The three committees, which have been working together on health insurance reform, have now each approved health care legislation. H.R. 3200 is expected to be considered by the full House in September.

For more information on the America’s Affordable Health Choices Act, click here.

EXPOSING DECEPTIVE CAMPAIGN OF FEAR AND MISINFORMATION

Some of the myths, falsehoods and misinformation being aggressively peddled by Republicans and opponents of health insurance reform include:

Boehner Peddles “Baseless” end of life myth. Claim that House Dem bill pushes suicide is “nonsense.” House Republican Leader John Boehner continues to get his facts all wrong on the House Democratic health reform bill.  This time, the non-partisan FactCheck.org labeled his claim that the House bill encourages euthanasia, “baseless.” According to FactCheck.org: “Our inboxes have exploded recently with worried queries from readers who have heard that the House’s proposed health care bill, H.R. 3200, contains a provision that would require that ailing seniors be pressed to consider suicide in order to save the taxpayers money on Medicare. Most messages mention that this clause appears on page 425 of the legislation…. The claim that the bill would "push suicide" is a falsehood…. At least two Republican leaders have echoed this end-of-life distortion. On July 23, Republican Rep. John Boehner of Ohio, the House minority leader, released a statement, along with Republican Policy Committee Chairman Thaddeus McCotter of Michigan, saying that the bill would encourage euthanasia.” [False Euthanasia Claims, FactCheck.org, July 29, 2009]

Republicans use “deceptive assaults” to stop health insurance reform.  “Republicans in Washington seem to be shifting into overdrive to keep a health system overhaul from passing Congress before the August recess. Yesterday, July 22, brought two more deceptive assaults (that we know of) on the pending bills, one from Minority Whip Eric Cantor and the other from the top GOP member of the House Immigration Subcommittee, Steve King of Iowa.” [Misleading GOP Health Care Claims, FactCheck.Org, July 23, 2009]

Cantor’s video “inflates” cost of bill by “more than 50%.” “Cantor’s is in the form of a video that accuses Obama and the Democrats of being in a “reckless rush” to finalize a reset of the system. “How much will it cost?” the narrator asks, as photos of House Democrats flash onscreen. “$1.6 trillion?” Actually, in a preliminary analysis released July 14 (and updated July 17), the Congressional Budget Office scored the House tri-committee group bill as costing a net $1.042 trillion. Cantor’s video inflates that number by more than 50 percent.” [Misleading GOP Health Care Claims, FactCheck.Org, July 23, 2009]

Cantor’s ad fails to mention there “is no Republican plan.” “In the sunny wrap-up to the ad, the narrator describes “the Republican plan”: “If you like what you have, you can keep it,” he says. “Access to an affordable basic coverage.” But there is no plan around which Republicans have coalesced. Back in May, some GOP lawmakers offered a bill that would have cut the tax deduction that employers get for offering their employees health insurance plans, and given workers tax credits instead. But there’s been little talk of the bill since then. And Missouri Republican Rep. Roy Blunt was tapped to head a GOP health care task force in February, which was charged “with crafting Republican solutions to increase Americans’ access to quality, affordable health care,” but which so far has produced no plan and seems unlikely to do so.” [Misleading GOP Health Care Claims, FactCheck.Org, July 23, 2009]

Employer Mandate Is Not A “Jobs Tax.”   Wonk Room: "If the Energy and Commerce compromise comes to pass, 87 percent of businesses would be exempt from the mandate, since they have a payroll of less than $500,000. Even before the compromise, 77 percent of businesses would have been unaffected by the mandate. The only small employers that will be affected by the full scope of the mandate are firms with few employees who are making a lot of money — law firms, for instance. And chances are, businesses of that sort already provide insurance. " http://wonkroom.thinkprogress.org/2009/07/30/wsj-job-tax/

Reform Won’t Ration Care.  The most common argument for why health reform will ration care focuses on Comparative Effectiveness Research (CER).  According to the Wonk Room, conservatives “argue that the Center for Medicare and Medicaid Services (CMS) could use the information to make coverage decisions for Medicare. And three, if the government uses the comparative research results to establish best practice guidelines, then doctors who don’t follow the guidelines but rather consider the individual needs of their patients, could be liable for malpractice claims…. the last two arguments fall apart on close scrutiny.  The government isn’t mandating that doctors adopt the results of CER and it is not rationing care. Each patient has his or her unique needs and the ultimate decision for how to proceed should be left to the doctor and the patient. Currently, approximately one-third of all treatments have never been proven to produce better outcomes; CER would provide doctors with unbiased information about the most effective treatments, help doctors and patients make better informed decisions, and improve the quality of care.”
http://wonkroom.thinkprogress.org/2009/06/19/republicans-offer-redundant-cer-amendments/
 
Republicans Opposed Medicare In 1960s By Warning Of Rationing, “Socialized Medicine.” Ronald Reagan: “[I]f you don’t [stop Medicare] and I don’t do it, one of these days you and I are going to spend our sunset yearstelling our children and our children’s children what it once was like in America when men were free.” [1961] Barry Goldwater: “Having given our pensioners their medical care in kind,why not food baskets, why not public housing accommodations, why not vacation resorts, why not a ration of cigarettes for those who smoke and of beer for those who drink.” [1964] Bob Dole: In 1996, while running for the Presidency, Dole openly bragged that he was one of 12 House members who voted against creating Medicare in 1965. “I was there, fighting the fight, voting against Medicare . . . because we knew it wouldn’t work in 1965.” [1965]
http://thinkprogress.org/2009/07/29/medicare-flashback/  

Republican claim about coverage for illegal immigrants, “not true.” “King claimed that this is what the Congressional Budget Office’s recent analysis of House health care legislation said. But it didn’t. His press release also said that the 5.6 million would be covered “in large part because the liberal proposal does not include any requirements to verify the citizenship or immigration status of those receiving taxpayer-funded health benefits.” That’s not true, either.” [Misleading GOP Health Care Claims, FactCheck.Org, July 23, 2009]

