Transcripts For CSPAN2 Tonight From Washington 20130425

way of going off of what started as diffuse threats potentially driven not by states, the smaller groups or individuals. >> zach baig, defense news. you mentioned fiscal constraints. given at a time purpose programs can be difficult to explain come are you concerned the agency may face disproportionate cuts in the future? sr is outlining projects in an effort to demonstrate the value. >> my job is agency leaders to demonstrate our value. the answer to your second question is nothing we do it darpa inside of our own four walls the city though. but ms. finney don't is when we engage with a broad community of performers, but also supporters. our leadership in the pentagon, and the administration and people in congress. part of our job is to expand the role we play in this world. if you look historically, you will find part of the reason for our success has been extended. among many decades in which there's been strong support in republican administrations and democratic administrations in time somebody just were tightened in acetate. i think it is because i'm really thrilled in fact there is a strong and clear to broadly about how important is to take a slice of our investment and make these bets on ideas that could be transformative that could give a step toward incapability. in the complex rather than in today, we need would darpa does more than other and if you look at the support we get in the department and on capitol hill, certainly reflects that. >> joe marks from executive magazine. talk more about challenge is and whether that's been affected by sequestration. >> particularly the use of challenges has been a new mechanism for us to engage with the community. that's new since i left in the 19 years i was gone and it's been a very interesting addition to the mix of a radio. sequestration affects our budget. it doesn't speak to the mechanisms by which we operate and so will continue to look at price isn't as challenging as as tonight is the best indicator of job do will continue to use this mechanisms. we have some very interesting stuff in the pipeline. stay tuned. >> thank you for the last round. [inaudible] two questions. one, inas the hub of i.t. technology. if your agency having a cooperation with the indian industries. china has been ceiling or technology day by day, every day. so what are you doing about this? thank you. >> what is pat name in india to me is part of a much broader globalization of technology and technical capability, which i think is great for the road and poses interesting challenges for the united states and some great opportunities. part of how we think about that at darpa is for each of our programs to think about were the best creative assets are around the planet for the object is we have. we do a small amount of this point of work that happens outside of the united states, usually because we found unique capability that is particularly valuable and will continue to look as we go into new areas. [inaudible] to me that is part of the cybertopic we've been talking about more broadly and today we are in an environment where we are proudly penitentiary we do face a host of cyberthreats. darpa's role is to get us on a different path when you look at the problems come as hard to imagine a future where we get cybersecurity and or control. it's not going to happen overnight but some thing that we could make a contribution to. >> i think that's all we have time for. thanks, everyone. >> a hearing on implementing the new health care law >> to bcm is meant to help a visitor relived the first eight years of the 21st century. decision-making process that i went through as president. we hope the museum inspires people to serve, want to serve their community or serve their country in some way. >> we really didn't want to be a school. we wanted to be a two tank. i don't know if there's a lesson manner. i do not live in a different direction with the component from which programs would emerge. >> now, here and on implementing the health care love. house members heard testimony from the obama administration at the health care exchanges were on track to begin enrollment on october 1st. a full implementation of the health care love on january 1st of next year. this is a little more than two hours. [inaudible conversations] >> the subcommittee oversight and department of health and human services management of the affordable correct approach in one, 2014 deadline for full implementation. deputy administrator and director of the center for consumer and insurance oversight, otherwise known as i/o. it is responsible for the affordable correct many changes to the market. they certainly have their work that will finally take place and on that day americans have been promised the plans two new exchanges. the american people have been promised good coverage that is affordable. remember the promises made to pass a bill by any means necessary. we see many stories about an penny.or shortages that companies face a mother to continue providing coverage. the decision is related to another promise that will surely be broken at the level lower cost. they have noted it is currently preparing the federal exchanges that will cover 26 additional states along with a partnership of exchanges to operate the seven other states. i hope later today about the progress made in noting this exchanges. these are parts have indicated should seek additional