Madam Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks on H.R. 1173 and insert any extraneous material on the bill. Madam Chair, I yield myself such time as I may…
Madam Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks on H.R. 1173 and insert any extraneous material on the bill.
Madam Chair, I yield myself such time as I may consume.
Madam Chair, it has been more than 2 years since the CLASS Act was first debated as part of the President's health care takeover debate. We knew then that the program was flawed and unworkable; yet the Democratic-controlled Congress ignored these concerns and instead rushed the CLASS program through as part of the President's health care law.
Now, 2 years and more than $800 billion later, we have finally heard from the President and his administration that while they have wasted taxpayer dollars, this program is in fact not implementable. Surprised? Well, you shouldn't be.
The truth is that unbiased analysts such as the American Academy of Actuaries had raised concerns with the program as early as July of 2009, some 5 months before the President's plan was even considered on the Senate floor. Members from both sides of the aisle also raised concerns about the program's long-term sustainability during this debate. Most disturbing is what we came to find in a bicameral investigation last year that revealed concerns from within HHS were rampant during PPACA debate, but they were never brought to light by the Democratic leadership or the Obama administration. Yet the program was rushed through so that we can, as then-Speaker Pelosi noted, ``find out what's in it.''
On October 14, 2011, Secretary Sebelius announced what honest accounting told us was inevitable: the Obama administration finally admitted there was no viable path forward and, therefore, was halting any further efforts of implementing the CLASS program.
The failure of Health and Human Services to implement the CLASS program certainly is not a surprise. However, it is a catastrophic consequence of what happens when Congress rushes to enact costly policies and dismisses warnings from independent experts. Most troubling are the budget gimmicks used to sell the CLASS program and, indeed, the entire law.
The Congressional Budget Office, CBO, estimated the CLASS program would save money by collecting premiums from enrollees, premiums that will now never be collected in light of a failed implementation.
We knew, Madam Chair, the savings estimates for the President's health care plan were wrong. It defied common sense that such a massive spending expansion would have no cost. Now the President will have to explain to the American people why the health care law--ObamaCare, PPACA, Patient Protection, Affordable Care Act, Unaffordable Care Act-- he'll now have to explain to the American people why this health care law will cost them $80-plus billion more than what they were told.
That is more than $80 billion on top of the trillions the President has added to the books since he took office in January of 2009.
Today, we will have the opportunity to start over on long-term care reform, an issue that's important to all of us as we hear from constituents regularly about the growing cost of long-term care services. The market has not even been penetrated 10 percent, Madam Chair. We will now begin that process. But first, we must take this section out of the health care bill known as CLASS. We must take it off the books.
I urge my colleagues to support just what this bill does, remove CLASS from the statute, H.R. 1173, repeal the failed CLASS program so that we can now move forward with reforms that do work.
With that, Madam Chairman, I reserve the balance of my time.
Madam Chairman, as the co-lead sponsor of this bill, I rise in strong support of H.R. 1173. I commend Dr. Boustany and Chairman Pitts for their leadership on this issue, and I thank Mr. Lipinski on the Democratic side.
In response to a question I put to him in March of last year, CBO Director Douglas Elmendorf wrote: ``The Secretary of Health and Human Services has now concluded that the CLASS program cannot be operated without mandatory participation so as to ensure its solvency.'' HHS Secretary Kathleen Sebelius called the program insolvent, and Democratic Senator Kent Conrad, chairman of the Senate Budget Committee, called the program in 2009 a Ponzi scheme. In fact, he went on to say that it would make Bernie Madoff proud.
Madam Chair, during its consideration in 2009, CMS Actuary Richard Foster told the Obama administration staff: ``Thirty-six years of actuarial experience lead me to believe that this program would collapse in short order and require significant Federal subsidies to continue.'' He was ignored. In fact, he was eventually cut out of the email loop. The Health Committee on the Senate side and the staff of Senator Kennedy didn't want to hear any more from him.
Subsequently, in December of 2010, the President's fiscal commission recommended Congress reform or repeal--not amend--the CLASS Act. The commission report stated: ``Absent reform, the CLASS program is . . . likely to require large general revenue transfers or else collapse under its own weight. The commission advises the CLASS Act be reformed in a way that makes it credibly sustainable over the long term. To the extent this is not possible, we advise it be repealed.''
In February of 2011, Secretary Sebelius testified before a Senate Finance Committee hearing that the CLASS program was ``totally insolvent'' as structured and needed to be reformed in order to work. Then, in October of 2011, the Secretary released a report on the CLASS Act that essentially found the Obama administration could not make the program actuarially sound or credibly sustainable, to quote the President's fiscal commission, over a 75-year period.
