Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Thank you, Mr. President. I know my Republican colleagues are working on versions of the healthcare bill they have been talking about today, and I know…
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
Thank you, Mr. President.
I know my Republican colleagues are working on versions of the healthcare bill they have been talking about today, and I know my colleagues are going to try to say they are protecting the sickest of Americans, and they are saying they do want to ensure that people with preexisting conditions don't have to pay through the nose when they need care. I think the President called the House version of this attempt a mean bill, and I think the original Senate bill was just as mean, if not meaner, with the number of people who would be cut off of Medicaid over a period of time and left without access to care.
Today's bill also includes an amendment or a package of ideas by my colleagues from Texas and Utah--a provision that allows insurers to sell junk insurance on the individual health insurance market. As long as they offer at least one plan that is real insurance, insurers could offer a bunch of plans that, as CBO has said, are not really insurance; that is, they just cover one or two things. Yes, they would be cheaper, but if CBO doesn't consider these types of plans insurance, how are they insurance?
I think the whole notion of junk insurance being invested into this bill is very problematic. Under junk insurance plans, they can limit or deny coverage of essential benefits, including hospitalization, maternity care, preventive care, prescription drugs, laboratory care, and substance abuse treatment. That is what they can limit. We wouldn't want those limited. This is why CBO says that if you can't go to the hospital and get care, then it is not really insurance. I have to agree with them on that.
These plans could charge people more or simply deny them based on preexisting conditions, and these plans could pay out less than 60 percent of the healthcare expenses, leaving the beneficiary with unbelievable, insurmountable deductibles that would be hard to pay. These plans could also impose an annual or lifetime cap on insurance.
I had a young woman come to my office today who was treated at Seattle Children's Hospital in our State. This family actually lives in a neighboring State, but Seattle Children's Hospital is such a regional entity in the State of Washington, in Seattle, and we are so proud of that. They told me about the debilitating disease this young child was born with and how many surgeries she has had. Literally, with the brain treatments she has had to receive, she and her mother told me that if there had ever been any lifetime caps, they would have exhausted them in the first few years. I am so proud that she came to see us today and is continuing to talk about why capping healthcare plans would be so devastating to somebody like her.
We don't want to create two markets of insurance. We don't want the one that is the real plan, real insurance, and the one where everybody goes and buys insurance that even CBO says is not real insurance.
I know that probably in the last few days of discussion, people have said: Ok, we will put a bunch of money in to help the real, or regulated market. I talked to my insurance commissioner in the State of Washington, and he said: Listen, when you don't spread out risk, you are not going to have a market and you are going to create problems.
So the notion that you think that catastrophic out-of-pocket costs won't be borne by these individual patients, I think, is wrong or that these higher premiums and deductibles could be paid by these individuals. It turns out that these junk plans, as I said, do not even count as insurance, and everybody who is in the real insurance market would then end up having to pay more.
The bill explicitly states that non-compliant plans will not count as creditable coverage for the purpose of individuals demonstrating that they have insurance.
I am checking with my staff.
Is that right? Is that what is in the proposal?
Yes. The bill explicitly states that noncompliance plans will not count as credible coverage for the purpose of individuals demonstrating that they have insurance.
Under this bill, if someone gets one of those junk plans--if somehow you see that marketed and you buy into it because you think it is cheap and you think it is the greatest thing ever--and then you try to enroll in a comprehensive plan, there is a good chance that you will get a lockout period of 6 months before you can get coverage.
Why am I here talking about this? Because the State of Washington tried this. We tried this approach in the 1990s. After our State had passed a major healthcare reform bill in the 1990s, a group of State legislators allowed these junk plans to be sold along with compliant plans. Guess what happened? Nearly all of the insurers in our State pulled out of the individual insurance market, and a death spiral ensued. Why? Because the cost then of that individual market was so high and so great that they could not service it.
They said: Oh my gosh, if I have to offer a compliant plan along with this junk insurance, I cannot make the compliant plan work because it costs so much. We are not staying.
This very important experience taught us that that is not the way for us to spread risk.
I am concerned--and I have heard from a number of patient advocacy groups, not just the young woman from Seattle Children's Hospital who came to see me today but consumer groups and health insurers themselves, like America's Health Insurance Plans, Blue Cross Blue Shield Association, AARP, American Cancer Society's Cancer Action Network, American Diabetes Association, American Heart and Lung Association, Cystic Fibrosis Foundation, March of Dimes, National MS Society, National Health Council, and the National Coalition for Women
with Heart Disease. All of these organizations do not like this idea of junk insurance, of saying you can have a compliant plan that is real insurance and a marketplace in which there are things that are not really insurance, because then people are going to go buy a bunch of things that are not really insurance and then not have the ability to get cost and care and run up uncompensated care. Then you are going to make the real market unsustainable and unsupportive, and the rates are going to go so high that people are just going to pull out.
A group of 10 of those leading patient advocacy groups wrote:
Under the amendment, insurance companies would be allowed
to charge higher premiums to people based on their health
status--in addition to opting out of other patient
protections in current law, such as the guarantee of
essential health benefits--
Those are the things I was going over a few minutes ago--
and the prohibition on annual and lifetime coverage caps.
