This is a letter from Rep. Mike Pence (IN-O6) written to a constituent. I think it gives us valuable insight into the talking points of the pro-AHIP people, and knowledge is what we need to win. I have not edited it beyond removing personal identifying information.
The 6th district is one of the poorest in Indiana. It is composed of small farming communities under greater and greater economic stress, and post-industrial towns like mine where a large employer like GM, Guide Lamp, Ball Glass, or Borg-Warner used to employ a sizeable chunk of the town's population.
Follow below the fold to read the text of the letter.
Thank you for contacting me regarding healthcare reform. It was a pleasure to hear from you.
Like you, I am concerned that millions of Americans lack health insurance coverage. In any health care legislation Congress considers, I believe we have an obligation to include measures designed to increase access to health insurance. At the same time, we also have an obligation to be good stewards of taxpayer money. Now, more than ever, as our nation faces an economic recession, we must act wisely. Fiscal discipline is a hallmark of a free society because it enables individuals to pursue their dreams without the burdensome intrusion of the federal government.
Health care currently costs about $2 trillion per year in the United States, approximately half of which is publicly financed and half private. If government-financed health care coverage were extended only to the uninsured, the cost would be in the hundreds of billions. If the U.S. implemented a health care model in which a government entity pays all health care expenses (like those seen in many European countries), public liabilities would increase by over $1 trillion per year. Those potential costs must be financed through higher taxes or larger deficits. Higher taxes would slow economic growth and consume resources that could be used elsewhere.
Additionally, I believe that a one-size-fits-all government mandated health insurance plan actually lessens individuals' choice in their own health care. Under a national health care system, federal bureaucrats not doctors and their patients, will decide which medical procedures are covered and which are not. Patients would be limited to only the prescription drugs listed on the government formulary. Patients would also be forced to see a government-approved doctor, not one of their own choosing, and ultimately to keep the system solvent, health care services would have to be rationed to hold down costs.
There are other ways to expand coverage and lower costs. Congress has been pursuing alternate solutions such as Association Health Plans (AHPs). By allowing individuals and small employers to join together, AHPs promote the same economies of scale and purchasing clout that workers in large companies currently realize. As you may know, these new coverage options promote greater competition, lower costs, and offer new choices in health insurance markets.
Another option I support is health savings accounts (HSAs). The Medicare prescription drug legislation signed by President Bush on December 8, 2003 authorized new HSAs for unreimbursed medical expenses. HSAs are similar to medical savings accounts (MSAs), which expired January 1, 2004, when HSAs became effective.
Funds contributed to an HSA roll over to the next year if they are not spent and are not subject to federal income tax at the time they are deposited. The maximum contribution allowed to an HSA for 2009 is $3,000 for an individual and $5,950 for a family. Funds in an HSA are not subject to income taxation if they are made for qualified medical expenses. Health Savings Accounts also create flexibility in Medicare and cut health insurance premiums by up to 45 percent. I support these healthcare options because I believe we can make health care more affordable through a competitive, open, and transparent health care system where America's families choose their own doctors and health care plans.
Rest assured, I am committed to finding solutions to our nation's health care needs that respect our moral obligation to provide health care to those in need in an efficient and cost effective way.