Health care, homeland security and the economy topped the discussion last week as the Greater Providence Chamber of Commerce hosted Rhode Island’s congressional delegation.
Noting that health care is one of the largest cost drivers for American businesses, Rep. Patrick J. Kennedy said there is a need to reform the nation’s health system. The Democrat particularly stressed one of his long-standing priorities: health information technology.
Electronic medical record systems, he said, could eliminate redundancies in the nation’s health care system, scaling back the cost of the overpriced service. However, the high cost of the technology has made it difficult for doctors to begin using the platforms.
“We don’t have a capitalist system when it comes to health care,” Kennedy said. “We have a system where we pay more and get less. We need to transform this system and change it from a sick-care system, where we are paying for acute care, and change it to a primary system, where we are paying for primary care.”
Kennedy also said he was opposed to President Bush’s calls to expand health savings accounts and flexible spending plans, programs that allow for participants to contribute portions of their pre-tax incomes to fund health care costs not covered by insurance.
Supporting such a plan is akin to “fiddling while Rome burns,” Kennedy said; more drastic steps are needed to fix the system. “Our system is broken,” he said. “Any efforts to carve out insurance tools for one set of the population ain’t gonna cut it.”
Rep. James Langevin, a fellow Democrat, also focused on health care, discussing a bill he has submitted that would create the American Health Benefit Program, a plan for universal health coverage that would put all Americans in a single insurance pool administered by the government. The government would negotiate plans and rates with private insurers.
U.S. Sen. Jack Reed addressed the economy. He said analysts are predicting a 3.2-percent growth in gross domestic product this year, a figure that is “nothing to scoff at.” However, while the short-term outlook is positive, Reed said, growing costs associated with energy and health care are adding to a disparity of wealth.
Reed also contrasted today’s economic climate with that of the 1990s – a time that Reed said saw vast economic growth as well as responsible government spending.
“The tables have turned,” Reed said. “We’re looking at long-term structural deficits and we’re looking at huge impacts on the economy.”
U.S. Sen. Lincoln Chafee, the only Republican in the delegation, said the “enormous” tax cuts passed by Congress in 2001, coupled with increases in spending, also have added to the nation’s deficit. Congress is now faced with the possibility of cutting valuable programs, he said.
While Chafee spoke about the gaps created by tax cuts, Kennedy said he supports making one set of cuts permanent: research and development tax credits for innovative businesses. The credits, which are designed to help the country remain competitive in those areas, have shown a 31-percent return on investment and helped 12,000 businesses in the past five years, according to figures discussed at the breakfast.
Chafee also spoke about a liquefied natural gas (LNG) facility proposed for Weaver’s Cove in Fall River. The proposed facility has drawn the ire of residents who are concerned about the potential safety hazards associated with LNG.
Chafee said the Fall River LNG terminal is one of 17 proposed along the East Coast. In some areas, residents favor the facilities because they can help create jobs. Chafee said there must be a regional approach to the development of the facilities.
“It can be done, but the citizens have natural and legitimate fears,” Chafee said. “We have to ensure their safety.”
Reed also spoke about the need for continued federal support for terrorism insurance in America. The cost of terrorist acts can go beyond physical harm, he said, and the World Trade Center attacks caused a nearly $32 billion disruption to the economy.
“The sad and very sobering fact is that there are terrorism groups around the world that are still contemplating attacks on the United States,” he said.
