In the News

Congressman Gerry Connolly was successful in securing a change in the newly-unveiled Affordable Health Care for America Act (H.R. 3962) that protects nearly all Northern Virginia citizens and small businesses from paying a surcharge to finance health care reform.

Connolly, who spoke at the Thursday Capitol Hill press conference where the House leadership unveiled the House health care reform bill, noted that one of his top priorities for the legislation was to raise the income surtax threshold in the bill to protect small businesses and residents of Northern Virginia’s 11th District, the wealthiest Congressional district in the nation, from financing an inordinate share of the health care reform bill.

“As I have said from day one, we need health insurance reform that is affordable, maintains the freedom to choose one’s doctor and insurance plan, ends insurance company cherry-picking, and helps small businesses afford health insurance for their employees,” Connolly said.  “But I was concerned that Northern Virginia families and businesses would shoulder too much of the burden under the income thresholds contained in the original House proposal.”

The 11th District of Virginia is the wealthiest Congressional district in the nation, as measured by median household income.  “However,” Connolly said, “We are not a community of Beverly Hills millionaires, movie moguls, or Wall Street brokers.  We have a significant percentage of two-income households and face one of the highest costs of living in the nation.  That is why I worked so hard to make sure the legislation introduced today protects Northern Virginia families and small business. “

Under the surcharge in the new Affordable Health Care for America Act, less than three-tenths of 1 percent (0.3%) of the district’s wealthiest individuals and households will be required to pay any surcharge. Under the previous health care reform proposal (H.R. 3200), all individuals with incomes over $280,000 and couples with incomes of $350,000 would have faced a tax increase.  Small business income would have faced similar taxes.

“This was unacceptable in a high-cost area like ours,” Connolly said.  “Too many working families and small businesses in my district would have been affected.”

The path to securing the higher income thresholds in the new bill was a long and arduous one for Connolly.

In early summer, Connolly, who is President of the House freshman class, led a group of freshmen to the White House where they met with President Obama and Chief of Staff Rahm Emanuel to cite their concerns about the surcharge contained in H.R. 3200, the original health care reform bill. 

Subsequently, Connolly, joined by 20 other freshmen, wrote a widely-circulated letter to House Speaker Nancy Pelosi urging her to increase the income threshold under the bill.  After several meetings between the House Speaker and the freshmen congressmen, Pelosi agreed to reevaluate the threshold.

As negotiations continued and Connolly and other freshmen pushed for the higher threshold, the outcome remained unclear until the last few days when the provisions of the legislation were finalized.  When H.R. 3296 was unveiled today, the thresholds were raised to $500,000 for individuals and $1 million for couples.

“In the end, we got what we wanted and, quite frankly, what we needed to protect our constituents and our small businesses,” Connolly said.  “This is a real victory for Northern Virginia.”

Transcript of Connolly portion of Press Conference
(CQ Transcript via Washington Post website)

SPEAKERS: REP. NANCY PELOSI (D-CALIF.), SPEAKER OF THE HOUSE; REP. STENY H. HOYER (D-MD.), HOUSE MAJORITY LEADER; REP. JAMES E. CLYBURN (D-S.C.), HOUSE MAJORITY WHIP; REP. CAROL SHEA-PORTER (D-N.H.); REP. GERRY CONNOLLY (D-VA.); REP. MARY JO KILROY (D-OHIO); REP. MARCIA FUDGE (D-OHIO); REP. KATHY DAHLKEMPER (D-PA.); REP. XAVIER BECERRA (D-CALIF.); REP. JOHN D. DINGELL (D-MICH.) …

Congressman Carol SHEA-PORTER: I am now pleased to introduce Congressman Connolly from Virginia.
(APPLAUSE) 

Majority Leader Steny HOYER: Gerry! Gerry! 

Congressman Gerry CONNOLLY: One of the big challenges of health care in the United States in terms of affordability and even access has to do with the many, many small businesses in America that no longer can provide health care for their employees.
 
