TELE-TOWN HALL FOLLOW UP

On September 29th and October 20th, Congresswoman Harman held tele-town hall meetings on the new healthcare law, and jobs and the economy.

Hundreds of constituents participated during and after the sessions.  Many insightful questions were asked and answered.  What follows are Jane Harman’s statements opening each event and a compilation of the most interesting questions and answers.

Healthcare

The historic health care reform law passed in March isn’t perfect.  I favored a strong public option, which could have competed with private sector plans to lower costs, and I wanted the federal government to be able to bargain for lower drug prices under Medicare.  But, after consulting carefully with a local group of doctors, hospital administrators, community health advocates and others, I supported the bill, which makes some important and immediate changes.

Here’s a change:  In 2008 1,100 families in our district went bankrupt because they were hit with health care bills that they just couldn’t pay.  Now, because of the law, families like those 1,100 are in a much safer financial position. Insurance companies can’t impose lifetime limits on coverage. So if your family is hit with a catastrophic illness, your insurance will cover the cost of your care. 

Also, children under the age of 26 can remain on their parent’s health insurance plans. This provision helps 49,000 young people and their families in the 36th district.
Additionally 9,300 seniors in our district are receiving checks to cover a portion of their out of pocket expenses for prescription drugs - the Medicare “donut hole.” The law will close that gap completely in 2019.

Lastly, when the law went into effect we had 60,000 uninsured people in our district.  That costs all of us when they get emergency medical care.  Getting them into insurance plans is the right thing to do, both from a human perspective - they no longer have to wait for a situation to become a crisis before getting medical help - and from a financial one.  As the old saying goes, an ounce of prevention is better than a pound of cure. In this case it’s also much, much cheaper.

Questions and Answers From Health Care Tele-Town Hall Meeting

1. How can the new law help the economy?

Health care reform will help spur competition among private insurers to offer the best coverage at the lowest price to consumers, and will slow the growth of premiums.

With the creation of state exchanges in 2014, more people will have health coverage, raising demand and creating more jobs to cover the expanded market.

2. Will the new law result in an increase in the cost of insurance premiums?

Congress’s intent was to make health insurance universally accessible and affordable.  If an insurance company offers coverage that is the same as that offered by another company at a higher price, consumers will choose the less expensive option.  Providers are expected to offer better and cheaper coverage to appeal to the high influx of new individuals entering the market in 2014. 

Additionally, the Health & Human Services Secretary has authority to conduct annual reviews of policies and to bar “unreasonable” premium increases.  Insurers will have to submit a “justification for an unreasonable premium increase” prior to the implementation of the increase.

3. How does the health care reform law affect people who are not insured through their employer?

If you currently have insurance that is not provided by your employer, you can continue to keep the same coverage.

4. Can people who already have insurance join the exchanges?

Yes, beginning in 2014, private insurers will offer plans through state exchanges.  If you are satisfied with your plan at that time, you can keep it.  If you are not, you can join a state-run exchange and purchase a new plan.

5. What is your position on repealing the 1099 provision?

I believe the 1099 provision imposes an unfair burden on small businesses, and on July 30, 2010, I voted with 239 of my colleagues to repeal it.  Unfortunately, it did not receive the required two-thirds majority for bills considered on the House Suspension calendar, and also failed to pass the Senate.

The 1099 requirement does not go into effect until January 2012.  Congress and the Obama Administration have pledged to alter it before then.

6. How much will health insurance cost, and how much of a penalty will I pay if I decide not to buy insurance?

The cost of a health plan will be dictated by the market.  With the creation of state exchanges, insurers will be incentivized to offer the best product at the lowest price.  The insurance market will also grow because of the minimum coverage requirement.

If you do not purchase health insurance, the assessment for failing to meet the individual responsibility requirement will either be a flat fee of $95 beginning in 2014, or one percent of your taxable income, whichever is more.

