Chairman Arrington, Reps. Burgess and DeGette, Applaud Passage of Legislation to Reform How Congress Estimates the Cost of Health Care
WASHINGTON, D.C. – Today, the House of Representatives advanced House Budget Committee legislation, H.R. 766, the Dr. Michael C. Burgess Preventive Health Savings Act (PHSA), to the Senate by a voice vote.
The historic accomplishment marks the first time in history that a bipartisan bill with sole Budget Committee jurisdiction has been brought to the Floor under a suspension of the House rules.
House Budget Chairman Jodey Arrington (R-TX), joined by original cosponsors Representatives Dr. Michael C. Burgess (R-TX) and Diana DeGette (D-CO), released the following statements applauding House passage of H.R. 766:
Chairman Arrington lauded the historic passage of the legislation championed by Budget Health Care Task Force Chair, Dr. Burgess:
“Health care costs are the chief debt driver of the federal budget, accounting for more than 1/3 of overall spending, a total that tops nearly $2 trillion dollars of taxpayer funds annually. Even worse, that estimate is projected to almost double over the next decade.
Investment in our nation’s health care innovation has the benefit of being a triple threat for patients everywhere: modernized technologies improve the likelihood of quality outcomes, and increase patient access, while also reducing the fiscal burden for taxpayers.
One of the major barriers to deploying modernized and innovative policies that would unequivocally curb the cost of health care is the antiquated process used for calculating congressional cost estimates on proposed health care legislation.
Congressional scorekeepers have traditionally focused solely only on the short-term valuation of a policy rather than capturing the long-term economic impact.
But today, with passage of H.R. 766, that changes. This bill seeks to improve the methodology of Congress’ broken budgetary process by providing policymakers with a more accurate cost estimate of the long-term cost savings from preventive health care policies.
I thank my longtime friend and fellow Texan, Dr. Burgess, who worked tirelessly alongside Rep. DeGette for more than a decade to advance this important piece of legislation across the finish line. Today’s result is a testament of the impact that bipartisanship can have and marks a new chapter for the House Budget Committee.”
House Budget Health Care Task Force (HCTF) Chair, Dr. Burgess, further praised the House’s consideration of H.R. 766:
“Since 2012, I have been championing this legislation to provide the Congressional Budget Office with the ability to analyze the long-term benefits of preventive health care measures while ensuring that we make informed decisions on future health care policy. I am grateful that the Preventive Health Savings Act passed the House of Representatives today.
With chronic diseases accounting for over seventy percent of health care spending, this bill will ensure the Congressional Budget Office has access to the necessary tools to calculate the long-term cost saving potentials of preventive health care initiatives. The passage of this bill lays the foundation for future policies that will reduce chronic disease illnesses, manage risks before they become detrimental to the patients’ health, and lower health care costs for Americans. Thank you to the Budget Committee, Chairman Arrington, and Congresswoman DeGette for partnering with me to get this bill through Committee and I am beyond honored for their decision to attach my name to this critical piece of legislation. I am looking forward to the passage of this bill in the Senate as we continue to strengthen our national health care public policy strategy.”
Congressional Diabetes Caucus Co-Chair and H.R. 766 Cosponsor, Rep. Diana DeGette:
“This legislation will revolutionize how Congress assesses health initiatives by accurately gauging the long-term savings from preventive health programs “I’m glad to have worked alongside Dr. Burgess on this effort, who shares my commitment to a healthier, more affordable future for all Americans.”
Background:
The PHSA, championed by HCTF Chair Dr. Burgess and Rep. Diana DeGette, will reform how the Congressional Budget Office’s (CBO) approaches providing cost estimates on critically important health care legislation by extending the analysis horizon to capture long-term impacts. By providing a more comprehensive assessment of preventive health care measures, policymakers can make more informed decisions on policies that improve the nation's long-term fiscal health.
H.R. 766 boasts 29 cosponsors and was passed by the House Budget Committee by a unanimous vote of 30-0 on February 6, 2024 during a full committee markup.
First introduced as the Preventive Health Savings Act, the PHSA was renamed the Dr. Michael C. Burgess Preventive Health Savings Act, during the markup. Chairman Arrington spearheaded the change as a tribute to Rep. Burgess’s legacy of service in the House of Representatives. Toward the end of 2023, Rep. Burgess has announced his retirement from Congress after 21 years of service.
The full list of cosponsors and the corresponding bill text can be found here.
