[Congressional Record (Bound Edition), Volume 153 (2007), Part 6]
[Extensions of Remarks]
[Pages 8534-8535]
[From the U.S. Government Publishing Office, www.gpo.gov]




       INTRODUCTION OF THE AMERICARE HEALTH INSURANCE ACT OF 2007

                                 ______
                                 

                        HON. FORTNEY PETE STARK

                             of california

                    in the house of representatives

                        Thursday, March 29, 2007

  Mr. STARK. Madam Speaker, it gives me great pleasure to introduce the 
American Health Insurance Act of 2007. I am joined by various 
cosponsors in supporting this common sense solution for the U.S. to 
finally achieve guaranteed, affordable, quality health insurance 
coverage for all.
  I have often spoken before this body about the great need to reform 
our health care system. For too long, we have been plagued with an 
inadequate patchwork that today leaves 45 million Americans uninsured. 
Our complex system requires us to spend more than any other nation on 
health care--30 percent on

[[Page 8535]]

administration alone. Health care costs continue to rise, yet year 
after year hardworking families are faced with less access, more 
paperwork, and declining quality.
  Our broken health system is a tremendous financial burden on our 
Nation's families and businesses alike. Half of all bankruptcies can be 
traced to medical bills. Eighty percent of people who file for 
bankruptcy because of medical bills have health insurance, but their 
benefits do not meet their needs. General Motors spends more on health 
care than on steel; Starbucks spends more on health insurance than on 
coffee.
  These problems have only worsened over time. In years past, special 
interests have defeated attempts to reform the health system. Today, 
however, calls for health reform are being heard from unlikely voices 
and through strange partnerships. Wal-Mart joined SEIU, which has in 
turn joined AARP and the Business Roundtable, to call for government 
action. On March 6, the AFL-CIO abandoned its support of employer-based 
health care and began to push universal coverage through the expansion 
of Medicare. Even the for-profit hospitals have put forward a proposal.
  This month, the New York Times reported that a majority of Americans 
would like the federal government to guarantee health insurance to 
every American--especially children. Nearly 80 percent think it is more 
important to provide universal access to health insurance than it is to 
extend the tax breaks of recent years. Sixty percent of Americans, 
including 62 percent of independents and 46 percent of Republicans, 
said they would be willing to pay more in taxes to guarantee access to 
all.
  These various stakeholders may not agree on exactly which road we 
should travel. But they do finally all agree on our destination: 
guaranteed, affordable quality health coverage. The bill I am 
introducing today is the best way to get us there.
  The AmeriCare Health Care Act of 2007 is a practical proposal to 
ensure that everyone has health coverage in our country. It builds on 
what works in today's health care system to provide simple, affordable, 
reliable health insurance. Under AmeriCare, people would continue to 
obtain health coverage through their employer--as most of us currently 
do--or they would be covered under the new AmeriCare system.
  AmeriCare creates a new Title XXII in the Social Security Act. It 
uses Medicare's existing administrative infrastructure, but improves 
upon Medicare's benefits to address some of the current gaps in 
coverage, such as mental health parity, coverage for children, and 
family planning and pregnancy-related services for women. State 
Medicaid programs would remain responsible for long-term care, but 
AmeriCare would cover low-income children, women, and others who 
currently receive health care services under Medicaid.
  AmeriCare is financed through premiums, paid 20 percent by 
individuals and families and 80 percent by employers. People with 
incomes under 200 percent of poverty would be fully subsidized, and 
premiums and cost-sharing would be phased in for those with incomes 
between 200 and 300 percent of poverty. General revenues and state 
funds would help to offset these costs.
  AmeriCare limits out-of-pocket spending to ensure that no one spends 
a disproportionate share of their income on health care. Employers 
could continue to offer their own coverage, so long as it is at least 
as good as AmeriCare. Payment of premiums would be reconciled on our 
annual income tax forms.
  Enacting AmeriCare would provide tremendous benefits to our Nation. A 
recent report by the Commonwealth Fund comparing several proposals by 
Members of Congress and the Bush Administration concluded that 
AmeriCare is the only health reform proposal that would provide for 
truly universal care, covering all of the nearly 45 million currently 
uninsured Americans.
  Expanding insurance coverage to all will end the cost shifting that 
results from the high number of uninsured we have today. This could 
reduce premiums for job-based insurance by as much as $1,000 for family 
coverage, according to the Institute of Medicine.
  Because AmeriCare builds on the highly efficient Medicare program, 
the Commonwealth Fund concluded that it would result in the greatest 
overall savings to the health system of all health reform plans they 
modeled. Medicare's per capita costs have grown at a slower rate than 
private health insurance or the Federal Employees Health Benefits 
Program. Using Medicare as a model will reduce costs for households, 
employers, state and local governments.
  Our Nation is at a crossroads. Our legacy should be a future where 
our children are not saddled with debt, where they do not fear 
financial ruin due to an illness. Whether we build a healthy future for 
our children or not depends upon the decisions we make today. True 
compassion means offering real solutions, not empty promises.
  Working together, applying common sense approaches that build on what 
works, we can ensure that no-one risks the loss of insurance coverage. 
All we need is the will to do it.
  As we edge closer to our next discussion on health reform, we need to 
ask, is medical care a civic and social right like police and fire 
services, education, and environmental protection?
  Or is health care ``you're on your own?''
  I hope I can count on my colleagues and our endorsing organizations 
to advance a shared vision of higher quality, lower costs, and 
universal coverage through the adoption of AmeriCare.
  Attached is a short summary of AmeriCare. More can be found on my 
website at http://www.house.gov/stark.

