Colorado's Diana DeGette reports passage of H.R. 3200, America's Affordable Health Care Choices Act

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Colorado Congresswoman Diana DeGette, Democratic Deputy House Majority Whip reported today the House Committee on Energy and Commerce passed H.R. 3200, America's Affordable Health Care Choices Act by a vote of 33 - 29. The congresswoman recently held a town hall meeting in her district at Denver's South High School in which she explained the events and reasoning behind the need to reform the health insurance marketplace. A full and unedited copy of the text of her letter to me including links is included below:

Dear Constantine:

 Thank you for taking the time to contact me about the health insurance reform legislation being debated in Congress.  I am glad to learn your views on the issue and appreciate the opportunity to share mine. 

The health care system in the United States has changed dramatically over the past half-century and it must be reformed in order to keep health care costs from crippling the American economy.  Today, 22 percent of Denver residents and an incredible 47 million people across the country do not have health insurance, including many who were denied coverage on the basis of a pre-existing condition.  Each day, 14,000 people across the country lose their health insurance coverage.  Making matters worse, medical bills are the cause of more than 60 percent of all personal bankruptcies, despite the fact that more than 75 percent of these individuals actually have insurance coverage.  When over 122,000 people in our city are forced daily to decide between paying for medical care or buying food and paying bills, there should be broad recognition that something must change. 

In 1980, the U.S. spent more than $250 billion, or 9 percent of our Gross Domestic Product (GDP), on health care.  In the decades since, that figure has grown to more than $2.2 trillion (16.2% of GDP).  By 2018, it is expected to nearly double again to $4.3 trillion (20.3% of GDP).  This is far too much money to be spent on a system the World Health Organization ranks 37th in overall outcomes.  In infant mortality, we

rank 29th.  In life expectancy, we rank 31st.  Furthermore, this is money that, among other things, could be used to reduce our budget deficits or money that businesses could pass along to employees through increased wages.  Unfortunately wages for the American worker have been stagnant and from 2000 to 2007, the Commerce Department reported that the median income in U.S. households fell by $324 after being adjusted for inflation.  Ten years from now health insurance premiums are expected to double and Medicare is projected to be in the red.  If we continue on this trajectory, the current health system will continue to be a drag on the economy and wreak havoc on American households. 

These data, percentages, and dollar figures translate into devastating impacts on both people's health and their income.  The current system is unsustainable.  That is why three Committees in the House of Representatives, including the Energy and Commerce Committee on which I serve as Vice Chair, combined efforts and introduced H.R. 3200, the America's Affordable Health Choices Act.  Under this legislation, health insurance providers are prevented from discriminating against a person by denying coverage based on pre-existing conditions, such as cancer, diabetes, and asthma.  The legislation allows everyone to keep the insurance they have if they have coverage they like, which means people can keep going to the same doctors, hospitals, and other service providers.  However, this legislation will also create a public health insurance option, which will compete with private insurance companies and will be available to any American who wants it.  This public option is financed by the premiums paid by beneficiaries.  It will function like any other private insurance company, it just happens to be administered with oversight from the government. 

 The America's Affordable Health Choices Act will also create a transparent marketplace, called the "Exchange," where individuals and small businesses can shop for health insurance, whether the public option or a private plan, depending on what best fits their needs.  By pooling many individuals and small employers together in a single, regulated marketplace (the Exchange), risk is spread among a larger population which will ultimately reduce health care costs.  Without a public option and a health insurance Exchange, there is currently is little incentive for existing health insurance providers to improve services, increase benefit options, and reduce the cost.

We need to make our existing, largely private, health care market work better and more efficiently.  The lack of real competition in the marketplace has resulted in a virtual monopoly by the private insurance companies running our health care system.  According to the American Medical Association, 94 percent of insurance markets are now highly concentrated.  Lack of competition in any industry leaves the potential for inefficiency and skewed prices.  In the health insurance market this has led to skyrocketing health care costs in many parts of the country.  This is one of the major reasons why the America's Affordable Health Choices Act includes a robust public option to compete with private plans in a health insurance marketplace (the Exchange) that, for the first time, is based on rules that treat the American people fairly and with dignity.

The America's Affordable Health Choices Act recently passed the House Committee on Energy and Commerce by a vote of 33-29, and will soon be voted on by the full House of Representatives.  I supported this legislation in Committee because it builds upon what works in our existing system while extending coverage to provide all Americans with access to affordable health care.  This legislation also significantly trims costs in Medicare by preventing overpayments to some providers and doing more to prevent waste, fraud, and abuse.  In addition to capping an individual's out-of-pocket health care expenses at $5,000 and a family's at $10,000, the America's Affordable Health Choices Act would make other improvements to the current system by focusing on disease prevention and wellness in order to avert the onset of chronic disease.  The goal of these reforms is lower costs and improved health outcomes, and I believe this bill addresses the serious failures that have come to characterize our current health insurance system with a uniquely American solution. 

For me, these facts make clear that the urgency behind this legislation is necessary and appropriate.  With the cost of an employer-sponsored family health insurance plan projected to double and reach $24,000 by 2016, this is indeed a priority for our families and our economy.   We cannot afford to let health care costs continue to increase faster than inflation.  We cannot afford to continue spending twice as much per capita on health care as most other Western, industrialized countries, and expect to compete in the global economy.  Our current health insurance market is broken - it's too expensive for families and businesses, and it doesn't provide enough choice and competition.  Creating a truly competitive insurance marketplace means lower costs for everyone.  I remain committed to working to pass the America's Affordable Health Choices Act before the end of the year. 

 Again, thank you for contacting me about issues related to the health reform debate.  Because this issue is so important and complex, you may want to visit the House Committee on Energy and Commerce website at http://energycommerce.house.gov/index.php where you can see the text of the bill, summary material, and more.  I also encourage you to visit my website at www.degette.house.gov.  There you can find non-partisan links to information that address some of the misinformation and confusion surrounding this debate.  Please know that I will keep your views in mind as this legislation moves forward. 

 
Sincerely,

Diana DeGette
Member of Congress