As recently as 10 years ago, over 60 percent of our small businesses in fact provided health care for their employees. That percentage is now down to 40 percent. And if we do nothing, that's going to go even lower, leaving millions of Americans working for small business, the engine of employment growth in America, stranded and without health care coverage.
 
I am pleased today to introduce Dan Sherry. Dan is a small- business owner with an engraving company in suburban Chicago, in Illinois. And he -- he is going to tell his story both about the issue of affordability for him and his eight employees, but also the issue of access and the capriciousness of insurance companies in denying access to health care. 

Please give a warm welcome to Dan Sherry. 

(APPLAUSE) 

DAN SHERRY: Madam Speaker, thank you very much for inviting me to participate in this historic event.
As you know, health care reform is absolutely essential for America's small businesses.
I own an engraving company a little outside of Chicago, a second- generation family business. I've never been able to afford health care for my employees, and even for my family, after paying into the system for 20 years, we got a large order one summer. It was a hectic summer and I missed a health insurance premium payment: the first time in 20 years.
 
My insurance company cut me off. They said I have to reapply. Well, that turned my high cholesterol into a preexisting condition, and I'm uninsurable. And if any of you here understand what that means, after the shock wore off, I looked at my options and I realized the only way I could protect my family from a disaster -- I'm mortal; I'm going to have a health event sooner or later -- would be to divorce my wife of 22 years, give her the business, and give her my house. And that's not right, not in America. 

That's where I was a year ago, and that's why I'm here today. The legislation being introduced today is critical for me and small- business owners across America, to be able to protect our businesses, our employees, and our families from the threat of crippling health expenses. 

SHERRY: This bill will eliminate exclusions based on preexisting conditions and other underwriting practices that make insurance unaffordable and unaccessible for us.
 
By creating a health insurance exchange that includes a choice of a strong public health option, this bill will provide access to affordable, comprehensive coverage. 

Most small businesses will be exempt from any requirement to cover -- offer coverage, but the fact of the matter is, we want to offer coverage. It's the right thing to do, and it's important for us to be able to be competitive with companies that do offer it. 

The tax incentives in this bill will help us get that good, affordable coverage. 

For my business to continue to grow and be competitive, it's important for me to be able to offer health care for my employees. They're like family to me, like most small-business owners, and I have a responsibility to make sure they have the health care they need. 

That's why I'm so proud to have the opportunity to stand here today and express my strong support for this landmark legislation and my gratitude to Madam Speaker and to all the other members for what you've done.
America's small business needs Congress to pass this legislation to make health care work for us. That's what we need now. 

Thank you. 

(APPLAUSE) 

Congressman Gerry CONNOLLY: Thank you, Dan. And thank you for your -- sharing your story.
 
You've just heard about the struggle of one small-business owner to afford health insurance for its employees. Subject to outrageous premium increases and capricious decision-making by insurance company, hardworking Americans like Dan across the country are either unable to provide such coverage because of the cost or sinking under the weight of rising premiums. 

In the last 10 years, premiums for small businesses in America have more than doubled, increasing by 129 percent. Small businesses need health care reform. As Dan said, they need it now. The Affordable Health Care for America Act allows small businesses to participate in health insurance exchanges, giving them the benefits of large group rates, lower costs, and many more choices. It raises the thresholds on the income surcharge to $500,000 for individuals and a million for families, something we freshmen members of Congress worked awfully hard to get in the bill. And I want to thank the speaker for her help and assistance in making that happen.
(APPLAUSE) 

Congressman Gerry CONNOLLY: It provides tax credits to help small businesses afford to provide health insurance coverage for their employees. And as Dan said, for so many small-business owners in this country, their employees are like members of their family. They want to do the right thing. They want to provide this benefit to their employees. 

It now gives me great pleasure to introduce one of the great leading lights in this United States Congress, our thoughtful and articulate leader, our majority whip, James Clyburn of South Carolina. 

(APPLAUSE) 

Majority Whip James CLYBURN: Thank you. Thank you very much, Congressman Connolly.

View the Entire Text of the Affordable Health Care for America Act (H.R. 3962) by clicking here.