funding. this is troubling considering a substantial amount of time name for ms exchange exchanges and we have yet to begun. today expect to provide a full accounting of where it stands with regard to the fed is operated exchanges and those from the partnership with states, including whether it's a chain program. since passage, committee has had the funny being used to implement the law. most recently. they will assist the public in singapore by my care. considering we've also heard funding from many different projects were concerned it was rated as a piggy bank for slush fund to hide the problems i hope you'll address the potential of reutilization that has become so common that the "washington post" has dented incredible shrinking prevention fund. the consumer groups and those who received insurance companies from the navigators. to recognize to have the reality with those who have been selling for many years they have some expertise of value. we have bystanders were placed to ensure we are paying groups choosing orphaning drives. someone with experience where someone without experience stands in front of the line from hiring. this only scratches the surface of that two duties and and responsibilities of sub 10. i hope we discuss the ability to determine whether health insurance premiums increase. how the insurance companies with obvious concern for americans. obamacare has concerned with supporters of law that there were tax credits and subsidies available on the 80% of the public will qualify for those subsidies. i hope will hear from the witnesses today that the other 92% can expect. i'd like to recognize the ranking member for an opening statement. >> thank you, mr. chairman. welcome to you, mr. cohen. thanks to the affordable carrots, tens of millions of americans who would otherwise be uninsured will receive health insurance for the first time. americans enjoy projections for the worst abuses of the insurance industry. carburetion island in a lifetime limits that cruelly cut off coverage for folks when it's needed most. the time to implement them is their fact. citizens will be able to sign-up for health insurance to federal or or state american bases. standing up for coverage should be easy, is a complicated over the next three months. not because of any flaws in the law and is a new approach that would coverage nationwide and is always difficult. the cbo has printed good overall consumer cost will put down once marketplaces are implemented. it worked great in massachusetts and in that romney, that we have to educate nice to people about the marketplace in advance. cciio states have set up data systems to manage the process. i am super glad you're doing this oversight and we need to hear from mr. cohen not today, but as we go through the summer about how the agency expects to address those challenges. we should conduct the oversight with an appropriate perspective. i wish when the naysayers for some young healthy people particularly young and that they can also put this into per perspective by understanding the tax credit on out-of-pocket cost was sharply lower overall cost for these individuals and millions of other americans. i wish folks i premiums for young man could add to that perspective the women of all ages who will pay lower premiums and won't be discriminated against simply because they're female or millions of americans who received dramatically better and more dependable insurance coverage. the obama administration is having for big spending money to make sure citizens understand the new law. i wish they would take the perspective to remember the bush administration did the same thing, hiring plans to spread the word about3 thing, hiring plans to spread the word about medicare and spending $300 million on a public relations campaign for medicare part d. i voted against the medicare part d bill because it didn't allow negotiation by the secretary of hhs to lower prescription drug costs. even i voted against it, i had town hall meetings throughout the district and i had internet training to help my constituents figure out how to sign up for it. we need to have that kind of bipartisan cooperation as we implement exchanges, the national state level. i hope we take that appropriate perspective and i hope we can develop the perspective is the affordable correct is implemented over the coming months. in january 2006 we implemented the medicare part d program, "time" magazine described the initial nightmare of implementation, noting the results of the moment comes singers. in vermont, implementation of the loveless described as a public health emergency. those problems are almost forgot until today. ultimately the part d program got off the ground and even those who initially voted against a bill like me took a stake in it at worked to fix the problem. the biggest problem, the doughnut hole was eliminated by the affordable care act. so i think as usual there's a lesson to be learned in this history. i hope the implementation of the affordable characters to play. i certainly hope more smoothly than the implementation of the medicare part d. i'm not naïve enough and it should be to think it will be completely wrinkle free. what i do hope business problems provides we can work together to identify and fix instead of using it to score political points because we all have a stake in providing quality affordable health insurance coverage for all americans. i hope this hearing in our future work on the subject represents an effort by everybody to truly work together to implement this law. i thank you for the hearing and i yield back. >> we now recognize the chairman of the full committee for five minutes. >> thank you, mr. chairman. today's hearing continues to be a gross oversight of the obama administration's implementation of the health care law. since the passage we have had cciio before the committee three times in a covert promises made about the affordable care acts didn't quite match up with reality. 