Pence Responds to White House Health Care Announcement

Pence Responds to White House Health Care Announcement

JULY 8, 2009


WASHINGTON, DC - U.S. Congressman Mike Pence, Chairman of the House Republican Conference appeared on FOXNEWS this morning to react to this morning's White House announcement regarding hospital industry executives:
 
BILL HEMMER: Republican Conference Chairman, Mike Pence out of Indiana is with me now. Sir, good morning to you and welcome back. On the surface it sounds great. These hospitals got together and said, "yeah we'll do the deal for you. We'll take a $155 billion loss over the next 10 years to do our part." What do you think of it?
 
REP. MIKE PENCE: My response, as you suggested, would be "not so fast."  If, in fact, in a few moments we hear that the White House has managed to secure a commitment for $150 billion in savings, that is about 10 percent of the cost of the Democrats' health care plan. It's projected at about $1.5 trillion. And the hard truth here is that what we may be seeing today is another industry, kind of like utilities, financial firms, bond holders, auto dealers, being marched out by the White House, having come to some voluntary agreement that's dictated by the White House. And at the end of the day, 90 percent of this cost is going to be born in the form of taxing the American people.  I think the reason why the Democrat health care proposal is in disarray right now is because millions of Americans like the health insurance benefits they have today, and they know that either a government insurance option or taxing of benefits are both going to result in them losing their insurance or paying higher taxes.
 
HEMMER: If you put the hospital deal with the drug companies deal that they cut about two weeks ago, they say they are willing to save about $80 billion in savings. If you take a little piece from here, a piece from over there, eventually, couple billion here a couple billion there-eventually it is real money. Why does that not sound like a good idea? What it appears anyway, whatever the White House is getting in commitments behind closed doors, is that everybody's got some skin in this game to trying and lop off the overall price figure.
 
REP. PENCE: There are voluntary agreements, then there are less than voluntary agreements. I'm reminded back during the days of the Wall Street bailout, when a lot of bank executives were hauled into the previous administration's White House and told "you are taking the T.A.R.P. money," and they all walked out and said "you know what, we are taking the T.A.R.P. money."
 
As a limited government conservative, I am not comfortable with the federal government securing "voluntary" commitments from the private sector. If there is savings through the pharmaceuticals, if there is savings today through the hospitals, great. But your viewers ought to know that this is a $1.5 trillion plan. And they are going to announce today, with alot of fanfare, that they have found a way to pay for about 10 percent of it. The other 90 percent is going to be borne by the American people in higher taxes.
 
HEMMER: At the moment, based on what we know, you are not a buyer?
 
REP. PENCE: I'm not a buyer in a government takeover of health care in this country. I really do believe that the American people know that we ought to deal with the issue of the uninsured, we ought to work harder to make health insurance products more affordable and more available to more Americans. We do not need a government insurance option. We do not need a government takeover. We do not need to start taxing the health insurance benefits of millions of Americans, which is exactly where most Democrats in Washington are going to go to pay for the other 90 percent of this bill.
 
HEMMER: Let's tackle that here in the short time we have left, because apparently some of these Democratic leaders went back to their home districts and home states over the July 4th weekend, and they were stunned by the earful that they got from their constituents. One of them came back and called it sticker shock. Now this is the taxing idea of employee benefits that even Sen. John McCain proposed first during the campaign of last year. It appears that that is a major sticking point, that's allowing these committees to wallow, and turn themselves over continuously day after day. And bump it up against that deadline that they set for themselves of August recess to get this thing done. When you just look at that on the surface, it seems like health care reform is a very difficult proposition to get through this Congress.
 
REP. PENCE: Well I think it is a very difficult proposition to get a government takeover of health care in America, not just through the Congress but by the American people. The reality, and the Lewin study just found this out that they recently adjusted their number, I think they are now projecting that if there is a government option combined with this plan for taxes I suspect on benefits, about 114 million Americans who currently have health insurance through their employer will lose their health insurance. I always thought that these recesses that we take like the last one Congress just had are the real antidote to Potomac fever. Ideas can seem to make sense on Capitol Hill, but you go home and, as we say in Indiana, you have got another thing coming. And I think the reason why Democrats in Washington and down at the White House are in disarray on their government takeover of health care is because the American people are being heard. They're being heard in increasing measure. They do not want a government run option.  They don't want a mandate.  They don't want to tax benefits.  And no amount of window dressing or this announcement today by hospitals and the Administration is going to change the fact that all those things are coming if the President gets his way on health care reform.
 
HEMMER: Mike Pence, thank you.  The view from the right, we will get the view from the left when Joe Biden steps to the microphone in Washington in a matter of minutes here. Mike Pence, thank you. Republican out of Indiana.

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For additional information, contact:

The House Republican Conference Press Office at (202) 226-9000 or
Matt Lloyd (matt.lloyd@mail.house.gov)
Mary Vought (mary.vought@mail.house.gov)