U.S. Senator Johnny Isakson, R-Ga., today urged caution in rushing to pass 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.

The health care legislation, which was crafted by Senate Democrats, is being considered by the Senate Health, Education, Labor and Pensions Committee. Isakson is a member of the committee.

“I recognize the frustrations many Americans have with the current cost and delivery of health care. We do want to reduce cost, we do want to improve quality and we do want to improve accessibility. I am as committed to that as anyone,” Isakson said. “However, I am not going to stand for a simple solution to a very difficult problem. This country cannot afford to get this wrong, because if we do, we won’t have another big issue to debate because we won’t have a country.”

The HELP Committee is currently considering health care reform legislation that includes a government-run plan that would compete with private insurers. During an executive session of the committee to debate the legislation, Isakson argued that a government-run plan 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.

A preliminary report from the non-partisan Congressional Budget Office estimated the legislation currently being considered by the committee would cost at least $1 trillion. However, many sections of the bill, including a proposed expansion of Medicaid, are missing and therefore could not be included in the cost estimate. The CBO report also estimated the legislation would cause 23 million Americans to lose their current health care coverage, including 15 million individuals who are currently covered by employer-sponsored plans.

Isakson also criticized the proposed expansion of Medicaid, which 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, so the Democrats’ plan represents a 50 percent increase. 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 to their required share of Medicaid costs.

Isakson believes the key to health care reform is stimulating competition in a market-based system that will encourage private health insurers and managed care providers to compete for business and make health insurance more affordable for consumers. Isakson also believes Congress should look carefully into proposals that will increase coverage of preventative and wellness care, which will help control the cost of managing chronic disease and drive down the cost of treating largely preventable conditions.

Isakson is 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.