Washington, D.C. - Today, Congressman Michael C. Burgess, M.D. (R-TX), Chairman of the House Budget Committee Health Care Task Force, spoke on the House of Representatives floor on the Dr. Michael C. Burgess Preventive Health Savings Act (PHSA) and released the following statement on the passage of this bipartisan legislation in the House of Representatives. This is the first time in history that a bipartisan bill with sole Budget Committee jurisdiction has been brought to the Floor under a suspension of the House rules.
PHSA will allow the Congressional Budget Office (CBO) to analyze and create budgetary savings estimates of preventive health care legislation over a 30-year budget window. The current scoring window for CBO is 10 years, but the full cost-saving potential of preventive health care legislation often occurs over a longer period, resulting in budgetary costs. This bill will encourage policies focused on medical innovation to result in savings over longer periods.
Congresswoman Diana DeGette (D-CO) joined Congressman Burgess in the introduction of the Preventive Health Savings Act.
Click Here for Opening Statement Video.
Click Here for Closing Statement Video.
Click Here for Bill Text.
"Since 2012, I have been championing this legislation to provide the Congressional Budget Office with the ability to analyze the long-term benefits of preventive health care measures while ensuring that we make informed decisions on future health care policy. I am grateful that the Preventive Health Savings Act passed the House of Representatives, today. With chronic diseases accounting for over seventy percent of health care spending, this bill will ensure the Congressional Budget Office has access to the necessary tools to calculate the long-term cost saving potentials of preventive health care initiatives. The passage of this bill lays the foundation for future policies that will reduce chronic disease illnesses, manage risks before they become detrimental to the patients’ health, and lower health care costs for Americans.
Thank you to the Budget Committee, Chairman Arrington, and Congresswoman DeGette for partnering with me to get this bill through Committee and I am beyond honored for their decision to attach my name to this critical piece of legislation. I am looking forward to the passage of this bill in the Senate as we continue to strengthen our national health care public policy strategy," said Congressman Burgess.
“Health care costs are the chief debt driver of the federal budget, accounting for more than 1/3 of overall spending, a total that tops nearly $2 trillion dollars of taxpayer funds annually. Even worse, that estimate is projected to almost double over the next decade.
Investment in our nation’s health care innovation has the benefit of being a triple threat for patients everywhere: modernized technologies improve the likelihood of quality outcomes, and increase patient access, while also reducing the fiscal burden for taxpayers.
One of the major barriers to deploying modernized and innovative policies that would unequivocally curb the cost of health care is the antiquated process used for calculating congressional cost estimates on proposed health care legislation.
Congressional scorekeepers have traditionally focused solely only on the short-term valuation of a policy rather than capturing the long-term economic impact.
But today, with passage of H.R. 766, that changes. This bill seeks to improve the methodology of Congress’ broken budgetary process by providing policymakers with a more accurate cost estimate of the long-term cost savings from preventive health care policies.
I thank my longtime friend and fellow Texan, Dr. Burgess, who worked tirelessly alongside Rep. DeGette for more than a decade to advance this important piece of legislation across the finish line. Today’s result is a testament of the impact that bipartisanship can have and marks a new chapter for the House Budget Committee," said Chairman Arrington.
“This legislation will revolutionize how Congress assesses health initiatives by accurately gauging the long-term savings from preventive health programs,” said Rep. DeGette. “I’m glad to have worked alongside Dr. Burgess on this effort, who shares my commitment to a healthier, more affordable future for all Americans.”
Background:
Congressman Burgess first introduced the Preventive Health Savings Act in 2012 and has been working on this legislation for over a decade.
Budget Committee Chairman Jodey Arrington amended the bill to be named the Dr. Michael C. Burgess Preventive Health Savings Act to honor Congressman Burgess’ leadership in health care and pay tribute to his retirement. See the video here.
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