Dahlonega-Lumpkin County Chamber of Commerce

A Weekly e-Newsletter
from Senator Johnny Isakson (R-Ga.)

December 4, 2009

Dear Friends,

Despite numerous concerns about the $2.5 trillion, 2,074-page bill drafted by Senate Majority Leader Harry Reid (D-Nev.) behind closed doors, the Senate voted on Saturday, November 21, to move forward with the health care reform debate.

I voted “no” on moving forward with this bill because, among other things, it will raise taxes, cut Medicare services to seniors and force billions of dollars in massive unfunded mandates on states.

Once fully implemented in 2014, the proposal would cost an estimated $2.5 trillion over 10 years. Despite the exorbitant cost, an estimated 24 million Americans would still be left without health insurance and 5 million people would lose their employer coverage under the Democrats’ proposal.

The Senate bill also includes $493.6 billion in tax increases and $464.6 billion in Medicare cuts for seniors. In addition, the bill would impose $28 billion in new taxes on employers who do not provide government-approved health plans. I believe these new taxes would ultimately result in reduced wages and lost jobs.

The unintended consequences of this legislation are disastrous to small businesses and will drive people to a public option where there is no option at all. This is not a public option; this is a public ultimatum.

Vote to Protect Seniors from Half-Trillion Dollars in Medicare Cuts
On Thursday, the Senate rejected a proposal to send the Democrats’ flawed health care proposal back to the Senate Finance Committee with instructions to remove over $440 billion in Medicare cuts from the bill. Despite my vote in support of this proposal by Senator John McCain, R-Ariz., the Senate rejected it by a vote of 42-58.

McCain’s amendment also included a Sense of the Senate resolution that any funds generated from new policies to address waste, fraud and abuse in Medicare should be used to strengthen the Medicare Trust Fund rather than create a new federal health care entitlement.

The Democrats’ bill reduces Medicare spending by $464.6 billion, including $120 billion in cuts to Medicare Advantage and nearly $200 billion in permanent cuts to all Medicare provider payment updates including hospitals, hospice, home health and nursing homes.

I find it troubling that Democrats in Congress would create new programs with these Medicare “savings” rather than make a commitment to preserve Medicare and to prevent its impending bankruptcy in 2017.  I also fear these cuts will inevitably lead to cuts in benefits for senior citizens.

Vote to Keep Washington Bureaucrats Out of Health Care Coverage Decisions
Also on Thursday, the Senate unfortunately rejected an amendment I co-sponsored to ensure health insurers listen to doctors, not Washington bureaucrats, when determining whether to cover preventative services such as mammograms for women in their 40s.

Instead, the Senate passed a much weaker amendment on preventive care pushed by the Democrats that would still allow a government task force to heavily influence health care coverage decisions. The Democrats’ amendment, which I voted against, unfortunately passed 61-39.  It also opens the door for abortions to potentially be covered as “preventive care.”

On Nov. 16, 2009, the U.S. Preventative Services Task Force issued controversial guidelines stating that women should begin regular breast cancer screening at age 50, not 40. The Preventative Services Task Force is an independent panel of experts in prevention and primary care appointed by the federal Department of Health and Human Services.

Under the Senate Democrats’ health care bill, preventive care services are tied to the recommendations of the Preventive Services Taskforce. The amendment I co-sponsored would have eliminated this provision of the bill and would have prohibited the Secretary of Health and Human Services from using recommendations from the taskforce to deny coverage of any item or service.

It also would have required that insurers consult the medical guidelines and recommendations of relevant professional medical organizations, including recommendations relating to the coverage of women’s preventive services such as mammograms and cervical cancer screenings, when determining what preventive items and services to provide. Plans would have been required to disclose such guidelines and recommendations to enrollees.

In addition, the amendment I co-sponsored would have prevented the use of comparative effectiveness research to deny coverage under a federal health program and prohibited the HHS secretary from defining or classifying abortion or abortion services as preventive care or as preventive services.

The recent controversial recommendations by the U.S. Preventative Services Task Force on mammograms raise very serious concerns about the implications of government guidelines on the health of all Americans.  The amendment I co-sponsored would have helped prevent the type of rationing of health care that would take place under the Democratic health care proposal. I am disappointed the Senate rejected this amendment in favor of one that allows a government panel to continue to influence coverage on critical health care issues for women and all Americans.

Afghanistan
On Tuesday evening, President Obama outlined his overhauled U.S. strategy for Afghanistan going forward.  The President called for an increase of up to 30,000 U.S. forces and a deadline to begin withdrawal in July 2011.

