WPCNR WASHINGTON WIRE. August 13, 2009: WPCNR continues its exclusive coverage of the first Telephone Town Meeting Congresswoman Nita Lowey of the 18th Congressional District held involving over 4,000 phone-in residents of the county Tueday evening. In the this second half of the meeting, the Congresswoman calls for cutting profits of insurance companies and pharmaceutical companies to finance a major portion of the health care plan; she outlines how the House of Representatives Health Care Bill aids small business to afford health care plans, and goes on record as saying neither Medicare Advantage nor Medicare benefits are going to be cut. She also assures that mental health care will be required as part of any health plans going forward should the bill pass. We return now to the WPCNR record of the call:
Lowey expanded on her answer to Bryron of Larchmont, predicting dire consequences if health care reform was not addressed now:
“Addressing this crisis is not going to be cheap, but the cost of inaction is far worse. The U.S. currently spends 2.4 Trillion dollars a year on health care. Without reform, and at the pace we’re going, we could spend 33 Trillion in health care over the next decade which would threaten our economy as rising health cost results in millions of families losing jobs and insurance. I’m concerned about the costs, too. The President guarantees us it won’t increase the deficit. We really have to go after a lot of the waste.”
The moderator relayed a question on many phoner-ins’ minds, have members of congress read the bill? Lowey said, yes:
“You should have been with us at one of the caucuses. 7 hours straight. I flew down to Washington. We had a teach-in for members of congress. We all had the bills. We had about a half dozen of the experts. We went through the bill section by section. And, we are closely monitoring ongoing changes to the bill in the committees of jurisdiction and in ongoing negotiations on the bill. In addition, members of the House Democratic Caucus are continuing to review the bill, and my staff is working very hard on it. And we have a guarantee that the members (of the House) will have 72 hours to review the final bill, including any changes before floor consideration…I am very much up on it…I need all the advice I can get. If you have any questions just call us we’ll be happy to answer.”
Doug of Rye asked “Why are you trying to run this by us? (when recent polls say Americans don’t want it and are happy with present plans):
Lowey replied, “If you have a plan you’re happy with. That’s terrific. But if you look at it, since 2000, personal premiums have more than doubled. A group of business people (large, small, medium-sized) met with me two weeks ago. When I said they (the premiums) had doubled, they said, are you kidding? They’ve all gone up 73% and many of them pay a hundred per cent for their employees. So since 1967, the cost of an average family health insurance policy has risen from 7% of median family income to 17%. And if you look at the bankruptcies, 60% of all U.S. bankruptcies were due to medical costs. …if you’re happy with your premiums, your health care, if you don’t mind the insurance companies raising the premiums. Keep it. No one is telling you you have to participate here. If you’re happy, you’ll be able to keep exactly what you have.”
Corey in White Plains phoned in concerned the health bill would clandestinely fund abortions. Lowey allayed that fear: “abortion isn’t mentioned once in the bill. No taxpayer now pays for abortion.”
Christiana in White Plains, called in saying she had lost her job and did not have medical coverage as a result, “Why can’t I get any coverage here from the government. Is there anything in the bill that addresses this issue?”
Lowey said the bill would make this possible: “Sure. You would be able to go to the exchange and get an affordable plan with benefits comparable to members of congress, and tax credits would be available for individuals with incomes up to about $88,000 for a family of four.” She invited Christiana to come into her office in White Plains.
POLL 2: How Phone-Callers Felt on Health Plan Financing
The Moderator than took the opportunity to conduct a poll on how the telephone phone-in audience felt on how the health care plan should be financed.
The choices were, Do You Believe the Health Care Plan Should Be Financed by
1.Taxing those with incomes over $1 Million a year
2.Taxing Insurance Companies on their profits.
3. Individuals should be taxed on their health benefits.
4. By eliminating inefficiencies and waste in the health care system.
or
5. Taxing junk food, alcohol and tobacco.
The results from the over 4,000 callers on the call-in were:
The majority, 37% felt the program should be paid for by eliminating waste and inefficiency in the health care system.
A total of 24% felt insurance companies should be taxed more on their profits.
Only 19% felt junk food, alcohol and tobacco should be taxed.
A total of 16% of callers on the phone-in felt the program should tax persons with incomes over $1 Million a year.
Only 4% felt individuals should have their health care benefits taxed.
Lowey’s comment on this was, “There is no question that we have to squeeze savings out of the insurance companies and pharmaceutical questions. “
The moderator followed with a consensus question from the callers about whether their Medicare benefits would be cut.
