An Update on Health Care Reform

Statement

Dear Friends:

Over the last several weeks, I have held four town hall meetings around Maryland to talk with constituents about our health care system and the need for reform. I think these public discussions have been an important part of the process, and they have given me the opportunity to get the facts out about health care reform efforts in Congress. They also have been helpful in debunking some of the myths surrounding how best to provide access to health care for all Americans.

At the same time, I've also learned much about the difficulties that Marylanders have had in navigating the complexities of our health system, and I've received many suggestions about how to make health care more affordable and accessible.

Many citizens are genuinely worried about their health care coverage. Some have good insurance protection but don't know if it will cover a serious illness, or if rising premium costs will lead their employer to reduce or eliminate benefits. Some are business owners who fear that their insurance companies will drop them if an employee incurs high medical expenses. Some are workers who have had to decline employer-based insurance because they can't afford the premiums. Some are seniors who are concerned that health reform might lead to cuts in their Medicare benefits. These are legitimate concerns and they reflect rising anxiety that the overall costs of health care will jeopardize access to needed services.

The status quo - doing nothing - has a high price tag. Nationwide, between 2001 and 2008, the cost of health care increased by 78 percent, much faster than wages increased. Per capita, we spend twice as much on health services as the next most expensive nation. It has reached a staggering 18 percent of our GDP. Consider that in 2006, the annual health insurance premium for a Maryland family averaged $12,000; by 2016, it is estimated that the cost will more than double to approximately $23,000, making it difficult for most employers and workers to afford coverage.

However, any reform effort must control escalating costs while maintaining quality. We must build on what is best about America's health care system and correct what is wrong. I'm proud that America has the very best care available in the world. Patients travel from around the world to Maryland for treatment at the NIH, Johns Hopkins Hospital, and the University of Maryland Medical Center. At the same time, millions of Americans lack adequate coverage and do not have access to affordable primary care. Reform must protect the quality of American medical care while giving all citizens the opportunity for better health outcomes at an affordable price.

We can do this only if we put patients first. Currently, there is no single bill that Congress is considering. There are only partial bills from some of the committees involved in the process. However, there are several patient-centered provisions that are widely supported and I believe are essential to health care reform. These include: ending discrimination for pre-existing conditions; reducing charges for preventive care; prohibiting the cancellation of policies for patients who become seriously ill; removing yearly limits on patients' out-of-pocket costs; ending annual or lifetime caps on benefits; prohibiting discrimination based on gender; and guaranteeing insurance renewal, as long as individuals pay their premiums.

To improve the health of Americans and reduce costs, we must expand preventive care services. Focusing on prevention and wellness will save lives through early detection, improve quality of life, and the health of our citizens.

Safeway, one of the largest food and drug retailers in North America, is an example of how wellness and preventive care can make a difference. Safeway has devised an innovative approach called Healthy Measures that recognizes the role of personal responsibility. Safeway's program offers reduced health care premiums to employees based on four criteria: tobacco usage, healthy weight, blood pressure, and cholesterol levels. Safeway has built a culture of health and fitness, and it has made a difference. Obesity and smoking rates among Safeway employees are 30 percent lower than the national average, and the company has been able to keep health costs constant over a four-year period. That's a real achievement, and one that should be emulated nationally.

Key to any health care reform package is ensuring that Americans can keep the health insurance they have, including choice of doctors and hospitals, and the ability to purchase affordable, comprehensive coverage if they don't have it now. There are nearly 47 million Americans, including 760,000 Marylanders, who today lack health insurance coverage. I want to take this opportunity to make clear that none of the reform bills under consideration would extend health care benefits to illegal or undocumented immigrants.

Expanding health coverage to all Americans is critical to the success of health care reform. That's because the millions of Americans who have no insurance typically rely on expensive emergency rooms for their primary care, often after they have become much sicker and more costly to treat. Delayed, inefficient delivery of care increases the costs for all of us. It is estimated that every American family pays an additional $1,100 a year for health insurance because of the costs shifted onto them by the uninsured who don't pay their health care bills. All Americans should have access to health care that emphasizes preventive care, healthy life choices and treatment for chronic conditions. This will save money for everyone.

Much attention has focused on a public health insurance option. I support building upon our current system of employer-based, private insurance coverage, which now covers more than 150 million Americans. However, we have a sizeable and growing population that has been rejected by private insurance companies or whose rates are set so high that they cannot afford the premiums. A public option also will help keep private insurers in check by serving as a low-cost competitor.

It is important to understand that a public option refers to what entity administers the plan, rather than who provides your medical care. It does not mean government interference with your choice of a doctor or hospital. Medicare is a good example of a public health plan that covers the services of private doctors and hospitals, and it has worked well. I want to build on that type of a model to expand choices and keep costs down.

Reforming our health care system will strengthen Medicare. Reducing Medicare costs must be done in a way in which the savings will be used to strengthen Medicare benefits such as eliminating the "donut hole" in prescription drug coverage and expanding the preventive health care services.

I know that there are differing views as to how we should reform our current health care system. While many people are skeptical about the effectiveness of government involvement, too many American families are struggling to stay afloat because of rising medical costs. I welcome a vigorous debate on proposed reforms, but, at the end of the day, we need to craft a uniquely American system that will provide all of us with access to quality, affordable health care.

Best wishes.

Ben

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