Tri-Committee Discussion Draft Advances President Obama’s Health Reform Goals, Witnesses Tell House Committee
WASHINGTON, D.C. – The House Tri-Committee Discussion Draft advances President Obama’s goals for health care reform, a diverse group of small business owners, economists, consumers, patient advocates and other stakeholders told the House Education and Labor Committee today.
The plan, which was unveiled last Friday by the House Education and Labor, Energy and Commerce and Ways and Means Committees, would reduce out-of-control costs, improve choices and competition for consumers and expand access to quality, affordable health care. It would provide health care coverage to at least 95 percent of Americans by 2019, the most of any proposal to date.
“Consistent with President Obama’s goals, our discussion draft builds on what works and fixes what’s broken in our current system,” said U.S. Rep. George Miller (D-CA), the Chairman of the Education and Labor Committee and one of the authors of the draft. “It lays the foundation for an American solution that will reduce costs for families, businesses and taxpayers, guarantee choice of doctors and plans, and ensure that everyone has access to affordable, quality health care.”
“The Tri-Committee bill, I think, is an important step in coming up with a bill that does encompass so many of the principles that the President has said was important, and that the dual thing of expanding coverage and making the kinds of meaningful reforms that will slow the growth rate of cost,” said Dr. Christina Romer, the Chair of the White House Council of Economic Advisors.
The discussion draft will provide significant relief to small businesses, which spend 18 percent more on health coverage, on average, than larger employers. Among other things, the draft includes targeted support to help small businesses ensure that their workers get coverage, and requires employers to share responsibility, along with individuals and the government.
A new survey of small business owners in 16 states, released at today’s hearing, found that 81 percent of small business owners support a health exchange and that 66 percent of small businesses are willing to share responsibility for paying for it.
“A system requiring an employer contribution, with appropriate levels of tax credits, sliding scales and exclusions, will give small businesses the relief they need, potentially saving as much as $855 billion over the next 10 years, reducing lost wages by up to $339 billion and minimizing job losses by 72%,” said John Arensmeyer, Founder and CEO of the Small Business Majority. The committee’s draft is “workable,” he explained, “and if properly designed can produce substantial benefits for small businesses.
“Our firm faces health insurance premium expenditures that would add 12-13 percent to our payroll expenses in order to provide health insurance for our workers,” said ReShonda Young, who manages her family’s transportation and contracting business in Waterloo, Iowa. “The contribution level in the bill – even without the small business tax credit – would reduce our contribution amount by one third, to 8 percent of payroll. And the insurance package would actually cover our health care costs, with no preexisting conditions. This is a tremendous improvement over our current options.”
Contrary to what some critics argue, these requirements would not “place a tax on employment, leading to fewer jobs,” explained Dr. Jacob Hacker, an economist at the University of California, Berkeley. “By lowering the cost of care and requiring that all firms eventually contribute to the cost of coverage, the legislation would encourage employers to continue to provide health insurance.”
The health exchange established by the draft would allow people to comparison-shop for quality, affordable, patient-centered care in a transparent, user-friendly marketplace. By creating a public health insurance option to compete alongside private insurers, the draft would lower costs for everyone and ensure that all plans operate honestly and in the best interests of consumers.
“We believe the draft is a plan that would at long last ensure access to affordable, quality, “peace of mind” health insurance for every American,” said William Vaughan, Senior Health Policy Analyst for the Consumers Union.
“We are pleased that your draft bill demonstrates your commitment to ensuring that patients, consumers and their families have a strong voice and role to play in a reformed health care system,” said Fran Visco, President of the National Breast Cancer Coalition.”
Ron Pollack, the Executive Director of Families USA explained how the draft will meet the needs of all consumers: “For American consumers who believe the current health insurance system works well for them—the House bill protects you. For American consumers who believe that the current health insurance system is like that house in the real estate ads coined a “handy-man’s special”—that is, it needs some leaks fixed, perhaps an addition, a little re-modeling, but it holds great promise—the U.S. House of Representatives provides a toolbox to get the improvements done.”
For more information on the Tri-Committee Discussion Draft, click here. To view a statement of support for the draft issued by the White House, click here.
To view all of the testimonies from today’s hearing, click here.
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