Canadian style health care? A “straw man argument,” based on opinion piece “riddled with errors.” “One ad claims that ‘Washington wants to bring Canadian-style health care to the U.S.’ But the health care bills moving through Congress don’t call for a single-payer system like Canada’s… Obama, too, has said repeatedly that he doesn’t back a conversion to a single-payer system…. But as we've said about other ads, all this sets up a straw man argument, criticizing Canada's health care system despite the fact that a purely government-run system isn't what's being seriously considered in Congress or being proposed by the president.” [Canadian Straw Man, Fact Check.org, June 17, 2009]

Insurance industry “cherry-picks facts” in fight again public option.  “Karen Ignagni, president of America's Health Insurance Plans (AHIP), invoked the statistic to argue against the creation of a government-run insurance option. But the polls are not that simple, and her assertion reveals how the industry's effort to defend its turf has led it to cherry-pick the facts.  The poll Ignagni was citing actually undercuts her position: By 72 to 20 percent, Americans favor the creation of a public plan, the June survey by the New York Times and CBS News found. People also said that they thought government would do a better job than private insurers of holding down health-care costs and providing coverage.” [Health Insurance Industry Spins Data in Fight Against Public Plan, Washington Post, July 22, 2009]

Gingrich claims on cost and taxes of health care plan simply “not the case”.  “As for Gingrich’s twittered claim that the legislation would increase taxes on “virtually everyone,” that’s not the case. The proposal would increase taxes on those with adjusted gross incomes above $280,000 a year or $350,000 a year for couples. That’s not a whole lot of people. The nonpartisan Tax Policy Center projected a little less than 2.2 million households (1.4 percent of all households) would face higher taxes under the proposal. The surtax for those upper-income folks would start at 1 percent and go up to 5.4 percent with top incomes over $1 million. (This New York Times post explains how the surtax would work.)” [Tax-and-Spend Twittering, FactCheck.org, July 15, 2009]

Republicans use “misleading” facts when analyzing health care.  “A new ad from Conservatives for Patients' Rights says that a public health insurance plan now being proposed in Congress “could crush all your other choices, driving them out of existence, resulting in 119 million off their current insurance coverage.”   That's misleading. The 119 million figure comes from an analysis of a plan that would mirror Medicare and be open to every individual and business that wanted it. But that's not the type of public plan President Obama has proposed. Nor is such a plan gaining acceptance on Capitol Hill.” [More Health Care Scare, FactCheck.org, June 11, 2009]

Investor's Business Daily is “perpetuating misinformation” on health care legislation, “page 16 doesn’t allow private insurance.” “Jennifer Tolbert, the (Kaiser Family Foundation) foundation's principal policy analyst, told us that Page 16 doesn't outlaw private insurance.  “There will be individual policies available, but people will buy those policies through the national health insurance exchange,” she said.  The House bill allows for existing policies to be grandfathered in, so that people who currently have individual health insurance policies will not lose coverage. The line the editorial refers to is a clause that says the health insurance companies cannot enroll new people into the old plans.” [The Truth-O-Meter Says: Private health insurance not banned on page 16 of the House bill, Politifact, July 22, 2009]

Rove “wrong”, “false,” “distorting” facts.  “He (Rove) said, “The Lewin Group estimates 70 percent of people with private insurance — 120 million Americans — will quickly lose what they now get from private companies and be forced onto the government-run rolls as businesses decide it is more cost-effective for them to drop coverage.” That's wrong. The report said that people would choose to leave private insurance if given a cheaper option, but the report provided smaller numbers for other options.  The debate in Congress over what a public option will look like is fierce and ongoing. So Rove is picking the worst-case scenario and then distorting the cause and effects. We rate Rove's statement False.” [The Truth-O-Meter Says: Rove's op-ed distorts health study, Politifact, June 12, 2009]

120 million deprived of health care is “not correct,” Pence’s statement “false.”  “But there's a hitch: We'll grant that Congress could come up with a Medicare-style plan and open it to everyone, but it doesn't seem likely. Pence appears to be picking the worst number he can choose. And he doesn't mention the fact that under the scenario laid out by the Lewin Group, people would still have health care coverage and their premiums reduced by 30 to 40 percent. He says the government would “deprive” people of health insurance, when actually the scenario is that they would choose a different option. Finally, we have to include a caveat about the Lewin Group. The group says it operates with editorial independence, but it is a subsidiary of UnitedHealth Group, which also offers private health insurance.” [120 million “deprived” of health care is not correct, Politifact, May 19, 2009]

End of life claim, “pants on fire” “outright distortion,” Republicans “spreading a ridiculous falsehood.”  “Republicans have found many reasons to oppose the Democrats' health care proposal, but this is one of the oddest.  McCaughey incorrectly states that the bill would require Medicare patients to have these counseling sessions and she is suggesting that the government is somehow trying to interfere with a very personal decision. And her claim that the sessions would "tell [seniors] how to end their life sooner" is an outright distortion. Rather, the sessions are an option for elderly patients who want to learn more about living wills, health care proxies and other forms of end-of-life planning. McCaughey isn't just wrong, she's spreading a ridiculous falsehood.” [McCaughey claims end-of-life counseling will be required for Medicare patients, PolitiFact, July 16, 2009]

Lewin Group, frequently cited by GOP, “wholly owned” by “one of the nation’s largest insurers.”  “Generally left unsaid amid all the citations is that the Lewin Group is wholly owned by UnitedHealth Group, one of the nation's largest insurers.  More specifically, the Lewin Group is part of Ingenix, a UnitedHealth subsidiary that was accused by the New York attorney general and the American Medical Association, a physician's group, of helping insurers shift medical expenses to consumers by distributing skewed data. Ingenix supplied its parent company and other insurers with data that allegedly understated the “usual and customary” doctor fees that insurers use to determine how much they will reimburse consumers for out-of-network care.” [Research Firm Cited by GOP Is Owned by Health Insurer, Washington Post, July 22, 2009]

