Congressman Adam Smith (WA-09) today issued the following statement on the upcoming one-year anniversary of Hurricane Katrina devastating the Gulf Coast:

“One year after Hurricane Katrina slammed the Gulf Coast, New Orleans and the surrounding region remain in shambles, and more must be done to help storm survivors rebuild their shattered lives.

“From the beginning, the federal response to the storm has been inadequate to meet the needs of affected Americans.  As the flood waters receded, Congress and the President pledged to help Gulf Coast residents rebuild their communities.  But as Congress turned to the ‘nuts and bolts’ of rebuilding the coast, compassionate rhetoric gave way to partisan opportunism and cronyism. 

“Relief funds were understandably rushed to the floor of Congress.  But when the funds were doled out, the Administration handed out lucrative no-bid reconstruction contracts that may have inflated the cost to taxpayers.  Then, to ‘offset the cost of reconstruction,’ Congress cut $50 billion from other key programs including Medicaid and food stamps. 

“Weeks later, the House of Representatives cut taxes for the heirs of the wealthiest fraction of one percent of Americans.

“It is contradictory and irresponsible to cut programs that are lifelines for Katrina survivors, citing a budget crisis, and then provide massive tax breaks to those who need it least with no regard for the cost.

“On the ground in New Orleans, the return to normalcy has slowed to a crawl.  The city’s water system still leaks massive amounts of water, utilities have not been restored in many neighborhoods, and sinkholes caused by broken pipes are destroying many of the remaining roads. 

“But one year after Katrina, just over half of the money allocated for reconstruction has been spent.  Eighty percent of small business owners affected by Katrina with approved Small Business Administration loans still wait for the money.   Roughly 7,500 families still wait for trailers promised by the Federal Emergency Management Agency (FEMA), and many who received them now find any number of keys can open their locked doors.

“Incredibly, when Congress appropriated billions of dollars for disaster relief, Congress and the Administration failed to establish procedures to track the money.  FEMA reports to Congress on their relief spending, but several other federal agencies have slices of relief funds to distribute, and they do not report their expenditures.  In many cases, these agencies do not even track whether the money has actually been spent. 

“If Congress were serious about fiscal responsibility, they would appoint a special inspector general to oversee Katrina spending.  I cosponsored a bill, House Resolution 3737, to do just that.  Months later, House Leadership has yet to bring this common-sense measure up for a vote.

“In addition to failing to oversee tax dollars, Congress and the Administration have failed to live up to many of the President’s promises to survivors.  Both the President’s proposed Worker Recovery Accounts and the Urban Homesteading Act, billed as needed help to get evacuees working and in their homes, have stalled in Congress and have not moved since January.

“All this led us to where we are today in New Orleans:  fraud and continued delays getting relief money where it is needed, infrastructure and housing still in disarray, and a growing health and mental health crisis burgeoning among the survivors.  Cost estimates for reconstruction continue to balloon, painting a dark picture of our nation’s fiscal future.

“The track record for this Administration and Congress before, during, and after Hurricane Katrina shows they do not understand effective government.  Fiscal responsibility and effective planning are nowhere to be found.  The problem is systemic:  we see it in our Katrina response, in our Iraq troubles, and in our lack of fiscal discipline. 

“Americans want more than just tax cuts from their government.  Liberals, moderates, and conservatives can all agree that we want our government to spend our tax dollars wisely and to provide effective disaster response.  Cutting taxes and increasing spending during times of crisis is neither responsible nor conservative; it’s reckless and dangerous.

“The American people know what good governance looks like.  Unfortunately, as a result of the bungled response to Hurricane Katrina, they surely know what corruption and incompetence look like:  decimated neighborhoods untouched by rebuilding efforts while billions of dollars in reconstruction money float around federal accounts without accountability or oversight.  Katrina’s aftermath is a symbol for the wrong direction in which our country is headed. 

“We deserve effective, efficient government that spends money wisely in line with our values and priorities.  But a year later, Congress and the Bush Administration have not corrected mistakes made before, during and after Katrina.   It is time for a new direction.  Americans deserve more than just a ‘heck of a job’ and it is time for Congress to give it to them.”

Congressman Adam Smith (WA-09) and Congresswoman Cathy McMorris (WA-05) today offered a bipartisan amendment to H.R. 4157, the Health Information Technology Promotion Act of 2005. The amendment allows for the creation of a demonstration project that will provide a more efficient and effective system for managing disease by using health information technology on disease management for the Medicaid population. The amendment was agreed to by voice vote and was included in the final bill that passed by a vote of 270-148. The bill will now be sent to conference. 

"Under the current paper-based healthcare system, patients and their doctors lack instant access to medical information,” said Adam Smith. “This lack of connectivity and shared knowledge leads to medical errors, increased costs, and inefficiency.  This demonstration project would leverage information technology as a tool to increase the efficiency of the healthcare system, improve the quality of care for Medicaid patients and it will decrease costs to states and the federal government, which are facing record deficits.”

The McMorris-Smith amendment directs the Secretary of Health and Human Services to conduct 2-year pilot projects in selected states to demonstrate the beneficial impact of health IT on chronic disease case management for the Medicaid population. It allows for the creation of a virtual case management tool that provides patients and providers access to a real-time electronic medical records.  This amendment was based off a bill that Reps. McMorris and Smith introduced last fall, H.R. 4331, the Medicaid Access Project through Information Technology (MAP IT).

"Health IT has the potential to reduce costs with Medicaid, empower patients with the necessary tools to manage their disease, and improve quality of care by reducing errors,” said Cathy McMorris. “The United States lags behind other industrialized countries regarding investment in health IT, and it is time that we begin using 21st century technology for 21st century health care. Washington state is already a nationwide leader in health IT and could benefit by applying to be a candidate in this demonstration program.”

Without changes to our health care system, analysts predict that Medicaid will bankrupt every state in as little as twenty years. By providing online access for managing chronic disease, states will be able to significantly reduce costs within Medicaid. An August 2005 study by the Institute for Public Policy and Economic Analysis at Eastern Washington University found that for ever dollar spent on technology-enabled disease management program, it provided up to ten dollars in medical savings and even more in terms of non-medical cost savings.

In addition to cost-savings, the use of Health IT ensures that overall health care delivery is safe and more comprehensive. According to the Institute of Medicine, at least 1.5 million Americas are sickened, injured or killed each year by errors in prescribing, dispensing or taking medications. By allowing providers to access real time data, doctors can treat patients with the most recent advancements in medicine and according to the best practices in medicine.

This amendment is endorsed by American Medical Association, American Hospital Association, Federation of American Hospitals, Healthcare Information Management Systems Society, American Health Information Management Association, Information Technology Industry Council, Northwest Physicians Network, and Othello Community Hospital. It is also supported by the entire Washington state delegation.