2011 we learned a cciio was granting waivers to individuals that come naisbitt would face large premium increases or coverage because of obamacare. we also found through the implementation of early retirees reinsurance priam, cciio handed millions of dollars to corporations and government. even more troubling is the fact the early retiree plan on through the $5 billion allocated so quickly that it actually stop accepting applications in may may 2011. within two years who for the program is supposed to end. this is the cinematic money given the preexisting condition insurance plan. this bill has been a lot of delay now for some three years for mere eight months away from the full implementation by all accounts doesn't have its act together. it doesn't bode well the last week that in the san architect wendy hhs secretary he sees a train wreck coming. will the exchanges be ready? mothernd proseof a lake or? coverage you can keep their? will young adults who afford higher cost? the alarm bells over how obamacare one folder getting louder by the day. costs going up and insurers warning about small business is our struggling whether they can provide employees of coverage. patients need certainty. employers need certainty. i hope hhs will always show us what they are doing to implement the law by the deadline. last week the committee marked a bill that targets prevention and public health fun to give money to those who need it fast. americans of preexisting conditions were promised coverage by supporters of obamacare only to find the program was closed to new applicants a few weeks ago. preexisting condition insurance plan is that russian accent will. it unacceptable and we look forward to that though. i have the balance of my time to dr. burgess. >> i thank the gentleman for yielding. thank you for coming to our humble subcommittee. of course my interest in cciio predated after the affordable care act passed. i didn't get a hearing on that in the minority that was good enough to come to my office and talk to me at least. mr. larson has been in a couple times and you've been before us one time before. it's been very, very difficult to get information and the basic budgetary information. the ranking member says we have to be in a posture of working together. it's difficult to do that. one of the most basic questions remain unanswered. we've got october 1st coming fast, five months away and it seems there's more and more questions about readiness of your office and indeed the administration to get the answers people want. you yourself went to the insurance -- american health insurance plan conference this month and is prudent to not assume everything will work. i agree with that. i think we have this committee need to hear from you where are the concerns, where do you see where do you see the lights blanking on the dashboard? letter you're doing to prepare yourself for an agency in sender for that day in october that johnson i vibe goes online on the federal hug that may or may not exist to be a lot of sign-up for programs. senator rockefeller said it pretty well the other day. people are going to get a bad impression and it's going to stay with them. the references to part d are reasonable to make. remember that they have been after two years of preparation. you've had three years of preparation. six weeks of terminal turmoil could turn into many more weeks or months or years of turmoil when this program is unfolded next year. the application process is lengthy and complex. people are asked to estimate whether they think their employer will provide insurance next year, with their earnings will be next year. these are tough questions that need answers and we hope we get some today and certainly we'll be adding additional questions in writing them. they are allowed. thank you for being here today and look forward to answering questions. >> now recognize mr. waxman for five minutes. >> thank you, mr. chairman. the republicans on this committee and our health subcommittee hasheld five hearings since december on the affordable care act. each of these five hearings repeats the team expressed when they opposed the bill. they certainly never expected this to be. republican members can't accept the health reform is working and is now the law of the land. they opposed it from the beginning until the day the president signed the bill into the insisted there's no chance of passing. until the supreme court ruled a constitutional, republicans said it's not constitutional until the day present upon the >> did, they insisted american people would vote them out of office to overturn this law. none of that happened and now they call it an oversight hearing because they predict how these terrible things to happen in. they are not predicting. they are wishing bad things to happen. this is not a hri to be constructed. it is a hearing to attack the love and hope that it doesn't work. the affordable care act will go fully