Thank you very much. I appreciate the gentleman from Connecticut and his characterization of ``wise sage words.'' I will try not to disappoint you. It is a pleasure to be here tonight with Members of the House to talk about health care.…
Thank you very much. I appreciate the gentleman from Connecticut and his characterization of ``wise sage words.'' I will try not to disappoint you.
It is a pleasure to be here tonight with Members of the House to talk about health care. This is something that obviously touches every one of us, as 300 million Americans face health care issues every day. Some of us don't have to think about them from year to year other than maybe just a minor incident or you have to go to see a doctor from time to time. Others face literally chronic and life-threatening health situations every day, and it hangs over you. It hangs over you as just an emotional and physical thing as it relates to your body or your family, one of the members of your family. It relates to and hangs over you because of the costs and the threat of that overwhelming cost and impact on your family's wherewithal and to be able to do it. Certainly from the business community side, we hear from our small businesses. I know in South Florida, where I come from, we're a small business State, and so many small businesses with five employees, people who are self- employed, 10 employees, 50 employees, they go through the same experience year after year, double-digit increases with no experiences, nothing that went on during the year that was a major cost factor that set off these double-digit increases. And what happens is, they then have to make a decision: What can I cut back? We are in difficult times right now. Do I increase the copayments? Do I increase the deductible? Do I cut back on the scope of care? Businesses want to provide health care. It creates loyalty from the employees to the business. It creates a healthy employee and someone who is able to come to work every day, someone who you've invested a lot in to train that employee. You also have large businesses that can compete internationally. They know that the costs of producing something with that added double-digit increase of health care cost impacts the cost of the product that they are selling worldwide and competing with other countries which somehow integrate the cost of their health care into their government operations or just in a lower cost way.
We now have a dynamic in place here that's been around, but I think it has finally hit the point where there is a coalition of people all across America that are saying, we need change. And we don't want nipping around the edges. We don't want some small little thing that isn't going to make a difference. We have fundamental problems. We have cost problems. We have coverage problems in some cases, pre-existing conditions. I know anybody this in this room I can speak to and people listening tonight, everyone could talk about a family member, a neighbor, a friend who has breast cancer or some other chronic condition that when you need that insurance the most is when it will be unavailable to you because if you change jobs or you are getting a new policy, they will be excluding coverage from that pre-existing condition when you need it the most. So the notion of insurance and spreading the risk among our whole population, which it's supposed to do, is what has somehow gotten away from the insurance system as we know it, and that's wrong.
So where are we? We're at a place where I think Americans say and want and know that they want to have something that's stable, something that will be there for them. They're willing to pay a fair price for it. They want to be able to compete in their businesses. And the good news is our President, many Members of the United States House of Representatives and the Senate want to do something about it, and we're getting great support from across the country. We have got to get it right, but I think there's a tremendous amount of opportunity here.
Let's talk just very briefly about what some of those notions are, those principles that we're going to create this plan. There are a lot of ideas out there right now. We can certainly invite Americans to talk to their Representatives and give us some input on what you think.
Number one, I think one of the most important things is this notion of restoring the doctor-patient relationship. We have a lot of doctors. Dr. Kagen is a doctor. I see our friend from Pennsylvania who is going to speak in a few minutes. She has a doctor, I believe, as a husband and a son. There are a lot of doctors in the Schwartz family. And I think as patients we know the best thing we can do is have a long-term relationship with a doctor who knows my family history, knows my history. Not that I have to change jobs and change doctors, or my plan knocks this doctor off the panel, I have to find somebody else. So let's go back to the notion of having a doctor-patient relationship whose decisions are not dictated by people who are outside of the medical field, insurance companies, managed care, et cetera. Let's put that in place.
Number two, let's make sure that as we go forward that people who like what they have in the insurance world can keep it. I mean, there are a lot of people who like what they have. I wasn't out here criticizing everybody. Some people are very comfortable with the plan that they have. They should be able to keep it. Nobody is saying you shouldn't be able to have it. Keep it. It's good. Let's stick with it. We want to provide tax credits to small businesses and individuals to make coverage affordable. In other words, again, it's not mandatory as we know it right now. So encourage businesses by doing it with tax credits to make it affordable. We want to certainly end this practice of eliminating pre-existing conditions from coverage. Spreading the risk is a very simple principle that could be done with a pen, and we're all set. So that's a principle that has to go in there.
