Provides quality, affordable health care for 96% of Americans while reducing the deficit

Washington, D.C.--Congressman Eliot Engel joined with his House Democratic Colleagues in support of The Affordable Health Care for America Act (H.R. 3962), which blends and updates the three versions of previous bills passed by the House committees of jurisdiction in July. Congressman Engel is a senior member of one of those committees, the House Energy and Commerce Committee. The House is expected to debate and vote on the legislation next week.

“For the first time in American history, all Americans would have access to quality, affordable health care under this updated legislation. We have been talking about reforming our health care system for decades. Not until this year have we gotten this close. This bill slows the growth of out-of-control costs, introduces competition into the health care marketplace to keep coverage affordable and insurers honest, protects choices of doctors and health plans, and assures all Americans access to quality, stable, and affordable health care,” said Rep. Engel. “In addition, it strengthens Medicare for our seniors by closing the Part D ‘donut hole’, eliminates co-payments for preventative care, boosts Medicare Advantage protections and improves programs for lower income seniors.”

The Congressional Budget Office (CBO) estimates the cost of expanding coverage at $894 billion, consistent with the $900 billion limit laid out by President Obama. CBO estimates the bill reduces the deficit by at least $30 billion over 10 years.

“I am pleased to see that the House will be voting on a bill containing a public option, a sure-fire way to keep insurance companies honest. In many states, one or two insurance companies rule the roost and can collude to set rates. Finally, the 47 million (and growing) Americans without coverage will have an option. The 2.5 million New Yorkers without insurance will be able to get treatment. The 91,000 people in my district – 14.4 percent of the population - can get medical care without having to worry about not paying their rent as a result,” said Rep. Engel.

The legislation will ensure affordability for workers and middle-class families, security for seniors with a stronger, a more solvent Medicare program, and a healthier fiscal future.

Also introduced at the same time was critically important companion legislation, the Medicare Physician Payment Reform Act (H.R. 3961). That bill will permanently reform Medicare’s physician payment system and place it on a more sustainable footing for physicians and beneficiaries in the future.

The key components of the Affordable Health Care for America Act include:
Increasing choice and competition.

• If people like their current plans, they will be able to keep them.
• The creation of the Health Insurance Exchange. Individuals not covered by their employer and some small businesses can comparison shop from a menu of affordable, quality health care options that will include private plans, health co-ops, and a new public health insurance option. The public option assures a level playing field with private insurers, spurring additional competition.
• This Exchange will create competition based on quality and price that leads to better coverage and care. Patients and doctors will have control over decisions about their health care, instead of insurance companies.

Giving Americans peace of mind.

• Ensure that Americans have portable, secure health care coverage – so that they won’t lose care if their employer drops their plan or they lose their job
• It will end increases in premiums or denials of care based on pre-existing conditions, race, or gender, and strictly limit age rating.
• The proposal will also eliminate co-pays for preventive care, and cap out-of-pocket expenses to protect every American from bankruptcy.

Improving quality of care for every American.

• Guarantees that every child will have health care coverage that includes dental, hearing and vision benefits.
• Every health care plan offered through the exchange and by employers after a grace period will cover preventive care at no cost to the patient.
• Increases the health care workforce to ensure that more doctors and nurses are available to provide quality care.
• Strengthens Medicare and Medicaid and closes the Medicare Part D “donut hole” so that seniors and low-income Americans receive better quality of care and see lower prescription drug costs and out-of-pocket expenses.

Ensuring shared responsibility.

• Employers can continue offering coverage to workers, and those who choose not offer coverage contribute a fee of eight percent of payroll.
• All individuals will generally be required to get coverage, either through their employer or the exchange, or pay a penalty of 2.5 percent of income, subject to a hardship exemption.
• The federal government will provide affordability credits, available on a sliding scale for low- and middle-income individuals and families to make premiums affordable and reduce cost-sharing.

Protecting consumers and reducing waste, fraud, and abuse.

• Establishes consumer advocacy offices to protect consumers, answer questions, and assist with any problems related to their plans.
• Provides transparency in plans in the Health Exchange so consumers have the clear, complete information, in plain English, needed to select the best plan.
• Simplifies paperwork and other administrative burdens.
• Increases funding of efforts to reduce waste, fraud and abuse; creates enhanced oversight of Medicare and Medicaid programs.

Reducing the deficit and ensuring the solvency of Medicare and Medicaid.

• Pays for the entire cost of the legislation though a combination of savings achieved by making Medicare and Medicaid more efficient – without cutting seniors’ benefits in any way – and revenue generated from placing a surcharge the top 0.3 percent of all households in the U.S. (married couples with adjusted gross income of over $1,000,000) and other tax measures.
• The Congressional Budget Office estimates the bill will reduce the deficit by at least $100 billion over ten years.
• Estimates also show the bill will slow the rate of growth of the Medicare program from 6.6 percent annually to 5.3 percent annually.

“There is still much work to be done. The bill must still pass the House, and is subject to amendments. In addition, when the Senate completes its work, we must combine the two versions. The bottom line is clear. The status quo cannot continue. Our system will be unsustainable for far too many people in the very near future. Something needed to be done, and now is the time, and this is the legislation,” added Rep. Engel.

To view a copy of the Affordable Health Care for American Act, H.R. 3926, click here.
To view a copy of the Medicare Physician Payment Reform Act, H.R. 3961, click here.
To view a bill summary, detailed fact sheets and more information on what the health insurance reform will mean for American, click here.