03.11.09

Cantwell: Affordable Health Care Not Only Necessity, but Vital to Economic Recovery

During Hearing, Cantwell Highlights Successful Washington Reforms that Nation Should Use As a Model

WASHINGTON, DC – As the Senate Finance Committee began discussions of President Barack Obama’s Fiscal Year 2010 Health Care proposals, Senator Maria Cantwell (D-WA) discussed how the current economic climate makes a more affordable, accessible health care system not only necessary, but vital to the nation’s long-term economic recovery and fiscal outlook.
 
 “Something is fundamentally wrong when Starbucks reportedly spends more on health care costs than on coffee beans and American families must chose between spending money on prescriptions or food for the week,” said Senator Cantwell. “Every time the national unemployment rate rises by one percentage point, the number of uninsured grows by more than a million. Today, with more people losing jobs and the nation’s unemployment rate at more than 7.8 percent, the need to reform our health care system is clearer and more urgent than ever.”
 
During today's hearing, Cantwell also highlighted Washington state’s efforts to reform health care to make it smarter, refocused, more affordable, and more accessible. She also discussed the state’s efforts to to retain doctors, nurses, and medical professionals in under-served communities. During the 111th Congress, she plans to introduce various pieces of legislation that build on Washington’s success in areas of health care reform. For example, Washington state has been working to help people avoid nursing homes and instead get the care they need in their own homes and communities, where it can better meet their needs at a lower cost. These reforms to Washington state’s long-term care system have allowed for the coverage of twice as many people, while at the same time saving an estimated $26 million.
 
“This country needs better coverage and more of it,” said Cantwell. “Washington state is leading the way in reforming health care to make it smarter, more affordable, focused on long-term care and prevention, and within every American’s reach. In the 111th Congress, I will work to build on the concepts Washington has pioneered when it comes to its Medicaid population, health IT, and long-term care and prevention.” 
 
The U.S. health care system provides jobs for 14 million people, but it ranks as the most expensive system in the world. In fact, according to estimates, by 2017, health care expenditures in the public and private sectors are expected to consume nearly 20 percent of United States' Gross Domestic Product (GDP), or $4.3 trillion annually.  
 
These high and rising health costs are one of many factors contributing to the current economic crisis. In 2007, 57 million Americans reported problems paying medical bills, a 14 million increase since 2004. Nearly half of people in foreclosure cited the costs of medical problems and lost wages as factors that led to their homes being foreclosed upon. Health care is also a concern for the Federal Government’s long-term fiscal balance, as spending for Medicare and Medicaid is projected to increase by 114 percent in ten years, while general inflation will grow by just 64 percent. According to the Kaiser Commission on Medicaid and the Uninsured, a one percentage point rise in the national unemployment rate would increase Medicaid and SCHIP enrollment by 1 million and cause the number of uninsured to grow by 1.1 million. 
 
 
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