7. How will the insurance exchange work?  When will it go into effect?  Who can join?

Everyone is eligible to join an exchange.  By 2014, either a state will establish a state-run exchange to offer individual and small group coverage, or the Secretary of Health & Human Services will contract with a nongovernment entity to establish and operate exchanges in states that do not establish them.

Exchanges will provide individuals and small businesses with access to private plans. The exchange will include a selection of private plans as well as "multi-state qualified health plans," administered by the federal Office of Personnel Management.

8. Will this law cut Medicare research?

No, the health care reform law requires the creation of a Center for Medicare and Medicaid Innovation within the Center for Medicare and Medicaid Services.  The purpose of the center will be to research, develop, test, and expand innovative payment and delivery arrangements to improve the quality and reduce the cost of care provided to patients. 

9. In what ways will this law affect disparities in health care for women and minorities?

Health care reform will expand coverage to historically underserved communities.  It will provide low income individuals credits or subsidies towards the purchase of health coverage.  States can also establish basic plans for low-income individuals not eligible for Medicaid.

Starting in 2014, women who cannot afford quality health insurance will be provided with a tax credit.  The law also prohibits insurers from denying coverage due to a pre-existing condition, requires new plans participating in state exchanges to cover prevention and wellness benefits at no charge, as well as basic health services including maternity benefits.

10. Do you believe the federal government can require citizens to buy private good/services?

Congress has the power to tax and regulate interstate commerce.  Both of these can be applicable to regulating health care or establishing an individual responsibility requirement.

Jobs and the Economy

This tele-town hall focuses on job creation and the economy.  It is my top legislative priority.

We had some great news recently. The federal Department of Transportation is loaning Los Angeles $546 million to accelerate construction on the Crenshaw line to LAX. That means 5,000 well paying jobs for the next seven years. Construction will begin next spring. 

And that loan will have a spillover effect, because it frees up other transportation money to further accelerate the build out of transportation projects. And that means even more jobs, now, when we need them.

This is part of Mayor Villaraigosa’s 30/10 plan which, if fully implemented, will create 165,000 jobs. I was the first in Congress to support 30/10 and will participate in today’s press conference.

As for jobs generally, there have been disappointing layoffs at Northrop Grumman, Raytheon and Boeing lately.  Although overall, the aerospace sector remains strong and has cushioned the South Bay from the worst of the recession.

LA County unemployment is over 12 percent - higher than the national rate of 9.6 percent. 

We are in better shape overall in the 36th district with the unemployment rate around 6.5 percent for most of the district - but it’s unevenly spread, from 4.8% in Manhattan Beach to the double digits in Lennox. 

There are some great local programs that can and have helped.

A few months ago, I visited the South Bay Workforce Investment Board and I met several job seekers who were able to get permanent jobs using their services.

I met Tamara Washington who got a temporary position at V-Cube in Torrrance through the Transitional Subsidized Employment program - known as TSE. The skills she learned on that job got her hired full time at a local law firm. And then she went to Washington DC to participate in a roundtable on TSE with Vice President Biden.

I also met Elsy Flores who, after being a TSE worker at Rita Hagopian State Farm Insurance Agency, was hired as a full-time employee there in September. These programs work.

The South Bay Workforce Investment Board also ran a summer jobs program for kids between 16 and 24 years old using federal funds leftover from TSE. The program created more than 10,000 adult and roughly 15,000 summer jobs for youths.

It’s going to take a while, but the 36th District has a deep bench of talent and the history of innovation that puts us in a good position to lead California out of this economic mess.

Questions and Answers From Jobs and Economy Tele-Town Hall Meeting

1. I recently lost my job.  How do I apply for unemployment insurance?

A good resource is the California Employment Development Department. Its website:  www.edd.ca.gov/unemployment -- and explains how to apply for unemployment insurance.  You can also find the website and related information on my homepage:  www.house.gov/harman.  On my homepage there is a link that says “jobs,” and if you click it, you will learn about a wide range of resources including education and training opportunities, unemployment insurance information, federal business opportunities, and food stamps.  If you have questions that cannot be answered on the website, please call my casework staff at 310-549-8282. 

