[Congressional Record Volume 158, Number 102 (Tuesday, July 10, 2012)]
[House]
[Pages H4766-H4770]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
DOCTORS CAUCUS SPECIAL ORDER
The SPEAKER pro tempore (Mrs. Ellmers). Under the Speaker's announced
policy of January 5, 2011, the gentleman from Louisiana (Mr. Fleming)
is recognized for 32 minutes as the designee of the majority leader.
Mr. FLEMING. Madam Speaker, it's a pleasure to be on the floor once
again to really talk about my favorite subject in Congress, and that is
health care.
I am a physician and have been a physician for 36 years. I am a
family physician. I still have an active practice and practice when I
get a chance, which lately has not been very often.
We'll be talking about ObamaCare, the repeal of ObamaCare, and we'll
be talking about Medicare. I say ``we.'' That is only if I'm joined by
some of my colleagues who may be making their way here this evening.
I want to in the way of introduction just let everyone understand,
Madam Speaker, how we got here in the first place. Why are we here this
evening talking about this? Why are we talking about the repeal of
ObamaCare?
I take you back to 1965 when there was a recognition that health care
insurance was becoming something more than just insurance; that is to
say, that insurance, of course, in theory is to protect against
catastrophe. We see that, of course, in our homeowners insurance and
our car insurance. So it seemed a good idea to have some form of
insurance where you would not be bankrupted by a sudden and severe
illness and have your lifesavings taken away.
So the idea of insurance came up, and it was mostly a catastrophic
policy.
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Then that sort of evolved over time into more and more comprehensive
concepts, and it really has become today extremely comprehensive,
perhaps even a health management type of system that you pay into and
hopefully the system takes care of you. It was a recognition that a
robust market did not exist for insurance for the elderly.
From that sprang the idea of Medicare, health care insurance for the
elderly, which is really not insurance, per se. It's really a 100
percent single-payer government program. Then also insurance--again, a
single-payer program--for the poor, and that is Medicaid. That began
around 1965. It began with a promise to the health care system and to
the elderly that this would never usurp the relationship with the
patient, that the decisions would be made by the providers and the
patients, and that Medicare--of course, the government taxpayers, if
you will--would be picking up the bill, no questions asked. There was
also a recognition that even though patients would get help with their
bills, they would still have to pay something into that.
I will also interject that there was the belief, actuarial estimates,
CBO, the Congressional Budget Office, that predicted that a program
that would be maybe $3 billion annually would maybe top out at $12
billion.
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Of course we know now that it's in the hundreds of billions of
dollars many times over what it was initially promised to be.
In that evolution, we saw where government and insurance companies
began to take a larger and larger role in covering for various things.
For instance, beginning in the early eighties, Medicare began to see
the physician charges becoming a problem, and from a budgetary
standpoint they weren't really going up that fast, but because of the
growth of the elderly out there it was running the cost up.
That led to restrictions put on what doctors could charge. Then came
EMTALA, which is an acronym, a long acronym, that basically says
regardless of your ability to pay, if you show up to the emergency
room, the doctors and hospital have to treat you.
These are all things that began to add up over the years, and it's
made Medicare, of course, balloon into an extremely expensive program,
as is Medicaid as well. In fact, for most States that is the largest
budgetary item that they have.
Well, fast forward to 2008. As a physician, I became very concerned
that we needed health care reform in this country. Why? Because
government had become such a large part of the health care system and
the so-called insurance thereof, and with the price fixing that went
along with that, that it began to actually have a perverse effect on
health care. That is to say that as reimbursement to hospitals,
doctors, and other providers were going down, that costs were actually
going up just as fast, which is just the opposite you would expect
intuitively.
Why was that happening, and why is it happening today? Well, the
answer is this: a physician, a hospital, anybody, the first thing that
they are going to do, the first thing a business or a factory is going
to do is when the reimbursement per unit goes down, that is a
reimbursement per patient goes down, you make it up on volume and you
keep working harder and you keep seeing more patients, and you find
more things to do to drive up that, and I'm saying this in a generic
way.
I do not ascribe to that, but many doctors have been put in that
position to just stay solvent in their practices. They have run faster
and faster, seen more and more patients, done anything they can. While
they make an extra dime to keep up with their costs, they're running
the system up by a factor of 10. They make a dime for themselves, but
the system costs a dollar for that.
As a result, we have had severe inflation. It was my belief that the
way to solve this problem was to begin to move government out of health
care and begin to move the private sector back in, put together robust
and healthy markets, give consumers choices once again. Patients have
skin in the game--that is to say, they have to pay a little something
into it.
