Question of the Week: Health Care Reform
These questions are culled from phone calls, letters, faxes and e-mails sent to my Thousand Oaks, Solvang, and Washington offices. Each week I will add another question and answer.
Week of July 17, 2009
• Question: What is your view of the health care legislation released this week in the House?
→ Answer: While I agree that health care needs to be reformed, I do not support the bill released by the House leadership, H.R. 3200. It would raise taxes – on individuals, small businesses, and employers – by $818 billion to finance a government-run health care system that independent estimates confirm would result in 114 million Americans losing their current coverage. But even with $818 billion in higher taxes, it would still significantly raise the federal debt.
In fact, Douglas Elmendorf, director of the Congressional Budget Office, told Congress on Thursday: “We do not see the sort of fundamental changes that would be necessary to reduce the trajectory of federal health spending by a significant amount. On the contrary, the legislation significantly expands the federal responsibility for health-care costs.”
Among other questionable proposals, it would:
• Cut Medicare hospital reimbursements by at least $155 billion over 10 years.
• Cut Medicare Advantage.
• Force employers who offer health insurance to pay at least 72.5 percent of the cost of premiums for full-time employees and 65 percent for a family policy.
• Force employers who cannot afford to offer health insurance and who have payrolls above $250,000 to pay a tax of at least 2 percent, rising to 8 percent for employers who have a payroll of $400,000.
• Require individuals who choose not to purchase insurance to pay a 2.5 percent tax on income.
The reason many people cannot afford health insurance is because health care costs are so high. We are also living longer because of major advances in our research and development.
We need to identify ways to reduce wasteful health care spending, but we must be very careful these proposals do not discourage doctors, hospitals and pharmaceutical companies from researching new promising treatments.
Among the health care reforms I support are:
• Tax credits that will help low-income people purchase health insurance that fits their needs.
• Reducing wasteful health spending, such as reducing medical malpractice claims, which is something I have supported throughout my time in Congress, including a current bill, H.R. 2580. Too many doctors order unnecessary tests because they are afraid they will be sued if they don’t.
• Allowing small businesses to join together to purchase group health insurance for their employees. I am a cosponsor of H.R. 2360, which would create a health insurance pool for small businesses and the self-employed.
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