Obama woos Congress on healthcare
Madame Speaker, Vice President Biden, members of Congress, and the American people:
When I spoke here last winter, this nation was facing the worst economic crisis since the Great Depression. We were losing an average of 700,000 jobs per month, credit was frozen, and our financial system was on the verge of collapse.
As any American who is still looking for work or a way to pay their bills will tell you, we are by no means out of the woods. A full and vibrant recovery is still many months away. And I will not let up until those Americans who seek jobs can find them.
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Until -- until those -- until those businesses that seek capital and credit can thrive. Until all responsible homeowners can stay in their homes.
That is our ultimate goal. But thanks to the bold and decisive action we've taken since January, I can stand here with confidence and say that we have pulled this economy back from the brink.
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Now, I want to thank the members of this body for your efforts and your support in these last several months, and especially those who have taken the difficult votes that have put us on the path to recovery.
I also want to thank the American people for their patience and resolve during this trying time for our nation.
But we did not come here just to clean up crises. We came here to build a future. So...
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So tonight, I return to speak to all of you about an issue that is central to that future, and that is the issue of healthcare.
I am not the first president to take up this cause, but I am determined to be the last.
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It has now been nearly a century since Theodore Roosevelt first called for healthcare reform.
And ever since, nearly every president and Congress, whether Democrat or Republican, has attempted to meet this challenge in some way. A bill for comprehensive health reform was first introduced by John Dingell, Sr., in 1943. Sixty-five years later, his son continues to introduce that same bill at the beginning of each session.
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Our collective failure to meet this challenge year after year, decade after decade, has led us to the breaking point. Everyone understands the extraordinary hardships that are placed on the uninsured who live every day just one accident or illness away from bankruptcy. These are not primarily people on welfare. These are middle class Americans. Some can't get insurance on the job. Others are self-employed and can't afford it since buying insurance on your own costs you three times as much as the coverage you get from your employer.
Many other Americans who are willing and able to pay are still denied insurance due to previous illnesses or conditions that insurance companies decide are too risky or too expensive to cover.
We are the only democracy, the only advanced democracy on Earth, the only wealthy nation that allows such hardship for millions of its people.
There are now more than 30 million American citizens who cannot get coverage. In just a two-year period, one in every three Americans goes without health care coverage at some point. And every day, 14,000 Americans lose their coverage.
In other words, it can happen to anyone.
But the problem that plagues the health care system is not just a problem for the uninsured. Those who do have insurance have never had less security and stability than they do today.
More and more Americans worry that if you move, lose your job or change your job, you'll lose your health insurance, too. More and more Americans pay their premiums, only to discover that their insurance company has dropped their coverage when they get sick, or won't pay the full cost of care. It happens every day.
One man from Illinois lost his coverage in the middle of chemotherapy because his insurer found that he hadn't reported gallstones that he didn't even know about. They delayed his treatment, and he died because of it.
Another woman, from Texas, was about to get a double mastectomy when her insurance company cancelled her policy because she forgot to declare a case of acne. By the time she had her insurance reinstated, her breast cancer had more than doubled in size.
That is heartbreaking, it is wrong, and no one should be treated that way in the United States of America.
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Then there's the problem of rising costs. We spend one- and-a-half times more per person on healthcare than any other country, but we aren't any healthier for it. This is one of the reasons that insurance premiums have gone up three times faster than wages.
It's why so many employers, especially small businesses, are forcing their employers -- employees to pay more for insurance, or are dropping their coverage entirely.
It's why so many aspiring entrepreneurs cannot afford to open a business in the first place, and why American businesses that compete internationally, like our automakers, are at a huge disadvantage.
And it's why those of us with health insurance are also paying a hidden and growing tax for those without it, about $1,000 per year that pays for somebody else's emergency room and charitable care.
Finally, our health care system is placing an unsustainable burden on taxpayers. When health care costs grow at the rate they have, it puts greater pressure on programs like Medicare and Medicaid.
If we do nothing to slow these skyrocketing costs, we will eventually be spending more on Medicare and Medicaid than every other government program combined.
Put simply, our healthcare problem is our deficit problem. Nothing else even comes close.
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Nothing else.
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Now, these are the facts. Nobody disputes them. We know we must reform this system. The question is how. Now, there are those on the left who believe that the only way to fix the system is through a single-payer system like Canada's, where we would -- where we would severely restrict the private insurance market and have the government provide coverage for everybody.
On the right, there are those who argue that we should end employer-based systems and leave individuals to buy health insurance on their own.
