A Tale of Two Bills

This is a tale of two bills -- two healthcare bills. 
One was 2,409 pages long HR 3590 (introduced November 2009)
One was 268 pages long HR 3400 (introduced July 2009)

HR 3590 proposed:

• Tax credits would be eligible for families and individuals whose household income was up to $40,000-$80,000 (for a family of four) who could not afford health insurance.
• Would tax large health insurance plans 40%, health insurance companies, pharmaceutical and medical supply companies
• Relies on as yet undertermined "cost savings" on Medicare to pay for costs of the plan.
• Would fine individuals who do not have insurance starting in 2014 ($750 or up to 2% of their income whatever is greater).
• Would have the federal government regulate any new plans and any changes to existing plans.
• Would provide a safety net for individuals with pre existing conditions
• Would require all states to have a health insurance exchange and would require all state plans to meet federal requirements.
• Would require all businesses with 50 or more employees to have health insurance or face a fine per employee.
• Included many other "pork" provisions to incentivize politicians to vote for the legislation.
• Does not spell out any details for actually reducing health care costs.
• Does not allow small businesses or individuals to pool their resources to reduce health program costs.
• Does not allow people to purchase health insurance across state lines which would increase competition.

HR 3400 included provisions for:

• Providing tax incentives and credits to all individuals, families and small businesses for acquiring health coverage. This included allowing individuals and families to apply the tax credits directly to premium payments.
• Does not reduce Medicare benefits.
• Does not try to get  the biggest and most wasteful organization in the US (the US government) to run another wasteful industry (health insurance companies).
• Small businesses would be financially incentivized through tax credits and breaks to provide group health coverage and auto-enrollment to their employees.  HR 3400 also would allow individuals and small businesses to  pool with other small businesses/groups to achieve greater discounts. Individuals could also join group associations that provide health insurance.
• Providing a safety net and coverage for individuals with pre-existing conditions.
• Allowing individuals to shop for coverage across state lines, thereby increasing competition in health insurance premiums.
• Providing financial incentives for wellness.
• Increasing liability protections for health practitioners and those volunteering to provide health care to reduce the number of frivilous lawsuits that lead to increasing the cost of health care.
• Increasing transparency on health coverage options and health care providers through public information portals.
• Financial incentives to reduce physician shortages through loan forgiveness and other tax incentives.

Many of the good things in 3590 are also in 3400...3400 does not try to get the government to control costs (something which it has a horrible record of actually accomplishing) but tries to incentivize the private sector and using the fundamental rules of capitalism to reduce healthcare costs. Will taxing "cadillac plans", pharmaceutical companies and insurance companies actually result in lower costs for the average working American? Let's face it -- when big companies are taxed -- we, individual citizens, are the ones who ultimately end up footing the bill -- in higher insurance premiums, higher medical prescription costs, etc.

Let's not forget also the costs to the American people that the Democrat leadership -- in their desperate bid to get votes -- will have given away in the form of "pork" and other favors included in the HR 3590 legislation.

This bill is wrong for many reasons but here are just a few:

• It does not reduce healthcare costs and may likely lead to increased health care costs. Check out: Christian Science Monitor's article on this issue.  Keep in mind that what the Democrats are saying is that this health care bill will reduce the government deficit (projected -- and based on what reality and what assumptions?)...nothing has been said about actually reducing healthcare costs - a significant change from what our President said was his goal before.
• It will dis-incentivize the formation or growth of new businesses/job growth at a time when Americans need jobs (so we can pay for healthcare and all the other pork Congress is passing).
• It does nothing to stop frivilous medical malpractice lawsuits.
• The process by which it is being "passed." Check out this article from Open Congress. This little used parliamentary procedure would allow Democrats to say they didn't actually "vote" for a bill that nearly 2/3 of the country is opposed to but still pass it.

Please call your Congresswoman/man and Senators today -- tell them you do not support passing HR 3590.