DeFazio flips from Yes to No

Defazio is actually my Congressman. He is actually pretty intellectually honest. The problem is he is a true believer type liberal. But when he gets onto a pet peeve issue like this, he could potentially vote No. However, I expect he will settle for a promise to fix it in the future.

By the way, our district is only the 3rd or 4th most liberal (of 5) in Oregon. There are 3 other districts that touch the Portland area and are typically more liberal than ours. But we have Eugene in our district which drowns out all the rural votes.

I think the issue is valid: if we are going to set rates for Medicare reimbursement, then it should be fairly distributed. Why should areas that keep medical inflation down better get penalized with lower reimbursement rates for Medicare, and those that don’t get rewarded with more Medicare dollars. I don’t think he is asking for something special for Oregon, but in the rural vs. urban formula nationwide. Of course, my solution would be to voucherize Medicare and let the free market set the rate.

Here’s a letter a friend who wrote Defazio got back last week. Note that Medicare payment distribution is the second thing he mentions (after repealing insurance companies anti-trust exemption). (I apologize if this is way too long)

Thank you for contacting me about health care reform. I appreciate hearing from you.

To date the final language of the health care reform package remains unknown. I have made it clear to Speaker Pelosi that I will not vote for any bill unless I have time to read it. It must also include reforms that save money and increase access to quality care. I outline some of those provisions below.

Despite the many differences on how to proceed on health care reform one thing is certain: the cost of health care in this country is rapidly spinning out of control. Premiums have more than doubled in less than 10 years and are predicted to nearly double again by 2020. Last year 2.7 million Americans were dropped by their private health insurance while at the same time the health insurance companies made over $12.2 billion in profits, up 56 percent from the year before. In Oregon the average premiums for individuals and small businesses have climbed by more than 140 percent in seven years. We simply cannot continue like this.

We need to focus on the aspects of reform that everyone can agree on. In my 15 town hall meetings last summer, I heard many concerns, but one reform received support from a broad swath of folks. The health insurance industry currently enjoys an exemption from federal antitrust laws. With this exemption, insurance companies can, and do, collude to drive up prices and exclude people from coverage. They decide amongst themselves what they will cover and what they won’t, and how much they will pay. I repeatedly challenged House leadership to allow a vote to outlaw this abuse. The bill was two pages in length, easy to understand and passed by an overwhelming bipartisan majority. In fact, 153 Republicans voted for this measure. This simple fix, if passed into law, would save consumers billions of dollars in premiums.

We also need to fix the broken Medicare reimbursement formula. The current formula is broken and discriminates against Oregon and 16 other states. Many Oregon doctors and other providers refuse to take new Medicare patients because reimbursements are too low. Low Medicare reimbursement rates means more costs are shifted to the rest of us in the forms of higher private insurance rates. If this formula is fixed, not only will Oregon’s seniors have better access to care but it will lower the cost of care for all Oregonians. The increased reimbursements in Oregon and 16 other states would be paid for by lowering excessive payments in states like Florida, New York, Massachusetts and other “high cost” states.

Medicare should also be able to negotiate lower drug prices for seniors. The Veterans Administration negotiates prices and pays up to 80% less than Medicare for the identical, non-generic versions of most popular drugs. We also need to eliminate the dreaded “donut-hole” created by the Bush Administration that leaves seniors with outsized prescription drug bills.

We need to stop insurance companies from denying people coverage for pre-existing conditions, or canceling or no renewing their policies when they get sick. No more annual or lifetime caps and coverage exclusions hidden in the small print. These reforms would put an end to families losing their homes when they lose their job or get sick.

I have said from the beginning that I do not support a government take-over of health care. In fact, the reforms pending before Congress today continue to rely on private health care insurance and private doctors. We should build on what works in the system we have and focus on reforms that people understand and support.

We must rein in the escalating health care costs and insure access to quality health care for all Oregonians, but above all else I will oppose any reform that adds to our deficit.

Thanks again for contacting me. Please keep in touch.

Sincerely,
Rep. Peter DeFazio
Fourth District, OREGON

willamettevalley on March 19, 2010 at 2:58 PM