Mr. Speaker, the focus of my remarks over the next hour will be on the issue of health care. This is the issue that has really captured the attention of the American people over these summer months, and well it should. This for many States…
Mr. Speaker, the focus of my remarks over the next hour will be on the issue of health care. This is the issue that has really captured the attention of the American people over these summer months, and well it should. This for many States is one of the top spending priorities in their States and here for the Federal Government as well.
We have learned, as we've looked through the budget this year, since President Obama has assumed the Presidency, under his leadership we have seen the Federal budget increase 22 percent at a time when the American economy is contracting. In one quarter alone we saw a 5 percent contraction rate. The private sector is contracting in this current economy, and yet what's government's response? Government is on a party. It is growing. Growing to the tune of 22 percent. That's almost a one-fourth level of increase.
Imagine if any of us, Mr. Speaker, in our own lives, in our own businesses, in our family situation would increase our spending 22 percent when our income had fallen 6 percent. None of us would ever consider treating our own finances in that way. No business could consider treating its own finances in that way. It's only a government that looks to our pockets and to our resources to finance its party, only a government that's out of control, that has capitulated to practically fiscal hedonism, fiscal hedonism, to run up bills that are unconscionable for the next generation.
I think we are looking at a time, Mr. Speaker, unlike any other in the history of the United States. That's why this health care debate plays into the center of where our economy is at.
Mr. Speaker, I'm a former Federal tax litigation attorney, and I had done a study when I was in my post-doctorate program at William and Mary Law School down in Williamsburg, Virginia, back in the late 1980s. And at
that time, the study came out that said the kids who are today about 22 years of age, when they get to be in their prime earning years, knowing what we know about the current demographics, the number of people who will be 65 or older, eligible for Medicare, those who will be 62 and older, eligible for Social Security, we know approximately how many Americans we have to support who will be age 62 when today's current 22 years olds will be in their peak earning years.
And what this study showed, Mr. Speaker, is those now-22-year-old children, those born back in about the year 1987, will look at an unprecedented debt load out of their paycheck. And here it is:
Those kids will be looking at spending approximately 25 percent of their earnings just for Social Security. So imagine 25 percent of your earnings goes just to pay for Social Security.
What else do we know? We know that Medicare is also an obligation that the Federal Government has made, a promise, if you will, that we have made to America's senior citizens. Medicare costs exceed those of Social Security. So if, then, America's young people, now 22 years of age, in their peak earning years have 25 percent of their income taken to support Social Security and if we know that Medicare is more than Social Security, those two components alone would consume 50 percent of the average person's paycheck in just a few years hence, 50 percent of the paycheck just going for Social Security and Medicare.
That doesn't even contemplate Medicare part D, which is the pharmaceutical portion, a relatively new entitlement that has been put before the American people. So let's be very conservative and say 5 percent of that young person's paycheck. That would be 25 percent for Social Security. Government would take another 25 percent for Medicare. Now we're up to 50. Let's say another 5 percent for Medicaid part D, and that's very conservative. Now we're at 55 percent.
Well, what about the Federal income tax? That doesn't even contemplate what an individual would pay in Federal income tax. Federal income tax could easily be another 30 percent of that young person's income. Now we're up to 85 percent. For an American born in 1987, we are up to 85 percent of their income check going to the Federal Government just to pay for entitlement programs.
Well, Mr. Speaker, that doesn't include the State income tax program. In Minnesota, the State that I'm from, that could well be an additional 8 percent, which would add up to 93 percent of an American's paycheck. An American born in 1987, when they get in their peak earning years, could be looking at a minimum of 93 percent of their paycheck going to pay just Social Security, Medicare, Medicare part D, Federal income tax, and State income tax.
But, Mr. Speaker, that doesn't include property tax. Mr. Speaker, that does not include sales tax. So property tax, sales tax, gas tax, every-time-you-turn-around tax. There won't be enough money, Mr. Speaker, in the next generation of young people that are only now just beginning to earn their first W-2 wage withholding. Those young people are looking at a burden no other generation has ever yet contemplated.