Republicans “break previous promise” to provide health care bill.  “GOP Rep. Roy Blunt has now said Republicans won’t offer a health care bill of their own, breaking a previous promise. Worse, it turns out Blunt is chair of something called the “House GOP Health Care Solutions Group.” Blunt’s quote went up online late yesterday evening: “Our bill is never going to get to the floor, so why confuse the focus? We clearly have principles; we could have language, but why start diverting attention from this really bad piece of work they’ve got to whatever we’re offering right now?” That’s a pretty stark admission that Republicans won’t introduce their own bill solely because they think it’s better politics to keep the focus on the Democrats. It gets better. Head over to the House GOP Health Care Solutions Group’s Web site, and you’ll find prominent video of Blunt vowing the GOP is “drafting our own legislation.”” [Leader Of GOP Health Care “Solutions Group” Says GOP Won’t Offer Health Care Bill, Washington Post’s Plum Line, July 23, 2009]

Americans support need to “pay for the cost of health care reform.”  “A proposal has been made to raise taxes on those who earn more than $250,000 a year to pay for the cost of health care reform. Do you favor or oppose raising taxes on those who earn more than $250,000 a year to pay for the cost of health care reform?  48% Favor; 44% Oppose; 8% Not sure.  Another recent poll found that 60% support taxing the wealthy for reform.  So if, as Nelson says, “tax” is a four letter word, the public doesn’t appear to think of it as an epithet when it’s applied to the wealthy in service of health care reform. What’s hard to understand is this reflexive belief that majorities must think the way conservatives do.” [Despite Centrist Claim, People Support Taxing Rich On Health Care, Washington Post’s Plum Line, July 17, 2009]

“Very important progress on health insurance reform has been made today that should be encouraging to everyone who believes reform is a priority for our country.  I commend Chairman Waxman and the members of the Energy and Commerce Committee for coming to an agreement to move the process forward that will allow the full House of Representatives to consider comprehensive health insurance reform in September. In the coming weeks, we will work to reconcile different versions of the bill that reflect all the hard work that our three committees have completed. I am confident that when Congress returns, we will pass a bill that will deliver the real reforms the American people want and deserve: lower costs, more choices of doctors and health plans, and access to quality, affordable health care for all.”  

The Education and Labor Committee passed the legislation on July 17. For more information, click here.

“This analysis is proof that our bill will meet President Obama’s direction to build on what works in our current system and fix what’s broken,” said U.S. Reps. Henry A. Waxman (D-CA), Charles Rangel (D-NY) and George Miller (D-CA), the Chairman of the House Committees on Energy and Commerce, Ways and Means and Education and Labor. “It reinforces that we are on track to delivering reforms that will reduce costs for American consumers and businesses, ensure access to quality, affordable health insurance for all and give Americans the peace of mind of knowing their coverage can never again be denied or taken away.”

The analysis confirms that provisions in H.R. 3200, such as the individual and employer responsibility requirements, retaining the tax benefit for employer-sponsored insurance, and the targeted income-related structure of affordability credits would result in dramatically increased coverage without crowding out private insurance.

The analysis specifically refutes estimates released by the Lewin Group, a research firm funded by one of the nation’s largest insurance companies, that significantly exaggerate the number of Americans who would enter into the public health insurance option.

Some key excerpts from the CBO letter:

INCREASE IN EMPLOYER SPONSORED INSURANCE COVERAGE. “We estimate that about 12 million people who would not be enrolled in an employment-based plan under current law would be covered by one in 2016, largely because the mandate for individuals to be insured would increase workers’ demand for insurance coverage through their employer.”

MEDICAID COVERAGE DOES NOT CROWD OUT PRIVATE HEALTH INSURANCE. “CBO does not anticipate a substantial shift from private insurance to Medicaid. Specifically, we estimate that about 1 million people who would otherwise have employment-based insurance or individually purchased coverage would end up enrolling in Medicaid in 2016.”

CBO REFUTES THE LEWIN ESTIMATE OF INFLATED PUBLIC OPTION ENROLLMENT AND CONFIRMS THAT THE PRIVATE PLANS WOULD BE DOMINANT IN MARKETPLACE. “For several reasons, we anticipate that our estimate of the number of enrollees in the public plan would be substantially smaller than the Lewin Group’s, even if we assumed that all employers would have that option.”  [Note:  CBO projects only about 10-11 million individuals in the public option by 2019] 

WHILE THE CBO LETTER INDICATES THAT THEY ARE NOT CERTAIN OF THE HOUSE PROPOSAL’S OVERALL AFFECT ON PREMIUMS, THEY NAME SEVERAL FACTORS THAT THEY EXPECT WILL LEAD TO DECREASED COSTS FOR THE AVERAGE CONSUMER (E.G. ENCOURAGING HEALTHY CONSUMERS TO PURCHASE INSURANCE, REDUCING THE “COST SHIFT” OF THE UNINSURED, AND REFORMS TO MEDICARE). "The resulting pool of enrollees would be somewhat healthier, on average, than is the pool of enrollees in employment-based insurance today; as a consequence, the average cost of covering those enrollees would be several percent lower than under current law (holding other factors equal).”

“The proposal would ultimately reduce the uninsured population by roughly two-thirds, which would greatly attenuate the pressure to shift costs that arises today when uncompensated or undercompensated care is provided to people who lack health insurance. One recent estimate indicates that hospitals provided about $35 billion in such care in 2008—an amount that would grow under current law but would be expected to decline considerably under the proposal.”

“In addition to proposed changes in Medicare’s payment rates, the proposal would also alter some of Medicare’s payment methods—or at least test such changes—which might ultimately reduce private insurance costs to a limited degree… To the extent that future steps to implement such changes in a more aggressive way also changed how doctors treated privately insured patients, some benefits could “spill over” to the private sector.”

CREATING MORE CHOICES FOR WORKER.  “Increasing the availability of health insurance…might also encourage other workers to take jobs that better match their skills, because they would not have to stay in less desirable jobs solely to maintain their health insurance.”

For more information on the bill, including bill text, summary, information on revenue provisions, and fact sheets on the reform provisions in the bill, click here. 

“This fulfills the strong commitment of the President and House leadership to enact health reform on a deficit-neutral basis,” said Chairman Henry A. Waxman, Chairman Charles B. Rangel, and Chairman George Miller.  “The reforms included in this legislation will help control health care costs and expand access to quality, affordable coverage to all Americans in a fiscally-responsible manner.”

