| FOR IMMEDIATE RELEASE October 28, 2005 |
Contact: Joy Fox (401) 732-9400 |
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Unveils legislation, hosts bipartisan panel discussion at National Press Club | |
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(Washington, D.C.)–Congressman Jim Langevin (D-RI) announced today his legislative proposal to reform the nation’s health care system. The American Health Benefits Program, based on the existing Federal Employee Health Benefits Program, would offer affordable health coverage eligibility to all Americans. “My American Health Benefits Program (AHBP) is a proposed system of managed competition, to provide all Americans with access to affordable health care,” said Langevin. “It is time to open a dialogue to explore new ways of thinking about health insurance. Such constructive, bipartisan conversations will require a great deal of time, study, and work by many parties, but I am confident it can be done. My proposal introduces a viable concept and leaves room for further discussion.” The AHBP legislation recognizes that any successful health insurance program must be based on three principles:
Langevin’s proposal would leverage the negotiating power of the federal government by extending this program to all Americans. The government would provide a defined contribution toward every enrollee’s premium and actively manage and regulate the process of informed consumer choice, motivating private insurance companies to produce a favorable combination of efficiency and equity. Plans will compete for enrollees on the basis of benefits as well as efficiency, service and price. “My vision is that all Americans will one day have access to the same level of care as Members of Congress,” said Langevin. “My proposal will include all Americans who are currently fragmented throughout the employer-based market, purchasing health care on their own in the private sector or are uninsured.” Langevin's plan also includes a new option for participation by businesses, the driving force behind providing health care services for the vast majority of working Americans. Businesses contribute over $400 billion to the health care system and negotiate health care plans for 75 percent of Americans in the workforce. “Clearly, we need their continued participation,” said Langevin. “My experience with business owners has shown me that they recognize the value of a healthy workforce and they want to participate – their cries for relief have been driven not by a reluctance to remain engaged in the system, but by volatile increases in premiums and the burden of negotiating with insurance companies.” Under Langevin’s proposal, employers currently negotiating plans and offering health insurance as a benefit may continue to do so. Alternatively, they may choose to participate in the system by contributing to the financing of AHBP through a fixed, predictable, mandatory payroll tax. “I believe that many employers, particularly small business owners, will see the latter as a better business decision – contributing directly to the AHBP funding stream would relieve them of the hours spent negotiating with health insurance companies and the unpredictable cost increases that plague today’s health insurance environment,” said Langevin. Choosing the payroll option, for many, would amount to less than they currently spend on premium contributions and on the administration of their health care plans. This revenue, in turn, would help pay for the health care premiums of every participating American. “Finding appropriate health care funding mechanisms will require lengthy bipartisan discussions,” continued Langevin. “And I am willing to start by offering this proposal. More than anything, I hope my plan is a starting point for meaningful dialogue and action on this most important issue.”
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