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HHS Secretary Sebelius Outlines Progress in Health Care Law, New Dangers Facing Medicare / Medicaid

By Crystal Swann and Annie Finch
July 4, 2011


Health and Human Services Secretary Kathleen Sebelius addressed the nation’s mayors during the 79th Annual Conference of Mayors June 17. In her address, Sebelius recognized that mayors are faced with the daunting challenge of improving health in their cities while stabilizing health care costs. “If we want cities to thrive in the decades to come, our challenge is to improve health, while also stabilizing health care costs so they don’t take away from the other investments that are essential to keeping your city strong,” remarked Sebelius.

Addressing a luncheon audience that included mayors from across the country, Sebelius said, “As mayors, you understand that health affects everything that happens in your cities. It affects how well students learn in your schools. It affects whether your neighborhoods can attract new families and businesses. It affects how productive your workforce is.”

Sebelius discussed the various ways the federal government is working with mayors and cities to improve health and stabilize health care costs. The Affordable Care Act, passed last year, is perhaps one of the most significant ways cities can improve health care in their cities while simultaneously cutting the city’s health care costs according to Sebelius. The new law extends health care coverage to 34 million previously uninsured Americans and “no one will benefit more than cities” from this historic legislation said Sebelius. “Not only will this allow many of your constituents to finally get the care they need, but it will dramatically reduce the amount of free care that city and county hospitals provide to the uninsured and underinsured,” said Sebelius. The new law is expected to cut uncompensated care costs by two thirds in many hospitals across the country. The Affordable Care Act also provides historic investment in primary care through expansion of the National Health Service Corps and through investments to community health centers across the country.

Investing in primary care was another focus of Sebelius address to the mayors. As many as one in three Americans who end up in a hospital are harmed by their care according to a recent survey. Sebelius highlighted the Department of Health and Human Services’ partnership with employers, health plans, doctors, nurses, local health agencies and more than 1,500 hospitals across the country to form the Partnership for Patients, an alliance that’s set concrete goals for reducing medical errors over the next three years. “If we achieve those goals, we’ll save up to 60,000 lives in the next three years and reduce Medicare costs by up to $50 billion over the next ten, with billions more in savings across our health care system,” said Sebelius.

In stressing the importance of prevention, Sebelius applauded the mayors for being national leaders in developing creative approaches for promoting better health. Citing many local examples the Secretary recognized that mayors are making the difference one community at a time.

Sebelius concluded her address by cautioning mayors about the many proposals floating through Congress aimed at cutting costs and the expense of services. “For example, some in Congress have proposed turning Medicaid into a block grant and cutting $770 billion from the program over ten years.” As a point of perspective, the Secretary aptly pointed out “…that with such significant cuts, states would have no choice but to reduce benefits or kick people out of the program or both. But these people will still need to get care. The only difference will be that when they show up at your hospitals and emergency rooms, you’ll be the ones paying for it.” “As mayors, the buck stops with you. If we simply cut costs without doing anything to improve care, you’ll see the consequences in your schools, your workplaces, your neighborhoods, and your hospital budgets,” concluded Sebelius.