into effect in americans to not worry about their ability to get affordable high-quality insurance. republicans say the implementation is not going to go smoothly. implementation of any new big program has its kinks, but the affordable care act is proceeding on schedule and it's been a remarkable amount of good for people. over 3 million adults now have health insurance. over 100 million americans have received free preventive health benefits, more than 6 billion seniors have saved six by $1 billion in the medicare part d drug program. beginning next year, tens of millions of americans who would otherwise be without health coverage will have dependable quality health insurance. my republican colleagues say people want certainty. certainty if there is no affordable care act is millions of people would be discriminated against because they preexisting health conditions, because they offer a risk to the insurance companies. they have to pay more money for their care. they have the certainty of knowing insurance companies would do everything they could to keep them from getting coverage if it's going to cost the insurance companies money. that's what we wanted to change. republicans still oppose the affordable care act. they are not taken a construct of approach and say what company do to make this law in its implementation work more smoothly. they say what can we blame people who supported this law about problems that may come out. i am pleased we have at this hearing today again gary cohen here in december and certain incident question being addressed today. the center for consumer information and insurance oversight has made huge progress in implementing the affordable care act. success doesn't change the opinions of my colleagues on the republican side of the aisle. it makes them even more determined to the person and they can criticize. today on the house floor, we are going to vote on the bill that they produce because under the affordable care act we have a high risk pool for people with preexisting conditions who are waiting until january to buy health insurance without being discriminated against, without being charged more money because of preexisting conditions. we have spent $5 billion on a program to help people with preexisting conditions to be in a high-risk pool. we ran out of money. republicans still finding them out of money for everything the government does because they support the idea sequestration happening and we running out of money and all sorts of places for the government has an obligation. but we've run out of money for the preexisting pool, preexisting medical problems pool until the last few months of this year. the republicans suddenly concerned about people with preexisting conditions decided to make sure funds have enough money to go on the rest of this year. they find it by taking away the public-health prevention funds until 2016. makes no sense whatsoever. we are happy to support continuation of the preexisting tool to the end of this year. certainly we could have found a better funding source and republicans have denied the opportunity for any other source to be offered on the house floor today. you have to question how sincere they are about wanting to help people in preexisting conditions, how sincere they are wanting to see a smooth implementation of the bill now but it is flawed. they want this bill to fail. they want to go back to the time of millions of people had no chance for insurance. that's a certainty they want to offer in the certainty that led us to have the affordable care act passed into law. the congratulate mr. cohen and its agency for they are doing to make sure the law succeed. that's what we shall want see happen now that it is the law and they lost the last election in their last chance to repeal it. >> the gentleman goes back. her witness, mr. cohen, you are aware that doing so has the practice of taking testimony under oath. do churches to testify under oath? >> no, sir appears that traverses 200 rules of the house you're entitled to be advised by counsel. do you desire to be advised by counsel? in that case, if you'd raise your right hand of us were even. these are the testimony about to give, the truth, the whole truth and nothing but the truth? >> yes. >> thank you. we are now under oath and subject to penalties and title 18 subsection 001 of the united states code. you may now give a five-minute summary of your written statement. mr. cohen. >> thank you a good learning members of the committee. i appreciate the opportunity to tell you but sometimes accompt shirts are the past year. about us have been since the implementation of the affordable keratinocyte to describe progress we've made and how i know we are on track for open enrollment this october. we achieved a major milestone this month when we open the window for issuers to begin submitting plans to be sold to the federally facilitated marketplace. said that would happen april 1 and it did right on schedule. we've had an encouraging response and expect to see competition for millions of americans shopping for health insurance in the new marketplace. states operated in the marketplaces have begun accepting submissions from issuers as well. it's important to understand the ways we continue to improve our process is the window opened on april 1. it's gotten feedback is the access the system and address whatever issues come up. where they helped hopelessly response by e-mail to anyone with