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

July 17, 2009

Dear Friends,

Today, a U.S. District judge issued a ruling in the tri-state water case in which he placed the responsibility for determining how much water metro Atlanta should take from Lake Lanier in the hands of the U.S. Congress. The judge gives Congress three years to accomplish this task. As a member of the U.S. Senate from Georgia, I will work tirelessly to reach an agreement that is in the best interest of Georgia while at the same time respecting the interests and concerns of Florida and Alabama. This is a huge challenge, but it is a challenge we must meet.

Defense Spending and the F-22
This week, the Senate debated the fiscal year 2010 defense authorization bill.  The $680 billion measure would call for a 3.4 percent pay raise for the military and authorize $1.75 billion for seven F-22 fighter planes, extending the future of the production line in Marietta, Ga.

Flawed Health Care Reform Bill Voted Out of Committee
On Wednesday, I voted against a flawed health care reform plan that will cost more than $1 trillion, will put the federal government in an unfair competition with private health insurers and managed care providers and will place a massive financial burden on Georgia and other states to pay for a proposed expansion of Medicaid.

Unfortunately, the legislation, which was crafted by Senate Democrats, was approved in the Senate Health, Education, Labor and Pensions Committee by a 13-to-10 vote. I was among the 10 senators who voted against this plan.

I agree we must look for solutions to alleviate the financial burden of health care and find ways to provide access to affordable health care to individuals who lack to insurance.  However, this bill will not do any of those things. It will only increase the cost of health care and decrease patient choice.  I cannot support legislation that will put a government bureaucrat between a patient and his doctor.

The government-run plan included in the bill will decrease choice and quality, because it would be difficult for private entities to compete with the government that regulates them and taxes them and that is exempt from having to pay taxes.  I also oppose a mandate in this legislation that would require employers with more than 25 workers provide insurance or pay a penalty, because I believe it will force many small businesses to eliminate jobs.

With a likely cost of more than $1 trillion, I am disappointed that the Committee rejected several amendments designed to reduce frivolous medical lawsuits, which drive up costs and force doctors to order wasteful tests and treatments to cover liabilities.

The proposed expansion of Medicaid is also a problem for states.  It would allow individuals who earn up to 150 percent of the federal poverty level to be eligible for full Medicaid benefits. Currently, Medicaid is available only to those who earn up to 100 percent of the poverty level, meaning that the Democrats’ plan represents a 50 percent increase in Medicaid.  When Medicaid was originally created in 1968, Georgia’s total Medicaid spending was nearly $7.7 million, or 1 percent of all state spending.  In 2008, Georgia’s total Medicaid spending was over $2.4 billion, or 12 percent of all state spending.  This proposal would cost Georgia and other states billions of additional dollars to meet the 50 percent increase for their required share of Medicaid costs.

Instead, I am a co-sponsor of S.1099, Patients' Choice Act of 2009, which seeks to strengthen the relationship between the patient and the doctor by using choice and competition, rather than rationing and restrictions, to contain costs and ensure affordable health care for all Americans.

Members Appointed to Financial Crisis Commission
On Wednesday, the leaders of the U.S. House of Representatives and U.S. Senate announced their 10 appointments to the Financial Crisis Commission that I introduced earlier this year with Senator Kent Conrad, D-N.D., to examine the causes of our nation’s economic collapse. 

The 10-member, bipartisan Financial Crisis Commission is modeled after the 9-11 Commission, which thoroughly and independently investigated the failures leading up to the September 11, 2001, terrorist attacks and made sound recommendations on where we needed to improve to prevent another attack in the future.

Phil Angelides was appointed as chairman of the Commission. Angelides served as the elected California State Treasurer from 1999 to 2007. Former House Ways & Means Committee Chairman Bill Thomas was appointed to serve as vice chairman of the Commission.  

The following individuals were also appointed to the Commission:

• Brooksley Born, former Chair of the Commodities Futures Trading Commission;
• Byron Georgiou, a businessman and attorney who serves on the advisory board of the Harvard Law School Program on Corporate Governance;
• Former Senator Bob Graham, who served as Chairman of the Senate Intelligence Committee and was a senior member of the Senate Finance Committee;
• Keith Hennessey, former National Economic Council Director;
• Doug Holtz-Eakin, former Congressional Budget Office Director;
• Heather Murren, a retired Managing Director for Global Securities Research and Economics at Merrill Lynch;
• John W. Thompson, Chairman of the Board of Directors of Symantec Corporation; and
• Peter Wallison, Co-Director for Financial Policy Studies at the American Enterprise Institute.

The Financial Crisis Commission has until December 2010 to investigate all the circumstances that led to this financial crisis. The panel has the authority to refer to the U.S. Attorney General and state attorneys general any evidence that institutions or individuals may have violated existing laws. At the end of its investigation, the Commission will report its findings and conclusions to the Congress and the President.

Senator Conrad and I originally introduced legislation to examine the causes of the current economic crisis in January 2009. On April 22, the Senate overwhelmingly passed an amendment by Isakson and Conrad to the Senate’s version of the financial fraud bill to create the Financial Crisis Commission. President Obama signed the legislation into law on May 20.

I’m extremely pleased the members on this Commission have been chosen and I hope they immediately begin their investigation of what caused our nation’s financial collapse.  It is imperative that we get an objective evaluation to find out what went right, what went wrong and what we must do to prevent it from happening again.

Legislation Introduced Requiring Child Care Providers to Disclose Insurance Status
On Thursday, I introduced legislation that would require child care providers to disclose whether they have liability insurance.

The legislation was prompted by the story of Anthony DeJuan Boatwright, also known as Juan. In 2001, when he was 14 months old, Juan fell into an unattended bucket of mop water at his child care center in Augusta, Ga. As a result of the accident, Juan has remained semi-comatose and dependent on a ventilator for the past eight years. The center where Juan was injured was licensed, but not insured. At the time, there was no provision in place to let parents know the insurance status of child care providers. 

Specifically, the Anthony DeJuan Boatwright Act would require child care providers that receive Child Care and Development Block Grant funds to disclose whether or not they carry liability insurance for the operation of their facility. The bill also would require that states recommend such coverage in their licensure process.

A companion bill passed in the House of Representatives on June 2, 2009.

I hope the Senate will quickly pass this straight-forward, bipartisan legislation to honor young Juan and to provide parents with much-needed information about child care facilities. 

What’s on Tap?

Next week, the Senate will continue debate on the defense authorization bill. 

Sincerely,
Johnny Isakson