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Congressman John T. Salazar -- Defending Rural Values -- Third District of Colorado
 
For immediate release: November 3, 2009
 
 
Contact: (202) 225-4761
Eric Wortman, Communications Director
Contact: (202) 536-6190
Edward Stern, Deputy Press Secretary
 
 

Congressman Salazar releases list of benefits new health care bill will bring to Colorado’s 3rd Congressional District

 
 

Affordable Health Care for America Act holds massive benefits for rural Colorado

WASHINGTON, DC –Today, Congressman John Salazar released the list of benefits the Affordable Health Care for America Act is estimated to bring to the 3rd Congressional District of Colorado.  The bill was introduced in the House of Representatives on Thursday, October 29. The analysis was compiled from data by the Centers for Medicare and Medicaid Services, the Department of Health and Human Services, the House Committee on Ways and Means and the U.S. Census Bureau.
Last week, in a statement announcing his support for the health care reform bill, Congressman Salazar said:
“Over the past few months I have been intimately involved with the health care debate in Washington. I have also heard from many of my constituents who have expressed their views on health care reform.
It has become clear that the current system is in need of significant reform. I am therefore pleased with the House version of the bill that has been unveiled and I intend to vote for the bill when it comes before the House.
This bill provides affordability for all Americans, security to our seniors and responsibility to our children by not adding to the deficit.
When President Obama signs this bill it will immediately end discrimination for pre-existing medical conditions, prevent people being dropped from coverage if they become sick, eliminate co-pays for preventive care, place yearly caps on what someone pays, and eliminate waste, fraud and overpayments to private insurance companies.
At my request, the Speaker and the White House included negotiated rates which greatly benefit rural America and districts like the 3rd that are disadvantaged by the current system. I also asked, and it was included, that the Secretary be allowed to negotiate prescription drug prices with manufactures – a move that will save us billions of dollars.
Any American that has insurance will be able to keep their doctor and their plan. Any American that doesn’t have insurance will be able to get insurance. For seniors, the bill strengthens Medicare immediately by improving benefits and in the long term.
The House is set to pass this landmark health care reform legislation and I will support it.”
 
In Congressman Salazar’s district, the Affordable Health Care for America Act will:
 
• Improve employer-based coverage for 362,000 residents.
• Provide credits to help pay for coverage for up to 184,000 households.
• Improve Medicare for 106,000 beneficiaries, including closing the prescription drug donut hole for 9,100 seniors.
• Allow 25,200 small businesses to obtain affordable health care coverage and provide tax credits to help reduce health insurance costs for up to 24,400 small businesses.
• Provide coverage for 111,000 uninsured residents.
• Protect up to 900 families from bankruptcy due to unaffordable health care costs.
• Reduce the cost of uncompensated care for hospitals and health care providers by $152 million.
 
Affordable and Improved Health Care Coverage for the Middle Class
Better health care coverage for the insured. Approximately 53% of the district’s population, 362,000 residents, receive health care coverage from their employer. Under the legislation, individuals and families with employer-based coverage can keep the health insurance coverage they have now, and it will get better. As a result of the insurance reforms in the bill, there will be no co-pays or deductibles for preventive care; no more rate increases or coverage denials for pre-existing conditions, gender, or occupation; and guaranteed oral, vision, and hearing benefits for children.
Affordable health care for the uninsured. Those who do not receive health care coverage through their employer will be able to purchase coverage at group rates through a health insurance exchange. Individuals and families with an income of up to four times the federal poverty level — an income of up to $88,000 for a family of four — will receive affordability credits to help cover the cost of coverage. There are 184,000 households in the district that could qualify for these affordability credits if they need to purchase their own coverage.
Coverage for individuals with pre-existing conditions. There are 18,600 individuals in the district who have pre-existing medical conditions that could prevent them from buying insurance. Under the bill’s insurance reforms, they will now be able to purchase affordable coverage.
Health care and financial security. There were 900 health care-related bankruptcies in the district in 2008, caused primarily by the health care costs not covered by insurance. The bill caps annual out-of-pocket costs at $5,000 for singles and $10,000 for families and eliminates lifetime limits on insurance coverage, ensuring that no citizen will have to face financial ruin because of high health care costs.
Security for Seniors
Improving Medicare. There are 106,000 Medicare beneficiaries in the district. The health care reform legislation improves Medicare by providing free preventive and wellness care, improving primary and coordinated care, improving nursing home quality, and strengthening the Medicare Trust Fund.
Closing the Part D donut hole. Each year, 9,100 seniors in the district hit the donut hole and are forced to pay their full drug costs, despite having Part D drug coverage. The legislation will provide these seniors with immediate relief, covering the first $500 of donut hole costs in 2010, cutting brand-name drug costs in the donut hole by 50%, and completely eliminating the donut hole by 2019.
Helping Small Businesses
Helping small businesses obtain health insurance. Under the legislation, businesses with up to 100 employees will be able to join the health insurance exchange, benefitting from group rates and a greater choice of insurers. There are 25,200 small businesses in the district that will be able to join the health insurance exchange.
Tax credits for small businesses. Small businesses with 25 employees or less and average wages of less than $40,000 will qualify for tax credits of up to 50% of the costs of providing health insurance. There are up to 24,400 small businesses in the district that could qualify for credits.
Covering the Uninsured
Coverage of the uninsured. There are 147,000 uninsured individuals in the district, 25% of the district residents under age 65. The Congressional Budget Office estimates that nationwide, 96% of all Americans will have insurance coverage when the bill takes effect. If this benchmark is reached in the district, 111,000 people who currently do not have health insurance will receive coverage.
Relieving the burden of uncompensated care. In 2008, health care providers in the district provided $152 million worth of uncompensated care. This care was provided to individuals who lacked insurance coverage and were unable to pay their bills. Under the legislation, these costs of uncompensated care will be virtually eliminated.
Deficit Responsibility
No deficit spending. The cost of health care reform under the legislation is fully paid for: half through eliminating waste, fraud, abuse, and excessive profits for private insurers in Medicare and Medicaid and half through a surcharge on the income of the top 0.3% wealthiest individuals. The surcharge will not affect 99.63% of taxpayers in the district.
Reducing the deficit. According to the Congressional Budget Office, the bill will cut the deficit by over $30 billion over the next decade and will continue to create a budget surplus over the next 20 years.
This analysis is based upon the following sources: the U.S. Census (data on insurance rates and small businesses); the Centers for Medicare and Medicaid Services (data on Medicare and Part D enrollment) the Department of Health and Human Services (data on health care-related bankruptcies, uncompensated care, and pre-existing conditions); and the House Committee on Ways and Means (data on the surtax).

 

 
 

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