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REMARKS BY: TOMMY G. THOMPSON, SECRETARY OF HEALTH AND HUMAN SERVICES PLACE: National Association for Business Economics, Washington, D.C. DATE: March 27, 2001
Thank you for that introduction, and thank you to each of you for welcoming me to your conference.
I'm nearing the end of my second month as secretary of Health and Human Services, and each day it becomes more clear: We have a huge task ahead of us and yet an even greater opportunity.
The Department of Health and Human Services has more than 65,000 employees and is responsible for nearly a quarter of the federal budget. We run health care, welfare and countless other programs . and there's not a family in America that we don't touch in some way.
That's an awesome responsibility. But, as I said, large responsibilities present great opportunities.
One of our greatest opportunities lies in the field of medical research and the work being done at the National Institutes of Health and NIH-backed laboratories across the country.
We are truly at a special point in medical history . one that harkens back to the great achievements of the past: the eradication of smallpox, the vaccine for polio, transplantation advances, and the pacemaker for the human heart.
The research being done across America has us at the cusp of solving the mysteries of some of our most deadly diseases. It seems major new announcements are coming each week, providing hope and promise for millions of Americans.
Earlier this year, scientists presented the human genome project . the latest scientific miracle that could soon break down the door and show us the way to curing Alzheimer's, Parkinson's, diabetes, heart disease, cancer and so many other diseases.
President Bush recognizes the great potential that science holds for the health of our families and the health of our economy.
That is why President Bush is so committed to medical research. That's why he has proposed doubling resources for the NIH by 2003 . and increase funding by $2.75 billion this year alone, the largest such increase ever.
At a time when the NASDAQ is down and tech stocks are suffering, it would be a mistake to look at the remarkable research at NIH and in labs across the country, as well as the president's investments, with a purely scientific eye.
The promise these investments, and the research borne of the investments, hold is economic, as well as medical.
Just as there are clear markers in our medical history, there are distinct benchmarks in the development of our economy: the Industrial Revolution, Henry Ford's assembly line, and most recently, the computer-led revolution that has fundamentally altered society, and our economy, in a few short years.
The biotechnology field holds the potential for great economic gains, as more is learned about the human body, more medicines are created, and ever more groundbreaking medical equipment is invented.
It is a new industry for a new century. There will always be a demand for better medicine and health care - particularly as our society ages. The president's proposal to invest heavily in this emerging field could not come at a better time.
Biotechnology companies already are growing by leaps and bounds. According to a report released last year, biotechnology: Sales more than doubled from $5.9 billion in 1993 to $13.4 billion in 1999.
Revenues grew from $8.1 billion to $18.6 billion
There were 225 public biotechnology companies in 1993. By 1999, there were 327.
And biotechnology companies employed 153,000 workers in 1999, up from 79,000 just six years earlier.
Biotechnology clearly holds great promise for the future. And don't think our best and brightest students don't recognize this potential. More and more, students are turning to biology and other life sciences as they enter college.
In 1993, our colleges and universities awarded 47,000 bachelor's degrees in life sciences. By 1998, that had climbed to nearly 66,000 - a 40 percent increase. Similarly, the number of master's degrees awarded had climbed from 4,700 to nearly 6,300.
Our universities provide the breeding ground for our greatest innovations - and they are increasingly spawning our most innovative start-up companies.
At the University of Wisconsin, for example, dozens of companies have spun off from work performed on the campus where we've invested more than $1 billion in new laboratories over the last decade.
And this is being duplicated at campuses all across America. Imagine, your son or daughter doing research for the next multi-billion dollar company spawned from the campus of one of our great universities.
The business community and the nation need to pay close heed to the president's unprecedented investment in NIH and scientific research. It is our future. And it underscores the president is charting a wise course for the health of our families and our economy.
If we can find the cure for these diseases, we will cut health care costs in this country exponentially and . more importantly . improve the quality of life for millions of Americans.
President Bush proposes making this investment in the future at a critical time for the American health care industry, as health care and prescription costs continue to climb and as we have just received new warnings about the perilous state of the Medicare program.