The estimates also cover important reinvestments in Medicare and Medicaid, including phasing in the closing of the “donut” hole in the Medicare drug benefit.  The bill’s long-term reform of Medicare’s physician fee schedule to eliminate the potential 21 percent cut in fees, and put payments on a sustainable basis for the future, will cost about $245 billion.  Those costs, however, are not included in the net calculations above, as they will be absorbed under the upcoming statutory “pay go” legislation that is pending in the House.  

“Health care reform is moving forward. This legislation will reduce costs that are crushing workers, families and businesses alike and it will ensure that patients – not insurance companies – hold the power to make decisions about their care,” said U.S. Rep. George Miller (D-CA), the Chairman of the Committee. “These reforms will save jobs, create millions of new careers, improve the health of our workforce and help rebuild our nation’s middle class. Today’s vote is a monumental step forward in our journey to finally fix our broken health care system.”

“I am honored to have participated in the historic passage of America's Affordable Health Choices Act by the Education and Labor Committee,” said U.S. Rep. Rob Andrews (D-NJ), the Chairman of the House Subcommittee on Health, Employment, Labor, Pensions.  “Millions of Americans work hard, play by the rules, and take care of their families.  Yet they suffer from ever increasing health care costs and inadequate health insurance coverage.  Our work was done on their behalf. Our country is now one step closer to a better health care system that will create jobs, promote wellness, and reduce health care costs for all Americans.”

The legislation is consistent with President Obama’s overall goals of building on what works within the current health care system by strengthening employer-provided care, while fixing what is broken. According to the Congressional Budget Office, the bill will cover 97 percent of Americans by 2015, and two million more Americans will have employer-provided health plans by 2019.

H.R. 3200 will make remarkable changes in the way Americans access and receive health care. Among other things, it will establish a new health exchange that allows them to choose from either private insurers or a public health insurance option. Consumers will be protected from abusive and predatory tactics by insurance companies.  Individuals and small businesses will receive subsidies that make health care more affordable. The CBO estimates that 30 million Americans would choose to enter into the exchange, and that one-third – or 9 million – of those people would choose the public health insurance option.

In addition, the legislation strengthens Medicare and Medicaid and makes reforms to the health care delivery system that will help tame long-term costs.

Earlier this week, CBO issued a preliminary estimate of bill’s reforms at a net cost of $1 trillion over ten years. These reforms will be fully paid for through reforms to Medicare and Medicaid that will generate significant savings and a surcharge that will impact only the wealthiest 1.2 percent of all Americans, and only four percent of small businesses.  

The key principles of legislation include, among other things:

Increasing choice and competition. First, the bill will protect and improve consumers’ choices.

• If an individual likes their current plan, they will be able to keep it.
• For individuals who either aren’t currently covered, or wanted to enroll in a new health care plan, the proposal will establish a health care exchange where consumers can select from a menu of affordable, quality health care options: either a new public health insurance plan or a plan offered by private insurers. People will have similar choices that members of Congress have.
• This new marketplace will reduce costs, create competition that leads to better care for every American, and keep private insurers honest. Patients and doctors will have control over decisions about their health care, instead of insurance companies.

Giving Americans peace of mind. Second, the legislation will ensure that Americans have portable, secure health care plans – so that they won’t lose care if their employer drops their plan or they lose their job.

• Every American who receives coverage through the exchange will have a choice of plans that include quality health care benefits.  
• It will end increases in premiums or denials of care based on pre-existing conditions, race, or gender.
• The proposal will also eliminate co-pays for preventative care, cap out-of-pocket expenses, and end lifetime caps on benefits to protect every American from bankruptcy.

Improving quality of care for every American. Third, the legislation will ensure that Americans of all ages, from young children to retirees have access to greater quality of care by focusing on prevention, wellness, and strengthening programs that work.

• Guarantees that every child in America will have health care coverage that includes dental and vision benefits.
• Provides better preventive and wellness care. Every health care plan offered through the exchange will cover preventive care.
• Grows the health care workforce to ensure that more doctors and nurses are available to provide quality care as more Americans get coverage.
• Strengthens Medicare and Medicaid so that seniors, people with disabilities, and low-income Americans receive better quality of care and see lower prescription drug costs and out-of-pocket expenses.

Ensuring shared responsibility. Fourth, the bill will ensure that individuals, employers, and the federal government all share responsibility for a quality and affordable health care system.

• Employers who currently offer coverage will be able to continue offering coverage to workers. Employers who don’t currently offer coverage could choose to cover their workers or pay a penalty.
• All individuals would be required to get coverage, either through their employer or the exchange, or pay a penalty.
• The federal government will provide affordability credits, available on a sliding scale for low- and middle-income individuals and families to make premiums affordable and reduce cost-sharing.

Protecting consumers and reducing waste, fraud, and abuse. Fifth, the legislation will put the interests of consumers first, protect them from any problems in getting and keeping health care coverage, and reduce waste, fraud, and abuse.

• Provides complete transparency in plans in the health exchange so that consumers have the information they need to select the plan that best meets their needs.
• Establishes Consumer Advocacy Offices as part of the exchange in order to protect consumers, answer questions, and assist with any problems related to their plans.
• Identifies and eliminates waste, fraud, and abuse by simplifying paperwork and other administrative burdens. Patients, doctors, nurses, insurance companies, providers, and employers will all encounter a streamlined, less confusing, more consumer friendly system.

Over the past six months, the House Committees on Education and Labor, Ways and Means, and Energy and Commerce have been working together in an unprecedented way as one committee to develop health care reform legislation.

To view a complete summary of the legislation, click here.

View detailed fact sheets and what health care reform means for American families.

H.R. 3200 is supported by a diverse coalition of stakeholders, including the American Medical Association, the AARP, the Consumers Union, and many more.

"The President's proposal recognizes that community colleges can and should be a catalyst for our nation’s recovery. New data shows that jobs that require only an associate’s degree or a certificate are expected to grow faster in the next ten years than jobs that require a bachelor’s degree. We would be making a mistake if we missed this opportunity to adapt our community colleges to the rigors and demands of the 21st century economy we are working to rebuild. This proposal represents exactly the type of investment we’ll need to make if we’re serious about building a lasting economic recovery and leading the world in college graduates by 2020. Tomorrow I will introduce legislation that embraces this and other initiatives that will expand access to quality, affordable educational opportunities.

