Madam Speaker, as you know, we have a very talented freshman class in the House of Representatives. And for the next hour, Members of the freshman class will be discussing health care. We would like to thank the Democratic leadership for…
Madam Speaker, as you know, we have a very talented freshman class in the House of Representatives. And for the next hour, Members of the freshman class will be discussing health care. We would like to thank the Democratic leadership for giving us time to discuss this very important issue. Within the freshman class I believe is a diversity of work experience and work expertise, skill sets that have been brought to this Chamber to discuss various policies.
Well, nothing could be more pressing, Madam Speaker, than the need for health care reform. Just yesterday I was pleased to welcome President Obama to the 21st Congressional District of New York, which I represent, specifically to the city of Troy, New York. He had spoken about the innovation economy. He had spoken about the recovery from this recession, which has been deep and long. He made mention that there is no recovery without addressing health care costs for our businesses, to be able to go forward with a meaningful plan that will allow for employer-based coverage at an affordable price.
So this evening as we speak about health care reform, it is significant to our business community, it is significant to our families, the working families across America, and it is significant to government, as health care costs for government-provided health care in our local municipalities, in our school systems, is rising well beyond inflation.
In fact, just today a report was issued by the Office of the Vice President that spoke to, on average, 5.5 percent increases on family plans across America. That average of 5.5 percent came during this recession period that actually saw inflation dropping by 0.7 percent. So this is a remarkable statistic that we're seeing this growth continuing.
We have been joined, and we are joined by two of our colleagues right now. We have Representative Gerry Connolly from Virginia's 11th District and Representative Chellie Pingree from Maine's 1st Congressional District. Representative Connolly, if you please.
Absolutely. And I think that the statistics speak for themselves. Representative Pingree, you have long been a champion in your State for health care reform. Statistics in the Northeast and certainly in New England are what they are across America, where we see out-of-control costs and reduced opportunities for those who are holding an insurance policy in hand.
Well, it's interesting because I'm sure we hear it all the time. We recommend to high school students that probably their work stops throughout their careers will be four, five in number. It will not be that sustained one bit of loyalty to the employer and reverse to the employee that goes through an individual's work life career. And that is an important thing. If we profess that to be true, and we share that with these young minds, where we see that happening today in today's society where there are more and more shifts in careers, where there are golden opportunities to enter into another work opportunity, or where people are displaced, tossed to the streets, if you will, and lose their jobs, there should be that stability.
While the discussion by some has been framed an issue for the uninsured or underinsured, it's equally about those of us who are insured with the policy in hand. And what is really driving the issue here for many is catastrophic illness, where there is perhaps a huge demand on a family for medical expenses, and we are seeing more and more bankruptcies due to medical expenses as part of an American outcome, unacceptable outcomes in a land of abundance, as is the case in America.
So reform here is what we need. Status quo is unsustainable, absolutely unsustainable, and we need to go forward with a progressive sort of policy reform that will enable us to prosper as a society, via business, via families, via individuals, via our local governments and school systems.
Absolutely not.
As I mentioned, the President came to my district just yesterday and talked about the innovation economy and the emergence of innovation that is expressed through keen intellect out there, whiz kid ideas, if you will, that are fostered by these very sharp individuals who know with precision how we can enter into a high-tech sweepstakes and win that global race. Well, we can't saddle these people with the costs of health care that is unaffordable or deny their entry into the job creations that they want to provide by finding that the premium is going to be some $13,375, as the Vice President's released study indicates. That is unacceptable.
Status quo also means that insurance companies will be calling the shots, that they will control your destiny. They will step between you and the medical community. They will continue to reap great profits that go toward marketing and executive bonuses and various other items. The first 26 cents now on the dollar are assumed to go for something other than health care. So status quo is not sustainable.
I know, Representative Pingree, that you have been impacted by these issues within your district and have created a very strong voice for health care reform.
Absolutely.
