Protecting the Middle Class News

Weekly Address: President Obama Says House Must Pass Bipartisan Transportation Bill

President Obama is calling on the House of Representatives to pass a bipartisan transportation bill that would repair crumbling roads and bridges and support construction jobs in communities all across America. According to a new report, 90 percent of these construction jobs are middle class jobs. The Senate passed the bill with the support of Democrats and Republicans because if the bill stalls in Congress then constructions sites will go idle, workers will have to go home, and our economy will take a hit. 

 Transcript | Download mp4 | Download mp3

Faces of the New Health Care Law

Each day this week, you’ve heard stories about what the new health care law means for every day people.  Today, March 23, marks the second anniversary of the Affordable Care Act, and three remarkable women share their stories about how the new health care law is affecting their lives and the lives of their families.  They are truly the faces of the Affordable Care Act, representing the millions of Americans already benefiting from health care reform and looking forward to full implementation of the consumer protections in the health care law in 2014.

Alycia Steinberg’s family was stunned when the pediatrician told them last fall that 2-year-old Avey had leukemia. Her first hospital stay at Johns Hopkins cost $100,000 and she has 2 ½ more years of chemotherapy ahead of her. “Being uninsured is not an option for my family,” Alycia says.

The Affordable Care Act protects Avey’s health insurance coverage because it bars insurance companies from denying coverage to children for pre-existing conditions.

“Childhood cancer is cruel. To have to worry about how your child will get treatment and how you will maintain your family’s most basic financial security is also cruel. ...When discussing health reform, we often talk about our goal of protecting the most vulnerable among us. What we forget is that we are all vulnerable,” Alisha says.

Learning to Speak Financial Products and Services

Breaking it Down: The Health Care Law and Cost Control

For too long, too many hard working Americans paid the price for policies that handed free rein to insurance companies and put barriers between patients and their doctors. The Affordable Care Act gives families the security they deserve. The new health care law forces insurance companies to play by the rules, prohibiting them from dropping your coverage if you get sick, billing you into bankruptcy because of an annual or lifetime limit, or, soon, discriminating against anyone with a pre-existing condition. 

The new law also includes a number of key provisions designed to help make health care more affordable – and help address the drivers of health care costs. The new health care law is already making a difference. Many Americans are seeing lower costs, and health care spending growth in 2009 and 2010 decreased to record lows.

Here are more ways the law helps control costs for families and small businesses:

1. The law’s small business tax credit has lowered health insurance costs for small business owners. On average, small businesses have paid about 18 percent more than large firms for the same health insurance policy.  If you have up to 25 employees, pay average annual wages below $50,000, and provide health insurance, you may qualify for a small business tax credit of up to 35 percent (up to 25 percent for non-profits) to offset the cost of your insurance. This will bring down the cost of providing insurance.
2. Holding insurance companies accountable for how they spend your premium dollars.  In 2011, if health insurers don’t spend at least 80 percent of your premium dollar on medical care and quality improvements rather than advertising, overhead and bonuses for executives, they will have to provide you a rebate for that excessive overhead.  The first rebates will be made in the summer of 2012. 
3. Preventing insurance companies from raising rates with no accountability or transparency.  In every State and for the first time ever, insurance companies are required to publicly justify their actions if they want to raise rates by 10 percent or more. These efforts are paying off.  In the last quarter of 2011 alone, States reported that premium increases dropped by 4.5 percent. And, in States like Nevada, premiums actually declined. 
4. Recommended preventive benefits without deductibles or copayments. Millions of Americans with Medicare and private insurance have seen their out-pocket costs go down to zero for recommended preventive care like flu shots or cancer screenings now covered with no cost sharing under the law. This puts more money back into people’s pockets, while making sure they get the preventive care they need.

Making America a Top Tourist Destination: Commerce and Interior Keep Up Efforts to Increase Visitation

Ed note: This was originally published on thecommerceblog, the offical blog of the Department of Commerce

This month, more than a million visitors from across the country and around the world are coming to our nation’s capital to see the cherry blossom trees that bloom each spring among some of America’s most treasured historical landmarks. From the purchase of airline tickets to dining in area restaurants to staying in hotels, these visitors are infusing millions of dollars into the community and supporting local businesses.
 
