U.S. Senator Russ Feingold
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Fact Sheet - State-Based Health Care Reform Act

July 24, 2006

U.S. Senator Russ Feingold introduced the State-Based Health Care Reform Act in order to end the political stalemate in Congress that has been preventing meaningful health coverage from being enacted.

Feingold’s State-Based Health Care Reform Act:

  • Authorizes funding for pilot projects so that a few states can ensure health care coverage to all their residents.

  • Gives flexibility to the states to use their own approach to achieve health care coverage for all their residents.

  • Instead of requiring states to follow a certain program, Feingold’s bill gives states the flexibilityto achieve expanded coverage through any system deemed appropriate by a Health Care Reform Task Force.

Overview of Project:

  • The pilot programs would last for five years and would be funded through a grant application program overseen by the Health Care Reform Task Force established in the legislation.

  • The Health Care Reform Task Force would evaluate state applications, select state projects, and oversee implementation of the states’ proposals.

  • Participating states will be required to submit an annual report to the Task Force detailing their progress.

  • The Task Force will be a committee with members appointed by the Government Accountability Office’s Comptroller General. The Task Force will be housed under Health and Human Services (HHS), and the Secretary of HHS will be a member of the Task Force.

  • The bill will cost $32 billion over ten years and is fully paid for through offsets, making funding available right away and allowing the program to take effect immediately.

State Plan Requirements:

  • Coverage must meet certain minimum standards and must include protections for low-income people.

  • Once approved by the Task Force, a state will be required to provide some matching funds.

  • States are expected to improve the efficiency of health care spending and work to lower health care costs.

Congressional Action:

  • The Task Force will be responsible for submitting an evaluation of all pilot projects to Congress at the end of the initial five-year grant period.

  • The recommendations will be based on states’ experiences, and the bill requires congressional debate of these recommendations and findings.