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REMARKS BY:	TOMMY G. THOMPSON, SECRETARY OF HEALTH AND HUMAN SERVICES
PLACE:		American Association of Health Plans, National Policy Conference, Washington, DC
DATE:		February 26, 2001

Thank you Karen (Ignagni [ig-NAH-nee]) for that kind introduction.

I appreciate the opportunity to come here this afternoon to continue the dialogue between President Bush's Administration and the American Association of Health Plans. I have just met with the Board of Directors and I am optimistic that we can all work together to ensure that every American has access to the best healthcare possible.

When President Bush asked me to come to Washington to serve as his Secretary for Health and Human Services, I was honored by the call . and humbled at the calling.

Because I believe that the issues facing this department are some of the most important issues facing our country. In Wisconsin, we took a leadership role in finding solutions to some of these challenges: Welfare reform. Health care reform through BadgerCare. Long-term care for seniors. Greater opportunities for the disabled, through our Pathways to Independence program. Helping the poor find work and helping the working poor find reward in their efforts. Biotechnology and scientific research. I am passionate about these issues, and hope to bring some of that experience to my service here in Washington.

I loved being governor of Wisconsin. Let me tell you one thing: I would never have left the best job in the country if I didn't believe that President Bush was coming to Washington to truly make a difference.

President Bush has brought a new tone, a vibrant new feeling to our nation's capital, and so much of what he has vowed to accomplish will be funneled through the Department of Health and Human Services.

We need to find innovative, creative ways to face these challenges. We need to reach out to states and local governments and to the healthcare industry and to citizens. We need to look at successful models and best practices from all over this country. Because there are no "one-size-fits-all" solutions to the challenges we face.

People have always tried to tell me that you can't do certain things. There are those who are always trying to protect the status quo. As Winston Churchill said, and this is one of my favorite sayings, "I never worry about action, but only about inaction."

You need not worry about inaction in the Department of Health and Human Services . and the administration as a whole.

So, let me talk a little bit about what we've done over the past week, and then lay out a little bit of the President's agenda for HHS.

First, I know that this organization, and you as its members, has concerns about the final rule creating new federal privacy rights for personal health information. These "Standards for Privacy of Individually Identifiable Health Information" are intended to ensure patients that the privacy of their medical records is secure, and to ensure that this information is used appropriately. This Administration is absolutely committed to achieving these goals.

Due to an oversight under the prior administration, the effective date for this rule has been delayed until April 14, 2001. In the interim, I see this time as an opportunity.

Beginning this week, there will be a final 30-day comment period. It is our hope that this comment period will provide interested parties with the opportunity to review this rule to ensure that its provisions will indeed work as intended throughout the complex field of health care, without creating unanticipated consequences that might harm patients; access to care or the quality of that care.

However, let there be no mistake, we are committed to patients' privacy. But our greatest concern is that these regulations not unwittingly block needed care.

Second, as I announced yesterday at the National Governors' Association meeting, HHS will also delay the effective dates of two other sets of regulations. Many people from all across the spectrum - providers, states, advocates - have expressed concerns about the Medicaid Managed Care and the State Children's Health Insurance Program regulations.

We have heard those concerns, and I am here to tell you that we are delaying the effective dates for both regulations for 60 days. During that time, we will consult with you, advocacy groups and states, and if changes need to be made, we will make them.

But I will tell you this: our goal is to make sure that no action taken by this Department drives managed care companies out of business.

Now looking forward, President Bush has set out an aggressive healthcare agenda.

We must not miss this opportunity for fundamental Medicare Reform. We will modernize Medicare so it is responsive, effective and financially sound for today's . and tomorrow's . seniors. That includes doing what we can to give the Medicare + Choice program a real opportunity to succeed.

As a part of the effort to modernize Medicare, we will find a way to provide the neediest seniors and the disabled affordable access to prescription drugs.

The decisions that will be made with this aging population will directly impact you and your organizations. I want to make sure that we are all at the table for discussion and that all voices are heard. We need a comprehensive approach that enables seniors and other citizens to have access to affordable health coverage, without bankrupting healthcare providers, or impeding with the ongoing miraculous research at pharmaceutical companies.

Part of the effort to modernize Medicare includes fundamental reform at the Health Care Financing Administration.

It's been convenient for many of us to beat up on HCFA recently. Trust me, I know - as governor, I sought more waivers from HCFA than any other Governor. But let me tell you from firsthand observation over the last month: HCFA's role has been continually expanded over the last several years, charged with administering increasingly complex programs. HCFA faces tremendous demands and challenges as an agency, administering a massive budget to provide health care for more than 70 million Americans.

But the simple fact remains: Patients and providers alike are fed up with excessive and complex paperwork. Rules are constantly changing. Complexity is overloading the system, criminalizing honest mistakes and driving doctors, nurses and other health care professionals out of the program.

HCFA needs a thorough examination of its mission, the competing demands and the available resources. We need to ensure that HCFA has the tools it needs to succeed so that we can streamline oversight and reduce the administrative burden that your organizations are facing.

President Bush has already outlined principles for a fair Patients' Bill of Rights. We are optimistic that we will be able to reach across the partisan divide over the next few weeks, sit down with members of Congress and the healthcare industry and craft a Patients' Bill of Rights that protects and serves all Americans, but recognizes that many states already have these protections on the books . We must not punish states for being out in front of the federal government.

There are 43 million Americans without any health insurance. And this is simply unacceptable. We have a tremendous responsibility as citizens in this country, to do our best for our fellow-citizens. It's not only responsible government.or leadership.it's responsible citizenship.

In Wisconsin, we set out to address this problem. The result is BadgerCare, a program that provides health care for low-income working families who make too much money to qualify for Medicaid, but can't afford insurance on their own. Over 77,000 people were enrolled in this program by the end of 2000.

Now, is BadgerCare the answer for everyone? I would like to think so, but the truth is, there is no cure-all for every issue that government faces. But it underscores the potential for a bold new partnership between the federal and state governments

We must work together to find solutions like BadgerCare so that every American has access to the care that they need. Period.

We will continue and enhance the groundbreaking research being done at the National Institutes of Health. And we will search for ways to apply that research, to improve the health of this nation, and the world.

The President has proven his commitment to NIH and medical research by including $2.8 billion in his budget for NIH in fiscal 2002. We have always had the will to fight life-threatening diseases- now we have the resources, and we must use them.

And finally, there is an issue that is very close to my heart. We have already begun working to develop a national campaign to raise awareness of organ donation in this country. There is a waiting list of more than 70,000 Americans that need an organ. And what we need to do is to grow the number of donors.

I would challenge all of you to take a leadership role in supporting me in my efforts to increase the number of organ donors. And even on a personal level, if you haven't decided to become an organ donor, I would ask that you think about it, and talk about it with your family. Just one donor can help 50 people. The need is great, and I believe that we all can be heroes by being organ donors.

In closing, the healthcare field is a field of critical national importance. And I look forward to working with you as we discuss the policy details of this very important segment of the public policy arena. The decisions that we- the people in this room- make on a daily basis profoundly and permanently affect the lives of millions of Americans.

Thank you, and God bless.