In the middle of this financial crisis that we are looking at, Mr. Speaker, now comes forward the health debate. And what is the solution put forward by President Obama and by the majority that controls the House of Representatives, the Democrat majority? We have one-party rule in Washington, D.C. One party controls every level of power. And what is the solution? Well, let's just have government take over the rest of health care. As if we already haven't obligated ourselves on health care, now the proposal being advanced is that the government would take over the rest of health care.
What would that mean?
Well, we know at minimum, according to the Congressional Budget Office, it would be an additional, perhaps, $990 billion in expenses. That's according to President Obama's figures. Yet what were the initial figures we were given when we were told of and were talked to about this government takeover of health care? Mr. Speaker, it was $2 trillion, upwards of $2 trillion, according to the Congressional Budget Office.
Why do we think that this isn't stretching things, $2 trillion?
Well, because we know, when President Johnson implemented the modern welfare state in 1965, President Johnson and those here in Washington, D.C., estimated that the cost of Medicare to Americans would be about $9 billion, adjusting for inflation by 1990. What was the actual cost? The actual cost was $67 billion. The Federal Government only undershot its estimate by a factor of 7, but it wasn't just on Medicare. It was on hospitalization insurance. You can go down the list. One new revision of Medicare after another undershot the true cost to the American people of what Medicare would cost them down the road, sometimes by as much as 17 to 1. The Federal Government was off by that much.
Well, what has that done to our budgets?
That has caused us to go into a deficit mode so severe that now the Chinese are lecturing Americans. Chinese Communists are lecturing American free marketers on our out-of-control spending and on our debt. Why? Because China owns so much of our debt.
Mr. Speaker, what are the options, if you will, that the Federal Government has in front of itself when it comes to paying for these government programs? Well, there are three:
The Federal Government can either increase taxes or it can increase borrowing from countries like China, countries which are a lot more reluctant to purchase our debt. When we were a producing country--when we were making washing machines and irons and cars--other countries were only too happy to purchase our debt; but now that our new industry is producing more welfare, countries like China aren't quite so interested because they know we aren't actually producing a good. We're providing government welfare benefits. Now China is not quite so interested in purchasing our debt.
So we can raise taxes on the American people--that's not going to work in a down economy--or we can issue more debt. That's not working. China is calling for throwing over the American dollar as the international currency and means of exchange. Now China, now the U.N., now Russia, now Brazil, now South America, now country after country is calling for a new international, one-world currency. This is a new event, Mr. Speaker. This is a new happening. Why? Because this is the greatest country that has ever been in the history of man. In 5,000 years of recorded human history, there has never been a country greater or freer or more powerful than the United States of America. That is our richness and that is our legacy. Now, for the first time, we're hearing a call for the replacement of the U.S. dollar as the international means of exchange, to be replaced with a new international, one-world currency, probably regulated by a world regulator, perhaps under the International Monetary Fund.
What would that mean for the dollar? What would that mean for the stability of our country economically? What would that mean for America's senior citizens who are dependent upon the Federal Government now for their health care through Medicare and for their Social Security/retirement? What does that mean for our senior citizens?
Well, here is the third option that's available to the government when it comes to dealing with finances. Again, the government can tax our people. Ouch. That really hurt. The government is already whacking us a lot with our taxes.
Then we talked about the area of borrowing. Well, other countries aren't too keen on that right now.
What's the third option, Mr. Speaker? It's this: As a last resort, governments can do what the Weimar Republic did in the 1920s. They can print money. They can print money that's basically worthless. In some sense, the paper is worth more than what's printed on it. What that is and what that represents is the good faith, the hard work, the years, and the toil of the American people.
Just this afternoon, I made a call to some constituents back in my district. One man named Richard told me that he was thinking about moving to Singapore. Richard said the reason he is moving to Singapore, Mr. Speaker, is
that he spent his whole life working. He worked so hard. He took his American dollars, and he put them in the bank, and now he sees what our government has done. Our government has flooded the money supply with money that they've printed.
From one of our leading financial papers, one gentleman told me that we had about $1 trillion in currency in circulation. We had about 1 trillion U.S. dollars in circulation here in the United States. Last year, the Federal Reserve pumped an additional $1 trillion into the currency.
Well, what does that mean?
If you had a dollar in the bank when your government flooded the money supply with an additional $1 trillion on top of the $1 trillion we had with no more goods and services backing that money up, that meant that an American's dollar was only worth 50 cents.