“Our community colleges have the potential to be much stronger than they are today. Too many institutions don’t have the resources they need to align their courses with the needs of local businesses and employers. Too many of their campuses are in need of serious repair. Too many students, from high school on, aren’t getting the basic skills they need to compete in high-wage jobs, in high-growth industries. And millions of Americans who have lost their jobs in this recession need access to affordable education and training programs that will help get back on their feet and back to work.

“For all of these reasons, President Obama’s proposal is a game-changer for our economy and our competitiveness. It will transform our community colleges into high-quality vessels for education and job training by driving partnerships between community colleges, local employers, and communities. And it will offer free, high-quality, online training courses to help prepare Americans of all ages, from high school and college students to displaced workers, for the careers of the future.” 

The House Committees on Education and Labor, Ways and Means, and Energy and Commerce have been working together in an unprecedented way as one committee to develop the proposal for health care reform. This week each of the three committees will be marking up the legislation, allowing for continued input from members of Congress and the American people.

“American families cannot afford for Washington to say ‘no’ once again to comprehensive health care reform,” said U.S. Rep. George Miller (D-CA), the Chairman of the House Education and Labor Committee. “We are proud to introduce legislation that meets the goals articulated by President Obama – to lower costs, preserve choice, and expand access to quality, affordable health care – while strengthening our economic and fiscal health. We will continue to work with our colleagues in the weeks ahead to deliver the fundamental reforms that the American people want, need and deserve.”

“Reforming America’s health care system to control costs and improve access to quality affordable care is not only the moral thing to do, it is also critical to our economic recovery and the long-term fiscal health of our nation,” said U.S. Rep. Charles B. Rangel (D-NY), the Chairman of the Ways and Means Committee.  “Health care costs are rising out of control, threatening the economic well-being of American families and businesses.  This innovative bill provides a uniquely American solution to control costs and put patients first without burdening future generations with debt.”

“Today we are taking another step forward towards fulfilling our commitment to deliver what the American people decisively voted for last November – access to affordable, quality health insurance for all Americans,” said U.S. Rep. Henry A. Waxman (D-CA), the Chairman of the Energy and Commerce Committee.  “This bill is among our highest legislative priorities this year.  We have taken great care to build on what we have that works and reform what doesn’t.  I look forward to working with my colleagues to refine the bill as it moves through the Committee process.  I am confident that we will succeed in enacting this landmark reform into law.”

“I’m pleased by the progress we’ve made on the America’s Affordable Health Choices Act.  Across the political spectrum – from liberal to conservative with moderates in between – everyone knows health care is a major part of our current economic crisis,” said U.S. Rep. John Dingell (D-MI), the Chairman Emeritus of the Energy and Commerce Committee. “If left unfixed, our health care crisis will cause the next great economic catastrophe.  We can’t afford to let medical costs continue to rise.  We can’t afford to leave people in a system that looks to recruit the healthy and leave the sick uninsured, underinsured or uncertain about their insurance.  The current broken health care system will not fix itself and the people who made billions from it have no reason to change their ways unless we make them.  The bill will address many of the problems we’ve heard from Americans whether they live in rural or urban communities, or are employed by small businesses and large factories.  What we know now is that we must get something done.”

“I am proud to join with my colleagues to introduce America's Affordable Health Choices Act.  This bill meets President Obama's call for health reform that provides coverage for all, promotes delivery system reforms, and controls costs,” said U.S. Rep. Pete Stark (D-CA), the Chairman of the Ways and Means Subcommittee on Health. “Our committee will begin markup this week and have a bill for members to approve before the August recess.”

“People have talked about the need for health care reform for decades, but today that talk is being converted into action,” said U.S. Rep. Frank Pallone, Jr. (D-NJ) the Chairman of Energy and Commerce Subcommittee on Health. “This plan will produce historic change but making history does not come easily. It's taken a lot of hard work and we have more work to do. This is a giant step forward that puts affordable and quality health care within reach of every American and puts our country back on track to fiscal sustainability.”

“Today we are pleased to announce a plan designed to free financial waste within our health care system and get costs under control. This effort ensures that Americans receive better care for their dollar and paves the way for economic growth,” said U.S. Rep. Rob Andrews (D-NJ), the Chairman of the Health, Employment, Labor and Pensions Subcommittee. “While government, businesses and insured Americans continue to bear the heavy financial burden for those who cannot afford coverage, limiting costs will free up the resources necessary to revitalize our economy, put Americans back to work, and expand health care to millions of struggling uninsured Americans.”

The key principles of legislation include, among other things:

Increasing choice and competition. First, the bill will protect and improve consumers’ choices.

• If an individual likes their current plan, they will be able to keep it.
• For individuals who either aren’t currently covered, or wanted to enroll in a new health care plan, the proposal will establish a health care exchange where consumers can select from a menu of affordable, quality health care options: either a new public health insurance plan or a plan offered by private insurers. People will have similar choices that members of Congress have.
• This new marketplace will reduce costs, create competition that leads to better care for every American, and keep private insurers honest. Patients and doctors will have control over decisions about their health care, instead of insurance companies.

Giving Americans peace of mind. Second, the legislation will ensure that Americans have portable, secure health care plans – so that they won’t lose care if their employer drops their plan or they lose their job.

• Every American who receives coverage through the exchange will have a plan that includes standardized, comprehensive and quality health care benefits.  
• It will end increases in premiums or denials of care based on pre-existing conditions, age, race, or gender.
• The proposal will also eliminate co-pays for preventative care, cap out-of-pocket expenses, and guarantee catastrophic coverage that protects every American from bankruptcy.

Improving quality of care for every American. Third, the legislation will ensure that Americans of all ages, from young children to retirees have access to greater quality of care by focusing on prevention, wellness, and strengthening programs that work.

• Guarantees that every child in America will have health care coverage that includes dental and vision benefits.
• Provides better preventative and wellness care. Every health care plan offered through the exchange will cover preventative care.
• Grows the health care workforce to ensure that more doctors and nurses are available to provide quality care as more Americans get coverage.
• Strengthens Medicare and Medicaid so that seniors and low-income Americans receive better quality of care and see lower prescription drug costs and out-of-pocket expenses.

