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TESTIMONY BY: TOMMY G.THOMPSON,SECRETARY OF HEALTH AND HUMAN SERVICES PLACE: U.S.House Of Representatives Committee on the Budget, Washington, D.C. DATE: March 7, 2001
Good morning, Mr. Chairman and Members of the Committee. I am honored to appear before you today to discuss the framework of the President's fiscal year 2002 budget for the department of health and human services.
I accepted the position of secretary of this department because there is no other job in America where you have a greater opportunity to help people - to actually make a difference and to improve people's lives.
The department's goal must be to build a healthier America by improving the quality of health care, the quality of life for all Americans and reduce health care costs.
President Bush has outlined an ambitious agenda for the nation, and this department will play a major role. There are major challenges before us, but I am confident that we will be able to work together in a bipartisan fashion to successfully meet them.
If we are to succeed, we must be willing to reexamine the way we do things on the national level. We must no longer be content with the status quo because "that's how we've always done it."
The HHS budget proposes new and innovative solutions for meeting the challenges that face the nation. It seeks to enhance the groundbreaking research being conducted at the National Institutes of Health; modernize Medicare and expand access to quality health care .increase support for America's families; and reform the way the department's operations are managed.
Our proposals also reflect the President's commitment to protecting Social Security and other priority programs, while continuing to pay down the national debt, and providing tax relief for all Americans.
The budget request for HHS for fiscal year 2002 is $471 billion for all programs and $55.5 billion for discretionary programs. Let me now highlight some of our major proposals:
One of our top priorities is the National Institutes of Health. The research that is conducted and supported by the NIH . offers the promise of breakthroughs in preventing and treating diseases from cancer to Parkinson's to Alzheimer's.
The potential that lies in these projects is why President Bush's plan to double resources for the NIH by 2003 is so vital. The $2.75 billion increase is the largest ever for NIH, and it will support the highest level of total research grants in the agency's history.
Of all the issues confronting this department, nothing has a more direct effect on the well-being of our citizens than the quality of health care.
Our budget framework proposes to improve the health of the American people by expanding access to quality health care and beginning to modernize Medicare, including the addition of a prescription drug benefit.
When Medicare was created in 1965, prescription drugs were not the integral part of health care that they are today.
Drug coverage was not included as part of the Medicare benefit package. But what was acceptable 35 years ago is simply unacceptable today.
As a first step toward remedying this situation, the President has put forward an immediate helping hand prescription drug proposal. This proposal gives immediate financial support to states so that they can provide prescription drug coverage to our neediest citizens.
The President believes comprehensive Medicare reform needs to be enacted at the same time as a prescription drug benefit. President Bush wants to devote $153 billion over the next 10 years on Medicare modernizations that will help improve the financial health of the program and add a prescription drug benefit for all Medicare beneficiaries.
And let me add one thing: as the President said last week in his budget address, every penny of the Medicare surplus will be used for Medicare. Period.
We also are proposing steps to strengthen the health care safety net for those most in need.
Community health centers provide high quality, community-based care to 11 million patients through a network of more than 3,000 centers. The President has proposed to increase the number of health center sites by 1,200 by fiscal year 2006.
We propose to increase funding for community health centers by $124 million, a first installment in expanding an already successful program.
To further increase flexibility and efficiency, we also will work with states to develop ideas that will increase states' ability to expand . Medicaid and State Child Health Insurance Programs to cover more of the uninsured.
Within this framework of increased state flexibility, the Administration also plans to work with states to stem the growth of Medicaid costs and ensure the fiscally prudent management of the Medicaid and SCHIP programs.
William Bennett once said that "the family is the original department of health, education, and welfare."
While the name of this department may have changed, the truth of this statement has not. America's families are its strength, and this department is committed to doing everything in its power to help better the lives of America's families and children.
We are proposing a number of new initiatives to help improve the quality of life of our nations' families, including an after-school certificate program.
We must be willing to invest in programs that support working families in order to move people from dependency to success in the workforce.
One of the most important things that we in government can do to help working families is to assist them in obtaining child care. Last year, the Congress voted to provide a substantial increase in child care funding, and this year we are asking you to take another step.
The President has proposed to dedicate $400 million for after-school certificates to help low-income working parents to pay for after school care for their children.
We expect these after school activities to have a strong educational component, helping children to achieve success in school.
The budget also includes items on promoting stable families and responsible fatherhood, maternity group homes, a compassion capital fund and a proposal to establish a center for faith-based and community initiatives within the department. We also will increase funding for substance abuse treatment programs by $100 million.
In addition to funding priorities, we are making changes at HHS. We must never stop asking ourselves how can do things better. One of the top priorities of this administration is improving the management of the Health Care Financing Administration.
The demands on this organization have grown dramatically in the last few years, and we must ensure it has the necessary resources to successfully administer the Medicare, Medicaid, and State Children's Health Insurance Programs on which so many people depend.
At the same time, we recognize that patients, providers and states have legitimate complaints about the scope and complexity of the regulations and paperwork that govern these programs.
During my confirmation hearings, I said HCFA needed to undergo a thorough examination of its missions, its competing demands, and its resources. We are currently in the process of undertaking just this kind of comprehensive review.
We will consider any and all options for improving the agency and making it a more responsive and effective organization.
We must also look at the department as a whole, and HHS will continue to play a lead role in the government-wide effort to streamline, simplify, and provide electronic options for the grants management processes.
Mr. Chairman, the budget I bring before you today contains a number of different proposals, but one common thread binds them all together - a desire to improve the lives of the American people. All of our proposals, from enhancing scientific research to modernizing Medicare, are put forward with this one simple goal in mind, and I know this is a goal we all share.
I am prepared to work with each of you to ensure that we develop a budget for this department that effectively serves the national interest.
While this is not an exhaustive list of what is in the President's Blueprint, I have outlined some of the President's top priorities for the Department of Health and Human Services. I would now be happy to answer any questions you may have.
Thank you.
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