Healthcare: Expanding Access and Reducing Costs

Healthcare: Expanding Access and Reducing Costs

Last week, President Bush came before Congress to present a robust domestic policy agenda. In his annual State of the Union Address, the President hit on a number of topics from developing alternative energy sources to renewing commitment to fiscal restraint and perhaps, most importantly, making healthcare more affordable.

With more than 46 million Americans uninsured and healthcare costs spiraling out of control, it is critical that we address this important issue. In the Commonwealth, nearly 14% of the population is without healthcare coverage. As the110th Congress moves forward, we must take action to expand access to health insurance.

Nearly sixty percent of the uninsured are employed by small businesses. Small businesses create two-thirds of the new jobs in the U.S. Unfortunately, rising healthcare costs are forcing small businesses to stop offering insurance benefits to their employees. As a former small business owner I understand the cost and commitment required to provide health insurance for employees. The high costs can deter individual consumers from buying health insurance for themselves and their families if it is not provided by their employer.

I support federally-regulated Association Health Plans (AHPs) that would allow small businesses to band together and negotiate for better insurance rates through associations. AHPs would make coverage more affordable by encouraging competition between plans and providers, enabling portability of benefits and reducing administrative costs.

Health Savings Accounts (HSAs) would increase competition and lower costs. HSAs are optional tax-free savings accounts designed to help individuals pay for healthcare expenses. Individuals covered by a health plan with an annual coverage deductible of at least $1,000 for individuals and $2,000 for families may establish an HSA. Funds saved by the individual in the HSA can be used to pay for healthcare services before the deductible is reached and to cover out-of-pocket expenses. Qualifying health plans cover expenses beyond the annual deductible. Though HSAs are not right for everyone, it is my hope that HSAs are, increasingly, an option available to more employees.

Individuals and families who pay the full costs of their own private health insurance should have targeted tax credits to make this option more affordable. Providing incentives like tax credits for the cost of private health insurance will increase the number of insured and reduce the burden on hospitals and the health insurance pool in general. Another mechanism to control costs is pricing transparency of healthcare services, prescriptions drugs and other related products. Pricing transparency encourages personal responsibility and will also force healthcare providers to re-evaluate their cost-structure to ensure there is a direct correlation between the price charged and the service and quality provided.

As Congress debates healthcare issues, I will continue to work with my colleagues in both parties on initiatives to lower healthcare costs, expand access to coverage and encourage personal responsibility in decisions related to coverage and care.

http://geoffdavis.house.gov/Read.aspx?ID=430