Ensuring shared responsibility. Fourth, the bill will ensure that individuals, employers, and the federal government all share responsibility for a quality and affordable health care system.

• Employers who currently offer coverage will be able to continue offering coverage to workers. Employers who don’t currently offer coverage could choose to cover their workers or pay a penalty.
• All individuals would be required to get coverage, either through their employer or the exchange, or pay a penalty.
• The federal government will provide affordability credits, available on a sliding scale for low- and middle-income individuals and families to make premiums affordable and reduce cost-sharing.

Protecting consumers and reducing waste, fraud, and abuse. Fifth, the legislation will put the interests of consumers first, protect them from any problems in getting and keeping health care coverage, and reduce waste, fraud, and abuse.

• Provides complete transparency in plans in the health exchange so that consumers have the clear, complete information needed to select the plan that best meets their needs.
• Establishes Consumer Advocacy Offices as part of the exchange in order to protect consumers, answer questions, and assist with any problems related to their plans.
• Will identify and eliminate waste, fraud, and abuse by simplifying paperwork and other administrative burdens. Patients, doctors, nurses, insurance companies, providers, and employers will all encounter a streamlined, less confusing, more consumer friendly system.

To view detailed fact sheets and more information on what the health care reform discussion draft means for American families, click here.

“The provisions in this bill will drive energy costs down for consumers and families in the long run and will create millions of clean energy jobs that cannot be shipped overseas,” Miller added. “And, in a very important step, under our bill American workers will be able to take advantage of opportunities that will help them transition into the new sustainable careers of the future.”
 
As chairman of the Education and Labor Committee, Miller wrote into the bill significant provisions to ensure workers affected by climate change policy have access to health care coverage, income support, and employment services so they can transition into green economy jobs.

Among other provisions to assist workers in transition, eligible workers impacted by the new energy policy would:

•    Receive income support equal to 70 percent of their income for up to 156 weeks;
•    Receive an 80 percent credit toward their monthly health care premiums;
•    Have access to job training opportunities, including on-the-job training programs, as well as other support services; and
•    Receive job search allowances and relocation assistance, up to $1,500 for each.

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.

Over the past several months House Committees on Education and Labor, Ways and Means, and Energy and Commerce have been working together as one committee – an unprecedented approach – to develop one proposal for health care reform. In releasing their discussion draft today, the chairmen reiterated that they will continue to seek the input of all members and stakeholders during hearings and markups in the coming weeks.
 
“Today marks a historic moment in America’s urgent quest to fix our broken health insurance system,” said U.S. Rep. George Miller (D-CA), the Chairman of the Education and Labor Committee. “Our discussion draft is the first step in delivering on the fundamental change that President Obama has called for, and that families and businesses need, by building a truly American solution to reduce costs, offer real choice, and guarantee affordable, quality health care for all.”

“President Obama issued a call to action to reform our nation’s health care system and the House Committees have answered in an unprecedented way, working as one to produce a draft that will help control costs, preserve and expand coverage and strengthen Medicare and Medicaid,” said U.S. Rep. Charles B. Rangel (D-NY), the Chairman of the Ways and Means Committee Chairman.  “In the coming weeks, we will continue working with our colleagues and stakeholders to move this draft forward so we can create a new day in American health care that will benefit our nation for generations to come.”

“This draft sets out a very practical and uniquely American proposal,” said U.S. Rep. Henry A. Waxman (D-CA), the Chairman of the Energy and Commerce Committee.  “It fulfills President Obama’s commitment to provide quality, affordable health care for all.  Nothing is more important to the long term health of the American people.”

“We are beginning an important process that I am confident will make history. The discussion draft is the first step towards creating a distinctly American Solution to our health care crisis. This bill includes a public option, which will provide the American people with a real choice,” said U.S. Rep. John Dingell (D-MI), the Chairman Emeritus of the Energy and Commerce Committee. This public option will lower costs and establish consumer protections that private companies have refused to commit to. The cooperation between Chairmen Miller, Rangel and Waxman is unprecedented and it is my pleasure to be working with them. We are committed to working with all the members in writing a bill that will provide quality, affordable care for all but also prevent the next great economic crisis we face.”

"We are not going to have economic growth until our health care system is fixed. Nearly a fifth of our economy is spent on health care, and while our world competitors continue to offer more efficient care, America lags behind,” said U.S. Rep. Rob Andrews (D-NJ), the Chairman of the Health, Employment, Labor and Pensions Subcommittee. “Insured Americans bear the heavy financial burden for those who cannot afford coverage and millions of struggling families cannot meet the rising costs. This plan is about freeing financial waste within our system and getting more value for our dollar so that we can afford to cover the 46 million uninsured Americans and freeing up money to be invested toward out nation’s economic growth.”

"Today's draft is the result of cooperation between members of the House.  The bill provides affordable, quality health care for all," said U.S. Rep. Pete Stark (D-CA), the Chairman of the Ways and Means Subcommittee on Health. "The discussion draft builds on what works.  It keeps employer-sponsored insurance, makes market reforms, and limits catastrophic costs.  The draft improves the Medicare program; eliminating co-pays for preventive care and the 'donut hole.'"

"While this country has the best medical care in the world, fewer and fewer people are able to access it and more and more people can't afford it," said U.S. Rep. Frank Pallone, Jr. (D-NJ) the Chairman of Energy and Commerce Subcommittee on Health. "Today we are taking a big step towards historic health care reform for all Americans. History is not often made in a day and it certainly won't be made without continued hard work, but this plan is a big step on a truly meaningful issue. A new day for health care is now closer in sight."

The key principles of the House Democratic discussion draft for health care include, among other things:

• If an individual likes their current plan, they would be able to keep it.
• For individuals who either aren’t currently covered, or wanted to enroll in a new health care plan, the proposal would establishes a health care exchange where consumers can select from a menu of affordable, quality health care options: either a new public health insurance plan or a plan offered by private insurers. People will have similar choices that Members of Congress have.
• This new marketplace would reduce costs, create competition that leads to better care for every American, and keep private insurers honest. Patients and doctors would have control over decisions about their health care, instead of insurance companies.