Because, remember, back in the eighties, patients' out-of-pocket
expense, for instance, in Medicare for laboratory and many other items
went to zero, which meant that instead of having to negotiate with the
patient, what is the best ideas in terms of a list of tests that must
be performed to get to the answer, I can just simply make out a list as
long as I want. Somebody is going to pay for it, but it won't be the
patient, and therefore, again, health care inflation.
I came to Washington after being elected to work on this with the
other side of the aisle, because I saw that we had two major giant
entitlement programs that are bankrupting this country, Medicaid and
Medicare. I remind folks that Medicare runs out of money, according to
whichever actuary you want to listen to, in 5 to 12 years. But they all
agree that it runs out of money and the services will have to be
sharply curtailed.
What we found was that the other side of the aisle, our Democrat
colleagues over there decided that instead of solving the problem by
bringing the marketplace, they wanted to take government another step.
It reminds me of a story that was told to me once about two farmers.
They were on a wagon, a mule, and they are going down the road, it's an
old farm road, and one of the wheels breaks and they come to a stop.
Now, the mule can't pull that wagon, it's just too hard to pull it on
one wheel. So the two farmers get off, one starts fixing the wheel and
the other one starts going back home. The first farmer says to the
second one, where are you going? He said, I'm going to get another
mule, because that's the way we're going to go forward. We're just
going to hitch a second mule and keep dragging this wagon down the
road.
You see, in my opinion, that's precisely what happened with
ObamaCare. Instead of fixing our health care crisis and the inflation
and costs, the inefficiencies in the system and the fraud, waste, and
abuse, by bringing the marketplace back into sanity and back into
balance once again, and letting patients be the decisionmakers, what we
really did is double down on the government control of health care and,
as a result of that, we're going to have an even more expensive, more
burdensome and bureaucratic system that we won't be able to control.
Anyway, this is the Doctors Caucus Special Order. We're going to be
talking in the next 30 minutes, and we're going to be talking about the
repeal of ObamaCare.
We have voted on this, you probably already heard, several times
already. Of course, we have never got it past the House of
Representatives because the Senate won't take it up and, of course,
it's doubtful that the President, our current President, would ever
sign it.
There are a lot of things that we hear about ObamaCare. Let's talk
for a moment about taxes. We just had a Supreme Court decision handed
down, and there has been this debate, this battle, within the Supreme
Court and outside, on this individual mandate where government under
this bill literally forces and requires you to purchase a product or
service that is created by government, rather than making it more
affordable and attractive and you opting in and you buying it on your
own.
The decision has been handed down that, yes, the decision is
constitutional, but not by the way of the commerce clause. But
government can, Congress can now, according to the justices, Congress
can basically make you do anything Congress wants to do. It has to
force you through taxes. While we could debate whether I agree or not
agree with that, that is the law of the land now.
This means that if we in Congress decide that we want to make
citizens do things, we do have a pathway now to do that, and that is to
tax you. Even if you're not in an activity or buying something we can
still tax you.
I prefer that we go the market route. I would much rather people buy
insurance because they see a need, they see a desirability, and they
see that it's cost-effective, rather than forcing Americans to do that.
Our colleagues on the other side, would rather just simply force you to
do that.
But now we have to also admit that this is a tax, and our friends on
the other side of the aisle I think would admit that had this been
advertised as what it turns out to be, a big tax increase on the middle
class, that it
[[Page H4768]]
never would have gotten passed because they would have been voted out
of office for having raised taxes on the middle class. That's a big
political no-no these days.
But there are many other taxes, and I'm just going to hit on a few
here. One is a 156 percent increase on the Federal excise tax on
tobacco. Another is the employer mandate. The Supreme Court says that
you can, Congress, you can make employers buy insurance or you
certainly can penalize them if they don't.
But, interestingly enough, one part of the bill that was termed
unconstitutional was coercing, or forcing States to expand Medicaid
eligibility. That's a part of the Supreme Court's decision that
actually is going to impact the cost of this bill.
There is a surtax on investment. This is something that you're going
to hear more and more about, and the way you're going to hear about it
is that one day you're going to sell a home, you're going to sell a
property or an investment or something like that, and the IRS is going
to demand 3.8 percent of those profits.
