WASHINGTON, D.C. – Solutions that will reduce health care costs are critical in order to provide quality and affordable coverage for all Americans, witnesses told the Health, Employment, Labor and Pensions Subcommittee of the House Education and Labor Committee today. Congress is currently weighing several options that will meet President Obama’s goal of guaranteeing quality and affordable health care insurance coverage to all Americans.
“One key way to reduce costs in our health care system is to eliminate loopholes in the system that increases profits for insurers by shifting costs to hardworking Americans,” said U.S. Rep. Rob Andrews (D-NJ), chairman of the subcommittee. “We need to create real competition between insurers in the health care market in order to further reduce costs for consumers.”
Working Americans and employers have seen these rising costs reflected in the increases in their health insurance premiums each year. According to government statistics, health insurance premiums for employees more than doubled in the last 9 years, a rate 6 times faster than wage increases.
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“Guaranteeing adequate, affordable coverage for all Americans regardless of where they obtain their health insurance is a key component of health reform,” said Karen Davenport, director of health policy at the Center for American Progress Action fund. “Reforming our nation’s health care system is a challenging task but the results will be worth the effort – lower costs and better coverage.”
Rising costs have led to millions of Americans without any health coverage and millions more who have inadequate health insurance. Witnesses also said that ensuring a more efficient delivery of care will help drive down waste and costs within the health care system.
“The American health care system can be fixed, but consumers need tools to help drive the system toward quality and cost savings,” said William Vaughan, health policy analyst for the Consumers Union. “Consumers are both paying more in premiums, and shouldering a higher burden for out-of-pocket expenses, including deductibles, co-payments and other expenses not covered by their health insurance.”
Guaranteeing health care coverage for all Americans, regardless of an individual’s health, will create larger pools of risk where costs could be spread more efficiently throughout system than in smaller pools. Smaller pools of risk lead to more expensive coverage for individuals and small businesses.
“Generally speaking, small businesses lack economies of both scale and expertise via-a-vis larger employers in providing health, retirement, and other employee benefits to their workers,” said Bill Oemichen, president and CEO of the Cooperative Network, a Minnesota and Wisconsin association of businesses that provide employee benefits to 600 businesses. “For this reason, millions of small business employees do not receive health care and benefits coverage, and small business employers that do provide benefits often struggle to maintain these programs.”
Another strategy is to ensure that everyone will be covered regardless of preexisting conditions. Loopholes in current law force many individuals with preexisting conditions to go without coverage and drive up costs when they do have to seek health care treatment.
“[Current law] does allow insurers to exclude coverage for a preexisting condition for up to one year for employees who previously had less than 12 months of continuous coverage,” said Ron Pollack, executive director of Families USA. “These exclusions cause employees to postpone or forgo treatment for serious illnesses such as cancer.”
Congress is currently working on a proposal to provide comprehensive health care reform. On March 11, the chairs of the three House committees of jurisdiction sent a letter to President Obama pledging that they will work together to deliver a comprehensive reform package to the floor before the August recess. To read the letter, click here.
Working Americans and employers have seen these rising costs reflected in the increases in their health insurance premiums each year. According to government statistics, health insurance premiums for employees more than doubled in the last 9 years, a rate 6 times faster than wage increases.
Created with flickrSLiDR.
“Guaranteeing adequate, affordable coverage for all Americans regardless of where they obtain their health insurance is a key component of health reform,” said Karen Davenport, director of health policy at the Center for American Progress Action fund. “Reforming our nation’s health care system is a challenging task but the results will be worth the effort – lower costs and better coverage.”
Rising costs have led to millions of Americans without any health coverage and millions more who have inadequate health insurance. Witnesses also said that ensuring a more efficient delivery of care will help drive down waste and costs within the health care system.
“The American health care system can be fixed, but consumers need tools to help drive the system toward quality and cost savings,” said William Vaughan, health policy analyst for the Consumers Union. “Consumers are both paying more in premiums, and shouldering a higher burden for out-of-pocket expenses, including deductibles, co-payments and other expenses not covered by their health insurance.”
Guaranteeing health care coverage for all Americans, regardless of an individual’s health, will create larger pools of risk where costs could be spread more efficiently throughout system than in smaller pools. Smaller pools of risk lead to more expensive coverage for individuals and small businesses.
“Generally speaking, small businesses lack economies of both scale and expertise via-a-vis larger employers in providing health, retirement, and other employee benefits to their workers,” said Bill Oemichen, president and CEO of the Cooperative Network, a Minnesota and Wisconsin association of businesses that provide employee benefits to 600 businesses. “For this reason, millions of small business employees do not receive health care and benefits coverage, and small business employers that do provide benefits often struggle to maintain these programs.”
Another strategy is to ensure that everyone will be covered regardless of preexisting conditions. Loopholes in current law force many individuals with preexisting conditions to go without coverage and drive up costs when they do have to seek health care treatment.
“[Current law] does allow insurers to exclude coverage for a preexisting condition for up to one year for employees who previously had less than 12 months of continuous coverage,” said Ron Pollack, executive director of Families USA. “These exclusions cause employees to postpone or forgo treatment for serious illnesses such as cancer.”
Congress is currently working on a proposal to provide comprehensive health care reform. On March 11, the chairs of the three House committees of jurisdiction sent a letter to President Obama pledging that they will work together to deliver a comprehensive reform package to the floor before the August recess. To read the letter, click here.
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