I have said -- I have to say that there are arguments to be made for both these approaches. But either one would represent a radical shift that would disrupt the healthcare most people currently have. Since healthcare represents one-sixth of our economy, I believe it makes more sense to build on what works and fix what doesn't, rather than try to build an entirely new system from scratch.
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And that is precisely what those of you in Congress have tried to do over the several -- past several months. During that time, we've seen Washington at its best and at its worst. We've seen many in this chamber work tirelessly for the better part of this year to offer thoughtful ideas about how to achieve reform. Of the five committees asked to develop bills, four have completed their work and the Senate Finance Committee announced today that it will move forward next week.
That has never happened before.
Our overall efforts have been supported by an unprecedented coalition of doctors and nurses, hospitals, seniors' groups, and even drug companies -- many of whom opposed reform in the past.
And there is agreement in this chamber on about 80% of what needs to be done, putting us closer to the goal of reform than we have ever been.
But what we've also seen in these last months is the same partisan spectacle that only hardens the disdain many Americans have towards their own government. Instead of honest debate, we've seen scare tactics. Some have dug into unyielding ideological camps that offer no hope of compromise. Too many have used this as an opportunity to score short-term political points, even if it robs the country of our opportunity to solve a long-term challenge. And out of this blizzard of charges and counter-charges, confusion has reigned.
Well, the time for bickering is over. The time for games has passed.
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Now is the season for action. Now is when we must bring the best ideas of both parties together and show the American people that we can still do what we were sent here to do.
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Now's the time to deliver on healthcare.
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Now's the time to deliver on healthcare.
The plan I'm announcing tonight would meet three basic goals.
It will provide more security and stability to those who have health insurance. It will provide insurance for those who don't. And it will slow the growth of health care costs for our families, our businesses, and our government.
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It's a plan that asks everyone to take responsibility for meeting this challenge -- not just government, not just insurance companies, but everybody, including employers and individuals.
And it's a plan that incorporates ideas from senators and congressmen; from Democrats and Republicans, and yes, from some of my opponents in both the primary and general election.
Here are the details that every American needs to know about this plan.
First, if you are among the hundreds of millions of Americans who already have health insurance through your job, or Medicare, or Medicaid, or the V.A., nothing in this plan will require you or your employer to change the coverage or the doctor you have.
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Let me -- let me repeat this: nothing in our plan requires you to change what you have.
What this plan will do is make the insurance you have work better for you. Under this plan, it will be against the law for insurance companies to deny you coverage because of a pre-existing condition.
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As soon as I sign this bill, it will be against the law for insurance companies to drop your coverage when you get sick or water it down when you need it the most.
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They will no longer be able to place some arbitrary cap on the amount of coverage you can receive in a given year or in a lifetime.
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We will place a limit on how much you can be charged for out-of- pocket expenses, because in the United States of America, no one should go broke because they get sick.
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And insurance companies will be required to cover, with no extra charge, routine checkups and preventive care, like mammograms and colonoscopies.
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Because there's no reason we shouldn't be catching diseases like breast cancer and colon cancer before they get worse.
That makes sense. It saves money, and it saves lives.
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That's what Americans who have health insurance can expect from this plan: more security and more stability.
Now, if you're one of the tens of millions of Americans who don't currently have health insurance, the second part of this plan will finally offer you quality, affordable choices. If you...
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... if you lose your job or you change your job, you'll be able to get coverage. If you strike out on your own and start a small business, you'll be able to get coverage. We'll do this by creating a new insurance exchange, a marketplace where individuals and small businesses will be able to shop for health insurance at competitive prices.
Insurance companies will have an incentive to participate in this exchange because it lets them compete for millions of new customers. As one big group, these customers will have greater leverage to bargain with the insurance companies for better prices and quality coverage. This is how large companies and government employees get affordable insurance. It's how everyone in this Congress gets affordable insurance. And it's time to give every American the same opportunity that we give ourselves.
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Now, for those individuals and small businesses who still can't afford the lower-priced insurance available in the exchange, we'll provide tax credits, the size of which will be based on your need.
And all insurance companies that want access to this new marketplace will have to abide by the consumer protections I already mentioned.
This exchange will take effect in four years, which will give us time to do it right. In the meantime, for those Americans who can't get insurance today because they have pre-existing medical conditions, we will immediately offer low-cost coverage that will protect you against financial ruin if you become seriously ill.
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This was a good idea when Senator John McCain proposed it in the campaign; it's a good idea now, and we should all embrace it.
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Now, even if we provide these affordable options, there may be those, and especially the young and the healthy, who still want to take the risk and go without coverage. There may still be companies that refuse to do right by their workers by giving them coverage.