Representative Connolly, you talk about some of the hardship that befalls people because of these decisions by bureaucrats in the industry. Well, there are also those situations where they drop coverage because of illness, which is a dreadful outcome. And I think that the insurance reforms, the health care insurance reforms that are required in this package would address situations like catastrophic illness, requiring that there be no prejudice shown against those suffering with catastrophic illness; that there be this portability that if you change jobs, lose a job, you continue to maintain health care coverage; that there be caps on certain situations where you're not draining--for the bankruptcy purposes we cited here or just the economic hardships that befall families, you're not draining them of resources unnecessarily, and putting a cap of perhaps $5,000 on an individual, $10,000 on a family, allowing for that cap to be placed so there is that benefit that comes the way of our American families.
Putting no copayment onto wellness programs and prevention programs, that's a smart thing for us to do. We know that when we bring people into the network and emphasize and underscore the value of prevention, they will be all the better for it.
So there are all these dynamics that should be responded to by the legislation that we do here, by the policy we develop.
Representatives talk about anecdotes that are shared within their districts to them either through house calls, which I think are unique, and just in group meetings that are had. I can tell you recently someone told me of their premium going up 37 percent in a matter of 2 years and that now, because of catastrophic illness, the wife of this married couple whom I reference here is unemployable at the age of 60. Her husband is now the single wage earner, trying to cover $18,000 worth of medical expenses.
Now, is that the kind of outcome that we want to protect? Is that the status quo that we're supposed to fight for? Or do we go forward and champion causes that will remove this sort of situation from the lives of the American families that we have the fortune to represent?
I think that there is a better way, and this health care focus in this House has been strong about wringing excess costs and inefficiencies out of the equation and putting in those measures that control overimpacting our American families in cases of catastrophic illness and advancing the cause of wellness. That's what we can achieve here and not be ruled by myth or fear tactics but by facts and information that is fed us that is responsible development of public policy, I believe.
And we have heard real-life stories that should affect all of us in our process here in the House. Both of you are strong voices for intelligent reform; and Representative Pingree, I know you have a lot to add.
It expresses the character of our society and of our Nation. Obviously, there are determined individuals who understand and acknowledge that we can't fix this system with slogans or sound bites or banners that are flown at various events. It needs to get into the weeds of detail and make certain that people are protected.
Ms. Pingree, you make reference to small business, some 13 million people, nearly one-third of America's uninsured, are employed by small and medium-size businesses, fewer than 100 employees. That is a huge number. People say to me, if we do this insurance benefit, shouldn't people be working? I say they are working; they are not getting insurance coverage.
About 15 years ago, 61 percent of our small businesses and medium- sized businesses offered employer-based health care coverage. Today that number has dropped to some 38 percent.
So the signs are there. The patterns are being developed. We cannot continue with the status quo. It is unaffordable and not sustainable.
Mr. Connolly.
And I am reminded with that statistic that the $13,385 on average for a policy will grow to something greater than $29,000. Unacceptable outcomes, and it will drive business into unprofitable situations. And it will wreak damage and pain and suffering onto our Nation and onto its families. So there has to be reform here. Absolutely there has to be reform.
When you look at it from our senior citizens' perspective, knowing there have been injustices allowed, the creation of a doughnut hole where constantly, we have talked about this, you hear from your senior citizens as constituents, where they reach in a few months the threshold where they are in that doughnut hole and they are paying out of pocket for necessary pharmaceuticals, it is unacceptable.
Wouldn't you have expected the voice of advocacy out in the streets to scream and yell about that outcome when it happened just 5 or 6 years ago? But no one brought to the attention or carried any anger and expressed concern to the level that you hear today. And here is the situation we are attempting to correct, a wrong that was allowed to occur, and to close that doughnut hole to allow for more freedom and to have a sensible outcome.
At one of my health care forums in my district during this August recess, I heard from people who were not taking medications simply because of that doughnut hole. I heard from a couple again who testified at one of our forums that indicated for cardiopulmonary purposes the husband needed to take medication. It was a preexisting condition so it denied them insurance coverage, and they couldn't afford out of pocket to pay for the medications. So she cheerfully shared with us that he simply doesn't take it. It has put undue stress onto the family. It has caused economic hardship, and they are without insurance.
