Today, in one of the most historic votes in a generation, Congressman Brian Higgins (NY-27) joined his colleagues in the House of Representatives in approving health insurance reform for Americans.

"Americans should be leading the world in providing access to quality health care and today we made a necessary and extraordinary step in that direction," said Congressman Brian Higgins, a member of the House Ways & Means Committee.   "The status quo was costing us $2.5 trillion annually, and despite the exorbitant expense, according to the World Health Organization, we're 37th of 192 countries in terms of overall healthcare quality.  The old way of doing business was unaffordable, unacceptable and unsustainable for taxpayers and patients alike and this measure, which has been debated for the last year an a half in this Congress and in other formats over many previous administrations, will finally put people before profits in health care delivery."

This health insurance reform bill (H.R.4872) will, according to the non-partisan Congressional Budget Office, cut the federal deficit by over $1.2 trillion over 20 years. The legislations is also supported by over 325 organizations including the AARP, American Cancer Society, League of Women Voters, American Medical Association, National Patient Advocate Foundation, Consumer's Union, Catholic Sisters, Catholics in Alliance for Common Good, Catholic Health Association, Health Care Association of New York State, American Hospital Association and the US Women's Chamber of Commerce.

"Health insurance reform doesn't need a finish, it needs a start," said Higgins.   "Like Social Security, Medicare, the Clean Water Act and other major pieces of legislation we will be examining and making adjustments to our health policies for years to come but this starts us on a path of health care delivery that moves away from fee-for-service and toward an outcomes based approach for affordable and coordinated care."

"A great deal of people who contacted my office were upset with the process but also said they recognized that our current health care delivery system is broken and needed to be fixed.  I too am often frustrated with the Washingtonian approach.  I support a debate on the facts but opponents of this measure have instead been effective in promoting confusion and scare tactics," added Higgins.  "Through independent research and meetings with constituents and people involved in all aspects of the health care spectrum I have learned a great deal.  Facilities like the Cleveland Clinic serve as a model for effective delivery - that is the health care I want for my family, community and nation - and that is direction we move toward with this bill."

Congressman Higgins noted that the cost of inaction would have been devastating to our national and local economy. Without this bill, by 2020 average family premiums would reach $23,842/yr, small businesses would lose $52.1 billion in profits to high health care costs, employer health care spending would increase by 90% and national health care expenditures would reach $4.5 trillion – more than double 2007 spending.

Higgins said, "Change can be scary. When Congress created Social Security in 1935, opponents fiercely argued that it was un-American and vowed to repeal it. When Congress created Medicare in 1965, opponents warned that the program was "socialism" that would cause Americans to lose our freedom. But today Social Security and Medicare are the most popular and successful federal programs because they provide a basic guarantee to seniors. The bill we passed today is just as important as those landmark achievements. Making access to health care the right of every American, guaranteeing that no American will go bankrupt because they have the bad luck to get sick, and protecting Americans from the worst abuses of private insurance companies, will do as much to bring about American prosperity in this century as Social Security and Medicare did in the last." 

Congressman Higgins further outlined how this legislation will benefit Western New York families, seniors and businesses:

GOOD FOR SENIORS:

• Improves Medicare for 122,000 beneficiaries living in Congressman Higgins' District

•  2010 - Gives a $250 rebate to Part D enrollees who enter the donut hole

•  2010 – Creates temporary coverage for early retirees, ages 55-64

•  2011 – No co-pays or deductible for preventative care under Medicare

•  2011 - Provides a 50% discount on brand-name drugs in the donut hole, providing an average savings of $700

•  2020 – Closes the Part D donut hole completely, providing an average annual savings of over $3,000

• Allows widows and widowers to more easily retain their low-income eligibility

• Strengthens the Medicare Trust Fund, extending solvency from 2017 to 2026

GOOD FOR SMALL BUSINESS:

• 2010 – Establishes a website to provide small business owners with information on available coverage options & tax credits

• Businesses with 100 employees or less can join the health insurance exchange, benefiting from group rates and a greater choice of insurers, benefiting 15,000 small businesses in NY-27

• Businesses with 25 employees or less and average wages of less than $50,000 will qualify for tax credits of up to 50% of the costs of providing health insurance, benefiting 13,000 businesses in NY-27

• Creates a new grant program to encourage small employers to develop employee wellness programs.

• Reforms rating rules so that small employers will no longer pay higher premiums if they have employees with higher health costs due to age or sickness.

• Small business premiums have risen 129% since 2000

GOOD FOR WORKING FAMILIES:

•  2010 – Provides immediate access to insurance for 6,500 uninsured individuals in the district who have pre-existing medical conditions like cancer, heart disease, and diabetes.

•  2010 – Eliminates lifetime limits and restricts annual limits on benefits

•  2010 – Prohibits insurance companies from cancelling policies of people who get sick

•  2010 – Expands the adoption tax credit by $1,000 & makes the credit refundable

• Caps annual out-of-pocket costs at $6,200 for individuals and $12,400 for families who purchase insurance through the exchange or who are insured by small businesses.

• 2014 - Prohibits health plans from imposing annual limits on coverage

• Without this bill family premiums were expected to increase an average of $1,800/yr and cost families $23,842 in 2020

GOOD FOR CHILDREN & YOUNG ADULTS:

•  2010 –Eliminates Pre-existing condition exclusions for children

•  2010 - Allows young adults to remain on their parents' policies until they turn 26, benefiting 51,000 young WNYers

•  For those under 30, creates new, inexpensive policies for protection from catastrophic health care costs

GOOD FOR THE ECONOMY:

•  In 2008, health care providers in NY-27 provided uncompensated care to individuals who lacked insurance coverage and were unable to pay their bills. Under the legislation, these costs will be reduced by $28 million.

•  2010 – Provides a up to $1 billion in credits to encourage investments in new therapies to prevent, diagnose and treat chronic disease, Roswell, UB and other Medical Campus facilities will benefit

•  Increases the Medicaid reimbursement saving New York taxpayers billions of dollars over the next ten years

•  On November 24, 2009, a group of 26 of the most prominent economists in the U.S., including 3 Nobel Laureates, wrote to Congress on health reform. They stated, "Responsible reform will help slow the growth of health care spending and cover the uninsured – both of which are critical to the nation's economic growth and prosperity. …. Enacting responsible health care reform now is essential to putting the economy on a sustainable path to a more prosperous future."

• According to the non-partisan Congressional Budget Office, this legislation cuts the deficit by $143 billion in the first ten years (2010 – 2019) and cuts more than $1.2 trillion in the second ten years.

GOOD FOR LOCAL HOSPITALS & DOCTORS:

•  2010 – Extends Medicare payment protections for rural hospitals

•  2010 – Expands and improves low-interest student loan programs, scholarships and loan repayments for health students and professionals

• 2011 – Provides a 10% Medicare bonus payment for primary care physicians and general surgeons

• 2010 – Establishes a private, non-profit institute to provide research to compare effectiveness of treatments and strategies

For comprehensive information on the legislation including a copy of the bill, a section-by-section analysis and an implementation timeline please visit Congressman Higgins' health reform page on his website at www.higgins.house.gov