The problem is, such irresponsible behaviour costs all the rest of us money. If there are affordable options and people still don't sign up for health insurance, it means we pay for these people's expensive emergency room visits.
If some businesses don't provide workers health care, it forces the rest of us to pick up the tab when their workers get sick, and gives those businesses an unfair advantage over their competitors.
And unless everybody does their part, many of the insurance reforms we seek, especially requiring insurance companies to cover pre-existing conditions, just can't be achieved.
That's why under my plan, individuals will be required to carry basic health insurance -- just as most states require you to carry auto insurance.
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Likewise -- likewise, businesses will be required to either offer their workers health care, or chip in to help cover the cost of their workers.
There will be a hardship waiver for those individuals who still can't afford coverage, and 95 percent of all small businesses, because of their size and narrow profit margin, would be exempt from these requirements.
But...
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But we can't have large businesses and individuals who can afford coverage game the system by avoiding responsibility to themselves or their employees.
Improving our health care system only works if everybody does their part. And while there remains some significant details to be ironed out, I believe...
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... I believe a broad consensus exists for the aspects of the plan I just outlined: consumer protections for those with insurance; an exchange that allows individuals and small businesses to purchase affordable coverage; and a requirement that people who can afford insurance get insurance.
And I have no doubt that these reforms would greatly benefit Americans from all walks of life, as well as the economy as a whole.
Still, given all the misinformation that's been spread over the past few months, I realise -- I realise that many Americans have grown nervous about reform. So tonight, I want to address some of the key controversies that are still out there.
Some of people's concerns have grown out of bogus claims spread by those whose only agenda is to kill reform at any cost. The best example is the claim, made not just by radio and cable talk show hosts, but by prominent politicians that we plan to set up panels of bureaucrats with the power to kill off senior citizens.
Now, such a charge would be laughable if it weren't so cynical and irresponsible. It is a lie plain and simple.
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Now...
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Now, there are also those who claim that our reform efforts would insure illegal immigrants. This, too, is false. The reforms -- the reforms I'm proposing would not apply to those who are here illegally.
(UNKNOWN): That's a lie.
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That's not true.
And one more misunderstanding I want to clear up: under our plan, no federal dollars will be used to fund abortions, and federal conscience laws will remain in place.
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Now, my health care proposal has also been attacked by some who oppose reform as a "government takeover" of the entire health care system.
Now, as proof, critics point to a provision in our plan that allows the uninsured and small businesses to choose a publicly- sponsored insurance option, administered by the government, just like Medicaid or Medicare.
So let me set the record straight here.
My guiding principle is, and always has been, that consumers do better when there's choice and competition. That's how the market works.
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Unfortunately, in 34 states, 75 percent of the insurance market is controlled by five or fewer companies. In Alabama, almost 90 percent is controlled by just one company.
And without competition, the price of insurance goes up and quality goes down. And it makes it easier for insurance companies to treat their customers badly -- by cherry-picking the healthiest individuals and trying to drop the sickest; by overcharging small businesses who have no leverage; and by jacking up rates.
Insurance executives don't do this because they're bad people. They do it because it's profitable. As one former insurance executive testified before Congress, insurance companies are not only encouraged to find reasons to drop the seriously ill, they are rewarded for it.
All of this is in service of meeting what this former executive called "Wall Street's relentless profit expectations".
Now, I have no interest in putting insurance companies out of business. They provide a legitimate service and employ a lot of our friends and neighbours. I just want to hold them accountable.
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And the insurance reforms that I've already mentioned would do just that, but an additional step we can take to keep insurance companies honest is by making a not-for-profit public option available in the insurance exchange.
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Now, let me -- let me be clear.
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Let me be clear, it would only be an option for those who don't have insurance. No one would be forced to choose it and it would not impact those of you who already have insurance. In fact, based on Congressional Budget Office estimates, we believe that less than 5% of Americans would sign up.
Despite all this, the insurance companies and their allies don't like this idea. They argue that these private companies can't fairly compete with the government, and they'd be right if taxpayers were subsidizing this public insurance option, but they won't be. I've insisted that, like any private insurance company, the public insurance option would have to be self-sufficient and rely on the premiums its collects.
But by avoiding some of the overhead that gets eaten up at private companies by profits and excessive administrative costs and executive salaries, it could provide a good deal for consumers and would also keep pressure on private insurers to keep their policies affordable and treat their customers better, the same way public colleges and universities provide additional choice and competition to students without in any way inhibiting a vibrant system of private colleges and universities.
Now, it is...
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Continued next post.