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Washington, D.C. --- U.S. Rep. Frank Pallone, Jr. (D-NJ), Chairman of the House Energy and Commerce Subcommittee on Health, gave the following opening statement this morning at a subcommittee hearing on America's need for health reform.
"Good morning. Today the Subcommittee is meeting to hear about 'America’s Need for Health Reform,' a very timely and important topic to every American family.
"When it comes to our nation’s health care system, I think there is at least one thing that we can all agree on, our health care system is in crisis and is getting worse every day. The trends we are seeing today are truly frightening. Health care costs are climbing, access is eroding, and the quality of care is unpredictable.
"The United States spends approximately $2.1 trillion on health care annually, approximately 16 percent of our entire economy. This is about twice what we spent ten years ago. We outspend any other country when it comes to health care. But what does all this money buy us?
"More and more Americans join the ranks of the uninsured every day. Today, there are roughly 45 million Americans who do not have health insurance, or approximately 16 percent of the U.S. population.
"This is a problem that is only going to get worse. As the economy continues to weaken, more and more working Americans and their families are falling into the same trap. Nearly half the increase in the uninsured population between 2005 and 2006 occurred among middle-income families.
"One of the main problems is that health care costs continue to skyrocket at alarming rates. The average cost of a family, employer-based insurance policy in 2007 was $12,106, or nearly the full-year, full-time earning of a minimum wage job. The cost of a similar policy in the individual market would be prohibitively more expensive, out of reach for far too many working American families.
"Contrary to some opinions, the problems that people face when it comes to health care are not their own. It’s nice to talk about taking 'ownership' over your health care and having some 'skin in the game' but the truth of the matter is, we are all in this together.
"Rising costs and increasing numbers of uninsured Americans seriously impact our economy and society, as well as further distress our weakening health care system. As health care costs increase, it strains businesses and employers and puts them at a competitive disadvantage globally. Employer sponsored health insurance premiums rose by almost 100 percent between 2000 and 2007, making it increasingly difficult for employers to continue to offer health insurance to their workers.
"Instead, more and more businesses are shifting the costs of health coverage to their employees at a time when healthcare costs are increasing substantially faster than wage growth.
"The impact of the uninsured on our communities is tremendous. We have 45 million Americans who cannot call a doctor to get an appointment, who do not have access to preventive care, and who are forced to use the local Emergency Room (ER) as their primary source of care. Not only are these people sicker because they have put off getting treatment, and therefore more expensive to treat, but they also are seeking care in a setting that costs our health care system more money.
"Hospitals in my home state of New Jersey are grappling with providing rising amounts of charity care that increases their bad debt. Many hospitals cannot afford this growing financial burden and the state is having difficulty reimbursing hospitals for the charity care they provide. I’ll note that New Jersey’s Governor, Jon Corzine, is with us today, and can talk about many of the challenges our state faces because of our crumbling health care system.
"Governor Corzine will also be able to talk about what states are doing to answer the call to reform our nation’s health care system. New Jersey, Massachusetts, New York and many other states are experimenting with new and innovative ways to expand health coverage for their residents. But they can not do it alone. The federal government will need to take a leading role in reforming our health care system.
"All these problems are interconnected, whether it is cost, access or quality. We need a health care reform plan that looks at the inadequacies of our health care system in its entirety and begins to address its failings.
"Fortunately, many people are talking about health care reform right now. Health care has become a critical part of the national debate, which reflects the growing anxiety many Americans share about the current state of our health care system.
"In the end, we need to recognize that when it comes to health care, having it shouldn’t be a luxury reserved just for those lucky enough to afford it. It is a basic human right. And we as a country, as a society, have to ask ourselves is it acceptable for Members of Congress to have the best health care in America, but not 45 million other Americans? Is it alright to let our families, friends and neighbors continue to fall through the cracks of our broken health care system, or are we going to finally resolve ourselves to providing affordable, accessible and high quality health care to every American citizen? I think the answer is clear.
"I want to thank all of today’s witnesses for being here. We are eager to hear your testimony. I now recognize our Ranking Member, Mr. Deal for five minutes for the purpose of making an opening statement."
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