                   AmeriCare Health Care Act of 2007

       Overview: The AmeriCare Health Care Act (``AmeriCare'') is 
     a practical proposal to ensure that everyone has health 
     coverage in our country. It builds on what works in today's 
     health care system to provide simple, affordable, reliable 
     health insurance. People would be covered under the new 
     AmeriCare system, modeled on Medicare, or they would continue 
     to obtain health coverage through their employer.
       Using the administrative efficiencies within Medicare and 
     building on the existing coverage people receive through 
     their jobs today, we can create an affordable, efficient, and 
     stable universal health care system in America--and guarantee 
     access to medical innovation and the world's most advanced 
     providers and facilities.
       Structure and Administration: Creates a new title in the 
     Social Security Act, ``AmeriCare.'' Provides universal health 
     care for all U.S. residents, with special eligibility for 
     children (under 24), pregnant women, and individuals with 
     limited incomes (<300% FPL). Sets out standards for 
     supplemental plans with a focus on consumer protection. 
     Requires the Secretary to negotiate discounts for 
     prescription drugs.
       Benefits: Adults receive Medicare Part A and B benefits; 
     preventive services, substance abuse treatment, mental health 
     parity; and prescription drug coverage equivalent to the BC/
     BS Standard Option in 2005. Children receive comprehensive 
     benefits and Early and Periodic Screening, Diagnostic, and 
     Treatment (EPSDT) coverage with no cost-sharing.
       Cost Sharing: There is a $350 deductible for individuals, 
     $500 for families, and 20% coinsurance. Total spending 
     (premiums, deductibles, and co-insurance) is capped at out-
     of-pocket maximum of $2,500 individual/$4,000 family, or 5 
     percent of income for beneficiaries with income between 200 
     percent-300 percent FPL and 7.5 percent of income for 
     beneficiaries with income between 300 percent-500 percent 
     FPL. There is no cost sharing for children, pregnant women, 
     low-income (below 200 percent FPL). Sliding scale subsidies 
     are in place for cost-sharing for individuals between 200 
     percent and 300 percent FPL.
       Financing: At April 15 tax filing each year, individuals 
     either demonstrate equivalent coverage through their employer 
     or pay the AmeriCare premium based on cost of coverage and 
     class of enrollment (individual, couple, unmarried individual 
     with children, or married couple with children). Employers 
     may either pay 80 percent of the AmeriCare premium or provide 
     equivalent benefits through a group health plan (the 
     contribution for part-time workers is pro-rated). AmeriCare 
     does not affect contracts or collective bargaining agreements 
     in effect as of the date of enactment, and employers may 
     choose to provide additional benefits. Employers with fewer 
     than 100 employees have until January 1, 2012 to comply 
     (employees of small businesses would still only pay 20 
     percent of the premium).

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