questions. we hold regular phone calls to regularly publish answers to frequently asked questions. last count in connection with the process provided to assure some states. i'm proud of the work the team is doing with products on the shelf by october 1st. the processes of federal data. consumers are providing information to determine whether they are eligible for tax credits to pay premiums for the health insurance offered in the marketplace. the data will be transmitted to the data in real-time to be checked against information available regarding income citizenship, incarceration and so forth. the hubble master data. as a conduit where the data is kept such as irs, social security and department of homeland security. this will enable eligibility and reduce the need for people to submit paper documentation. states operating a marketplaces love access to the data. but begun testing the connection between state systems in the hobbit and have succeeded in transferring data. this is the major milestone achieved on schedule. testing will continue for open her own but this fall. another key element is a streamlined application consumers use to find out whether they're eligible for medicaid or chip on the one hand or tax credit to purchase land to the marketplace on the other. we've gone through an extensive consumer testing process since the draft of the application was published and continue to make it as simple as possible. highlighted messaging will alleviate concerns and direct consumers to get additional help. less than one third included in the entire physical form. i matter how simple and straightforward, we know buying health insurance is not by late buying shoes on factors. many people will never have had commercial health insurance before and the need help choosing a plan right for them and family. during the past year, we put in place a variety of ways for people to get that hope. on health care.gov, people learn about the affordable care act in order to understand what the covers cause and interact with a checklist of how to prepare shopping for coverage of the new marketplace. some are sure of it is fixing her shopping for health plans in the federal facilitated marketplace will work. health care.gov will have a chat capability to people get questions answered quickly as they used to say. the call center will operate in june will be answering questions 24 hours a day, seven days a week. april 9 we announced recipients to operate as navigators that partnership marketplace. navigators provide fair, accurate and impartial information about consumers use the marketplace and select a health plan. well, agents or brokers compensated under state law may enroll through the marketplace in every state. as you can see, cms has been hard at work improving the health insurance market for all americans. these achievements make me confident and excited for the future health insurance market. consumers will have access to best fit their needs. thank you for the holding a hearing to be happy to answer your question. >> thank you very much, mr. colin. regarding the navigators, the law says if they've received compensation they are not eligible to be employed as a navigator. is that correct? >> a suicide. if they enroll people in health coverage, they are not eligible. >> within mary smith 20 years in the field, as she received a life sentence? share to 24 credit hours of training. then she takes the test, pass the test, missed a 24 credit hours of training every two years to maintain the license. say she has sold a wide range of for-profit and nonprofit to thousands of individuals. should i to apply for a job as a navigator. john doe was applying for a job with a high school degree is your experience on insurance. who is eligible to be hired? >> it's important to understand the difference between what a navigator does that insurance does. >> mary smith is not qualified. >> mary smith is qualified -- >> not as a navigator. >> she is experienced in the field. >> she's welcome to help clients obtain coverage. >> someone who has done this for a living is prohibited from being hired to advise people to spy insurance under the exchange >> she could no longer sell insurance and be a navigator. that's her choice. >> as long as she's no longer taking money from insurance companies. >> in terms of the timeframe, one of the players they've got to make decisions now. they'll not tough budget decisions on december 31st, but want to make decisions now. how simple the information he available in terms of what is in these exchanges? >> the plans are submitted now. therapy by us in the state insurance regulators had approved the plan and issuers have an opportunity to make changes. >> do you have a date? >> september. >> that seems a bit odd according to your calendar. they can't get final training before they see the exchanges. i hope you would adjust that he >> the primary function of the outreach and enrollment and once it starts in october, that's for the whole people -- >> these will be available in september, the sales will start in october in the later. >> correct. >> you feel you will be ready in a month? >> yes. >> another thing with regard to navigators because there are concerns that people involved in community groups or political groups can apply for jobs as navigators. >> requirements are set forth -- >> prohibition in terms of enrollment and other activities they would not be. >> groups have demonstrated history