Health Care Update

Now that federal health care legislation has been signed into law, many Americans are wondering what it all means for them.  The implementation process – as it currently stands – will encompass the next seven years, impacting individuals, families and businesses in different ways.    

Most of the legislation’s major provisions do not go into effect until 2014, even though the taxes and fees to finance the new system begin right away.  Even then, these guidelines will undergo a multi-year bureaucratic implementation process, adding even greater uncertainty to the cost and availability of care for millions of Americans.  A timeline of the changes prescribed by current law is available here.
  
Throughout the health care debate, I have consistently stated my opposition to any approach that imposes higher taxes and onerous regulation.  Plenty of alternatives were offered to the Democratic health care plan, including proposals that provide coverage for individuals with pre-existing conditions and allow parents to keep children on their health plans for longer.  These are goals that I fully support.  What I do not support -- and will continue to oppose – are direct tax increases on businesses and families, Medicare cuts for no purpose other than to create a new entitlement program and trillions in government spending that will be inherited by our children and grandchildren.

For all the government spending that will occur in relation to current law, the Congressional Budget Office (CBO) says that health insurance premiums will rise by 10 to 13 percent, adding to the cost burden already carried by so many families.  Also, the Medicare Chief Actuary says that the percentage of gross domestic product spent on health care will also rise, increasing from 17 percent today to 21 percent in 2019, and even then, the CBO predicts that as many as 23 million people will still lack coverage.  

As expected, news reports over the last several days are uncovering several unfortunate truths.  The Associated Press described the direct benefit health care law provides the pharmaceutical industry (story here).  Other news reports have noted that major employers are warning shareholders and employees about higher health care costs, including AT&T; assuming $1 billion in costs, Deere & Co. $150 million, Caterpillar $100 million, AK Steel $31 million, 3M $90 million and Valero Energy $20 million, with similar announcements from other companies expected in the near future. 

Several days before the House passed the final version of health care legislation, more than 130 economists wrote to the President and Congress, warning that the new law will hurt the economy and job creation at a time of nearly double digit unemployment (click here to view the letter).  They too acknowledge that Congress should work to enact legislation that actually reduces spending on health care, lowers the cost of coverage, creates jobs and builds our economy.

Looking forward, I believe our focus must now center on implementing better solutions to our health care challenges – particularly skyrocketing costs.  Every American has a stake in this debate, which will continue in the years ahead, and it is important that we keep working to achieve reforms that actually stand to improve the availability and quality of care.
 
A Responsible Alternative

Recognizing the importance of reducing health care spending while expanding access to coverage, I have cosponsored H.R. 4910, legislation to repeal newly enacted health care law and replace it with a more responsible approach: H.R. 3400, the Empowering Patients First Act.

Individual Mandate Raises Constitutional Question

A coalition of states have joined together to challenge the constitutionality of federal health care law, on the basis that the individual mandate to purchase health insurance violates the commerce clause and undermines states rights under the 10th Amendment.  In light of these concerns, I recently sent a letter (available here) to Governor Schwarzenegger and Attorney General Brown, requesting that the State of California challenge the constitutionality of the individual purchase directive. 

Job Fair Announced

Many San Diegans are still looking for work in today’s tough economy, which is why I am hosting another community job fair on Monday, June 21, 2010, at the Cuyamaca College Student Center in El Cajon.  Local businesses will be in attendance and job seekers throughout San Diego County are encouraged to attend.  For more information about this event, please contact my office at 619-448-5201.