Giving Americans peace of mind. Second, the proposal would ensure that Americans have portable, secure health care plans – so that they wouldn’t lose care if their employer drops their plan or they lose their job.

• Every American who receives coverage through the exchange will have a plan that includes standardized, comprehensive and quality health care benefits.  
• It would end increases in premiums or denials of care based on pre-existing conditions, age, race or gender.
• The proposal would also eliminate co-pays for preventative care, cap out-of-pocket expenses and guarantee catastrophic coverage that protects every American from bankruptcy.

Improving quality of care for every American. Third, the proposal would ensure that Americans of all ages, from young children to retirees have access to greater quality of care by focusing on prevention, wellness and strengthening programs that work.

• Guarantees that every child in America will have health care coverage that includes dental and vision benefits.
• Provides better preventative and wellness care. Every health care plan offered through the exchange would cover preventative care.
• Grows the health care workforce to ensure that more doctors and nurses are available to provide quality care as more Americans get coverage.
• Strengthens Medicare and Medicaid so that seniors and low-income Americans receive better quality of care and see lower prescription drug costs and out-of-pocket expenses.

Ensuring shared responsibility. Fourth, the draft would ensure that individuals, employers and the federal government all share responsibility for a quality and affordable health care system.

• Employers who currently offer coverage would be able to continue offering coverage to workers. Employers who don’t currently offer coverage could choose to pay for their workers to gain health care coverage through the exchange or pay a penalty.
• All individuals would be required to get coverage, either through their employer or the exchange, or pay a penalty.
• The federal government would provide affordability credits, available on a sliding scale for low- and middle-income individuals and families to make premiums affordable and reduce cost-sharing.

Protecting consumers and reduces waste, fraud and abuse. Fifth, the proposal would put the interests of consumers first, protect them from any problems in getting and keeping health care coverage, and reduce waste, fraud and abuse.

• Provides complete transparency in plans in the health exchange so that consumers have the clear, complete information needed to select the plan that best meets their needs.
• Establishes Consumer Advocacy Offices as part of the exchange to protect consumers, answer questions and assist with any problems related to their plans.
• Would identify and eliminate waste, fraud and abuse by simplifying paperwork and other administrative burdens. Patients, doctors, nurses, insurance companies, providers and employers would all encounter a streamlined, less confusing, more consumer friendly system.

To view a complete summary of the discussion draft, click here.

To view detailed fact sheets and more information on what the health care reform discussion draft means for American families, click here.

The three Chairmen released the following joint statement on their efforts to develop health reform legislation:

“Our Committees are working as one to develop a uniquely-American solution to the health care crisis that is endangering the financial security of individuals and businesses.  This solution will fulfill President Obama's commitment to provide quality, affordable health care for all.  This framework will build upon what works by ensuring that patients can keep their health coverage if they like it, preserve patients’ choice and reduce costs.  We will also fix what is broken through marketplace reforms, sliding scale credits to make coverage more affordable, and provisions to combat waste, fraud and abuse, strengthen Medicare and Medicaid, and invest in the health care workforce and public health.  By improving the current system and offering a public health insurance option to promote honest competition with private insurance plans, we will provide individuals and small businesses with better, more affordable choices.

“We will continue to seek input and work closely with our colleagues, outside stakeholders, and the Administration and are on track to introduce legislation shortly.  We anticipate Committee action on health reform in the coming weeks, with legislation on the House Floor prior to the August district work period.  Reforming America’s health care system is critical to our country’s long-term economic recovery and long-term fiscal health.  We are confident that we will achieve reform that will give Americans peace of mind and return our great nation to a path of prosperity for generations to come.”  

Please click here to view the outline provided by the Chairmen during today’s House Democratic Caucus meeting.

“We thank President Obama for convening this productive meeting and Speaker Pelosi and Leader Hoyer for their strong leadership. As the Speaker said, we are ready to get the job done. We look forward to working with the administration and all of our colleagues in the House to pass a strong health care reform bill by the end of July that meets President Obama's principles: reining in skyrocketing costs, guaranteeing patients’ choice in selecting their health care plans and doctors, and ensuring that everyone has access to quality and affordable coverage that meets their needs.”

The chairmen have pledged to work together in an unprecedented way, as one committee, to pass a bill in the House before the August recess. To view their original letter to the President outlining this goal, click here.

“With our nation facing a swine flu outbreak, and the need for health care reform growing by the day, I am pleased that the Senate has finally confirmed Kathleen Sebelius as our next Secretary of Health and Human Services. Secretary Sebelius’s leadership and experience will be a tremendous asset to our efforts to fix our broken health care system and ensure that all Americans have access to access to quality and affordable health insurance. Momentum is growing for passing a comprehensive reform package this year with the Obama administration and Congress united in our belief that improving health care is fundamental to rebuilding a strong economy.”

Miller and the chairmen of the two other House committees of jurisdiction, U.S. Reps. Henry Waxman (D-CA), and Charles Rangel (D-NY), are working together, in an unprecedented way, to pass health care reform legislation in the House by the August recess. For more information on their efforts, click here.

House Democrats continue to be very focused on the goal of passing a comprehensive health care reform package this year. In the 111th Congress, the three committees of jurisdiction have conducted 10 hearings on health care reform, including two this week. Over the April District Work Period, Democrats held more than 150 health care related events in their districts on the need for reform.  The goal is to pass a comprehensive health care bill through the House by August.
 
Other members participating in the meeting were Rep. John D. Dingell (MI), Chairman Emeritus of the Energy and Commerce Committee; Rep. Frank Pallone, Jr. (NJ), Chairman of the Energy and Commerce Subcommittee on Health; Rep. Pete Stark (CA), Chairman of the Ways and Means Subcommittee on Health; and Rep. Rob Andrews (NJ), Chairman of the Education and Labor Subcommittee on Health, Employment, Labor and Pensions.

Dear Mr. President:

We are writing to thank you for organizing the White House Forum on Health Reform last week and to let you know of our intention to work closely together to pass national health reform.  Comprehensive reform is essential to controlling health care costs, reviving our economy, and expanding coverage.  We are committed to working with you to pass this legislation this year.