Medicare today is a cornerstone of our health care system. It provides coverage to 40 million Americans, the largest health insurer in the nation.
All of us who are paying our taxes into this system are supporting it not only for today's beneficiaries, but in the full faith and expectation that this program will be there when we need it, and when our children need it - delivering health care at a price we can afford.
But Medicare costs are climbing, primarily because health care costs are expected to climb faster than previously thought.
Costs are projected to nearly quadruple over the next 75 years, from 2.2 percent of the gross domestic product today to 8.5 percent in 2075. At the same time, program revenues will grow to just 5.3 percent of GDP at the same time.
It couldn't be clearer: For the well being of the program and the country, we must modernize, strengthen and protect Medicare. Not later. Now.
These are not imaginary numbers that won't have any affect on the public. The costs will have to be borne by the taxpayers.
Today, for example, there are nearly four workers paying Medicare payroll taxes for each single Medicare beneficiary today. By about 2018, that ratio will be three-to-one. And by the year 2075, there will be only about two workers for each beneficiary.
The math is simple. Fewer workers for each beneficiary will have to support the high quality care we all want delivered.
We need to reform Medicare to get costs under control now - or we and our grandchildren will pay a steep price later.
We must modernize and strengthen Medicare today to ensure that we are able to provide quality benefits to beneficiaries of tomorrow. We must equip Medicare for the future - and we must do this soon.
We must be realistic about the actual costs of our ever-improving health care treatments and technologies. We rightly expect those treatments to be available for Medicare beneficiaries.
For example, we recognize today that Medicare is outdated in failing to provide prescription drug coverage. We need to add that coverage to bring Medicare coverage up-to-date.
Prescription drugs provide the greatest opportunity to modernize and improve Medicare. When Medicare was created in 1965, prescription drugs were not the integral part of health care that they are today, and drug coverage therefore was not included as part of the benefit package.
But what worked 36 years ago does not work today. It is unreasonable for a 21st century health care program to exclude a prescription drug benefit. Today, Medicare beneficiaries are demanding . and rightly so . that a prescription drug benefit be added.
Modernizing and strengthening Medicare requires us to add a prescription drug benefit. They fit together naturally, because prescription drugs are such a major component of health care today - from prevention to treatment of illnesses.
While we are expanding the reach of modern medicine and ensuring all Americans have access to quality care, we must always remember that we need to understand and protect the needs of patients. That's why the president introduced a set of principles last week for a bipartisan bill of rights that will put patients first.
The president's core principles are:
One, patient protections should apply to all Americans . and any federal law should preserve the good work of states that have already enacted patient protection laws.
Two, patient protections should be comprehensive, including access to emergency rooms and specialty care, and direct access to obstetricians, gynecologists, and pediatricians . as well as access to needed prescription drugs and health plan information.
Three, patients should have a rapid medical review process for denials of care . through both internal review and independent, binding external review.
Four, patient protection legislation should not be an invitation to litigation. Slow and costly lawsuits should be a last resort, as needless litigation drives up insurance premiums for all Americans.
And, finally, employers should be encouraged to offer health care.
Many employers would like to offer health care to their employees but are afraid to do so because they fear they will be taken to court for medical decisions they knew nothing about.
Employers should be shielded from multiple lawsuits in state courts that will drive up health costs and force them to take away coverage, and damages should be subject to reasonable costs.
Again, we have a huge task ahead of us, but it's one worth undertaking.
As General George Patton said, and he knew a little something about this, "Don't fight a battle if you don't gain anything by winning."
These proposals, and so many others contained in the president's ambitious budget, are well worth fighting for. But there need not be battles. We must come together in a bipartisan manner to work together to improve the health and safety of all Americans.
As you can see, we will be busy. But it is a challenge the president and we at the Department of Health and Human Services enthusiastically embrace.
I encourage each of you to watch closely and take note: There is a new spirit in Washington, one that will propel us to great heights by working together.
Thank you so very much, and now I'd like to answer a few questions if we have time.
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