I am glad the President has finally outlined his strategy regarding the war in Afghanistan, and I am glad he will supply General McChrystal with a majority of the troops he wanted. We need to give our commanders in the field the manpower they need to get the job done.  And I will continue to work hard to make sure that our fighting men and women are armed and equipped to meet the challenges they face in Operation Enduring Freedom.

We also must continue to put pressure on the Karzai government to end corruption and drug-trafficking.

However, I am extremely concerned by the President’s proposal to set an arbitrary timeline for withdrawal because I think that sends the exact wrong signal to the enemy.

On Thursday Secretary of State Hillary Clinton, Defense Secretary Robert Gates and Chairman of the Joint Chiefs of Staff Michael Mullen testified before the Senate Foreign Relations Committee. I reiterated my concerns regarding President Obama’s proposed July 2011 timeline to begin troop withdrawal from Afghanistan and urged them to ensure that any withdrawal of troops is based on conditions on the ground.

I am very concerned by the comments made by White House Press Secretary Robert Gibbs, who stated to CBS News that the July 2011 date is “etched in stone.”

Afghanistan is the epicenter of Islamic terrorism, and establishing an arbitrary timeline for withdrawal provides Al-Qaeda and the Taliban with opportunity.  The resolve to pursue this mission to a successful conclusion must be there. This withdrawal timeline sends the wrong signal to our enemies, and as a result, the commitment we’re making with these additional troops may be in vain.

Bipartisan Bill to Help Americans Better Prepare for Retirement
On Thursday, I introduced legislation with my colleagues Sen. Jeff Bingaman, D-NM, and Sen. Herb Kohl, D-Wi., to help Americans ensure they do not outlive their retirement savings.

With the shift to 401(k) plans, American workers have become increasingly responsible for saving for and managing their retirement investments.  However, many Americans are not saving enough, and they are unsure how quickly to draw down their savings in their retirement years.

The Lifetime Income Disclosure Act would require 401(k) plan sponsors to inform participating workers of the projected monthly income they could expect at retirement based on their current account balance.  The measure is patterned on the Social Security Administration’s annual statements, which are mailed annually to working Americans to inform them of estimated monthly benefits based on their current earnings.  Congress mandated annual Social Security statements in 1989, and they have proven to be very useful to workers in preparing for retirement.

By providing similar information for 401(k) plans, the Lifetime Income Disclosure Act would give American workers a more complete snapshot of their projected income in retirement.

Specifically, under the Act, defined contribution plans subject to ERISA – including 401(k) plans – would be required annually to inform participants of how the account balance would translate into guaranteed monthly payments – a “retirement paycheck for life” – based on age at retirement and other factors.

To ensure there is no material burden or potential liability on employers who voluntarily sponsor 401 (k) plans, the legislation directs the Department of Labor issue tables that employers may use in calculating an annuity equivalent, as well as a model disclosure.  Employers and service providers using the model disclosure and following the prescribed assumptions and DOL rules would be insulated from liability.

Defined contribution plans such as 401(k)s are the retirement plans of the present and future.  This bill will enable participants to receive additional, helpful information so they can better plan for their retirement.

Dubai Banking Crisis
Last week, global financial markets took a hit when Dubai World, which is the investment arm of the emirate of Dubai but is separate from the government, announced it was looking to postpone some forthcoming debt payments until May.

The company has a total of $60 billion worth of debt. It is seeking to renegotiate $26 billion in obligations held by its real estate developer, Nakheel.

While fears about the global effects of this situation have eased in recent days, I will continue to monitor this situation closely.

First-Time Homebuyer’s Forum in Morrow on Dec. 12
My office will host a statewide First-Time Homebuyer’s Forum on Saturday, Dec. 12, 2009.  The workshop will be held at Clayton State University, Student Activities Center, 2000 Clayton State Blvd., Morrow, Ga., from 10 a.m. until noon.

The forum is an opportunity for first-time homebuyers to hear from professionals on best practices for first-time homebuyers, federal and state tax incentives and general information on the home purchasing process.  Presenting organizations will include the Internal Revenue Service, U.S. Department of Housing and Urban Development and the Georgia Department of Community Affairs.  Representatives from the U.S. Small Business Administration, the Federal Home Loan Bank and the Mortgage Bankers Association of Georgia will also be available to speak with attendees.  I encourage anyone interested in meeting with professionals in the field to participate.

All persons who are interested in attending must make a reservation online at This e-mail address is being protected from spambots. You need JavaScript enabled to view it , or by contacting my office at (770) 661-0999.  All persons who wish to attend must do so by the registration deadline on Thursday, Dec. 10, 2009, at 5 p.m.

What’s on Tap?

The Senate will continue the debate on health care reform this weekend. Votes on amendments are expected.

Sincerely,
Johnny Isakson