As we search for ways to grow our nation’s economy, we must not overlook the travel and tourism industry as a source for economic opportunity. According to data released by the Commerce Department earlier today, tourism spending increased 8.1 percent in 2011 and supported an additional 103,000 jobs, for a total of 7.6 million jobs.
 
A big factor in the increase was a surge in international visitors to our country: in 2011, 2.5 million more international visitors came to the United States compared with the previous year. These international visitors spent an all-time record of $153 billion on U.S. travel and tourism-related goods and services.
 
As this data reveals, the travel and tourism industry is one of the most important engines of our economy—in fact, it is our number-one service export. That is why President Obama recently announced the creation of a Task Force on Travel and Competitiveness, which charged us with leading efforts to develop recommendations for a National Travel and Tourism Strategy to promote travel throughout the United States.

We know that making it even easier to visit America’s most amazing places and working hard to tell folks about what an amazing place America is – whether you travel five or 5,000 miles to get here–will help grow our businesses and create jobs.
 
America is the land of extraordinary natural wonders and incredible landmarks–from the Grand Canyon and Yellowstone to the Golden Gate Bridge and the Empire State Building.  We have it all right here and have a lot to offer our nation’s visitors.
 
With over 397 national park units, 556 national wildlife refuges, and 886 units of the national landscape conservation system, a particular focus on strategies for increasing tourism and jobs is by promoting visits to our national treasures. From hunting, fishing, hiking, and learning about our nation’s incredible history and cultural heritage, public lands and water provide plenty of recreational opportunities that can attract travelers from around the country and the globe.

Breaking it Down: The Health Care Law and Women

Ed note: This post originally appeared on healthcare.gov

The President's health law gives hard working, middle-class families the security they deserve. The Affordable Care Act forces insurance companies to play by the rules, prohibiting them from dropping your coverage if you get sick, billing you into bankruptcy through annual or lifetime limits, and, soon, discriminating against anyone with a pre-existing condition.

In the past, women often had to pay more for coverage that sometimes didn’t even cover their needs – that’s changing under the health care law. Over 20 million women with private health insurance are receiving expanded preventive services with no cost-sharing, including mammograms, cervical cancer screenings, prenatal care, flu and pneumonia shots, and regular well-baby and well-child visits. What’s more, 1.1 million women between 19 and 25 who would have been uninsured, have coverage under their parent’s health insurance plan. Women are often the ones making health care decisions for the family. The health care law puts them back in charge by shining much-needed light on our health insurance marketplace and cracking down on unjustified premium hikes.

Here are more ways the law helps women:

Breaking It Down: The Health Care Law and Seniors

Ed Note:  This was originally posted on HealthCare.gov, a website by the US Department of Health and Human Services.

The President's health law gives hard working, middle-class families the security they deserve. The Affordable Care Act forces insurance companies to play by the rules, prohibiting them from dropping your coverage if you get sick, billing you into bankruptcy through annual or lifetime limits, and, soon, discriminating against anyone with a pre-existing condition.

For seniors, the new health care law, the Affordable Care Act, not only means more time with their doctor and important new benefits like free preventive services like cancer screenings and annual wellness visits, but it also means more money in their pocket. The new health care law strengthens Medicare. Already, more than 5.1 million seniors and people with disabilities saved over $3.2 billion in drug costs. That comes to an average savings of $635 per person for seniors caught in the coverage gap known as the donut hole. And, 32.5 million people with Medicare have received preventive service without a deductible or copay, thanks to the new law.

