Perriello on Health Care Changes

Tom Perriello

Yesterday, the U.S. House unveiled the Affordable Health Care for America Act, the new version of health care reform legislation. Congressman Tom Perriello released the following statement:

“I am pleased to see major changes in the bill that move us in the right direction. Though I was unsatisfied with the original bill, I’ve been working hard to get to ‘yes’ because the status quo is simply unsustainable and unacceptable, and we must do more to bring down costs for middle-class families and businesses without increasing the federal deficit.

I argued for the vote on this legislation to be delayed until after the August recess so we could spend that month in dialogue with the American people. Those delays have paid off in the form of a stronger set of reforms. I held over 100 hours of town hall meetings in the 5th District to get my constituents’ feedback, and I took those ideas directly to congressional leaders in a letter on September 25 joined by other freshman colleagues.

I’m pleased to see that the new version of the bill addresses many of our requests, such as extending the life of Medicare, addressing tort reform, and ensuring deficit neutrality. I am still looking to see more on interstate competition and will take the weekend to read the whole bill before I make a decision. I have fought tirelessly for these changes that my constituents wanted to see in the bill, and I will continue to push for meaningful reform.”

Of the requests Rep. Perriello made in his September 25 letter [PDF] to congressional leaders, many are addressed in the new health care legislation:

Medicare

Perriello’s Letter: “We support Medicare enhancements that increase reimbursements to physicians, accelerate closure of the prescription drug ‘doughnut hole’ under Medicare Part D and empower Medicare to negotiate cheaper drug prices, expand options for aging at home, and broaden access for preventative care and routine exams by eliminating the out-of-pocket co-pays currently required of seniors.”

What’s In the Bill:

• Begins closing the Medicare Part D “doughnut” hole immediately (January 1, 2010) by $500 and institutes a 50-percent discount for brand-name drugs, while closing the entire hole by 2019.
• Requires the Secretary of HHS to negotiate drug prices on behalf of Medicare beneficiaries.

Deficit Neutrality

Perriello’s Letter: “Any health care reform legislation that increases our national deficit or debt is a non-starter for us… We are committed to strengthening the cost-saving measures in the bill until the CBO certifies that the reform legislation will both be deficit neutral and ‘bend the cost curve’ on health care spending in the out years.”

What’s In the Bill:

• The CBO analysis has confirmed that the legislation’s net coverage cost will be $894 billion over 10 years, fully paid for.
• The CBO analysis has also confirmed that the legislation cuts the deficit by about $104 billion with the CLASS Act ($32 billion without the CLASS Act) in the first ten years (2010-2019) and reduces the deficit in the second ten years (2020-2029).

Tort Reform

Perriello’s Letter: “There is strong support among medical providers and the general public for reducing both medical error and malpractice insurance premiums without limiting a patient’s right to damages when errors occur…[R]eal reforms, such as “Certificate of Merit” provisions and “Early Offer” programs, have been shown to reduce both litigation and medical errors.”

What’s In the Bill:

• Establishes new voluntary state grant program designed to encourage states to implement alternatives (“early offer” and “certificate of merit” approach) to traditional medical malpractice litigation.

Wellness/Prevention

Perriello’s Letter: “Just as the bill rightfully bans exclusions and price discrimination based on pre-existing conditions, so too it should reflect incentives for healthy behavior. Encouraging personal responsibility for living healthier lifestyles would significantly reduce costs, benefit consumers, and improve health outcomes.”

What’s In the Bill:

• Provides for the research and inclusion of proven healthy behaviors in the essential benefits package and in community wellness programs
• Establishes a new grants program to prevent overweight and obesity among children.

Protecting Small Business

Perriello’s Letter: “We know that the fastest growing population of uninsured Americans is composed of those who have jobs but still cannot obtain or afford coverage. In most cases, these Americans are employed by the small businesses upon whose investment and innovation our economy depends.”

What’s In the Bill:

• Increases the threshold of small business exemption from $250,000 of payroll to $500,000; decreases obligations for employers with payrolls between $500,000 and $750,000.
• Increases the size of small employers automatically allowed to purchase coverage through the Exchange to at least 100 employees within the first three years.

Additionally, the new legislation contains a number of provisions that are important to rural hospitals, including:

• The public option proposal is based on negotiated rates, not rates tied to Medicare levels.
• The bill directs the Institute of Medicine (IOM) to study geographic inequities in Medicare reimbursement rates and directs the Secretary to revise payment rates based on the IOM’s findings.
• The bill provides a 10 percent incentive payment for primary care doctors practicing in underserved areas, such as rural areas.

The full text of the health care legislation, along with the analysis by the Congressional Budget Office and other helpful fact sheets can be found on the Congressman’s website: www.perriello.house.gov/healthcareforum.