Well, that's why Richard was upset. He said to me, Congresswoman, I don't want to hold onto American dollars if my government is going to inflate its way out of this current problem. If they do that to pay their bills--to pay their Medicare bills, to pay their Social Security bills--then we're all poorer. We're not richer. We're poorer.
That brings us to the context, Mr. Speaker, of our debate in health care, and that's why I believe we are seeing the American people soundly rejecting the Federal Government's taking over of health care-- yet one more area where it seems that it's wasting money.
Again, a Gallup Poll was just released that showed, for the first time, the American people believe that this government wastes 50 percent of every dollar it gets, which is why we should have an investigation. Truly, what amount of money does Congress waste? What actually goes to a true and a beneficial purpose? What are the alternatives for us as we look at health care?
Today, 85 percent of Americans have health insurance. They like it. They enjoy it. One of our Democrat colleagues was on the floor here earlier this afternoon, and he said that the majority of doctors in our country support the government takeover of health care. Only he didn't call it the ``government takeover of health care,'' Mr. Speaker. He called it the ``public option,'' which is the government takeover of health care.
Well, that isn't true. That isn't what doctors in this country believe. Surveys were sent out. There was a survey sent out by Investors Business Daily that has been reported for the last 7 days. They received surveys back from 28,000 physicians in the United States. They sent the surveys out to all physicians, and physicians responded back--28,000 physicians. Of those physicians, two-thirds of them said that they believe that the government takeover of health care will lead to diminished care in the United States. They believe that senior citizens will be worse off if the government takes over their health care.
That's exactly what I'm hearing from my constituents as well and from senior citizens who don't care if it's a Republican plan or a Democrat plan. They don't care. They're very smart, Mr. Speaker. America's senior citizens are very smart. They're watching this debate carefully. They're watching. They're paying attention. They're listening to what the conversations are because they know they have the most to lose in this system.
Why?
President Obama was here, speaking to the 535 Members of Congress in a speech to the joint session of Congress. He spoke to all of America when he said he will be cutting the Medicare Advantage program. That's about $149 billion out of Medicare. He also said that he will have about $500 billion in savings from Medicare. Well, what does that mean? It means $500 billion that America's seniors will no longer be able to count on.
That's not what we want to do to America's senior citizens. We can do so much better than this. We have a great option, great plans that do not put the government in charge. That is one thing, Mr. Speaker, that I would say to America's young people, to America's middle-aged and to our senior citizens. In the middle of the debate on health care, Americans really need to ask one question, and it is this:
Once this health care bill goes through and is passed, will it give more power to the government and more control to the government over my health care or will it give me more control over my own health care? Will I have more options or will I have fewer?
With every plan put forward so far by the Democrat majorities that run Washington, D.C.--whether it's our Democrat President or the Democrats who control the House or the Democrats who control the Senate--they've all run to the left, to the liberal option. They've all said there is only one way to handle this health care problem: Me. You need me. You need more government. That's what the liberals are saying in Congress, that government needs to be the one to take this over.
Well, I don't think so, Mr. Speaker. The American people don't think so. They think this Congress wastes 50 cents of every dollar. They may be right. The American people are some of the sharpest people in the world, and they know when they've been had. We don't have to go down that road. There is a positive alternative which we can embrace and which can immediately bring down costs.
Again, 85 percent of the American people already enjoy health care, and they enjoy the health care that they have. For those who don't have health care today, a large percentage are illegal aliens. We have no business as American citizens being forced to subsidize and to pay for the health care of illegal aliens, of people who are in our country against our law. We have no obligation to pay for that health care. We also have a large segment of our population, Mr. Speaker, which makes over $75,000 a year. They could purchase their own health care. They simply choose not to. They choose to spend their money on other items. It's not their priority. We have a huge segment of our population which makes over $50,000 a year, which also chooses not to purchase health care. Many people in that category are between the ages of 18 and 35. They are, perhaps, without health care maybe for 4 months, so they roll the dice and think maybe they'll be healthy for the next 4 months and won't need it.
Mr. Speaker, I've been in that situation. My husband and I were in that situation when we had children. We had a few months where we didn't have health care coverage, and we simply could not afford the very high rate that we would have had to have purchased by ourselves to have been able to cover ourselves and our children, so we rolled the dice. A lot of Americans do that.
