September 10, 2009

New Jersey Chamber Response to President Obama’s Health Care Reform Address to Congress

The New Jersey Chamber of Commerce agrees with President Obama and members of Congress that the health care system needs immediate reform in order to control skyrocketing costs that threatens to cripple our economy for years to come. The Chamber also supports many of the proposals outlined last night by the President. The Chamber Board of Directors, however, continues to disagree with the President and others who believe this problem can be solved through the creation of a government run health care plan that competes unfairly with private insurance companies.

“Reform is in everyone’s interest,” said Joan Verplanck, president of the New Jersey Chamber of Commerce. “While we applaud the President for continuing to make this issue his number one domestic priority, we remain cautious of the hidden costs and logistical details that could end up damaging the employer community’s ability to grow jobs and bring our nation out of recession. Health-related spending accounts for 17 percent of the nation’s gross domestic product so reform has to be done correctly.”

“Legislation this important requires the passion of specific proposals – not just passion,” said Jeff Scheininger, president of Flexline/US Brass & Copper and chairman of the Chamber’s Health Initiative. “The President was eloquent and persuasive about the reforms most of us agree are necessary. But he was disappointingly silent or vague on those key issues where details really matter. Insurance exchanges need to cross state lines to give consumers real choice; medical malpractice reforms need to be real and concrete, not some vague promise; and assuring that the final bill is not adding to the deficit, must be put in the hands of the Congressional Budget Office not the President’s Office of Management and Budget.

“We agree with the President's comment that consumers do better when there is competition,” said Jim Leonard, senior vice president for Government Relations for the Chamber. "But we can’t agree to any system that unfairly tips the balance in favor of a government run health care system. We also question the price tag at more than $1 trillion and the claim that his plan will not add to future deficits. The math just does not calculate and the outcome of reform could potentially do more economic harm than good.”

The areas in which the Chamber agrees with the President include:

• A prohibition on the denial of health insurance because of a pre-existing condition;
• A call for tax credits to help purchase insurance;
• An endorsement of shared responsibility in this reform package;
• A focus on the elimination of waste and abuse; and
• The use of best practices in health care delivery to improve the system and lower costs.

The call for medical liability reform by the President was especially heartening to Scheininger, who has been advocating for civil justice reform in New Jersey as the chairman of the Health Care Initiative. “Kudos to the President for recognizing how damaging defensive medicine is to the cost of health care,” commented Scheininger. “Medical liability reform is critical to any reform package. I ask the President to start one of his demonstration projects in New Jersey as soon as possible so our citizens and employers can benefit from the savings.”

The health care reform proposals the Chamber does not support include items such as an employer mandate, additional health insurance taxes and a government run health care system. These components of reform will increase costs to the employer community and make it more difficult to run a business.

Important reform items missing in the President’s address and endorsed by the Chamber include:

• Addressing the shortage of nurses in our health care delivery system. “The need for a well-educated, caring nurse will be more important than ever – under any of the health care reform scenarios presented to date,” said Lynn M. Mertz, PhD, deputy director of the New Jersey Nursing Initiative. “ New Jersey’s schools and colleges of nursing will need to grow to meet that demand.  The nurse faculty shortage is stopping these programs from growing. If this is not addressed, New Jersey will not have the nursing workforce it needs.”
• Expanding the use of electronic medical records and other healthcare IT to help improve care and lower costs.
• Offering prevention and wellness programs that make society healthier.

Last week, the New Jersey Chamber joined 19 other statewide chambers and employer organizations in an unprecedented alliance that will unify their efforts in the federal health care reform debate. The group, Employers for Quality Health Care, is an independent coalition that is bringing a unique perspective to the table alongside national business groups like the U.S. Chamber of Commerce and the National Association of Manufacturers. More information on the Coalition’s agenda can be found at www.employersforqualityhealthcare.org.