On the subject of the IRS, remember that it's estimated that 16,500
new IRS agents will need to be hired and are funded in order to require
or force the taxation into ObamaCare. This will certainly bring the IRS
much more intimately into your life, regardless of whether you own a
business, or you're simply an employee, or really don't even have a
job.
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There will be an excise tax on comprehensive health insurance plans
that will go up over time, ObamaCare hike in the Medicare payroll tax.
There will be a medicine cabinet tax, if you will. But what that really
is removing is the tax deductibility for the pretax dollars from health
savings accounts that you have been able to enjoy before, that if you
go and buy cold medicine off the shelf, that you could buy it with your
pretax dollars under your health savings account, that's gone. If you
want to get cold medicine and use your pretax dollars, you have to get
a prescription from a doctor. So one of two things are going to happen:
Either you're going to have to see the doctor, which is going to cost
you more, or the doctors are going to be spending a lot of their time,
again, wasted in paperwork, writing prescriptions for nonprescription
drugs. That really doesn't make much sense.
There will be an ObamaCare HSA withdrawal tax hike, an ObamaCare
flexible spending account cap, ObamaCare tax on medical device
manufacturing. It's estimated that many of the domestic medical device
factories will simply go out of business or go offshore. The cutting-
edge innovation that we have today in health care devices, we're going
to lose that has a result of ObamaCare. That will go to other
countries.
The itemized deductions, the exemption is going to go from 7.5
percent to 10 percent of adjusted gross income. There will be a tax on
tanning. That's got to be a middle class tax. ObamaCare elimination of
tax deduction for employer-provided retirement drug coverage in
coordination with Medicare part D, ObamaCare Blue Cross Blue Shield tax
hike, an excise tax on charitable hospitals, a tax on innovator drug
companies, a tax on health insurers, a $500,000 annual executive
compensation limit for health insurance executives, ObamaCare employer
reporting of insurance on the W-2, the black liquor tax, the ObamaCare
codification of the economic substance doctrine. Again, a long list of
taxes.
So, Madam Speaker, it seems to me that in a time that we have the
worst recession since the Great Depression, we're now facing perhaps
the largest tax increase that's occurred in our lifetimes, both through
ObamaCare and through the expiration of the Bush tax rates, which are
much lower than the Clinton tax rates.
Of course, you have heard some about that as well in recent days. In
fact, the President himself said in 2009 the last thing in the world we
want to do is to raise taxes in a recession. And everybody knows we're
in 41 months of a recession and no end in sight.
Now, there's also been some discussion and debate on the impact on
small businesses. And I'm segueing to small businesses because, let's
face it, taxes have an impact on all of our pocketbooks, but taxes also
have an impact on the ability for small businesses to hire people. If
you take money off their bottom line, that's less money, less capital
to invest, less money to hire more people. And that is precisely what
is going on with ObamaCare.
In fact, I would say, based on studies that I have read, one said
that 70-plus percent of small businesses are saying that the main
reason that they're not hiring people is because of their fear, the
uncertainty of ObamaCare and its impacts on them, and the people I
speak with throughout my district and throughout the country who say
that ObamaCare is probably the worst threat to the survival of their
businesses and, therefore, they're not going to expand their
businesses.
We know there's trillions of dollars sitting on the sideline right
now, both small and large businesses, ready to be invested to grow
jobs, and yet the job creators, the employers, are fearful. They don't
want to put that money in.
Why would somebody want to put, say, $10 million into a new factory
not knowing whether they can make a profit and making the calculation
that perhaps I should stand up that factory overseas someplace where,
in fact, I can make a profit. I don't have to deal with ObamaCare and
all that comes with it.
Now, that's just part of. We also know the hyper-regulatory
atmosphere that we've evolved into, where regulations are not being
written by Congress but by people in the buildings that surround the
Hill here, many of which we do not yet know. 106 new major rules being
written out of this administration, the worst proliferation of
regulations.
So this, on top of other things--the direct hostility and attacks on
energy and the job creators themselves--has just put a complete wet
blanket over our economy and the creation of jobs. And I would say that
ObamaCare is the lead in that entire process.
Now, there's also something that I get asked about a lot, and that
is, well, what about what you Republicans say about ObamaCare and what
the Democrats say about ObamaCare? And it seems--at least it appears to
them--that one of us is lying about some of these things. And, of
course, one of the things that is important that we do when we come to
Congress, what we understand and learn, is that we should never presume
ill motives of the other side. And that's exactly what I will do
tonight is not presume ill motives by the other side. So I will give
you an example of what I'm talking about.