Thank God for Senator Judd Gregg for putting that amendment in on the Senate side that called for fiscal sustainability and the certification by the Secretary over a 75-year period of time or it could not go forward, and that's exactly what happened.
Based on the evidence the CLASS program is not simply flawed--it is broken. As currently written, it poses a clear danger to the fiscal health of our budget and to the American taxpayer. In defending this broken program, some of my colleagues have told me that there is no need to repeal CLASS because the Secretary has already abandoned it. Yet every day that we delay in repealing CLASS, we prevent Congress from passing meaningful, true long-term care reform. All sides admit that CLASS does not work, so the prudent step is to repeal it.
In closing, I urge all of my colleagues to support this legislation so that we can get to the meaningful reform of long-term care and have the marketplace work its magic in regard to this so that the penetration is greater than the current penetration, which is less than 10 percent.
With that, Madam Chairman, I would urge all of my colleagues to support the repeal of a broken, failed program, the CLASS Act.
Mr. Chairman, I rise in opposition to the amendment.
Mr. Chairman, the amendment No. 5, or Deutch 2, is an amendment essentially that the Secretary of Health and Human Services has already looked at, some of these provisions, in eight different ways in trying to come up with some possibility of certifying the fiscal solvency of this CLASS Act within the 75-year budget window, the out-years.
Thank goodness, Mr. Chairman, for the wisdom of Senator Judd Gregg on the Senate side when that amendment was accepted in the health committee. I don't know whether it was unanimously accepted by the Democrats, but I think it was. Again, the prescience and the wisdom of Senator Gregg is something the American people should be, and I think will be, eternally grateful for.
The Secretary looked at the possibility of saying that we'll make this fiscally solvent if we eliminate eligibility for anybody with a preexisting condition. Then they said, Well, no, that's not going to work. So let's say, how about a 15-year waiting period for someone with preexisting conditions. Finally, ultimately, looked at the possibility of yet again making this part of ObamaCare, the CLASS program, a mandatory participation. How has that worked out for them thus far in regard to the exchange in young people being forced, under the ruse of the Constitution, of the commerce clause, to do that under the penalty of law, increase taxes or penalties, or whatever they want to call it? Well, the Supreme Court will ultimately make that decision.
Mr. Chair, the Secretary had every opportunity to look at this. We are
talking about, I say to the gentleman from Florida, over an 18-month period of time, and they absolutely could not certify it.
You can delay and delay and delay, but what part of ``no'' does the gentleman not understand? No, this will not work. This amendment is unnecessary. We know that this program will not work.
My colleagues on the other side of the aisle, they want to leave the provision in the bill. They want to let it stand there so they can somehow maybe with the next administration or with the next chairman of the Energy and Commerce Committee or whomever on their side of the aisle might want to resurrect Freddy Krueger one more time on the backs of the American taxpayer. This is a fiscal train wreck.
Mr. Chairman, the bill actually calls for the provision of a plan at a date certain, October of 2012. I'm an OB/GYN physician. That's less than 9 months. That goes quickly. I know that about 9 months.
When you get there, folks that are looking and counting on the CLASS program long-term care insurance, they want to sign up for it. And the Federal Government says, I know it's on the books, I know it's still part of the law, I know we are obligated to have a program for you to choose from by October 1, 2012; but we decided not to go forward with it. What's to prevent them from suing the Federal Government? While these lawsuits are pending and going on and on and on--as an attorney jobs bill, it would have some merit. In the meantime, the private market for long-term care insurance, they are not innovative. They are not going to do anything until the legality of that is cleared up.
We feel very strongly that this would be a bad amendment, and I strongly oppose it.
Mr. Chairman, I yield back the balance of my time.
Mr. Chairman, I move to strike the requisite number of words.
My good friend, my very good friend from Georgia, the gentleman from DeKalb, made the statement about what is the reason; there is really no reason to strike this; why not leave it on the books. And I think that's the argument we have heard all afternoon in regard to the position of the Democratic side.
But let me just read a few passages from a report that we requested from the Congressional Research Service as to why, in response to my friend from DeKalb and my good colleague from Georgia:
Judicial review assumes that the Secretary takes no further action to comply with the CLASS Act's statutory mandate to designate a benefit plan by October 1, 2012.