Yet there is a segment of our population which truly can't afford health care, and we have safety net after safety net after safety net that this body has put into place for people who truly, through no fault of their own, can't afford to purchase health care. There certainly are people in that category. We will always have that safety net. What can we do? We have a positive alternative. It's very simple. This is what we can do:
Every American can purchase and own their own health care. Today, it's not that way, but we could be that way. Today, we have American employers owning most people's health care. So it's either our employer who owns our health care or it's the Federal Government or it's the State government--one of the two. It's either the government or an employer who owns our health care. Very few Americans actually own their own health care, but they would like to. It's the same way they own their car insurance. It's the same way they own their homeowners' insurance. It's the same way when they go out and purchase any other item. They would like to be able to purchase their own health insurance. We can make that possible for them. So this is where we start:
We start by letting every American purchase and own their own health insurance coverage. How do we do that? We allow Americans to band together with anyone they want to. Maybe it will be with people who live in their communities. Maybe it's all teachers. Maybe it's farmers. Maybe it's Realtors. You can band together. Maybe it's other senior citizens. You can band together so you can have a large purchasing power. It's like a credit union would act. It's with people in the geographical area. Maybe you live in a rural area, Mr. Speaker. People could band together, and they could purchase
health insurance as a pool. They own it. They purchase it as a pool, together in a big, large group so that they can have better purchasing power. It's just like if you go to Sam's Club or if you go to Costco. They're able to offer cheaper prices because they buy such a large volume of the product. Well, let's let American citizens do that.
If it's good enough for Sam's Club, if it's good enough for Costco, why can't it be good enough for the average American person?
You have banded together with whoever you want, buy your own insurance. Then, Mr. Speaker, we let people buy whatever level of coverage they want. Maybe they want to buy a policy that is expensive that has all the bells and whistles on it. Or maybe, Mr. Speaker they only want a small amount of coverage.
Maybe they only want hospitalization. So in case something happens to them, they have to go to the hospital for a heart attack or for cancer treatments or they get laid up somehow and they have to go to the hospital. They only want catastrophic coverage, truly catastrophic. That would be a very inexpensive plan.
Why don't we allow people to do that? In my home State of Minnesota, Mr. Speaker, we are the most, if not the most, we are one of the most heavily mandated States in the country. In other words, our State legislature, where I used to be a State senator, we have about 70 different mandates. In other words, 70 different requirements before any insurance company can sell an insurance policy.
An insurance company might decide I would like to sell this low-cost, low-frills insurance plan. I think that maybe I could sell it for, oh, $60 a month.
Well, in my State, an insurance company can't do that. Why? They are prohibited by law. Because my State mandates that an insurance company has to have 70 different requirements before they can sell the policy.
In other words, they have to sell a Cadillac policy rather than a Kia. No offense to Kia owners, no offense to Cadillac owners.
But the point is simply this. We should allow insurance companies to sell truly a wide variety of products. Isn't that what President Obama said when he was here in this Chamber? He said he wants choice. He wants competition.
Well, his words don't line up with his actions. There is a little problem here with what the President has said. How is it choice and competition if government is the choice, if, after 5 years time, as the House bill has said, all insurance plans have to look exactly like the government plan?
You could have 45,000 different insurance plans but so what? If they all look exactly the same, and if the Federal Government controls what you would spend on premiums for that policy, this is nonsense.
The thing is, Mr. Speaker, the American people are too smart. They are seeing through the rhetoric from the President and from the majorities that dominate this Congress. That's why, Mr. Speaker, the American people are embracing our plan, which has rested on the groundwork of freedom, which is about the American people owning their own insurance policy, banding together with whomever they want to, to purchase whatever level of coverage they want from any State in the country.
I will tell you, Mr. Speaker, you will see States all across this great country change the number of mandates that they require on insurance policies. Their State can be the go-to State for issuing insurance policies, and from there, as a former tax lawyer, I would recommend this: I would recommend that every American be allowed to set aside, tax free, in an account, money that every American believes that they want to set aside to pay for their own health care. It's completely tax free. No taxes paid on it.