We Republicans have contended all along that $500 billion will be
ripped from Medicare. Again, I said earlier that Medicare runs out of
money, becomes insolvent, in 5 to 12 years. Everybody agrees it's in
that window someplace. And we have the Ryan budget plan, which would
save Medicare. The other side of the aisle refuses to engage on that.
But the question is: Does ObamaCare take $500 billion out of Medicare?
I have a lot of Medicare recipients who are very worried about that,
and they ask me because they hear and read things. They read something
from PolitiFact or all these fact checkers, and they say, no, this
isn't happening, or it's not happening the way you think it does and so
forth. Well, we had a discussion with Douglas Holtz-Eakin, who is the
prior CBO, about this 2 days ago, and he confirmed a lot of my beliefs
about this, and here's the way it goes.
Madam Speaker, the way laws are written, oftentimes what is in the
four corners of that law says one thing, but when you add the omissions
and the unintended consequences and sometimes intended consequences,
the effect of that is completely different. And so, for instance, the
idea that Medicare does not lose $500 billion that is dumped into
ObamaCare, well, I think the nuance in there is that you have to
understand that the cost of Medicare goes up progressively every year.
Now, in some years it goes up higher than other years, but it always
goes up.
And so in Washington, oftentimes you can say that something is cut
when, in fact, it's just the increase is reduced. And so that's really
what happens here, is what Democrats did in crafting ObamaCare is they
cut the increase in Medicare spending and they took those so-called
savings and they spent it inside of ObamaCare.
[[Page H4769]]
Well, where is it coming from? Is it going to have an impact? Well,
of course it will. Because as things get more expensive, if you reduce
the amount of increases that nominally occur, it's going to have an
impact because there isn't an underlying inflationary rate that has to
be recognized.
So while one can make the legalistic case that, no, there isn't $500
billion removed, in reality, yes, it is removed because you have got to
go from point A to point B. And if you don't allow that nominal
increase, that inflationary rate in Medicare spending, if you don't
allow that, it's a cut. It's going to be a cut in services.
And where are the services? About half of it is going to be in
Medicare Advantage, which is the private type of Medicare which people
really love. It's very popular in a lot of States. And the other is
going to come from providers. That would be doctors, hospitals, medical
device providers, and so forth.
Now, the Democrats were very careful not to take that money from
beneficiaries. And, in fact, in the sequestration that occurred last
year and that we're still debating, where money is taken out of defense
and it's also taken out of Medicare, the money is taken out on the
provider side but not the beneficiary side.
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That is, we're not taking away from patients, we're only taking away
from the people who are providing the care. Well, that's all well and
good. Well, not so fast. You have to understand that as you reduce
reimbursement of services, the ability for providers to provide those
services goes down. And it has been going down progressively.
Certainly, a relatively small percentage of physicians today accept
Medicaid for payment and reimbursement. So even if you have a Medicaid
card, which, by the way, half of the so-called increase in coverage
under ObamaCare will be on Medicaid. Well, that will be very good.
You'll have a Medicaid card. But when you shop around and you go to
various doctors' offices and you say, I'd like to see the doctor today,
there will be a lot of the assistants at the desk that will say, I'm
sorry, we don't accept Medicaid.
Now, you might be critical of the doctor on that, but you have to
understand, doctors have to make payrolls, and they have to pay rent
like everybody else. And if it comes to a point where they can't do
that, then they either have to stop seeing Medicaid patients, or they
have to go out of business. Either way, you're not getting in to see
him because the reimbursement is not there.
Well, the same phenomenon is now happening across America in
Medicare. If you're on Medicare, if you're 65 and over and are disabled
and you're on Medicare, there's been such a flattening and ratcheting
down in many cases of reimbursement that just because you have a
Medicare card does not mean you're going to be seeing doctors when you
want to see them.
And, in fact, that is precisely what I was talking about in the
beginning of the discussion--that if we just simply take the same
entitlement programs that are making the cost problems worse, and
through the price-fixing mechanism actually perversely incentivizing
fraud, waste and abuse, if we're doing that now and then, we expand yet
another entitlement system, we're only going to aggravate the same
problem. So what's going to be the net result? We're going to have more
people, more patients, searching out care from fewer and fewer
providers.
And what will that lead to? It will lead to long lines, and it will
lead to rationing as a natural thing, not a planned kind of rationing.
That just will be the imbalance that we're going to have in the system.