of serving community that we are trying to reach will apply. >> i can't speak to any particular group. >> they would prohibit, right? >> given community groups, i'm concerned that data, confidentiality and hezbollah. what assurances and penalties will make sure they do not keep the data, only a government computer systems. they cannot use it for any other purpose. >> navigators will be trained on the importance of privacy and security and subject to all the laws and regulations that protect -- >> other penalties if they use this data? >> there are. >> got a lot to accept donations and other private groups? >> the prohibition is against receiving competent patient portal at people in coverage. >> if they get donations in the general sense, are they permitted to do that? >> i would understand what type of donation. >> can you look into that and get back to us? i understand your concern. final question with regard to enough funding at this point, not future budget, to take care of your enrollment to people in these exchanges? >> for fiscal year 2013 we have enough funding in the budget request funding for fiscal year 14. >> i now recognize ms. training for five minutes. >> thank you, mr. chairman. mr. cohen, this hypothetical person, mary smith is a registered insurance broker and she can't be a navigator while she's on insurance because it would be a conflict of interest, correct? >> that's right. >> issue with her qualifications decided not to represent insurance companies, she could become a navigator? because then she would have a conflict of interest. >> that's right. >> on the community groups as i recall when we get the medicare part d, we had a number of groups hopping st. peter's up for that. is that right? >> correct. >> other similar because it involved citizen to sort out a number of plans and apply online, right? >> that strew. >> you didn't have to have trained individuals other from community groups or other places helping folks do this, right? >> u.k. >> i'm glad you have a lot of confidence that i'm not tober one, 2013, consumers will be able to sign-up for exchanges. i want to ask you about the states, including my state of colorado, which will either run their own marketplaces with their marketplace in partnership with the federal government. what is your view about the state marketplaces? are they coming along? >> we work with them on literally a daily and weekly basis. for close contact with people at the exchanges and also the state medicaid agencies that is a very important part of this as well. it is fair to say some states started earlier in the process in some little bit later, so we are looking carefully at the progress the states and making in our commitment is a functioning marketplace in every state on october 1. we've been working to make sure we provide the support needed to make that happen. >> what about the states of a late start? are you giving them extra effort to get their exchanges going? >> that's correct. >> can you give us a sense, the chairman and i have talked about doing the oversight. but are the milestones and benchmarks to measure the next few months? >> we provided a timeline for what will be happening over the next several months. the key is we are on schedule and on track with the i.t. bill, which is clearly an important part of this. we cheated big milestone with the submission process. the federal data hub is in testing now and we continue testing through december. it is important to take a look at the steps along the path and make sure we are on track. i am optimistic and confident where we are at this point. >> mr. cohen, a couple months ago at a conference he said it's only prudent to to not assume everything will work perfectly on day one and hanson place address thinks they may have been. you also said as we get closer, we will be in a position to know which contingency plan we have to implement. this is the contrast of what you were saying this morning. can you explain what the comment meant that if that means hhs is not ready to implement the law? >> i'd be happy to. but things get reported, the context gets a little lost. i was speaking specifically about whether we'd be ready. i was speaking to some of the comments he made that we know are big programs began, things are perfect and it's only prudent to be prepared for the things that might happen that you could do better. like all federal agencies, subject to guidelines published by the standards that lg, so you have to be prepared in case something does that happen. >> can you tell us how you develop the strategy is coming along. >> yes, a constant process as you do that though. i'm not the expert, but you see how things are going. you come up with strategies for how you deal with supposed to love our applications come in on day one we plan for it. you have to be prepared for that eventuality. the seven types of things are doing. >> thank you. i now recognize the gentleman from texas for five minutes. >> thank you, mr. chairman. mr. cohen, let's go back to the quote above what plans you have to implement. the secretary was here last week and asked about contingency plans and she said there are no contingency plans and everything will be ready. so which is that? everything will be ready or are planning contingencies? >> everything will be ready, but we are planning for anything that when they go into operation at the situations come up ebenezer address, will address the situations and make