In the House, jurisdiction over health reform is shared among three primary committees.  As chairs of these committees and veterans of past health reform debates, we have agreed to coordinate our efforts.  Our intention is to bring similar legislation before our committees and to work from a harmonized approach to ensure success.

We have also agreed on a timetable for our joint efforts.  In order to achieve our shared goal of enacting health reform this year, we will coordinate our committee consideration so that action on the House floor can occur before the August recess.

Your health care forum gave these efforts a strong start.  As we proceed, we look forward to working closely with you, senior Administration officials, and our colleagues in the Senate.  We will also be broadly reaching out to members of the House to build wide support for this essential effort.  Your leadership and guidance are critically important to our collective success.

Sincerely,

George Miller	Henry A. Waxman	Charles B. Rangel
Chairman	Chairman	Chairman
Committee on Education and Labor	Committee on Energy and Commerce	Committee on Ways and Means

“Coverage continues to grow increasingly unaffordable to employers, which has contributed to the precipitous decline in employer-sponsored health coverage over the past decade,” said U.S. Rep. Rob Andrews (D-NJ), chairman of the committee. “In particular, small employers have struggled to meet these rising costs.”

According to the U.S. Census Bureau, employers offering health care coverage to its workers have dropped from 59 percent in 2001 to approximately 55 percent in the latest data. Employers most often cite the escalating premiums as why they drop coverage or do not offer health insurance coverage at all.

“It is not easy to provide insurance to all our employees,” said Mark Derbyshire, a small employer from Aberdeen, Maryland. “Every year, the premiums go up and every year I have to go back to our employees to ask them to give a little more.”

Derbyshire said that other businesses that do not offer health coverage to their workers are causing costs stresses on the system. He said that uninsured workers who cannot afford health treatments pass on those costs in the form of higher premiums to employers like him.

Health care providers agree.

“Health care providers such as Cooper with a great volume of patients that are uninsured or under-insured, must shift their costs to their paying patients,” said John Sheridan, CEO of Cooper University Hospital in Camden, N.J. “Cooper is a safety-net health care provider and we are there for our patients without regard for the patients’ ability to pay. Hospitals such as Cooper must shift expenses to those with health insurance.”

According to Kenneth Thorpe, chair of Emory University’s department of health policy and management of the Rollins School of Public Health, the 47 million uninsured Americans ran up $57.4 billion in uncompensated care in 2008.

“When they can, hospitals and physicians shift rising uncompensated costs from the uninsured as well as the underinsured to private payers,” said Thorpe. “It is clear that private payers pay more and that these higher payments are used by providers to defray the costs of care for other patients.”

Many employers who offer workers health insurance coverage view it as a vital benefit to attract and retain the best employees. But, without significant reforms to address skyrocketing costs, the employer-based health care coverage system will continue to shrink.

“Employers have a vested interest in the health and productivity of their workforce and the employer-based system has consistently produced innovative health care solutions,” said James Winkler, a health management consultant with Hewitt Associates LLC. “The poor health of employees not only affects an employer’s health care costs, it can also directly affect employer costs in terms of lost productivity, absence from work, and higher disability costs. This system is increasingly at great risk, given the combination of cumulative increases in health care costs and the current severe economic downturn.”


Created with flickrSLiDR.

“Our health care crisis intensifies by the day, as this recession continues to threaten health care coverage for millions of Americans. Lives are literally on the line: As more workers lose their jobs, more families lose health insurance. This administration and Congress have already made early progress to address this by helping workers maintain their health care coverage between jobs. By reducing the COBRA premiums for workers who’ve lost their jobs in this recession, we’ve extended a lifeline for seven million Americans who need affordable health insurance.

“But as President Obama has said, we have to insist on affordable health care coverage for every child, every older American and every worker as a basic moral principle. Today was just the beginning. I look forward to working with President Obama, the relevant committees of jurisdiction in the House, and across party lines to expand access to affordable, quality health care coverage for America’s workers and families. With the political will, commitment and leadership President Obama is showing, I believe we can finally deliver on ground-breaking health care reform that will help solve our long-term fiscal challenges and get Americans the coverage they deserve.”

Miller’s committee is planning a series of hearings to examine improving health care coverage for workers. It begins next week as the House Health Employment, Labor, and Pensions Subcommittee holds a hearing on strengthening employer-based health care.

Prior to today’s summit, Miller met privately with President Obama and U.S. Rep. Howard “Buck” McKeon (R-CA), the committee's senior Republican, to discuss the committee’s agenda of rebuilding and strengthening the nation’s middle class.

“Unemployed workers who have been hit hard by this recession are just one family illness away from bankruptcy,” said Ways and Means Health Subcommittee Chairman Pete Stark (D-CA). “This bill extends coverage to those who need it the most, and sets the groundwork for ensuring coverage for all as we pursue comprehensive health reform this year.”

“It is completely predictable that, in this recession, millions of low-income American workers and their families with lose their jobs and join the ranks of the uninsured.  We can’t just sit by and let this happen,” said Rep. Henry Waxman (D-CA), chairman of the Energy and Commerce Committee. “This bill allows states, through their Medicaid programs to provide immediate help to these families until they can find employment.  The additional federal funds will help hospitals, physicians, community clinics, and pharmacies make their payrolls and keep the staff they need to continue to serve the newly unemployed.”

“As the unemployment rate continues to grow, so will the number of uninsured,” said Rep. George Miller (D-CA), chairman of the House Education and Labor Committee. “COBRA coverage is a lifeline to millions of Americans and it is crucial that out of work Americans have access to affordable health insurance.”

Under current law, eligible workers may continue to receive health coverage through a previous employer’s health plan for up to 18 months, but are responsible for 102 percent of the cost of that coverage. Three provisions in the American Recovery and Reinvestment Act (H.R. 1) would provide help to these workers by:

• Providing a 65 percent subsidy for COBRA premiums for up to 12 months for workers who have been involuntary terminated between September 1, 2008 and December 31, 2009;
• Making funding available to states that elect to provide Medicaid coverage to unemployed and uninsured individuals and their families; and
• Extending the qualification for COBRA benefits for older and long term workers until they obtain new employer-sponsored coverage or become eligible for Medicare.

To view a fact sheet on these provisions, click here.

For more information on the American Recovery and Reinvestment Act, click here.