We want to make sure that whatever we put forward invests in preventive and well care medical coverage. I take
Lipitor or I take something for cholesterol. It's a family history thing. A lot of people take it. It's just something that keeps me healthy. If I didn't take it, I would have cholesterol. Dr. Kagen could probably tell me how I should change my diet. I do run. I try to keep in shape. But the bottom line is, I take it as a preventive tool. There are lots of other tools and things that we can take, plus exercise programs and other things. But we should incentivize behavior through our health insurance scenario. Just the last couple of items before I turn it back to my colleagues, we want to ensure that we're using science-based information, that when decisions are made, it's based on science and not some of these nonscience-based concepts. I mean, science really relates to the best individualized treatment and care.
Then, of course, we have to crack down on the waste, fraud and abuse. There's a lot of money in this current system here that is a lot of waste. We have to fix all that, you know, wring it tight so we can make sure that that money is being spent directly on health care. These are principles--and there are others that we're working on--that I think most Americans approve of and support. I think this is the construct by which the various ideas are being discussed here in Washington and are part of that discussion. There may be details which we may not all agree 100 percent on, but this is something that the time has come. The time has come for peace of mind for every American, for every business to know that we'll have a stable health care system that will support Medicaid, support Medicare, and on the private side, very important, most of us will get our care from the private side. We'll have that opportunity to know that it's cost-effective, and it will give us that necessary coverage.
I thank the gentleman from Connecticut who brought us together tonight. I know being from South Florida and having a tremendous amount of senior citizens who depend on a good quality health care system and a whole lot of families that are very interested in making sure their families are covered as well, we're working to make sure that we take care of them the right way here.
Will the gentlewoman yield?
I think that's an excellent point. And again, if we think about what insurance is supposed to do, it is supposed to spread the risk. Yet the experiences that small businesses have with 8 employees or 1 self-
employed or 10 is they get a different pricing than somebody who's negotiating for 10,000 people. A major corporation that negotiates for 10,000 or 100,000 lives has a much--we call it the economy of scale, but it is also the insurance company saying, All right, we have a large group. We can spread the risk.
Well, why should that be any different than you take your small business and your small business, and in Fort Lauderdale where I'm from or Delray Beach or wherever, you've got all these small businesses, 8 and 20 and 110, and let them combine together and purchase policies. And that is just a basic right of free enterprise to be able to do that.
I'm going to toss out another idea because, again, a lot of this thinking that we're talking about is common sense. It's not out-of-the- box thinking; it's just common sense.
When I was in the Florida legislature a number of years ago, we were looking at various ways to fix the health system, because, unfortunately, despite your good efforts and others for the last number of years, nothing was really happening of any major consequence. And we said, Well, what if we allow people to purchase into the State of Florida health insurance plan?
Or let's use the Federal system. We have hundreds and hundreds of thousands of people in our Federal system. Okay? Members of Congress and everybody else gets to buy this, and it's a typical plan. The government pays a piece of the premium and we pay a piece of the premium. Okay? What if we allow people to buy into the Federal plan? Okay. Not on the Federal Government's dime. No subsidy whatsoever. Whatever the cost is, the administration and the policy and everything else, purchase into that.
Well, we did some research on this to the State of Florida plan, which is not that much different than the Federal plan, and we found that if you take a small business that was trying to buy a policy, the same policy, apples and apples, the price was almost twice what it would cost if they paid the full out-of-pocket cost in the State of Florida plan.
Now, of course, our friends in the insurance industry were not interested in supporting that because they like the idea of the small groups buying individually. And they said, Well, it's going to change the risk assessment.
You know, where there's a will, there's a way. That's my attitude about this whole thing. So again, I think as we're going through this discussion, maybe we can talk. I know some of the Members of the Senate and some House Members. I think that just may be another way of offering alternatives, options to people. Let them purchase into a large plan like the Federal Government plan.
Again, the U.S. taxpayer is not subsidizing it. Whatever the cost is, it is. But you get the benefit of a large plan that lots of people are in and you can spread the risk.
So, again, to me the excitement right now is lots of good ideas are coming forward, and I think we're going to be able to get there, and let's just engage the American people in the right answers.
Would the gentleman yield for 1 second?
I want to make it perfectly clear, if I didn't make this, when I say State of Florida or Federal Government, the State of Florida doesn't own an insurance company. It could be Blue Cross or United, any combination of private companies. So it's the Federal Government through our Blue Cross or whatever it may be. It's private companies offering the insurance. But the beauty, of course, is the spreading of the risk.