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Congressman Paul Tonko announced today that he plans on supporting the health insurance reform bill, which is expected to come to the House floor this weekend for an up or down vote.

“Either we heal now, as a country, or we will crumble, as individuals,” said Congressman Paul Tonko.  “Health care costs are skyrocketing, forcing families to decide between paying their insurance bills and paying their mortgage. American small businesses are losing their competitive advantage across the globe and unhealthy individuals are being dropped from their health insurance coverage.  The time for politics is done.  The time for change is here.”

Approximately 66% of the 21st Congressional District, or 439,000 residents, currently have health care coverage.  For these individuals, reform will only enhance their current coverage. It will do so by prohibiting annual and lifetime limits, eliminating rescissions for individuals who become ill while insured, banning coverage denials for pre-existing conditions and reducing the cost of preventative care. It will also reform the amount insurance companies can spend on administrative costs, profits and overhead to prevent the soaring prices we see today.

This bill also includes tax credits and other assistance for up to 149,000 families and 14,500 small businesses in the congressional district to help them afford coverage. Middle class families with incomes of up to $88,000 for a family of four will receive tax credits to help pay for coverage in the exchange.  For a family of four making $50,000, the average tax credit will be approximately $5,800.  

Currently, 6,900 individuals in the congressional district have pre-existing medical conditions like cancer, heart disease and diabetes.  Under the reform, they cannot be denied affordable coverage.

Approximately 1,110 bankruptcies occurred in the district due to health care costs in 2008.   The bill caps annual out-of-pocket costs at $6,200 for individuals and $12,400 for families who purchase insurance though the exchange or who are insured by small businesses.

There are 113,000 seniors receiving Medicare, a government run health insurance plan, in the congressional district.  This bill provides free preventative care to those recipients, improves primary and coordinated care, and enhances nursing home care.  It also extends the Medicare Trust Fund’s solvency from 2017 to 2026.  It also allows the 7,300 Medicare beneficiaries who enter the Part D “donut hole” and are forced to pay the full cost of their prescription drugs much needed relief.  They will receive a $250 rebate in 2010, over $700 in savings by 2011 and over $3,000 in savings by 2020.

Young adults will be allowed to stay on their parents’ policies until the age of 26 under this bill, which will provide 59,000 young adults with coverage in the congressional district.

Small businesses with 100 employees or less will be able to join the health insurance exchange, which totals 16,600 small businesses in the congressional district.  Small businesses with 25 employees or less and average wages of less than $50,000 will qualify for tax credits of up to 50% of the costs of providing health insurance.  There are up to 14,500 small businesses in the district that could qualify for such a credit.

The number of uninsured that would be covered in this bill in the congressional district is 16,500.  These individuals normally use the emergency room as the primary source of care and are unable to pay those bills.  That uncompensated care will be reduced by $71 million due to expanded coverage, effectively lowering a hidden tax on all current policy holders.

Finally, the health bill will reduce the deficit by $130 billion during the first 10 years after enactment and by $1.2 trillion in the second decade.  The overall cost of the bill is $940 billion over 10 years.

“We need to return control over health care decisions where it belongs, to families and small businesses,” continued Congressman Paul Tonko.  “We need to better our coverage for seniors and make Medicare whole again.  We need to make health insurance affordable and stop unprecedented rate increases.  And, we need to reduce the federal deficit. This bill does all of these things, which is why I am proud to provide my support for this very badly needed reform.”

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