The Secretary would appear to be committing a facial violation of the statutory requirement to designate such plan. Her failure to take such action conceivably could be challenged in court under the Administrative Procedure Act, APA, which defines agency action to include the failure to act.
They go on to say:
The CLASS Act does not preclude judicial review and the Secretary's designation of a benefit plan is a mandatory, as opposed to a discretionary requirement.
So judicial review does not appear to be precluded. Therefore, if the Secretary fails to perform the action required by the statute, that inaction would appear to be reviewable.
I continue:
A failure by the Secretary to designate a CLASS benefit plan by October 1, 2012, presumably predicated upon a determination by her-- that is not possible to develop three actuarially sound benefit plans that meet all the requirements of the act--would appear to be a final agency action from which ``legal consequences will flow.''
Inaction by the Secretary in designating a plan by the deadline could be found by a reviewing court to constitute noncompliance with a statutory mandate. Thus, after October 1, 2012, the Secretary's failure to take an action legally required of her would appear to meet the standard for judicial review of agency inaction unlawfully withheld under the APA, Administrative Procedure Act, provision prescribing the scope of judicial review of agency action.
I asked one of my colleagues a few minutes ago, What part of ``no'' do you not understand?
I yield to the gentleman.
Reclaiming my time from the gentleman, look, Mr. Chairman, the gentleman is an attorney. I'm just an old country doctor. But, you know, this is plain language, and I'll be happy to provide his office with a copy of this Congressional Research Service report. I'm not going to get deep into the weeds of the legal argument back and forth, but this is about as plain as the nose on your face.
With that, Mr. Chairman, I yield back the balance of my time.
I thank the gentleman for yielding.
I appreciate the opportunity to respond to my good friend and the good doctor, my colleague from the State of Washington, who made reference to, I think, Groundhog Day.
Now, my name, Mr. Chairman, is Phil Gingrey, but as I sat here over the last couple of hours listening to the argument on the other side of the aisle, I feel like Phil Connors, and that was the weatherman. Bill Murray, if you recall, played that role, the weatherman at Punxsutawney, Pennsylvania, covering Groundhog Day. And believe me, we have been listening to Groundhog Day from my colleagues on the other side over and over and over again, and it is indeed getting just a little bit tiring.
My friend also said, the gentleman, the doctor from the State of Washington, Mr. Chairman, and I quote him: ``I've never seen a Congress that has failed as much as this one.'' Well, I'm going to tell you, I have never seen a provision of law in a bill that has failed as much as the CLASS Act. And they can beat this to death--and I think they have done that, Mr. Chairman--but I have in my hand here a summary sheet of the HHS analysis of the CLASS Act over an 18-month period of time.
And they have tried to model eight different options to make this fiscally solvent, and required by the law--thank goodness, thank goodness for the amendment from the Senator from Rhode Island, the Honorable Judd Gregg, at the time chairman or ranking member of the Budget Committee. The eight options, none of them work. I mean, there are things like a work requirement. There are things like not allowing anybody with a preexisting condition to be in the program, allowing people with preexisting conditions to be in the program but only eligible for a benefit for 15 years, and on and on and on. Actually, the one option that's not on this printout, I guess, is option number nine, and that would be the option, Mr. Chairman, of requiring every individual to sign up for the long-term program under the CLASS Act.
Now, the question on all of these options was: Does the Secretary have legal authority? And in most of the eight: Not completely; HHS vulnerable to legal challenge. Not completely; vulnerable to legal challenge. Not completely--again, vulnerable. No authority. No authority. No authority. No authority.
Well, number nine, individual mandate, making everybody sign up for it, yes, got the authority to do that. She could have done that. But I'm sure that my colleagues and her advisors and the administration probably--and I state this rhetorically. Do you want another mandate to which the American people can rail against us in the next election? And she is smart enough to know that option number nine was not unacceptable.
So, again, we could go on and on. We could do this for another couple of hours and continue this Groundhog Day ruse, but, as I said earlier, Mr. Chairman, what part of ``no'' do they not understand?
Now, look, when this amendment was added at the last moment back in 2009 by the chairman of the Subcommittee on Health, Mr. Pallone, during the Energy and Commerce Committee debate on the CLASS Act, Chairman Pallone stated, and I quote him: ``I can't stress enough that we are not actually setting this up. We are simply suggesting.'' That was the end of the quote. In fact, Chairman Pallone asserted that the program would not take effect until subsequent legislation was passed.
