During the President's outline of the national agenda during his State of the Union address, he identified an important issue that continues to plague our country--rising health care costs. Health care costs in this country continue to increase by far more than the rate of inflation, putting quality care out of reach for many working families and impossible for those who are currently out of work.  And the rapidly rising cost of health care is the main reason why millions of Americans lack health insurance. The Census Bureau reported that last year that 44.9 million people in the United States were uninsured. This year, federal, state, and local governments will spend an estimated $34.6 billion on uncompen­sated health care for the uninsured. Unless these types of statistics are turned around, our economy and the health of many Americans will be in jeopardy.

 

      In 2003, Congress passed and the President signed the Medicare prescription drug bill that includes some promising initiatives to make healthcare more affordable. Under this law, workers can now take advantage of Health Savings Accounts (HSA). These accounts are fully portable, tax-free savings accounts that can be used to pay for medical expenses incurred by individuals, spouses or dependents.  Contributions to HSAs by individuals are tax deductible, even if the taxpayer does not itemize, and contributions by an employer are not included in the individual's taxable income. Although we were able to make some headway on this issue during the last Congress, we have a long way to go to make sure good health care can be affordable to everyone. 

 

One of the greatest problems with our present health care system is our medical liability system. This is why I am a co-sponsor of the HEALTH Act, which will reform our medical liability system to increase access to quality, affordable health care for all Americans, while reducing frivolous and time-consuming legal proceedings against doctors and health care providers. Last year we were able to pass this legislation in the House but it failed to pass in the Senate.

 

Another problem with our health care system is the inability of many small businesses to provide health coverage to their employees. The premiums that small businesses pay for health insurance are typically 20-30% higher than those of large companies or unions. According to the Heritage Foundation nearly half (49 percent) of uninsured workers are self-employed or work in firms with fewer than 25 employees. I support legislation, "The Small Business Health Fairness Act," that will help solve this problem by allowing small businesses to set up Associated Health Plans. Giving businesses the opportunity to join together through trade associations to purchase health insurance for their workers at a lower cost is a good idea whose time has come. The House passed such legislation last year, but the Senate failed to follow suit.

 

     The increasing cost of health care, which causes so many Americans to fall into the ranks of the uninsured, is a grave problem. I will continue to support common sense reforms of our health care system. The President’s 2006 Budget also shows his commitment to controlling the rising costs of medical care and giving more Americans access to health insurance.  In the coming months, I will continue to work with my colleagues to enact legislation that will help make further progress on health care issues during this session of Congress.