2. I’m unemployed. How long do I have before my unemployment checks run out?

In July, Congress passed legislation to extend unemployment insurance for 99 weeks, providing people with almost two years of unemployment benefits.  I voted for the law.

3. Many South Bay residents are hurting.  Where can they get information on food banks and other sources of support?

Again, the California Employment Development Department has resources on its webpage, including school lunch information.  In the district, there are a number of food pantries, which you can find on my homepage. Among them is the San Pedro Service Center, which I visited earlier this year. That food pantry and others are facing increasing demand. If you are able to do so, donating food is a wonderful way to help families in need - especially as Thanksgiving approaches.

4. What resources are in the district to find out about jobs or have job training?

One of the most effective places to get help finding a job or training programs is the South Bay Workforce Investment Board.  I’ve visited them several times and am very impressed with the training, resume-building, and job placement services.Of the thousands of employment seekers that visit the South Bay WIB every year, 80% get placed in new jobs. Their staff is available to help with resumes, show you job listings, and enroll you in training programs. About a half million dollars in federal stimulus funds was used to create two series of classes in innovative sustainable building.

5. How will the recent layoffs at Northrop Grumman and Raytheon impact the district?

I am disappointed by reductions at Northrop Grumman and Raytheon, and by the closure of Boeing’s LA Distribution Center. The strength of our region’s aerospace industrial base has cushioned us from the full force of the recession.  The district unemployment rate is around 6.5% versus over 12% in the rest of Los Angeles County.  Nonetheless, I have personally met with executives from all three companies to make clear the loss of one job really means the loss of four or more indirect jobs - a huge blow for small communities like El Segundo and Redondo Beach.

6. What has happened to the 10,000 Jobs Program?

The 10,000 Jobs Program was the brainchild of my good friend and colleague Supervisor Don Knabe.  It used almost $200 million in federal stimulus funds to create over 10,000 temporary subsidized jobs and 16,000 summer youth jobs.  Unfortunately, the funding for the program expired. The House passed an extension of the program with my strong support, but the Senate failed to do so. 

7. Can green jobs really help the economy? 

Yes! I strongly believe that green jobs are key to a robust economic future. The LA Times reports that the clean-tech industry is booming in California, with more money invested in solar and other alternative energy start-ups than anywhere else in the world. Clean-tech companies in Los Angeles and the Bay Area together employ about 20,000 manufacturing workers.

For example, a high efficiency lighting company, LEDtronics, employs 150 people in Torrance. The CEO reports that this year, business is so good he is starting to hire new people for its Torrance facility.

I have also visited the Torrance headquarters for Amonix, a world leader in photovoltaics.  The company received a $10 million federal grant, which along with federal tax credits for solar, allowed them to create new manufacturing jobs and more are expected.

Federal solar tax credits are also helping small local businesses like ABC Solar, which was able to double its profits each of the last two years. When I attended the grand opening of their Hermosa Beach store a few months ago, they were projecting five new hires for that branch by the end of the year. Now they are telling me they have 39 new hires!

8. I’ve heard your lighting efficiency legislation is killing American jobs. Can you explain your view on this?

It’s just not true.  In fact, tough lighting efficiency standards will create jobs.  A few of my colleagues in Congress decided they want to turn back the clock a century by repealing the 2007 bipartisan law I wrote—and that George W. Bush signed into law--that sets high lighting efficiency standards based on California’s law.

Just a few weeks ago, I attended a lamp exchange in Harbor City hosted by Southern California Edison.  Over 9,000 old lamps were brought in - and people took home energy efficient lamps for free.

Efficient lighting saves money on utility bills and creates new American jobs.

As mentioned, LEDtronics employs in Torrance 150 workers. It reports that business is so good that it will be hiring more employees this year and it sees that trend continuing. 

