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August 14, 2009

Sensible Proposals to Improve Healthcare

By Congressman Joe Pitts

Speaker Nancy Pelosi and President Obama have been spending a lot of time trying to cast opponents of their healthcare reform bill as standing for the “status quo.” Nothing could be farther from the truth. I oppose the bill they have produced, but I also believe that every American deserves access to quality, affordable health care.  I believe this can be achieved without a government-run plan or bureaucrats coming between you and your doctor.  That is why I support other legislation that I think is far better than H.R. 3200.

I recognize that no party has a monopoly on good ideas and so I have partnered with Small Business Committee Chairwoman Nydia Velazquez (D-NY) to introduce H.R. 859, the Small Business CHOICE Act of 2009.

This important piece of legislation allows small businesses – the backbone of our economy – to obtain coverage at negotiated bulk rates through purchasing pools.  The bill would help small businesses offer health insurance through a refundable tax credit that minimizes risks for insurance companies by letting small firms pool their employees with those of other businesses in voluntary health cooperatives. 

This would allow entrepreneurs to negotiate better rates for coverage for their employees and themselves.  Self-employed individuals would save $5,000 per year on health coverage costs.  Other small firms would save more than 34 percent.  The result would be fewer uninsured Americans and a more competitive business sector.
While ensuring that small businesses have easier access to healthcare for their employees will go a long way to covering the uninsured, I also support broader legislation that will improve care for all Americans.

I am a cosponsor of H.R. 3400, the Empowering Patients First Act, introduced by Congressman Tom Price, a physician from Georgia. The bill contains four basic principles: access to coverage for all Americans, coverage truly owned by the patient, improvements to the health delivery structure, and reining in out-of-control costs.
To ensure that all Americans can get coverage, the bill would extend the income tax deduction on premiums to those who purchase coverage outside of their workplace. For low income individuals there would be a refundable tax credit for those who purchase coverage.

This bill makes sure that no one is denied coverage for a pre-existing condition, the bill would grant states incentives to establish high-risk pools that would receive federal block grants.

Individuals should get into a plan before they get sick, so small businesses would be given tax incentives for automatically enrolling employees in their selected healthcare plan.

Coverage needs to be truly owned by the patient and not their employer. This bill would grant greater choice and portability by allowing for a defined contribution in employer-sponsored plans. This way, an employee can take some coverage with them when they change jobs. This would also give employers more flexibility in the benefits offered.

To encourage more individual ownership, the individual market would be expanded by creating pooling mechanisms, such as association health plans and individual membership accounts. Individuals would also be allowed to shop for health insurance across state lines.

The bill makes improvements in the healthcare delivery structure by establishing performance-based quality measures endorsed by the Physician Consortium for Performance Improvement and physician specialty organizations. It also promotes healthier lifestyles by encouraging wellness and prevention programs.

This bill reins in the out-of-control costs by reforming our medical liability system. Many doctors are forced to practice what we call “defensive medicine”—ordering unnecessary tests to make sure they don’t get sued.  That costs us up to $124 billion every year.  Malpractice happens, and when it does people should be able to sue.  But awards should be limited to just restitution and reasonable punitive damages.

Finally, this bill is paid for through savings from healthcare efficiencies, ferreting out waste, fraud and abuse plus a small decrease in spending in other areas of the government. Health reform is important and if we want to make it a priority we should find savings across the federal government.

I do not stand for the “status quo.” I don’t believe the House Democrats’ bill is the right way to reform healthcare, but I will keep working to find the right way.  The current process is way too partisan with even moderate Democrats excluded from the process.  Nothing constructive will get done unless both parties can work together.

Congressman Joe Pitts represents the 16th Congressional District of Pennsylvania.

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