Thank you, Dr. Gingrey. I appreciate that. Let me talk about a couple of important aspects of this bill and understand that if you have a car and it has a flat tire, you don't get rid of the car; you change the tire. But if you have a car…
Thank you, Dr. Gingrey. I appreciate that.
Let me talk about a couple of important aspects of this bill and understand that if you have a car and it has a flat tire, you don't get rid of the car; you change the tire. But if you have a car with a great tire and the car is not running and it's broken down, you get a new car.
What we have here is a health care bill that indeed does have a few pages and some parts that we all agree on and we want to work on those together. However, there are also thousands of pages of other problems and tens of thousands of pages, perhaps hundreds of thousands of pages yet to be written by boards, panels and commissions yet to be appointed on issues we have yet to know what is going to be included in this. And that is part of the reason why employers are frightened about what may be in this bill.
Members of Congress shake their heads and say how could something so massive--and it's going to cost over a trillion dollars a year to administer this plan--how could this happen without Congress really having oversight? Let me mention two areas of this which I am deeply concerned about.
We know that one of the ways we can provide better care and ultimately save a lot of money has to do with disease management, or care management.
This is when perhaps nurses or other specialists within the doctor's office or working with the hospital, work to stay in touch with the patient, patients who have asthma or diabetes or heart disease or other chronic illness, because they know if they can get that patient to follow up with their medications, their treatments, their therapies, they can prevent problems from worsening. They can help make that patient better. They can keep that patient out of the hospital.
In the area of mental health, chronic illness has twice the incidence of depression when it's not picked up, and when depression is present and not treated, costs double.
Now, unfortunately, this bill not only doesn't pay for this, but if you want something, the important area that did pay for it in Medicare Advantage, this bill in order to try and pay for it cut $500 billion worth of Medicare, and a significant portion of that was in something called Medicare Advantage which covers millions of people, 7.4 million seniors around the country.
One of the clear, distinct advantages of Medicare Advantage is it provided this disease management. Here are a couple of examples: University of Pittsburgh Medical Center found they could reduce rehospitalization rates for diabetics by 75 percent. Another hospital in my district, Washington Hospital, reduced readmission rates for heart disease by 50 percent. Another plan reduced asthma rate readmissions by 28 percent, all by doing this important care management.
Well, unfortunately, if you like the plan you have, you can't keep it because this bill guts that and eliminates that portion of it.
Now out of this 2,900-roughly-page bill, to have a couple sections that people are talking about, the benefits of why we should keep this bill, these are areas we agree on: maintain preexisting coverage, don't cut people because they're sick, let kids stay on their parents' policy for a little bit longer, all important parts and things
we will continue to work on as a conference because we understand health care.
And in particular this caucus made up of health care providers, we work with patients for many, many decades all together, hundreds of years, and we understand the bottom line is we must work on health care reform, and this bill just doesn't quite reform that.
Another couple of brief points I would like to bring up, because out of a sense of compassion, we want to continue to practice health care and we want patients to be able to afford it. But let me point out a couple of ways this bill is trying to fund the expanded government-run health care that actually increases cost.
One is that the very thing that we should be working on to reduce costs such as medical supplies and other practices will be taxed. Pacemakers will be taxed. Heart monitors will be taxed. Artificial joints will be taxed. The knees and hips that people will have replaced will be taxed. Stents, diabetes supplies, and prescription drugs are going to be taxed. That tax is an increase in the cost of health care and something that has to be paid for, which gets paid for by increasing the cost of insurance.
Employers also have to pay increasing taxes: if they don't have enough insurance or if they have no insurance for their employees. And if they have too much insurance for their employees, instead of rewarding them and saying this is good that you are providing comprehensive insurance for employees, that gets taxed as well. And employees themselves, if they are not covered, they have to pay taxes or, because the way this bill works because there is no time frame, they can get it when they are in the ambulance on the way to the hospital.
Another point. Part of the funding for this is to take $70 billion from a long-term health insurance plan called the Community Living Assistance Services, which is the CLASS Act. Before it even starts, they will take $70 billion out of this over 10 years; but what happens is the premiums will need to be paid in actual claims. Actually, it is far less than will be needed.
Now, if any of us tried to start an insurance plan and took all of the money out before it even got started, well, you wouldn't be able to get a license to provide that insurance. It is one of the many flaws in this program that does not have the money to pay for it. It is another reason why the bill had to be repealed before it is replaced.