Thompson applauds health care bill

Eureka Times Standard

The ink was barely dry on the House Democrats' bill to overhaul the nation's health care system when the protest was announced.

Humboldt Tea Party Patriots, the same group that staged a tax day protest, is hoping to get a group of opponents to government run health care to gather in front of North Coast Congressman Mike Thompson's office Friday to air their feelings of displeasure with the proposed legislation, which would cover tens of millions of uninsured Americans.

In order to help pay for the coverage, the bill would also raise taxes on the wealthiest Americans to levels not seen since the 1980s.

Thompson, who said he spent weeks with the House Ways and Means Committee poring over all aspects of the bill, said he's excited about the bill.

”I think it's absolutely fantastic that we're moving on health care reform,” Thompson said in a phone interview Wednesday. “This is something that constituents from one end of the 1st District to the other have been asking for since day one.”

But not everyone in Thompson's 1st Congressional District feels the same way, as some worry the legislation would plunge the nation further into debt, result in fewer choices for patients and prevent small businesses from hiring new employees.

The landmark 1,018-page legislation covers a seemingly astonishing amount of territory, and most notably would bring health insurance to some 37 million people who are currently living without, according to an estimate by the Congressional Budget Office.

Under the plan, the federal government would be responsible for ensuring that all people, regardless of income or the state of their health, have access to an affordable insurance plan. Individuals and employers would have new obligations to get coverage, or face penalties.

But, as Thompson pointed out, the bill also covers a plethora of other topics, including devoting resources to preventative care, improves delivery systems, strengthens care provider reimbursement rates, provides a public health care option and takes steps to reduce waste, fraud and abuse.

It also comes with a massive price tag, as it is expected to cost $1 trillion over 10 years.

To cover the costs, the bill increases taxes for the nation's top 1.2 percent of earners -- families that make more than $350,000 a year -- resulting in about $544 billion in additional revenue over the next decade. Democrats hope the balance of the funding will come from savings in Medicaid and Medicare programs as a result of the new bill.

The bill would add a 5.4 percent income tax surcharge on families making more than $1 million a year starting in 2011. Families making more than $500,000 would get a 1.5 percent tax increase and families making more than $350,000 would see a 1 percent tax increase.

Currently, the top marginal income tax rate is 35 percent. President Barack Obama wants to let some tax cuts enacted under the Bush administration expire, boosting the top rate to 39.6 percent in 2011. The new health care taxes would increase the top rate to 45 percent, the highest income tax rate since 1986, when the top rate was 50 percent.

House Republican leader John Boehner, R-Ohio, called the bill a job killer, saying it would result in rationed care, fewer choices for patients and diminished quality.

”If this isn't bad enough, this new maze of government bureaucracy will be funded by a new small business tax that will cost more American jobs,” Boehner said. “During a time of economic recession, the last thing Congress should be doing is punishing small businesses that create a majority of the jobs in this country.”

Thompson disputed the notion that the bill would be a job killer, saying it will likely be just the opposite.

”Right now, the existing health care system is a job killer for small businesses,” Thompson said, noting that health care premiums rose by 95 percent between 2000 and 2007 and that the bill has an exemption for small businesses with payrolls under $250,000.

Businesses with payrolls larger than $250,000 would have to pay a penalty or fee equal to 8 percent of wages if they don't offer health coverage.

Thompson said setting up a new government-run health plan would also help control insurance costs for everyone.

”The public option will create that competitive field where all the insurance companies are going to have to compete,” he said, adding that insuring millions who are currently not covered will widen the risk pool for companies and drive down costs. “This creates a mechanism whereby folks can get a better deal on their health care.”

While not everyone is enamored with the House Democrats' proposed legislation, everyone seems to agree the system is broken.

A report released Thursday from the consumer health organization Families USA says insurance premiums skyrocketed 119 percent between 1999 and 2008. The report estimates that the escalating costs will have caused almost 1 million Californians to lose their health coverage between January 2008 and December 2010.

Karen Brooks, a spokeswoman for Humboldt Tea Party Patriots, said she knows the health care systems is in need of reform.

”But, government run health care is not the answer,” Brooks said, adding that she has major concerns over the mounting national debt. “Our dollar is going to be worth nothing and I don't want to pay for someone else's health care plan.”

Friday, Brooks plans on standing in front of Thompson's Eureka office to make her voice heard, and she hopes to see lots of people there with her.

”They're just regular people who have never been active in their lives,” she said of those she's seen at previous Tea Party protests. “Now, they're just saying enough is enough. Your silence is your consent.”

With the support of conservative talk show hosts and pundits, TEA parties, utilizing an acronym for “taxed enough already” and harkening back to images of the Boston Tea Party, began cropping up in April in advance of tax day.

Brooks said Friday's protest is simply aimed at creating a new dialogue on health care reform. She said she just hopes Thompson will listen.

Back in Washington, D.C., Thompson said while it may be imperfect, this legislation represents progress.

”This is a huge, huge step forward and a giant help for everybody who has been experiencing the high cost of providing health care,” he said. “I'll be the first to tell you I think we can wring more savings out of the system, and there will be efforts to do that. Even if (this bill) were to pass today, tomorrow we would start working on fine-tuning it.”