Pallone Says White House Report Underscores Economic Imperative Of Health Care Reform

CONGRESSMAN FRANK PALLONE, JR.
June 4, 2009

CONGRESSMAN FRANK PALLONE, JR.
Sixth District of New Jersey

 For Release: June 4, 2009           Contact: Richard McGrath/Tali Israeli (202) 225-4671

Pallone Says White House Report Underscores Economic Imperative Of Health Care Reform  

Washington, D.C. -  The economic importance of health care reform is underscored by a report just issued by the White House, U.S. Rep. Frank Pallone, Jr. said about the detailed analysis by the President's Council of Economic Advisors showing long-term benefits to the nation's economy. Pallone is a key congressional leader working on a far-reaching plan to make health care more accessible and more affordable for Americans.

            "This report documents and quantifies the economic imperative of health care reform," said Pallone, who serves as chairman of the Health Subcommittee of the Energy and Commerce Committee. "Our immediate health care goals are accessibility and affordability but our long-term goal is economic prosperity. Health care spending is such a substantial part of the nation's economy that reforms to the health care system are needed to support long-term economic prosperity."

            Below are some key findings of the report:   

** Health care reform that truly “bends the curve” in costs could boost Gross Domestic Product by nearly 8% in 2030.  Slowing the annual growth rate of health care costs by 1.5 percentage points would increase real gross domestic product by over 2 percent in 2020 and nearly 8 percent in 2030.

** For a typical American family of four, health care reform could result in an additional $10,000 in income by 2030 than they otherwise would have enjoyed.

** Health care expenditures currently account for 18% of our nation’s GDP and if we remain on our current path, health care spending is expected to reach 34% -- over a third -- of GDP by 2040.  

** Rising health care costs are contributing to the deficit and undermining the ability of our small businesses to compete in the global economy.  

** For working Americans who rely on employer-sponsored health insurance, rising costs mean that an ever greater proportion of their compensation comes in the form of health benefits rather than take-home pay.  

** Expanding health insurance coverage to the uninsured would increase net economic well-being by roughly $100 billion a year, which is roughly two-thirds of a percent of GDP.

** Slowing cost growth would lower the unemployment rate consistent with steady inflation by approximately one-quarter of a percentage point for a number of years.

** In New Jersey the average annual premium for employer-sponsored family coverage rose from $7,625 in 1996 to $12,835 in 2006*.

Read the full report: http://www.whitehouse.gov/assets/documents/CEA_Health_Care_Report.pdf