Well, Mr. Barton, who, at the time, was the ranking member of the overall Committee of Energy and Commerce, said this: ``Well, reclaiming my time, I am going to support the Pallone amendment without binding anybody on my side to support it, with the understanding that if this moves forward, there will be a hearing on this in this committee, and there will be bipartisan efforts to flesh it out. Do I have that assurance from the chairman?'' And Mr. Pallone responded, ``You certainly have my assurance.''
And then the chairman, Henry Waxman, overall chairman of the committee said, fine with me, but he is the subcommittee chairman.
We never had one hearing. We never had an opportunity to flesh it out.
Defeat this amendment.
Well, here again, when Mr. Barton, the ranking member of the committee, asked very specifically, Mr. Chairman, when he asked very specifically in the markup on the House side back in 2009, if I vote ``yes'' for that, will we have hearings to--I think it was ``to flesh this out.'' He was assured, of course, by the chairman at the time of the Health Subcommittee, Mr. Pallone, and also the chairman of the overall committee, Mr. Waxman of California, said, Hey, it's okay with me. No hearings were held.
So this business of can't we work this out, but yet we were reaching out, and it never happened.
I yield back to my friend.
Mr. Chairman, the gentleman asked me a specific question, and I want to respond to my friend.
You know, the point I will make to him is that we can work together. We absolutely can.
Mr. Chairman, we have discussed this with Mr. Pallone. I have done so personally, as I know my physician colleague on Energy and Commerce, Mr. Burgess, has had a conversation with Mr. Pallone.
We can work together, but we have to remove this failed program first because of that looming deadline of October 1, 2012, where we'll get sued if we don't have a program. So I'd be glad to work with the gentleman.
Point of order, Mr. Chairman.
In regard to you yielding an additional 5 minutes to me, in fact, that is not true.
Mr. Chairman, as you know, the gentleman from Tennessee, Representative Fincher, moved to strike the last word and was afforded the 5 minutes, as we all are, and he yielded to me.
I certainly would oppose the gentleman's unanimous consent request for you to--I don't think you have the authority to do that quite honestly.
Mr. Speaker, I'm going to have to insist on regular order here.
Mr. Speaker, I claim the time in opposition to the motion.
Mr. Speaker, the gentleman from California in mentioning these categories of suffering seniors, people with Alzheimer's disease, chronic diabetes, heart disease, advanced stages of cancer, disability, or traumatic injury, I'd like to tell the gentleman and my colleagues on the other side of the aisle, Mr. Speaker, that we on this side of the aisle always have these victims in our mind, in our heart, in our prayers. But we have the compassion and the honesty not to promote and present a ruse and false hope. That's what this so-called CLASS Act non-program does to these suffering individuals that suffer from these chronic medical conditions and disabilities.
H.R. 1173 is an opportunity for this Congress to reverse one of the most costly coverups--yes, coverups--this administration has imposed upon the American taxpayer. The failure of this administration to implement the CLASS program came as no surprise to the many of us who had actually listened to the concerns from the unbiased actuaries--even the administration's own chief health actuary, Richard Foster, from CMS--about the certain failure of the CLASS program.
The concerns, Mr. Speaker, were bipartisan during debate on the President's health care law, and even the President's own fiscal commission called for the program's repeal.
So today we have the opportunity to finally get this failed program off of the books. This administration has spent millions of dollars and, yes, eight ways of Sunday, here they are, colleagues, eight ways, short of having yet another mandate that all people have coverage.
They have tried to implement a program that never had a chance of being implemented, and today we're faced with an $80 billion hole in the budget that this administration claims would be filled by the implementation of the CLASS program.
Listen, colleagues, key Senate Democrats, like Senator Harkin, believe that there is still one last option worth considering: another unconstitutional mandate on every American. In fact, in comments to reporters yesterday, Senator Harkin made the claim that the problem with the current CLASS program is that it is voluntary. In the opinion of the esteemed Senator, it needs to be mandatory.
The need for long-term care reform is an important issue, and I am confident that solutions can be accomplished and that we can do this in a bipartisan way as they have been done before on this issue. We cannot, however, continue to deny the fact that the CLASS program is an abject failure and that its repeal is necessary today.
I say to my Democrat colleagues, admit your failure. You rushed this provision into the health care law. I understand your compassion toward the late Senator Kennedy and your wanting this to be a legacy for him, but it was his staff that maybe misled the committee and the Democrat majority. Admit your failure. Get over it. Vote to repeal this failed CLASS Act, and live to fight another day.
I recommend that we vote down this motion to recommit and for the bill to be repealed.
I yield back the balance of my time.