Dear Friend:
Thank you for contacting me about health care reform legislation. I welcome your thoughts and comments.
Texans are particularly aware of the dire need for reform. Our state has 6 million uninsured residents, the highest percentage of uninsured in the nation. This number poses a huge challenge for our health care workers, hospitals, taxpayers, and many working individuals and families that cannot afford the health care coverage they need. In fact, Families USA reported that in 2005, health insurance premiums for Texas families with insurance included an extra $1,551 due to the cost of care for the uninsured. We must take care not to undermine what should be the foundation of health care in America – patient choice, affordable coverage, and the highest quality of care.
At this time, several bills are being considered by Congress that would make dramatic changes to your ability to access medical services and obtain health insurance. I do not serve on either of the Senate committees that have jurisdiction over health care reform legislation. One of the most troublesome aspects of the legislation being considered is the massive government expansion it would enact. I strongly oppose a government-run option and believe current government-managed programs such as Medicare and Medicaid make a case against this proposal. Billions of taxpayer dollars are wasted on fraud and abuse in Medicare every year, and the program will be insolvent by 2017. Furthermore, 40 percent of physicians turn away Medicaid patients because the system is poorly administered, resulting in reduced choices and access to care for beneficiaries. I believe a government-run option will inevitably lead to a single-payer system in which private insurance providers are crowded out of the market and care is rationed to Americans. I would not want my family to be covered by this government plan, and therefore I do not find it acceptable for other American families and individuals.
After hearing from constituents over the last several months, some members of Congress have now learned that using the term “government plan” elicits a strong negative response from voters, so they have now latched onto a new way to describe the same thing: a co-op. Texans should not be confused by this new packaging of the same idea. The co-op is a back door to a government takeover of our health care. The co-op would be started with federal funds, and it remains unclear whether taxpayer dollars would be used if the co-ops began to fail. The Administration has tried to bail out the banking, housing, and auto industry; would these co-ops be next?
Furthermore, I am worried about the effect these health care proposals will have on small businesses and individuals during an economic downturn. Employers may have to pay a tax penalty despite the fact they already offer insurance to their employees, and the most recent proposal from the Senate includes a tax of up to $3,800 a year for those individuals who do not purchase health insurance, something the President opposed when he was campaigning for office.
The large proposed cuts of federal reimbursements to hospitals are also of particular concern. Hospitals are required to provide millions of dollars in uncompensated care to uninsured residents. Our rural hospitals, which serve a low number of patients, operate with little to no profit margin. Reducing these hospitals’ badly needed federal reimbursements could result in reduced services, or even worse, the closure of entire facilities. Additionally, to keep their doors open, hospitals may be forced to pass these cuts to patients with private insurance, resulting in even higher premiums and driving up health care costs further in Texas.
The proposals being put forward will reduce patient choices, drive insurance companies out of business and have minimal impact on the uninsured population. Further, the nonpartisan Congressional Budget Office has repeatedly stated that both House and Senate bills will not bend the curve on cost growth over the long term.
Reform must provide an opportunity for everyone who wants health insurance to obtain it. The insurance market must be one in which competition is encouraged between insurance providers based on transparency and value, making health insurance a buyer’s market in which patients have affordable choices and know what plans cost and offer. I am a cosponsor of the Health Care Freedom Plan that would provide a $2,000 voucher for individuals and $5,000 voucher for families to purchase health insurance on the private market. Increasing the number of insured will increase competition in the market place and bring down costs. This bill ensures individuals receive the same tax benefits that businesses receive for health insurance coverage, allows individuals to keep their insurance policy, and lets them keep the doctors they trust even if they change jobs. By enacting these reforms, and by simultaneously containing skyrocketing costs through payment reform, prevention initiatives, and the provision of adequate care for those with chronic conditions, we could achieve quality health care reform.
You are among thousands of concerned Texans who have written to express their views on this topic. As the debate on health care reform continues, I encourage you to express your concerns to members of Congress, particularly those who have not publicly taken a stance on the dangerous consequences of the proposals put forth. You may be assured that as health care reform legislation comes for consideration before the full Senate, I will keep your views in mind.
I appreciate hearing from you, and I hope that you will contact me on any issue that is important to you.
Sincerely,
Kay Bailey Hutchison
United States Senator
284 Russell Senate Office Building
Washington, DC 20510
202-224-5922 (tel)
202-224-0776 (fax)
http://hutchison.senate.gov
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