If they have a catastrophic event, where their expenses out-pace their tax-free money, they can fully deduct the cost of their premiums, of their copays, of their medicines, of their medical devices, of their surgeries, of their hearing aides, of their chiropractic care, of their acupuncture care. Whatever it is, they would be allowed to fully deduct that on their income tax returns. In other words, truly own and take responsibility for your own health care.
Then from there, finally, true lawsuit reform. Everybody knows this. You ask a doctor what do we need to do? Lawsuit reform, without a doubt. Eighty-three percent of all doctors sued in this country today are found not liable for the alleged problem. What's happening?
We are seeing now today people filing lawsuit after lawsuit. And rather than go through the hassle and worry about a jury award, doctors are settling, Mr. Speaker, when they don't want to settle, when they know they are innocent, when they know they didn't do anything wrong.
This isn't helping anyone, not anyone, not even the trial lawyers. Because, why? It's bringing down this great country. We truly do have the finest health care that has ever been offered to people ever in the history of the world. From my State of Minnesota, we are a leader in medical ally and medical devices. We have Medtronic. We have Boston Scientific. We have Guidance. We have great companies in Minnesota that have contributed mightily to medical advances and breakthroughs.
And now what? Now the government wants to impose a 10 percent tax on these medical devices? Why would we do this? Who gains? Who gains from all of this?
We have a positive alternative. Rather than the government taking it over, rather than the government ramping up expenses, rather than taking away choice from America's most vulnerable citizens, we could instead embrace a positive alternative where Americans own their own health care, ban together with more people so they have purchasing power, purchasing any level of care they want from anyone they want in any State they want, putting aside tax-free money, deducting on their income tax return, their orthodontia, their hearing aids, their eyeglasses, truly owning their health insurance. Then they finally get rid of these evil lawsuits that are eating up so much of America's substance.
This is a positive alternative. It won't break the bank. When our country is functionally bankrupt now, this won't break the bank. It will cause our country to turn itself right-side up so we can get back on track, get people back to work. We want to be able to see this positive alternative.
Right now, Mr. Speaker, I am joined by two great physicians here in our body. One is Dr. John Fleming, and he is a new Member of Congress with great ideas.
Another Member in our Congress is Dr. Phil Gingrey, who we are just so proud of for his courage. He offered an amendment in his committee that would keep illegal aliens from having access to taxpayer- subsidized health care. President Obama told America that illegal aliens will not receive taxpayer-subsidized health care.
That was after the Democrats in this body rejected Dr. Gingrey's amendment that would have denied taxpayer subsidized coverage to illegal aliens. We have a lot we can talk about.
I want to now turn over to my colleague, Dr. John Fleming.
I want to thank the gentleman so much for his remarks and for his comments. It is tremendous credibility to be able to come here on the floor and speak as a physician. You've had years of service treating and healing patients all across the United States. You look into the eyes of your patients and know the fear that they feel, knowing that they may lose some of the finest health care ever. And we don't want to see our physicians have their hands bound.
As a matter of fact, I just want to refer to, again, Investors Business Daily, which did a seven-part series, and they have said that 45 percent of American doctors may leave the profession if government takes over health care. As a matter of fact, doctors, more than anyone, detest the current status quo and the role played by insurance companies.
They want to see us change health care, which we agree. But this is not the route to go. And physicians are telling us that. As a matter of fact, two-thirds of practicing physicians said that senior citizen care will suffer under the government's plan. Three of five doctors think that drug development of new drugs will also be thwarted. Also, they see that fewer doctors will be entering the new profession of medicine.
Before I hand this over to my colleague, Dr. Gingrey of Georgia, I would like to just add something that we saw happen. There was an article in The Wall Street Journal. This just happened. Now we have a directive last week from one of our Senators, Mr. Baucus. He has ordered Medicare regulators to investigate and likely punish Humana for trying to educate their enrollees in their Advantage plan about the fact of the Medicare Advantage.
This is very concerning. We're seeing a United States Senator calling for an investigation of a company that is communicating with its enrollees in its companies. So a company with its customers is simply communicating material and now a company is given a gag order by the government?
Well, this didn't occur with the AARP. The government isn't telling the AARP, which also offers Medicare Advantage plans. They aren't putting a gag order on them.
This is really concerning, Mr. Speaker, because we can't have the Federal Government engaging in censorship. That's what this is, pure and simple.