Here are more ways the law helps seniors:

1. You get free preventive services. Medicare now covers certain preventive services, like mammograms or colonoscopies, with no cost sharing. You also can get a free annual wellness visit.
2. You get cheaper prescription drugs. If you’re in the donut hole, you will receive a 50 percent discount when buying brand-name prescription drugs covered by Medicare Part D. The discount is applied automatically when you fill your prescription—you don’t have to do anything to get it. These changes are already saving seniors billions of dollars. And by 2020, the donut hole will be closed. 
3. Your doctors are supported to better coordinate your care.  Many doctors, hospitals, and other providers are taking advantage of new programs to help them work better as teams to provide you the highest quality care possible. They are working to get you the care you need at the time you need it. 
4. The law fights fraud and strengthens Medicare. The Affordable Care Act builds on our efforts to combat fraud and abuse. These efforts are saving billions of dollars in money that was being stolen from people with Medicare. And thanks to these efforts and other improvements, the life of the Medicare Trust fund has been extended.
5. Your Medicare coverage is protected. Under the new health care law, your existing Medicare-covered benefits won’t be reduced or taken away. As always, you will be able to choose your own doctors.

The U.S. Will Bring a New Trade Case Against China

President Barack Obama, flanked by Commerce Secretary John Bryson (L) and Trade Representative Ron Kirk (R), delivers a statement to the press on exports and announces new efforts to enforce U.S. trade rights with China, in the Rose Garden of the White House, March 13, 2012. (Official White House Photo by Pete Souza)

Two weeks ago, President Obama formed the Trade Enforcement Unit to investigate unfair economic practices by other countries.

But even as that organization comes online, the President is taking additional steps to ensure that American products are competing on a level playing field with the rest of the world.

That's why he made an announcement this morning in the White House Rose Garden: 

We’re bringing a new trade case against China -- and we’re being joined by Japan and some of our European allies. This case involves something called rare earth materials, which are used by American manufacturers to make high-tech products like advanced batteries that power everything from hybrid cars to cell phones.

We want our companies building those products right here in America.  But to do that, American manufacturers need to have access to rare earth materials -- which China supplies.  Now, if China would simply let the market work on its own, we’d have no objections.  But their policies currently are preventing that from happening.  And they go against the very rules that China agreed to follow. 

The reasoning behind this effort is simple: President Obama believes that it's too important for American manufacturers to be able to compete in these growing industries for the U.S. government to stand by and do nothing.

"We're going to make sure that this isn’t a country that’s just known for what we consume," the President said. "America needs to get back to doing what it's always done best -- a country that builds and sells products all over the world that are stamped with the proud words: 'Made in America.' "

Help for Military Homeowners

Ed note: this was originally posted on the CFPB's blog

When I was at Fort Drum, NY last week I heard from a military spouse who said her family has been separated for four years – partly because of deployments but also because they can’t sell their house. At the same meeting an officer told me that he is underwater on a home he bought at a previous assignment. He wondered if there were any options for him that wouldn’t ruin his credit or require a large sum of money he didn’t have.

I’ve had conversations like these repeatedly in my travels to military communities across the country during the past year. The housing crisis has had a devastating impact on military homeowners, and their unique challenges have made it difficult for them to get help. So I’m glad to see that important protections for military homeowners were included in the recent settlement between the Federal government, 49 state Attorneys General, and five of the largest mortgage loan servicers: Bank of America, JP Morgan Chase, Citigroup, Wells Fargo, and Ally Financial.

The mortgage servicers who signed the settlement have agreed to review their files for violations of the Servicemembers Civil Relief Act (SCRA). They will give monetary relief to those families who saw their homes taken from them in violation of the SCRA, or who did not receive the SCRA interest-rate reduction to which they were entitled. In one way the settlement goes farther than the SCRA: it protects from non-judicial foreclosure all military homeowners who are deployed to a combat zone, even if the mortgage was not obtained before the servicemember entered active duty.

The settlement also has provisions for military homeowners who get Permanent Change of Station (PCS) orders. The banks will provide short-sale agreements and deficiency waivers to those servicemembers who were forced to sell their home at a loss due to a PCS and were not eligible for the military’s Homeowners Assistance Program (HAP). This will help servicemembers who were underwater on homes they bought between July 1, 2006 and December 31, 2008, or who received a PCS after October 1, 2010.