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Dear Friend,
I always enjoy working in the district during our August legislative recess. This year, my priorities included helping buy dorm-room necessities before dropping our eldest daughter at college and speaking with many of you about your concerns and Congress’ work on health insurance reform, financial regulatory reform and the economy.
Since my last newsletter, thousands have participated in my regular tele-townhalls covering these issues and recently passed legislation including the Credit Card Holder’s Bill of Rights, economic stimulus, mortgage reform, the American Clean Energy and Security (ACES) Act, food safety, and the Clean Water Act. Thousands more have shared their concerns and stories via letter, email and phone.
Our 8th District state, county, and municipal leaders provided updates on the challenges they’re facing given falling revenues and increased demand for services at our second round of 2009 leadership summits in Cook, Lake and McHenry counties. Local employers shared their economic outlook during my visits to Chambers of Commerce, associations, and individual businesses across the district. And I met with community groups and families at my local office and at local festivals, and Congress at Your Corner stops at area grocery stores. I’m encouraged by recent increases in activity and revenues for retailers, manufacturers, and auto dealers. The Federal Reserve indicated that the recession has ended, but increased unemployment will likely remain into next year. Government and the private sector will be challenged to “do more with less” as we mutually work toward economic recovery.
In the meantime, our efforts to reform health insurance and regulatory oversight of the financial industry are our top legislative priorities. Following is a summary of my positions on both, which are further detailed on my website.
Although health care has led the news, Congress’ committee structure allows us to handle many complex issues at once. While my colleagues in the Energy and Commerce, Education and Labor, and Ways and Means committees have been tackling health care reform, I and other members of Congress on the Financial Services Committee have been focused on the equally complex task of reforming our financial regulatory system, so that future downturns don’t spiral into a severe system-wide crisis that requires government intervention as it did last year.
Health Insurance Reform
The top concerns for families in the Eighth District are the affordability and portability of healthcare coverage. A preexisting medical condition of a family member can limit career options, or put a family in the category of “uninsurable.” Families with insurance are seeing their premiums increase while their benefits shrink. The U.S. spends roughly twice as much, as a percentage of GDP, than other industrialized nations on health care. At the same time, we leave over 45 million people uncovered by health insurance, and rank 37th in terms of quality outcomes.
The growing population of uninsured is unconscionable and unaffordable. Everyone currently pays for those without health care coverage. A rational system could make coverage affordable so that medical charges can reflect actual care instead of subsidizing uncovered charges elsewhere.
American employers, and particularly small businesses, have limited access to affordable coverage for themselves and their employees. U.S. employers are also competitively disadvantaged in a global marketplace, because double-digit increases in healthcare expenses are not something foreign competitors have to include in their costs. Their challenges to provide affordable health care benefits are exacerbated by the economic downturn, leaving many businesses struggling just to cover payroll and operations.
At a time when our nation’s debt exceeds $11 trillion, the status quo for our health care system is unacceptable. The government’s health care costs represent the largest and fastest-growing portion of federal spending. At the current rate of increase, the government will be spending $2.2 trillion per year on health care by 2018. Health insurance reform is as important to America’s fiscal health as it is to our physical health.
Both the Senate and the House of Representatives are working on multiple versions of health care reform bills, and the President recently outlined his own plan to Congress and the nation. I was encouraged by his pragmatic approach and support his goals for insurance reform, securing and expanding affordable coverage, cost curve containment, quality improvement, and deficit neutrality. I will be evaluating legislative options against key criteria that reflect your concerns including, but not limited to, the promotion of:
- Coordinated care for measurable quality outcomes.
- Stability of existing plans.
- Expanded options for affordable coverage for small businesses and families.
- Coverage and/or portability for those with pre-existing conditions.
- Shared responsibility for the cost of reform, without unduly burdening families and small businesses.
- Patient choice in terms of plan benefits and doctors.
- Course of care determined by doctors, not government or insurance bureaucrats.
- Measurable reduction in cost increases.
- Cost sharing for all covered participants.
- Personal responsibility in prevention and wellness efforts towards a healthier America.
Financial Regulatory Reform
Reforming our financial regulations is vital to preventing a repeat of the fiscal collapse and subsequent government intervention we experienced last fall. As co-chair of the New Democrat Coalition’s Financial Services Task Force, I’ve advocated for reform to enhance market stability and limit systemic risk, while not stifling market growth and innovation.
As a member of the House Financial Services Committee, I’ve been recently focused on responsible reforms to the OTC derivatives market, including credit-default swaps, to increase market transparency while preserving the ability of end users to effectively hedge financial risks. We’re also working on the establishment of a systemic risk regulator or council to guard against system-wide risks to our financial system, counter-cyclical capital requirements to mitigate boom-and-bust cycles, and federal oversight for the insurance industry.
Regulatory reform is vital if we seek to avoid future breakdowns in the financial system that jeopardize the value of our pensions, our homes, our businesses and our national economy. Small businesses, who generate up to 80 percent of new jobs, were some of the hardest hit participants in the economy. The collapse of the credit markets made it very difficult for small businesses to access capital on affordable terms, just as they needed it most to offset the sharp decline in consumer spending touched off by the crisis. Many small businesses in good standing saw their credit lines cut or canceled through no fault of their own.
Financial Services Committee Chairman Barney Frank has indicated he plans to move aggressively to complete the entire reform agenda by the end of this calendar year. While that is an ambitious time table given everything on Congress’ plate, it’s clear that both the President and the Congressional leadership consider regulatory reform to be one of their top priorities of the year.
A reform of our regulatory system that balances prudent regulation with the flexibility needed for innovation and growth will ensure a stable and reliable credit market for businesses to finance their operations and keep America working.
As always, it is an honor to represent you. If you have questions or comments, please email me or call my office.
Sincerely,
Melissa L. Bean
Member of Congress
September 30, 2009
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