Fiscal Year 2010 Health Care Proposals

The Senate Finance Committee held a hearing Tuesday, March 10 on the President’s Fiscal Year 2010 Health Care Proposals. Chairman Max Baucus (D-MT) opened the hearing by saying that comprehensive health reform is “an imperative. If we delayed, the problems that we face today would grow even worse. If we delayed, millions more Americans would lose their coverage. If we delayed, premiums would rise even further out of reach. And if we delayed, Federal health care spending would soak up an even greater share of our nation’s income.” He related the schedule for Congressional action including mark up of a comprehensive health care reform bill in June and a bill on the President’s desk by July 4. To view his statement follow this link: http://finance.senate.gov/hearings/statements/031009mb.pdf

The ranking member of the committee, Senator Charles Grassley (R-IA), also made an opening statement. He said, “The American health care system – if you can even call it a system -- is in desperate need of reforms. We spend twice as much on health care as other developed countries. But even with all this spending, our health outcomes are often half as good. “ He also noted that the schedule to which he has committed with Senator Baucus is “ambitious but achievable” and that the Congress has “a long way to go and a lot of heavy lifting ahead of us. “ Senator Grassley related his four principles for reform: (1) reform should be accomplished through regular order in a fiscally responsible way, (2) health care costs must be brought under control, (3) reform must assure that individuals are allowed the choice to keep their existing coverage, and (4) any change must assure that individual health care decisions are made by the physician and the patient and not by a bureaucrat. To view Senator Grassley’s full statement follow this link: http://finance.senate.gov/hearings/statements/031009cg.pdf

Peter R. Orszag, Director of the Office of Management and Budget, was the only witness to testify before the committee. Director Orszag began his remarks noting that all options should be considered. He said that escalating health care costs result in crowding out of other areas in state budgets. Furthermore, high health care costs often reflect that more procedures were performed but do not necessarily mean that better outcomes were achieved. He went on to relate that affordable, quality health care must be available to all Americans.

Several reforms he mentioned included implementation of health information technology. With all of the information technology that is part of our everyday life, it is stunning that health information is still routinely recorded and stored on paper. Comparative effectiveness research is a tool that will provide health care professionals and their patients with better tools to weigh treatment options. Changing our payment system to provide efficient, effective care, not just more care, must be part of reform. Prevention and wellness are key components for a healthier America. To view his testimony you may follow this link: http://finance.senate.gov/hearings/testimony/2009test/031009potest.pdf .

Chairman Baucus, Ranking Member Grassley and the committee members made comments and asked questions about Medicare, prescription drug purchasing from other countries, biologics and generic drugs, the process for implementing comparative effectiveness, public and private health insurance plans, reforms to the health insurance market, personal responsibility, coordination of care, health care payment and incentive reforms, long-term care, access to care, improper payments, prevention and coverage for immigrants in the country illegally, among others. Director Orszag reiterated that the president believes all options should be on the table as Congress takes action to reform the health care system.