Rep. Johnson outlines benefits of House health care reform bill
WASHINGTON, D.C. – Rep. Hank Johnson (GA-04), concerned his constituents are not receiving accurate information on the health care reform debate, sought to set the record straight about what changes might look like for his constituents.
Insurance companies, not health care professionals and consumers are dominating the debate, Johnson said.
“I recently heard from a 54-year-old constituent who is self employed and cannot qualify for group insurance,” said Johnson. “Her husband has a small business and her son is on her policy. Health insurance costs their family more than $1,800 out of pocket a month or more than $21,000 a year. They don’t want free care, just affordable care.”
Johnson said workers worried they might lose their coverage if they become too sick or lose their job and small business owners trying to make a living and do right by the people they employ would be helped by reform.
“Skyrocketing health care costs are crippling individuals and small businesses,” said Johnson. “I respectfully disagree with folks who say reform is not the answer. Reform will buoy small businesses and uninsured or underinsured citizens by allowing them to purchase plans through an insurance exchange and by providing tax credits to help them provide benefits.”
America’s Affordable Health Choices Act or H.R. 3200 would provide significant benefits in the Fourth Congressional District of Georgia: up to 14,200 small businesses could receive tax credits to provide coverage to their employees; 5,400 seniors could avoid the donut hole in Medicare Part D; 2,230 families could escape bankruptcy each year due to unaffordable health care costs; health care providers would receive payment for $98 million in uncompensated care each year; and 109,000 uninsured individuals would gain access to high-quality, affordable health insurance.
A closer look:
• Help for small businesses. Under the legislation, small businesses with 25 employees or less and average wages of less than $40,000 qualify for tax credits of up to 50 percent of the costs of providing health insurance. There are up to 14,200 small businesses in the district that could qualify for these credits.
• Help for seniors with drug costs in the Part D donut hole. Each year, 5,400 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 would provide them with immediate relief, cutting brand name drug costs in the donut hole by 50 percent, and ultimately eliminating the donut hole.
• Health care and financial security. There were 2,230 health care-related bankruptcies in the district in 2008, caused primarily by the health care costs not covered by insurance. The bill provides health insurance for almost every American and caps annual out-of-pocket costs at $10,000 per year, ensuring that no citizen will have to face financial ruin because of high health care costs.
• Relieving the burden of uncompensated care for hospitals and health care providers. In 2008, health care providers in the district provided $98 million worth of uncompensated care, care that was provided to individuals who lacked insurance coverage and were unable to pay their bills. Under the legislation, these costs of uncompensated care would be virtually eliminated.
• Coverage of the uninsured. There are 130,000 uninsured individuals in the district, 19 percent of the district. The Congressional Budget Office estimates that nationwide, 97 percent of all Americans will have insurance coverage when the bill takes effect. If this benchmark is reached in the district, 109,000 people who currently do not have health insurance will receive coverage.
• No deficit spending. The cost of health care reform under the legislation is fully paid for: half through making the Medicare and Medicaid program more efficient and half through a surtax on the income of the wealthiest individuals. This surtax would affect only 1,700 households in the district. The surtax would not affect 99.4 percent of taxpayers in the district.