Small Business Committee: "The President’s FY 2010 Budget and Medicare: How Will Small Providers be Impacted?"

STATEMENT
of the
Honorable Nydia M. Velázquez, Chair
House Committee on Small Business
Hearing on "The President’s FY 2010 Budget and Medicare:
How Will Small Providers be Impacted?"
Wednesday, March 18, 2009, 1 p.m.
In the last few years, this committee has heard from countless entrepreneurs who say healthcare costs are crippling their businesses. For many small firms, rising premiums have become a barrier to growth and success. So it was not surprising when the President used his February speech on the budget to make the case for reform. As he later put it at the White House Healthcare forum, “the greatest threat to our nation’s balance sheet is the skyrocketing cost of healthcare.”

As part of its budget for the coming year, the new Administration has made healthcare reform a top priority. And with good reason. The current system is bankrupting businesses and costing our country $2.4 trillion a year. On a per capita basis, Americans spend 250 percent more than any other advanced nation. Clearly, the system is broken, and we cannot continue down this path.

For decades, this country has been waiting for comprehensive healthcare reform. Now that it is finally becoming a reality, we are going to see some very real changes in the system, especially for small businesses. This afternoon, we will review many of those proposals, and hear from the individuals who will be handling them day in and day out. Their views should give us the insight we need to start determining next steps.

Healthcare reform affects entrepreneurs on many levels. To begin, it helps ease the burden of rising insurance costs, which have jumped 129 percent in the last eight years. With premiums growing four times faster than wages, the need for change has never been greater.

Small medical providers -- who are the core of our healthcare system -- will also have a critical role in reform efforts. Small businesses make up nearly 70 percent of all healthcare practices, and they recognize that the current system is simply not working. These are the entrepreneurs who will be implementing change, and they are the people spearheading the process.

A key component of reform is an increased emphasis on efficiency. That includes streamlining the system and modernizing it through a greater use of Health IT. Additionally, it means cutting expenditures such as Medicare overpayments and hospital readmissions. As a result of these measures, Americans should see an estimated $316 billion in savings. Those savings will go a long way in ensuring that every American has access to quality, affordable coverage.

The budget provides a clear outline for reform. However, President Obama has said he is not rigid in those plans, and welcomes innovative ideas from all around the country. After all, our healthcare system touches the lives of every single American. Rather than taking a one-size-fits-all approach, reform should account for a broad range of interests. This is particularly true when it comes to the unique needs of entrepreneurs.

Like all other business owners, the providers here today are stakeholders in the movement towards greater healthcare coverage. They are also the men and women in the trenches, making sure that the system works for everyone. Their input will be an invaluable asset to the reform process, and I look forward to hearing their suggestions for next steps.