9. Unemployment in the Los Angeles construction industry is about 40% percent?  What do you think will improve the construction job outlook?  

The construction industry was extremely hard hit during this recession; unemployment in the construction trades in Los Angeles is almost 40 percent. That’s why I support Mayor Villaraigosa’s plan to use the Measure R half cent sales tax as leverage to build 12 regional transit projects in ten years versus 30.  “30/10” will create 165,000 construction jobs and 2,800 permanent operations and maintenance jobs.

10. I am a small business owner and cannot sustain the accounting and reporting costs in the 1099 provision of the new health care law. Do you believe in fixing the 1099 problem? 

I agree that the 1099 requirement is onerous and should be changed, and I voted in July to repeal it.  But the bill failed.  The White House now agrees with us that the 1099 provision needs to be changed, so I am hoping Congress will tackle that again this fall.  The provision doesn’t go into effect until 2012, so we have some time to get to this done.

11. My small business needs a larger loan to keep my monthly expenses afloat than SBA typically offers. Is there talk of raising the limit? Banks are unwilling to lend.

Banks are still reluctant to lend to small businesses despite the federal government’s efforts to free up capital in the private market.

With the recent passage of the Small Business Jobs Act, the SBA Express Loan was temporarily increased from $350,000 to $1 million - allowing more small businesses to take advantage of working lines of credit and providing them with other capital they need.  In addition, SBA has permanently increased loan limits from $2 million to $5 million.

12. What manufacturing jobs are in the district and the Los Angeles region? 

I have toured manufacturing companies in the district like Pelican Products in Torrance, which makes protective carrying cases and lighting equipment for the military, first responders and aquatics use.  They are proving that manufacturing CAN happen in California.  The company employs more than 500 people in Torrance.

Enova Systems in Torrance designs and manufactures drive trains for electric and hybrid electric trucks, buses, and delivery vehicles. The company employs 50 people in green jobs and has created 16 new jobs since 2009.

Balqon Corporation in Harbor City develops and manufactures heavy-duty all electric vehicles, including hauling trucks for the Port of Los Angeles. The company employs 15 workers in clean technology jobs and reported record revenue growth in 2009.

Huge companies like Boeing, Northrop Grumman, Raytheon and countless other small and mid-size firms are the world leaders in communications systems and satellites.

13. Did the stimulus benefit our communities? 

I voted for the stimulus, but I don’t believe it has worked as well as it could have.  Though jobs are being created, progress is slower than hoped.  Overall, California has received $23.5 billion and has saved or created 76,261 jobs.  Los Angeles County has received approximately $6 billion and saved or created 4,700 jobs.  And, the district has received $233.7 million and saved or created 186 jobs.
Here are a few of the over 200 district projects receiving stimulus money: 

• LA-RICS - $154 million to develop a modern interoperable public safety broadband network that allows multiple agencies to respond to the widest possible variety of emergencies
• Rapiscan Systems - $16 million to purchase 22 Advanced Technology Baggage Screening Systems, ancillary equipment and nationwide deployment.
• Honeywell - $11 million to bring end-to-end automation and interoperability of electricity to commercial customers to further the goals of the Smart Grid.
• City of Torrance- $8 million to purchase new hybrid gasoline electric public transportation buses.
• South Bay Family Health Care Center - $1 million to install and operationalize the practice management element of the integrated practice management/electronic health record system.
• Westside Center for Independent Living - $554,000 to improve and expand independent living outcomes for persons with significant disabilities.
• City of Redondo Beach - $447,000 for Prospect Avenue street resurfacing.
14.  My child was home for the summer and could not find a job. How can I help him for next summer? Are there any programs available for young adults with little or job experience to enter the workforce? 

Your child was not alone.  This year saw the highest unemployment rate on record for youth between 16 and 24. These numbers are abysmal. Our area benefitted from a federal subsidized jobs initiative called the Temporary Subsidized Employment program. Spearheaded by LA County Supervisor Don Knabe, this program created 10,458 adult and roughly 15,000 summer youth jobs.

