of the America's Health Insurance Plans. Her name is Ms. Karen Ignagni, and she sent us a nice letter back. She declined to be a witness. That's a subject we'll probably pursue later on.
But I just checked in my little file of health insurance executive compensation, and this is public information, so I don't think she'd be offended by my discussing it here on the floor. Ms. Ignagni earns $1.580 million in compensation, but her base salary was $700,000. This was from 2007 filings. But she did also receive $170,000 in deferred compensation and a bonus. She probably works very long hours, and we concede that.
But we looked at others that we want to talk with, another person that we are beginning to be in negotiations with. We have to, all of us, come around the table and discuss these matters.
Let's take Aetna; one of the biggest, I presume. Its distinguished chairman and CEO is Mr. Ron Williams. Mr. Williams, I don't know what it is he does, but his income is $24,300,112 per year. Now, he's got some heavy responsibilities. Do you know how much more money he makes than the President of the United States?
Look, capitalism, a love story, I'm for capitalism. He earned a total of $24 million plus for compensation in 2008 with more than half of that, $13.5 million, coming from stock option awards. I don't know how that works. He also received $6.4 million in stock awards to go along with his base salary, which was only $1 million plus. But, in addition, he has the personal use of corporate aircraft plus a land vehicle as well as financial planning and a 401(k) company matches, adding up to another $101,000 plus for Mr. Ron Williams.
Now, I sent out a friendly invitation for the head of Aetna to come before my committee to discuss the incredibly important decisions involved in reforming health care in America. Here is a person who has a lot of experience in the subject matters that are being debated in three committees in the House, two committees in the Senate, and heaven only knows how many of the people in the White House are working on this. K Street, we know, is fully occupied in this matter. We need to talk.
What about CIGNA? That's another big company. Its CEO, unfortunately he only makes half of what the CEO of Aetna earns. Maybe he's not as efficient or maybe he doesn't produce. I don't know what it is.
But would anybody object if we invited these folks in to discuss this? I mean, we have the unemployed. Our colleague Sheila Jackson-Lee is going to have people coming in Tuesday at 5 o'clock next week to tell their problems. These are people that not only don't have income but they have huge debts.
But I want to go from the other end of this, Mr. Ellison. I sympathize with all those that are suffering, but I want to try to understand--I've got to comprehend the view from the top with those who are not unemployed, who are not marginal, who are not lower income, not middle income. They're wealthy. So we have to extend these conversations both ways.
What about the chairman and the CEO of CIGNA, $12.2 million annual income? What about WellPoint, Ms. Angela Braly, its president and CEO, $9.8 million every year? What about Coventry Health Care, President Dale Wolf, another $9 million? Centene Insurance Chairman Michael Neidorff, $8.7 million; James Carlson, chairman of AMERIGROUP, $5.2 million; Humana's President Michael McCallister, $4.7 million; Mr. Jay Gellert, the distinguished president of Health Net, $4.4 million; Universal American, Chairman Richard Barasch, $3.5 million; Stephen Hemsley, UnitedHealth Group, president and CEO, $3.2 million.
I want to get the picture from the top. They could explain to us and maybe put into more perspective why there's such a maldistribution of health care to everybody, because these are health insurance companies. If they don't know--I mean, they have a lot to tell us, and I would like to hear them in their own way and in their own words explain this situation, because we've got big decisions to make.
We don't just represent the poor and the left out and the marginal; we represent the whole country. When I cast a vote in the House of Representatives, it's from my district that they sent me, but the vote applies to everybody in the United States of America, all 350
million people, including the upper 1 percent of income earners especially in health care.
But they make the policy. I'm not a work inspector that wants to know how many hours they worked or what they did, but they make the decisions that lead us to be here, the whole Congress, two committees in the Senate, three committees in the House. We have caucuses every single day. Talk to me, somebody. If I'm going to be working on something this enormous, a multitrillion dollar decision, the people that have been making the decisions all these years, they have got to send me some letters.
Would the gentlelady yield?
I don't claim them to be voices of opposition. I don't know what their position is.
I just want to find out.
And I offer the hand of cordial exchange of views that we always do in the Judiciary Committee, and that is can we talk. Let's see where we have areas of agreement and where we have areas of disagreement. That's how the legislative process works. And then get all of the facts out on the table and decide what form and shape health care reform is going to take.
I can't predict it now. If somebody asked me to tell them what a strong public option is--I've never seen a public option in my life. I don't know what it is. I know that it's an alternative to the 1,300 private insurance companies, that every industrial company has at least one or more public options. But what its precise characteristics are, nobody's ever handed me a sheet of paper and said, This is a public option.
Could we have friendly CEOs of health insurance companies join us at that hearing? Would they be invited too?
I just want to close the debate hoping that one of the dozen presidents of the health insurance companies will join us--maybe all of them or as many as schedules will permit. What I want them to know is that they've never said that they didn't care about the 47 million people who aren't insured.