sure the experience for american consumers is as seamless and good as they could be. >> committee would then have it from saint contingencies. then ask you this. would it be fair to say closing the enrollment under preexisting condition plan was that a contingency? >> close in a moment on the preexisting sound and we did because it was the prudent thing to do. >> a contingency plan to close involvement that this committee was unaware of last year? >> were looking carefully at expenditures of the program and careful stewards of the money appropriated to do whatever was needed. >> your supply. the secretary says a year ago was a contingency plan to deal with the program. we need to know. >> i didn't say that. >> is blakey said that. but that will be reported by your friends in the press over here. but it got to with each other. people will be counting on you to do your job in january 1st. you phrased questions come your main health pt guide where he raised questions about whether the hub will be ready. you look at what happened in the preexisting condition plan. i learned new words all the time, but the word is d. scoping. are you reducing the scope when the rollout occurs? >> i remind you, you are under oath. when they call you back next to talk about this, there is no plan to narrow the scope of the affordable care act. >> we intend to implement the affordable care act. we've announced already some portion put off till 2015. at this point i do not see any scoping of the affordable care to >> and yet, they bandy scoped out of the availability of that program, have they not? >> the preexisting condition program is meant to be temporary. the circumstances point to exactly why we needed the affordable care act. the suit were not able to get health insurance coverage at all. >> it doesn't do you good in the steep enough onto the mud chasm and that's a problem. what about the shop exchanges itself is a virtue of the affordable care act and that certainly virtue only have one choice the competition advertised amongst these place. as for senator rockefeller was talking about. >> let's be clear. employers have choice. they can choose plans available in the shop and we believe employers will have more choice under the affordable care act than they did before. the one-year transition that affects only other employers offer more than one bantu employees. >> that sounds like a narrowing in scope at least to me, maybe not other people, but a destiny. let me ask about money for the prevention fund. someone find these navigators? >> within cciio, no. >> who made the decision? >> the secretary. >> can you talk to your department has then using the money from the prevention fund. >> to find that cciio is the same goes for $54 million announcement for grants. >> are you going to take other money from the fund? >> the secretary who is to transfer authority under the law. if she were to level with us hinted last week, you would have no way of knowing. that secret is locked up secretary. >> and now recognize mr. waxman for five minutes. >> thank you, mr. chairman. it is amazing the program was taken from the prevention program to pay for the implementation of the affordable care act after republicans denied the fund to implement the affordable care act. you think the kid who killed his mother and father said i've got to be careful. you have to care for me because i'm an orphan. impeding this legislation from being implemented and forcing the administration to make these choices. they are now make it a conscious choice to take the prevention public health fund to pay for a short period of time for the preexisting condition insurance program that is supposed to go out of existence at the end of this year. this preexisting condition insurance program is part of the affordable care act. it is a sunday is a sunday in the republican authored into law. in february of this year, cciio company or agency announced enrollment with resuspended to ensure the programs that the funds which are capped with you to pay the claims of existing enrollees. this is what happens when you cut the program. that means if you run out of money, you run out of services. was this decision made -- by which the decision made? >> when we have a certain amount of honey authorized for the program, our number one priority was to make sure those people enrolled in the program got continuity of care to the end of the year. >> we are talking about 107,000 enrollees, is that correct? >> at least that many coming guests. >> these individuals perceive till the end of the year. am i correct the program is meant to be a bridge for implementation on a 14 uninsurance to be barred from discriminating against people with preexisting conditions? >> best way. >> with those unnamed visuals to get access now be a litigant access to affordable quality health care coverage when the aca goes fully into effect in january? >> that's right. it will build a charge them or because they are the same. >> it's quite amazing the republican said he went to champion a program for a few months, which is the bridge until people get to what is a much more sane way to handle the matter. people in the program to the end of the year, we don't pay their expenses, do we? >> is that going to be the same price as other people's insurance? >> under the program is about the price of other people's insurance programs today with a high risk posed to enrollees is typically much higher. >> with tact about