They go on to write:
Separating healthy enrollees from those with preexisting
conditions will also lead to severe instability of the
insurance market. This is unacceptable for our patients.
Yesterday, America's Health Insurance Plans wrote:
Allowing health insurance products governed by different
rules and standards would further destabilize the individual
market and increase costs for those with preexisting
conditions.
That is the largest health insurance group in the country, and they are writing this.
If they are telling us in advance that this is going to really destabilize the market and cause problems, we should listen because right now what we have had is an expansion of Medicaid and covering more people, raising the GDP and helping areas of our States and country and creating more stability.
We have had some challenges in the individual market. We should fix that. We should definitely drive down the cost of the delivery system by continuing to improve it. But the notion that this is the fix for the individual market when the providers are telling us it is going to destabilize the market and drive us out--we should understand what the result of that is going to be.
Yesterday, the Blue Cross Blue Shield Association wrote:
The result (of Cruz/Lee) would be higher premiums,
increased Federal tax credit costs for coverage available on
the exchanges, and insurers exiting the market or pricing
coverage out of reach of consumers.
I believe our goals should be trying to drive down the cost of insurance. We have lots of ideas about that, and I want to work with our colleagues on that, but I am very concerned that this approach to try to get people supporting a Senate proposal is the wrong approach and will drive people out of the market.
I think the bill is still a war on Medicaid. The bill still permanently cuts and caps the Medicaid Program. I have said numerous times that we saved $2 billion in the State of Washington by rebalancing people off of nursing home care and on to community-based care. It is a great concept. Look, we have a lot of people who are going to live longer. We have baby boomers who are reaching retirement. The number of people who are going to demand services, whether from Medicaid or Medicare, is going to be increased just because of the population bubble. We should be doing things to drive down the costs of care.
There are great ideas, and I was able to get some of those in the bill. We ended up passing those things, and some States are actually working on that. More than 15 States are actually working on that concept of rebalancing to community-based care and making long-term care more affordable under this provision. I guarantee you that we have to do that, but if you permanently cap or cut Medicaid, you are going to have veterans who use access to Medicaid for care who are not going to get care. You are going to get people who need opioid treatment.
I find it interesting that we would have this program over here. I see that my colleague from Michigan is on the floor. We call it the Saginaw Health Clinic.
One would say: OK, Saginaw Health Clinic, there is a bunch of money in this bill. Apply for opioid help.
They would say: OK. We are going to get $10 million.
When you walk in the door of the opioid Saginaw Health Clinic, the first thing they will ask is if you are on Medicaid. If you are not on Medicaid, you are not going to get any opioid help.
So the notion that we would cut people off of Medicaid but put more money in the opioid problem is not what we need to do to solve our challenge. What we need to do is make sure we are delivering the most cost-effective care as possible and make sure people are getting access to care.
That is why I have been all over the State of Washington. I have met so many people. I have met people at healthcare facilities who have told me that some of their highest costs were from a patient who continually came to see them in the emergency room, maybe 30 times a year, because he did not have coverage, so he drove up the cost for everybody. They said they finally got this person on the Medicaid expansion. Guess what. They do not have those costs anymore in their hospitals and facilities. It has driven down the costs.
I do not want to see people kicked off of Medicaid. I do not want to see it cut in a declining budget. I want us to improve Medicaid and make it more cost-effective and more utilized and supported.
Estimates by the CBO of the original Senate bill are that the Medicaid cut would be $772 billion over the next decade and that the Federal investment would be cut by 35 percent within the next two decades, relative to current law projections. That is a lot of consequence for the Medicaid population. I think that is why we have so many groups and organizations here that are anxious about this proposal and where we go. We definitely want to talk to our colleagues.
One former CBO Director said, the junk insurance idea is ``a recipe for a meltdown.'' This is someone who served in past Republican administrations, and I take his word seriously.
I think what we need to do is work together to make sure we get a program that addresses our most fundamental issues--the challenges in the individual market, keep addressing how we keep and stabilize a population on the most affordable rates there are, and keep the things we know have worked very well, like the Medicaid expansion. It has worked. It has supported people, and it has helped us stabilize the market.
I will remind my colleagues, too, that the State of New York took one provision of the Affordable Care Act and has 650,000 people in New York on a very, very affordable insurance plan. We think that if you are an individual in the individual market, you should be able to get the same clout as somebody who works for a large employer. You should be able to go in and buy in bulk as a class, as a group of people, and when you buy in bulk, you should get a discount. That is what we think will help us in the individual market to drive down these costs for what is about 7 percent of the marketplace.
I urge my colleagues to reject this latest proposal. Let's get serious about fixing the things that we know we can fix and improve upon, but for the over 22 million Americans who are very nervous about this proposal because they know they are going to get cut off of care, let's not do that to them. Let's improve where we need to go in affordability in the healthcare arena and not think that a junk insurance program or cutting people off is the solution for the future.
Thank you, Mr. President.
I yield the floor.