Real Health Care Reform Equals a Healthier America

By Billy Tauzin, President and CEO
Pharmaceutical Research and Manufacturers of America (PhRMA)

President Obama’s call for health reform is sorely needed and is something this country should embrace. We have toiled under the heavy burden of needed reform without consensus for too many years. Meanwhile, costs continue to rise with an estimated $2.2 trillion a year spent on health care. Yet, approximately 46 million Americans are uninsured, and the number is growing. Of this figure, California has more uninsured individuals and families than any other state – now reaching more than 6.7 million uninsured Californians.

Studies have shown conclusively that uninsured families delay and forego needed medical care because of cost – resulting in poor quality and worse health outcomes. This not only causes needless suffering for those without health insurance, it also is inefficient and costly. This and other factors have pushed our health care system to the breaking point.

President Obama is to be commended for his commitment to comprehensive healthcare reform and extending high-quality, affordable healthcare coverage to the millions of uninsured Americans. We also applaud his focus on health system reforms and improvements – including better care coordination for the chronically ill, investments in prevention and wellness, and his bold commitment to curing cancer. Simply put, making people healthier and preventing chronic and costly diseases are the best ways to reduce health care spending.

Right now, the economy is taking a toll, and Americans are losing jobs at an increasing rate. As a result, American’s are losing their health care coverage. California is no exception, with the state registering its highest jobless rate since June 1983, with nearly 1 in 9 workers unemployed. Those without health coverage tend to go without necessary treatment, do not adhere to medication regimens, and the chronically ill defer care because they simply can’t afford to pay out-of-pocket costs. These factors drive up health care costs.

Today, nearly 40 percent of Californians suffer from chronic disease, accounting for 75 percent of the nation’s health care spending – a staggering $1.65 trillion. And, in taxpayer-funded programs, treatment of chronic disease constitutes an even larger proportion of spending – 96 cents per dollar for Medicare and 83 cents per dollar for Medicaid. A vast majority of chronic illnesses can be prevented or better managed. We must improve heath care coordination and disease management for the chronically ill by creating greater access to comprehensive prevention, early detection and coordination in public and private health plans, and encouraging more effective medication therapy management in Medicare. By doing so, we will witness true health care cost savings.

Lastly, this Administration must encourage medical research and innovation, the true economic stimulus and the key to our citizens’ health. Last year, America’s pharmaceutical research companies invested about $58 billion in research alone. This industry employs highly skilled researchers and scientists who are responsible for developing breakthrough medicines and for generating employment for millions of other workers in industries nationwide. Every job in the biopharmaceutical industry generates 5.7 jobs in other industries. 

Putting constraints on this industry will have an adverse effect on the economy and will result in a regression in health status and quality of life. Disease and other threats to health are constantly evolving, creating new challenges that can only be solved through the application of new technology. For example, small pox, which was once responsible for nearly wiping out entire tribes of the Native American population, has been nearly eradicated worldwide thanks to medical breakthroughs in research. Today, deadly new diseases such as HIV/AIDS, Ebola and others have risen. Researchers and scientists must continue their great work to help put an end to these diseases.

Real health reform will give serious considerations to the aforementioned issues. If we address these needs head on, we can expect to see a healthier America, not only physically but economically as well.

Billy Tauzin is the president and CEO of PhRMA, the trade association representing the country’s leading pharmaceutical research and biotechnology companies, which are devoted to inventing medicines that allow patients to live longer, healthier, and more productive lives. PhRMA is committed to strengthening innovation, improving patient access to medicines and expanding healthcare coverage for all Americans.