Congressman Rangel Hails Passage by The House of Health Reform Legislation

Press Release

Congressman Charles B. Rangel today hailed passage by the House of health reform legislation, saying that the historic measure would be a key first step in providing access to all Americans.

"This historic legislation is as important as the enactment of Social Security during the Great Depression and Medicare and Medicaid during the Great Society. While it might not be the bill that satisfies everyone, it goes far to achieve the fundamental goal of assuring health care for all.

The question is not whether this health-reform bill includes everything we want but, rather, whether we will enact a bill that sets us on the road towards that goal."

The Congressman described how this bill will help New Yorkers:

* · Approximately, 3/4 of the over 2 million New Yorkers without health insurance will be able to secure affordable policies.

* · Many who have been unable to afford the individual coverage policies, even with state assistance will finally get the security of coverage.

* · Small businesses will get assistance for enrolling their employees in health insurance plans.

* · Our hospitals will see an increase in reimbursements, allowing them to improve care for all.

* · Our community health centers will receive increases in grants and revenue broadening the access to care.

* · The state and its counties and cities will over the next decade see the growth in their Medicaid costs decline as the Federal government takes over a larger share of the costs.

* · The health of New Yorkers will improve as the access to preventive and chronic care will expand.

* · Tax credits of up to 35% of premiums will be immediately available to small firms that choose to offer coverage. Effective beginning for calendar year 2010. Beginning in 2014, the small business tax credits will cover 50 % of premiums.

* · Provides a $250 rebate to Medicare beneficiaries who hit the donut hole in 2010. Beginning in 2011, there will be a 50% discount on brand‐name drugs in the donut hole. The donut hole will be completely closed by 2020.)

* · Effective January 1, 2011, there will be no deductibles or co‐payments for preventive services under the Medicare program.

* · It creates a temporary re‐insurance program (until the Exchanges are available) to help offset the costs of expensive health claims for employers that provide health benefits for retirees age 55-64.

* · Six months after the president signs the bill into law it will ban insurance companies from dropping people from coverage when they get sick.

* · Six months after the president signs the bill into law it will prohibit health insurers from denying coverage to children with pre‐existing conditions. Beginning in 2014, this prohibition would apply to all persons.

* · Six months after the president signs the bill into law it will prohibit health insurance companies from placing lifetime caps on coverage.

* · Six months after the president signs the bill into law it will tightly restrict new plans' use of annual limits to ensure access to needed care. Beginning in 2014, the use of any annual limits would be prohibited for all plans.

Rangel noted that as the Medicare and Medicaid matured and medical practice changed, "we adapted and improved coverage and installed cost controls that are universally accepted. Today Medicare and Medicaid are the cores of our health care system upon any future of health care would be based.

"I will do everything in my power to make sure health care reform follows the same trajectory as these well established programs. We may find that we need a public option to keep the insurance companies honest. We may need to add provisions that will encourage and assist health care providers in bending the cost curve. We may need to adjust subsidies to make sure geographic differences in costs and affordability are addressed."

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