I voted to extend the federal funding for this initiative for a year, and while the House of Representatives passed the bill, the Senate unfortunately did not.

I will keep trying to find ways to incentivize summer youth employment, and in the meantime, I suggest you keep an eye on my website for news and stay in touch with the South Bay Workforce Investment Board.

15. What has Congress done to help create jobs?

As I said at the beginning of the call, I am deeply concerned about the economy and supporting legislation that creates jobs has been my main legislative priority. To that end, I voted for and the House has approved a number of bills that ease the tax burden on small businesses. Small businesses are key -- 87 percent of all U.S. companies have fewer than 20 people and they employ nearly 21 million people.

Congress passed:

• The Small Business Jobs Act, which created eight new business tax cuts on top of the eight already recently enacted by Congress, and provided $12 billion in tax relief for small businesses. The bill is expected to create up to 500,000 jobs by leveraging $300 billion in private sector capitol - and it creates a $30 billion lending fund for community banks.
• The HIRE Act, which is expected to create up to 300,000 jobs by providing a payroll tax holiday for business that hire unemployed workers, and a tax credit for businesses that retain these workers.
• The “Cash for Clunkers” program, which spurred the sale of 700,000 vehicles.
• The Teachers Jobs act, which provided $10 billion to save 161,000 teachers’ jobs nationwide, and provided $16 billion in Medicaid aid to states, which meant the preservation of 158,000 jobs - including police, firefighters, nurses and EMTs.

I also supported the 2009 Stimulus Act, which has saved or created between 1.4 and 3.5 million jobs.

16. I know that foreclosures are off the topic of jobs.  When people lose their jobs, they can’t afford their homes. What can be done to stop foreclosures?

I want to help people try to stay in their homes.  Since the beginning of the housing crisis, I have co-sponsored and publicized mortgage workshops throughout the district. I joined with my California colleagues to urge the Justice Department to investigate how banks handle foreclosures. 

17. How can we help veterans that are returning from Iraq and Afghanistan?

Our veterans deserve the very best - and I’m pleased to have a Marine veteran Ernesto Gutierrez on my district staff, He’s a fantastic asset to my office and to the people of the 36th District.

Over a decade ago, Ernie enlisted in the Marines and eventually deployed to Iraq, where he served two tours during the war’s most dangerous period. For his bravery, he received the Navy Achievement Award and the Citation for Excellence in Service Award. His service ended soon after an injury sustained in theatre, when his vehicle drove over an IED.

Like many Iraq veterans, Ernie returned to an economy in dire straits. The unemployment rate for veterans is 21 percent, over twice the national average.

Ernie applied to the congressional Wounded Warrior Program -- established in 2007 by the Dignified Treatment of Wounded Warriors Act.  Positions are available in congressional district offices nationwide, and I was fortunate to have him reach out to mine.

In September, the House overwhelmingly passed H.R. 3199, the “Emergency Medic Transition (EMT) Act.”  Hopefully the Senate will pass it during the lame duck session.

My bill creates a fast-track EMT certification path for honorably discharged veterans who have EMS training to become civilian EMTs.  It will be great for veterans and for our public health system, who will benefit from an influx of seasoned health care workers.

18.  Eliminating our deficit and paying down the debt are very important to me and I believe everyone agrees that there are really only four areas where cuts can really enable this - social security, Medicare, defense spending or raising taxes. Are you willing to seek savings in one or more of these areas? If so, which & what cuts?

As a member of the Blue Dog Democrats, I share your concern about the deficit. It’s out of control. According to the non-partisan Congressional Budget Office, the federal budget deficit will surpass $1.3 trillion in 2010 and is expected to be the second largest in 65 years.

I think that everything, including defense spending, should be on table. And I think the Bush era tax cuts for the top two percent should be allowed to expire - saving $700 billion over ten years.

I think tax cuts for middle income taxpayers should remain in place.