Lowey responded, “ First, the vast majority enrolled in traditional Medicare will not see their benefits cut. Seniors who are chronically ill and use a lot of prescription drugs will really see significant savings on their medication. The pharmaceutical industry has agreed to pay 50% of the cost of drugs stuck in the donut hole, where they currently must pay 100% of their costs (when the current year benefits run out). Furthermore the house bill will gradually eliminate the donut hole entirely.”
She said Medicare is one of the most successful government health inititatives in the nation’s history and she is committed to preserving stability in affordable benefits. “For those that say I don’t want a government-run program. Medicare is a government-run program, and I don’t know any seniors that want to give up or cut out Medicare. It is a rumor that Medicare benefits will be cut or eliminated entirely.”
Geri in Dobbs Ferry asked “What do you think about this bill in terms of procedures that need to be done. Am I going to have some person tell me, no, I can’t have a procedure done, will I have to wait forever to have surgery?”
Lowey said, “ If you came in here (to my office) and talked to my staff, you’d see how much rationing is going on right now. The insurance company will say no before they ever say yes. The truth is what many people consider rationing already happens with some insurance plans.
There’s no insurance public or private that covers everything at any price. But many insurance companies limit drug formularies that the patient’s doctor may feel he or she needs, but instead of allowing insurance company bureaucrats make those decisions based on the bottom line, not what treatment is most appropriate, the house proposal would support research to determine which treatments are best, but would not force doctors to use them….patients will still be able to obtain further tests, treatments, or medications, but by pursuing the most effective treatments first, patients can be treated more efficiently and effectively.”
Small Business Effects
Heidi from Yonkers, a small business owner asked if they would be required to offer and pay benefits for their employers.
Lowey said, “Small businesses will be among the greatest beneficiares of comprehensive health care reform. ….by making individual, family and ultimately employer provided plans more affordable through a health insurance exchange, health care reform will relieve businesses of an impossible choice: providing unaffordable insurance, or leaving employees uninsured and losing employees altogether. The bill will also provide tax credits to tens of thousands of small businesses of New York’s 18th district to help provide health care benefits to their employees. The (tax) credits are calculated are based on number of employees and average salary. Business who fail to provide health care to their employees even with affordable rates and tax credits, will be required to pay a fee equal to a very small percentage of a business payroll to support the exchange from which employees will likely seek coverage.
I supported the updated proposal to insure this fee does not hurt the small businesses, who are the backbone of our economy. You’re not going to have to do anything unless your payroll is over $500,000.”
Neil in New City was next up, a mental health provider, asked the bill’s effect on mental health coverage. Lowey said the bill would require insurance companies to cover mental health services as a standard benefit.
Estelle in New City asked about Medicare Advantage….Lowey said, the house proposal does not eliminate Medicare Advantage for most seniors. “Right now the government” she said “pays $177 Billion over ten years to insurance companies to participate in Medicare Avantage. Insurance companies already making tens of billions in exhorbitant profits should not be subsidized in my judgment. That’s the kind of savings we need to strengthen the health care system overall.By using these unnecessary subsidies in other areas of health care we can bolster benefits for seniors and increase the longterms solvency by at least five years.”
Supports Eliminating Insurance Companies exemption from anti-trust laws:
“We’re seeing collusion everywhere in the insurance industry.”
Paul from Chappaqua asked, why isn’t congress removing the anti-trust exemption the insurance companies now operate under, “Is that exemption going to be removed?”
“ President of hospitals can’t talk to each other because they’ll accused of collusion. But we’re seeing collusion everywhere in the insurance industry, and to me there is no reason why we shouldn’t repeal it, other than that they’ve had too influence in the congress and I think it’s outrageous. McCarren-Ferguson should be repealed.”
On the poll results on financing, Lowey commented that “We have to take as much as we can from the insurance industry. Also, the pharmaceutical companies they keep going up and up. And there is so much fraud in Medicare, and we really have to go after the fraud in Medicare.”
Health Care Now Vital Part of Keeping Economic Recovery Going
Andy from Scarsdale asked, why not spend the time to do it right instead of rushing the matter.
Lowey said, “some of us may remember the Hillary Clinton health care proposal. If we don’t do anything, it will cost $33 Trillion. Health care reform is a critical part of our economic recovery. If we don’t act soon, there’s a real concern that skyrocketing health costs will get worse for the families and businesses…health care costs are hitting taxpayers hard and putting our nation deeper into debt. The cost of inaction is too great.
Lowey said how she does supermarket visits during the year and that this (health care costs) comes up all the time: “People worry. They lose a job How are they going to pay for their insurance. This bill may not be perfect, but unfortunately there are too many people who just want it to fail. They’re just saying no, no, no. I’d like to see a good bipartisan bill. The main responseto your question, is this the right time. Everyone I speak with, especially in the business community, health care reform is a critical part of our economic recovery.”
Ms. Lowey then wrapped up the one-hour conference call.
