Sebelius: 'No relief in sight'

Mike Allen Thu Apr 2, 9:36 AM ET

Kansas Gov. Kathleen Sebelius, President Obama's nominee to be secretary of Health and Human Services, says in testimony for her confirmation hearing that present and future jobs depend on the extensive changes he has proposed to the economy's biggest sector.

"We have by far the most expensive health system in the world.," she says in an opening statement prepared for the Senate Finance Committee. "We spend 50 percent more per person than the next most costly nation. Americans spend more on health care than housing or food. General Motors spends more on health care than steel. ...

"American jobs are ... at stake. 'Old-line' industries are striving to maintain both coverage and competitiveness – locally and globally. New industries and businesses are struggling to offer coverage in the first place. Both workers and their employers are concerned about the future of employer-sponsored health insurance. Currently, there’s no relief in sight."

Other key points in her testimony:

—"High and rising health costs have certainly contributed to the current economic crisis. A recent study found nearly half of Americans with homes in foreclosure named medical problems as a cause. Rising health costs also represent the greatest threat to our long-term economic stability. If rapid health cost growth persists, the Congressional Budget Office estimates that by 2025, 25 percent of our economic output will be tied up in the health system, limiting other investments and priorities. This is paralleled in federal and state budgets. Rapid projected growth in Medicare and Medicaid accounts for most of the long-term federal fiscal deficit. And, at the state and local levels, policy makers are increasingly put between the 'rock' of health care costs and the 'hard place' of other priorities, like public education and public safety.

—"If confirmed, I will work with you to ensure that all those eligible for Medicare, Medicaid, and CHIP are enrolled. I will strengthen these programs’ roles in protecting Americans with the highest costs and lowest incomes. This includes ensuring that individuals with disabilities receive care that is high-quality and adaptable to their needs. And it includes improving their performance in providing long-term care, which is so critical to so many Americans."

—On the Centers for Medicare and Medicaid Services; "CMS can also promote quality and efficiency, enhancing value for beneficiaries and taxpayers and leading by example for health reform. It can use 21st-century information technology to ensure its payments are aligned with quality and are fair, yet not excessive. CMS can support disease management, 'medical homes,' and other approaches to improve care and potentially reduce costs for people with chronic conditions. In addition, by using its demonstration authority, CMS can identify the cutting-edge practices that lay the foundation for a high-performing health system. At the same time, it is imperative for CMS to focus on prevention and primary care, steering its resources toward wellness rather than sickness. To that end, as Secretary, I would break down the silos at HHS so programs for health services, public health, and human services work seamlessly to make this transformation."