News From the
Committee on Small Business
Nydia M. Velázquez, Chairwoman

For Immediate Release                                                       CONTACT:  Alex Haurek; Duncan Neasham
March 18, 2009                                                                                                         (202) 226-3636

Small Providers Discuss President’s Health Reform Budget
 

WASHINGTON, D.C. — During a hearing before the House Committee on Small Business, lawmakers today examined the President’s budget proposal for healthcare reform.  Rep. Nydia M. Velázquez (D-NY), the Chairwoman of the Committee, said that the country’s current healthcare system is no longer sustainable and that that the President’s commitment to reforming the system could help small firms that are struggling with rapidly rising premiums.

“Americans across the country know our healthcare system is broken, as millions find themselves on the growing rolls of the uninsured each year, while those with health insurance see costs skyrocket,” said Velázquez. “Meanwhile, small firms are grappling with how to pay for rising premiums, while continuing to offer their employees coverage.  It has become clear that our current healthcare system is not only morally indefensible, it is also economically unsustainable.”

During the hearing, representatives of small healthcare providers praised the President’s budget for targeting funds to permanently address Medicare physician fee cuts.  Because of a flaw in the Medicare formula, Congress has repeatedly had to pass stopgap measures to temporarily block cuts to the fees physicians receive when treating patients enrolled in Medicare.  Velázquez praised the inclusion of the fix in the President’s budget, saying that unless the fee cut problem is addressed permanently, many small providers could have no choice but to turn away Medicare beneficiaries.

“Many smaller medical practices are small businesses and are responsible for expenses like rent, payroll, employee health insurance and malpractice insurance,” said Velázquez.  “Until the Medicare physician fee cut is permanently addressed, smaller providers will face difficulty making long term investments in their practices.  Even worse, the projected cuts to Medicare could create a situation where small practices stop admitting Medicare patients.”

The hearing also centered on the importance of the adoption of health Information Technology (health IT).  Many experts have touted health IT as a way to vastly improve efficiency and reduce costs, particularly for smaller providers. 

“The President’s plans to implement health IT will help smaller providers in rural communities better care for patients,” said Velázquez.  “Health IT reduces errors, cuts costs, offers greater efficiency and, ultimately, improves the quality of care.” 

Velázquez said that as Congress and the Administration move forward with comprehensive healthcare reform, they would need to take into account the needs of small providers and, also, be careful not to unduly burden small businesses.

“The needs of small firms and small medical practices are different from those of big companies, and it is critical that we not push forward with one-size-fits-all reform,” Velázquez said.  “If it is properly crafted, healthcare reform will be a relief to small providers and to small firms, bringing greater efficiency to the system and reducing costs for all Americans.”

In February, President Obama released his Fiscal Year 2010 budget proposal, which included more than $630 billion over 10 years to give Congress the necessary resources for health reform efforts. The President described this funding as a starting point, as additional will likely be needed to achieve comprehensive reform. 

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To view video of the hearing, click here.