FROM THE OFFICE OF PUBLIC AFFAIRS
September 21, 2004
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The Honorable John W. Snow
Health Care Town Hall Meeting
Dartmouth Hitchcock Medical Center
Manchester, NH
September 21, 2004
Good afternoon. It's great to be here in
I'd like to set the stage for this issue, which has such significant economic implications, with an overview of how our economy is doing.
I'm pleased to report that we're doing quite well. Here are a few of the key signs: GDP growth is strong, 1.7 million new jobs have been created over the past 12 months, and homeownership is at an all-time high. Since August 2003, employment has increased in 47 states and unemployment rates have decreased in 45 states. We're on the right path.
Many of you here today are on the front lines of economic recover and growth. You are small-business owners, the backbone of our economy. And the President's goal is to make sure that the work you do, on the front-lines of job creation and economic growth, isn't over-burdened by unfair levels of taxation and regulation. We know that, as small-business owners and operators, you simply ask for two things from your government: fairness and freedom.
You seek the freedom to start up a new business venture, to run it and grow it, or to close the door and go fishing if that's what you want to do. And you want to be treated fairly and you deserve nothing less.
In exchange for fairness and freedom, your unspoken promise to your country and our economy is: jobs and the fuel our economic engine runs on. This is why we've got to keep tax rates low on business owners like you, and on every American who pays taxes.
Here in
More than 525,000 taxpayers in
Our economy has come a long way. When he took office, President Bush inherited an economy in steep decline. The stock market bubble had been pierced. We were then shocked by terrorist attacks and wounded by reprehensible behavior by corporate CEOs that hurt employees, investors and investor confidence.
We are fortunate that our economy is the most open, flexible, adaptive and resilient in the world. Our powerful core elements – small-business owners and entrepreneurs, an outstanding workforce, and the simple fact that we operate as a free market – have enabled us to recover from those very difficult economic times.
Sound monetary policy from the Federal Reserve Board helped to stimulate our recovery as well. Lower interest rates encouraged investment, which is critical for economic recovery and growth.
Finally, President Bush's tax cuts gave our economy the oxygen it needed to right itself, and continue on a path of growth and job creation. The tax relief allowed individuals and small businesses to keep more of their own money and spend or invest it how they saw fit. This method of economic stimulus is tried-and-true; it worked this time and it worked extremely well.
That said, we have many challenges ahead. We are not satisfied with job creation while there are still Americans seeking work. Our economy is so resilient, yet we have to keep constant watch on what might be weighing it down.
Rising health-care costs are acting as an economic head-wind, and that's one of the reasons I'm so glad we're talking about it here today.
When it comes to politics and government, people often refer to health care as a "social issue." And there is no doubt that few things mean more to a family, on a very personal level. But it is also an economic issue of staggering proportions. I'm concerned with what the cost of health care means to a family's budget… and what it means to the federal government's budget.
One thing is for sure: both family budgets and government budgets are bending under the weight of increasing costs for health care and health insurance. For some families and individuals, the terrible result has been: going without health insurance coverage. Forty-five million people are uninsured, and that is of great concern to President Bush.
A closer look at that number reveals that more than half of those without coverage are working for small businesses. I'm sure this comes as a surprise to no one in this room today. And any public official who has ever talked to a small-business owner has likely heard the same urgent plea: "please do something about my health insurance." This is what I hear, time and time again, as I travel the country and meet business owners.
Small business is caught in a very, very tough spot when it comes to purchasing health care coverage. I'm not sure any other issue feels less fair to the operator of a small firm.
In much the same way that it is more affordable per item to buy groceries "in bulk," it is more affordable, per employee, to purchase insurance for hundreds or thousands of employees. Purchasing it for four or five employees is the economic equivalent of buying water one bottle at a time instead of installing a cooler holding multiple gallons in your home or office.
Add to that the insurance reality of "risk pools." The more people in the group, the larger the risk pool… and the more affordable the insurance is, per person.
The President appreciates how important this issue is to those of you who own small firms. He knows that employees of a small or medium-sized business are like extended family to you. Many of them are actual family members. So when health insurance rates are rising steeply and becoming harder and harder to afford, a good business owner has many sleepless nights.
Small business is crying "uncle" on this issue… and they have been for some time. We hear you. That's why the President has made the creation of a variety more affordable insurance options a priority.
The creation of Association Health Plans (AHPs) would go a long way in addressing these cost issues for small businesses and their employees. The President has fought for legislation that would allow for their creation since the day he took office. Congress needs to pass this important part of the President's agenda.
AHPs would allow small firms like the ones represented in this room today to band together, across state lines, to form health-insurance purchasing groups. This would bring the benefit of economies of scale, dramatically broaden risk pools, and therefore lower the cost of health insurance for this group of people who struggle so much with the ever-rising cost of premiums. The Congressional Budget Office estimates that small businesses could save 13-25 percent on premiums with AHPs.
AHPs speak to that issue of fairness… it's only fair that the owners and employees of small firms have the same purchasing power as larger companies.
This Administration will continue to fight for AHPs on Capitol Hill. In the mean time, we have enacted another reform that is helping small businesses and individuals today.
The creation Health Savings Accounts (HSAs) is bringing a revolutionary option to Americans when it comes to purchasing health coverage. HSAs were created as part of the Presidents Medicare reform legislation. They are like super-charged IRAs that put patients back in charge of their health care. You own it, you control it, and you can leave it to your heirs.
One of the top benefits of HSAs is the fact that both employers and employees can save money by using them. And that's good news for the future of health coverage in this country. We need it to be more affordable so we can get more people covered.
I was delighted to learn that companies who offer HSAs are reporting to the Treasury Department that among those who sign up for the program, 25-40% of the enrollees were previously uninsured.
HSAs are a great start, a terrific new option for the small business community… but more must be done to address the rising cost of health care in this country. Health insurance premiums are acting as a drag on the small employers that mean so much to our economy.
Health care is an economic priority, and small business is an economic priority. That's why the President wants to keep taxes low on small firms. Here in
The President understands that creating an environment in which
We have plenty of work to do – in
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