The Obama administration and Democrat Senators are calling for censorship. They want to stop insurance companies from communicating with their customers about what government takeover of health care might mean for them. This is unconscionable. Who would have ever thought we would live in a time when government would be calling for censoring a company because the company is not communicating the message that government wants it to communicate.
Well, with that, I want to hand the next few minutes over to my colleague from Georgia, the great Dr. Phil Gingrey, who courageously has offered amendment after amendment after amendment in committee to try and make it clear that no bureaucrat should ever come between you and your doctor, and also that no illegal alien should ever receive taxpayer-subsidized health care.
These issues were all brought up by the President in his joint session speech. Dr. Gingrey put Members of Congress on record. And that's why the American people are concerned--and rightly so.
Dr. Gingrey.
Thank you to the gentleman from Georgia.
I yield to the gentleman from Iowa.
I thank the gentleman from Iowa. I think that is something that we wanted to consider when the President was here was speaking to the joint session of Congress. He made it clear there were some large details that had yet to be worked out. Essentially what that is is the President saying to the American people, Trust me. Trust me. Not only the American people, but to the Senators and the Members of Congress that were here serving as representatives of the people in this Chamber. Trust me. Because the details aren't worked out. There are so many vagaries. We don't know, for instance, how the bill will be paid for. Trust me, the President says.
Then the President talks about various commissions that will be set up. We know another health care czar will be set up in the bill. A czar? The American people are already saying government is wasting too much money. The American people's opinion is that 50 percent of every dollar we spend is wasted, and now we are supposed to give authority to a health care czar to basically write the bill over a 4-year period because as the current bill, H.R. 3200, is written, it is very interesting, who is the enforcer of this bill? Well, none other than the Internal Revenue Service, the IRS. That's the enforcer of this bill. Loads of new taxes larded onto the backs of the American taxpayer. Loads of new taxes enforced by the IRS. My goodness, Mr. Speaker, could we add insult to injury to the American people? It is amazing.
And the taxes would be scheduled to go in place January 1. In just a few months, the taxes will go into effect on insurance companies, on individuals, on businesses. The taxes will go into place January 1, 2010. Well, what about the care? What about all of the new care that people are going to get? Oh, that doesn't go into effect for another 3, 4 years down the road. What?
So we are paying for this with larded new taxes to the Federal Government for 3 or 4 years, and then the care comes down? And we are supposed to trust this administration? We are supposed to trust this Democrat majority that they will figure it all out and somehow it won't cost any money and we won't have to worry about it. We are going to bring another 47 million people into the system, not add any new doctors, and we are going to actually cut costs? That is like saying you can eat a chocolate cake and it has no calories. This doesn't add up. That's why there is no credibility on the government takeover of health care, which is why our colleague, Dr. Gingrey, offered his very simple amendments, put up or shut up.
Will illegal aliens be covered or not? Oops, Democrats apparently think they will.
Will abortion be covered by taxpayers? Our colleague, Joe Pitts, put that in. Oops, I guess that it will because they didn't take it out.
What about bureaucrats? Will bureaucrats be able to substitute their decisions for you and those of your doctor? Will a bureaucrat get between you and your doctor? That was offered by Dr. Gingrey. Oops, I guess it is up to a bureaucrat now, not a doctor.
There is a reason why the American people are panicking on this issue, and we are right there with them. Because we think you deserve better than that. Because, Mr. Speaker, this is the American people's money; and because, Mr. Speaker, this is about life and death. That's why we have such a great alternative. That's why we say to the American people, you own your own insurance policy. You ban together with whoever you want to buy that policy. You buy it from anyone you want to buy it from. You buy it in any amount you want to buy it, and you buy it anywhere in the United States. And that's why we say buy it with your own tax free money and deduct the rest on your income tax return. And then let's truly have lawsuit reform. That is 95 percent of the problems; done just like that. What does it cost the Treasury? I guarantee it doesn't bankrupt it, not the way that this $2 trillion monstrosity will do.
That is why we are here this afternoon, because we have a positive alternative to the government takeover of health care. We can do far better.
I yield to the gentleman from Georgia.
There are 1,018.
I thank the gentleman from Louisiana, the gentleman from Georgia and the gentleman from Iowa. Clearly, the American people know we can do better. That is what we will do.