Now, how do I know that's going to happen? Well, as I mentioned, it's
already happening, but it's not showing up to the level you might
expect just yet. But let's look at Massachusetts. Remember,
Massachusetts and also Tennessee have comprehensive State programs, and
since the comprehensive plan started in Massachusetts a few years ago,
the waiting lines for doctors have grown now to an average of 6 weeks.
Over 50 percent of primary care doctors are not accepting new patients.
The reimbursements are going down, and so are the number of doctors.
The waiting lines are getting longer.
The same happens in other countries that have single-payer systems
such as Canada and Great Britain. And as a result, how do these people
get care? They go to the emergency room. And where is the most
expensive care? In the emergency room.
So you see, Madam Speaker, when you have a highly structured,
bureaucratic, top-to-bottom system that micromanages behavior of
individuals and providers, all you're going to get are higher costs.
And ultimately, the only way you're going to control costs is through
long lines and rationing.
Now, in ObamaCare, Democrats did something very clever. They didn't
want to depend on Congress to make those tough decisions to cut
reimbursements. So they created something called IPAB, the Independent
Payment Advisory Board, which will be 15 unelected bureaucrats, not
necessarily health care providers, appointed by the President. Again,
they are unelected, and they will not be answering your phone when you
call to complain. They will literally have more power than Congress
itself in order to cut the benefits that you'll receive. They'll do it
by way of reducing the types of services, the quality of services, and
the payment for those services. It will happen in a lot of different
ways, and it will begin to show up in delays, in more paperwork,
misdiagnoses, and ultimately some very unfortunate outcomes that I can
see coming down the road.
Now, Congress will have the responsibility of meeting certain targets
of spending. But if they fail to meet those targets--and Congresses
never reach those targets, that is, to cut spending by so much in
Medicare--then it falls back to, it defaults back to IPAB, and IPABs
will be the ones making those decisions. So call it what you will,
there will be members of government, people who are on a governmental
payroll, who will be making decisions about what services you will
have.
Now, a lot has been said today about all the free services that
you're going to receive, free Pap smears, free breast exams, free
preventive health services. Madam Speaker, I have never seen anything
free in this society. Somebody is going to pay for that service.
Somebody has got to pay somebody for doing it. Somebody has got to pay
the secretary, somebody has to pay the provider, somebody has got to
pay the rent. Nothing in this society is free. And I will tell you that
any time somebody tells you something is free in ObamaCare or any other
kind of health care insurance, they're just not being straight with
you. Let's just be honest. Somebody is going to pay for it at one point
or another.
Let's talk about the social conscience part of ObamaCare, which has a
lot of us who are in the pro-life community very concerned. Remember,
the President said that he would preserve conscience rights; that is,
providers would not be forced to provide abortions or abortifacients,
that is, pills that will create abortions, or anything that is against
our conscience. And, in fact, the first version of ObamaCare that
passed the House passed only because the pro-life Members of the
Democrats said those protections have to be in there, the so-called
Hyde amendment that says that no taxpayer dollars will be spent on
abortions or abortion-like activities. However, when it came back from
the Senate, another trick was pulled and that was pulled out of the
legislation. But the President said, well, look, I'll write an
Executive order, which really has very little meaning, certainly in the
long term. Any President can rescind that. There are many different
ways to end-run an Executive order if it's not something that's in
statute. So, as a result, there are plenty of holes in ObamaCare like
Swiss cheese that allow taxpayer funding of abortions.
Now for the first time in many years, a majority of Americans are
pro-life. But I can tell you an overwhelming majority today and always
has been against the taxpayer funding of abortions. But what we're
dealing with today is not the taxpayer funding of abortions, that's
already in law, and that's part of the reason to repeal it, but the
fact that the President is now forcing religious institutions such as
the Catholic Church to provide certain services that are against their
conscience, such as abortifacients, abortions, and sterilizations. And
so their choice is either to get out of health care entirely or to go
along with the government and run into heavy fines.
[[Page H4770]]
So, where are we today with ObamaCare? Is it going to be repealed?
Tomorrow ObamaCare will be repealed in the House of Representatives.
That you can bet on. However, we all understand that there is a problem
with the Senate, which is controlled by the very people who voted it in
to begin with, and a President who, though he supports it and would not
sign a repeal, says very little in defense of ObamaCare. But why?
Because there's very little that is desirable to defend in it.
So I look forward to another opportunity to vote for the full repeal
and look forward to next year when we'll have the ability to repeal it
lock, stock, and barrel, pull it out by its roots and start over again
with step-by-step reform in health care with patient choices, as it
should be.
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