For those who would argue that that system should be maintained, I have
my insurance, you go find yours, we are all paying. As Representative Pingree indicated, we are paying for that uncompensated care, and I believe that is to the tune of some $56 billion or $57 billion in this country. That is a huge savings that automatically flips over to a benefit if we do wise health care policy reform.
Right. And I think the sensitivities that we need to show to these various audiences are hampered when people are including in the discussion items that are simply not in the bill, or fabricating them in a way where they suggest that there are outcomes that would be very destructive.
So this has been a very unique effort because you are trying to share information with your constituents, which I think is valuable. They can constructively build this package with us. And at the same time, you have to dispel the myths and rumors and the misinformation so we can stay on that page of fact not fiction and do what is best for Americans, for all ratepayers and for all sectors of our economy.
We earlier talked about small businesses. When you think of the benefits that come if they can have better bargaining leverage as small businesses, there is a benefit there. Our larger companies and industries haven't seen the growth in premiums that our small businesses have. They are some 18 percent greater than the larger business community.
So what we need to do here is provide that benefit by pooling these resources, allowing for better leverage in bargaining for health care premiums to stay lower. Just with the report today that was issued, we had a growth in the last 10 years, New York State alone, they did a State by State measure, and 105 percent growth in premiums and a 44 percent growth in wages over a 10-year span.
Now, Representative Connolly, I think we can all agree that is not a pattern that we can allow to continue because eventually the well runs dry, people become sicker, and the profit column is swelling for an industry that is standing between choices that should be made between a doctor and a patient.
Thank you, Representative Connolly, for being a strong voice in this Chamber so as to move us all along that path of progressive reform, for an industry that is representative of every one of $6 in the American economy. If it goes unchecked, in the short span of 30 years, it will be one in $3. That does not make strong sense. It is a situation that will be a train wreck just waiting to happen.
We thank you for joining us this evening.
As we look at the progress that we can make here, it is important for us to move forward with fact not fiction, for us to instill reforms in the insurance area that allows for catastrophic illness to be addressed so that it does not prejudice against American families that require health care insurance.
We need to move forward so as to provide portability for our American families, especially at a time when we profess that there will be career changes, job changes many times over in the work lifetime of countless individuals in this country, where if you lose a job, you shouldn't be denied your health care. Some 14,000 Americans per day are losing their health care. That is unacceptable in this Nation of plenty.
We can have a better plan. We need to make certain that wellness and prevention are underscored as very valuable, important tools in the kit that speak to the soundness of holding down costs. We do that by not allowing for copayments in that regard. We need to cap those situations that could be catastrophic by making certain that no more than $5,000 or $10,000 per family, some reasonable measure be there, to restrict the payments that are demanded because so many families face bankruptcy.
I know that if our health care measure were approved as represented before the House here, some 1,200 families in my congressional district alone would escape the woes of bankruptcy because of medical expenses.
These are issues that face America each and every day. The business community has been paying stiffly for this sort of lack of reform. Some 40 percent of our business community is reported spending more than 10 percent of their payroll on health care costs. That is a pattern that is only growing worse with time.
And our seniors have been treated unfairly, with concepts like a Medicare part D doughnut hole, situations that find them in a very few weeks into any calendar year paying dearly for pharmaceutical needs that are a life-and-death choice for them. They shouldn't limit or fractionalize what they're taking. They shouldn't avoid the pharmaceutical needs that have been required of them by the medical community.
Those are situations that need to be responded through in this debate that hopefully will be factual, that will be fair, that will be based on soundness rather than fear tactics; those that might divide this Nation unnecessarily, that may impact the chance to really reform a situation that for decades has been talked about.
I applaud the President when he said he wants to be the last President to attempt this effort and fail. He wants to achieve success for the Nation. For decades we have had many an administration push for reform but it has failed because I think there are those who resist change simply to resist it rather than open up to the discussion and the dialogue and the debate in honest measure that needs to be had so as to move forward in progressive format.
Madam Speaker, we of the freshman class thank you this evening for the time allotted. I now yield back the remainder of my time and appreciate the opportunity to discuss what I believe is a critically important issue, that of health care and insurance reform here in America.