Rep. Pete Olson today issued the following statement in strong opposition to the Pelosi health care bill, H.R. 3962:

“Americans need reforms that will lower costs, increase access and provide coverage for individuals with pre-existing conditions while maintaining individual choice in health care.  As we know in Texas, medical liability reform lowers health costs. Sadly the massive government controlled version of health care envisioned by Speaker Pelosi and passed by the House of Representatives with no Republican input today achieves none of these priorities.

“Raising taxes, eliminating choices for Americans and placing the government in charge of health care is not reform at all.  That is why I opposed this bill and encourage the Senate to adopt these Republicans policies or start all over from scratch.  If Congress truly worked on this together, we could achieve meaningful reforms that do not place jobs and our economy at risk or remove personal decisions from how individuals manage health care.”

The following issues are some of the primary reasons I voted against H.R. 3962:

Job Loss and a Fragile Economy - The latest unemployment numbers place U.S. unemployment at an alarming 10.2%, and yet not only will H.R. 3962 increase health insurance premiums for small businesses and their workers, but it imposes more than $136 billion in taxes on businesses that can’t afford government approved insurance for their workers.  President Obama’s Chair of the Council of Economic Advisors found this employer mandate will kill more than 5.5 million jobs during a time of growing unemployment.

Tax Increases - If an individual does not currently have health coverage, on page 297, section 501 would impose a 2.5 percent tax on all individuals who do not purchase “bureaucrat-approved” health insurance.  That tax would apply on individuals with incomes under $250,000. Employers in my district have also candidly stated that dropping private insurance for employees and instead paying a mandatory 8% surtax makes the most economic sense.  Employees will no longer have the choice to keep the coverage they currently have under this scenario.

Cuts to Medicare - This bill also hurts seniors in the form of costly cuts to Medicare. The Congressional Budget Office (CBO) estimates that this bill would cut Medicare by $505 billion over the next ten years and in the following decade Medicare cuts will increase by 10 to 15 percent per year.  These cuts to Medicare will reduce benefits and raise premiums for our nation’s seniors. 

No Tort Reform - Medical liability reform in Texas has encouraged more than 16,000 doctors to come to our state and provide treatment, many in rural areas that were previously under served. Allowing physicians to focus on treating patients instead of practicing defensive medicine has reduced costs for care in Texas.  Sadly there is no liability reform in this legislation.

Cuts to Physician Owned Hospitals - The Houston area has 18 physician owned hospitals that provide critically important care.  This bill would prevent these hospitals from adding beds or otherwise increasing capacity and Medicare payments to any new doctor-owned hospitals would be prohibited. These hospitals provide patients with choice and options for their health care delivery.  Denying them the ability to grow would cause shortages and patients in our region to suffer.

Removing Choice for Individuals Coverage - This bill would also strip Americans of their right to choice in health care coverage.  Page 94--Section 202(c) prohibits the sale of private health insurance policies, beginning in 2013, forcing individuals to purchase coverage through the federal government.

Bipartisan/Fiscally Responsible Alternatives - The Republican alternative health care bill has been determined by CBO to lower health care premiums by 10% and reduce the federal deficit over 10 years by $68 billion.  Our alternative gives small businesses the same tax incentives for providing health that large corporations have.  It allows small businesses to band together to negotiate lower premiums to provide affordable coverage to employees and provides high risk pools to provide coverage for individuals with pre-existing conditions.

###