the affordable care it's been fully implemented 2014's, but many key benefits are already in place. i want to ask you how americans benefit from the law. the ec prohibits insurers denying coverage for children with preexisting conditions right now. is that correct? >> that's right. >> how many children have preexisting conditions? >> as many as 17 million. >> we didn't have to create a fund. was that they have to be covered right now. the others covered in january. without being discriminated against. the law also bans lifetime coverage limit come is that correct? >> a day. in september 2010. >> how many americans benefit from the affordable correct? >> 105 million. >> it also has the insurance industry's harmful abuses including post the decisions. for folks who aren't experts in the industry, tell us what are these decisions? >> before the affordable care act, insurers had a post to post payment of writing so they would wait to see if someone got sick and had it held problems and i would look at their application to find some in any application that that was mistakenly entered incorrect than they would say we're going to take away your policy which are actively sweet enough to pay for claims. >> when republicans voted against the affordable care act, they were voting to let the insurance companies do this precision, which has taken away insurance coverage, even though you pay for. >> that's correct. >> pajamas time has expired. i now recognize mr. scalise for five minutes. >> thank you, mr. chairman. thank you, mr. cohen for coming. yesterday i flew back to d.c. and there was a panel on the health care law held at a local hospital in my district. i was one of the people speaking on a panel and a number of people in the health care industry, people that have insurance. it seemed to be an underlying theme to continue to go through that room that nobody is ready for this blog. nobody knows how it's going to work for them and most people are concerned to good health care they hobbes, they were in jeopardy of losing. this is something i hear all the time talking to small businesses and families who have health care that they have wrote concerns about whether they're able to keep that. are you out of touch with this or do you hear is wrote concerns? i talked to colleagues and i hear the same things. are you hearing these things? >> for the many millions of americans who have health care through employers than plasma and 50 people, they are unaffected. >> i met recently with the owner of whole foods. they afflict 30,000 employees, a well-respected company nationally have health care their employees really like. it's a highly successful plan you did manage to control costs. they beat the industry average and still provide a plan their employees like an under the current law, their plan is not even eligible. the 30 plus employees that have health care they like to write no high risk of losing coverage. don't promise if you like what you have u. can keep it was broken to those 30,000. are you unaware of that? >> i can't speak specifically. >> you have to find a real live example that has good health care. they are great at risk of losing it because of this law. >> i can walk you through specific things we have been seeing with the preexisting coalition insurance program. you all did actually stop taking new enrollees in that program, right because they ran out of money? >> stop taking it well is to make sure we would. >> early retiree and reinsurance program is supposed to last until 2014, was discontinued in 2011, right? >> and woman is closed on it. it is so successful someone can't every now? >> we are paying out claims based on money coming back. >> in some handle on it today? >> note. >> some requirements of the program or delete, is that correct? >> the one provision -- >> e.g. delay those provisions? >> one aspect, the employee choice -- >> that was supposed to be obama cares long-term program was repealed by congress, wasn't it? .. there are going to be ready. it's time for them to come on line and i give you five examples of programs that were either delayed close enrollment because they weren't ready for prime-time or they were repealed because they were so bad that you would tell us the biggest part is they will be okay? >> we are on track and i can just point to the successes we have had so far in developing them. >> iges highlighted five examples of billiar's and in fact one of the lead architects of obamacare senator baucus last week said quote eye to i to see a huge train wreck coming down. he just said that last week. do you dispute what he said last week about the health care law? >> a huge train wreck coming down? >> we are on track. >> there is a train coming at you on that track. that is not me. i voted against it. >> we will be ready to help the needs of americans enrolled. >> they don't know how they will be able to get the health care they want as an employee and i have concern about that. >> you are recognized for five minutes. >> thank you mr. chair. mr. cohen thank you for appearing before the subcommittee today and affordable care at prevention and public health fund it been subject to ongoing attacks since their inception under the affordable care act. the republicans have repeatedly sought to repeal or drain those be argued that it's a slush fund and the resources are being used in a brogue really to pay for public health lobbying efforts. take the opportunities that the record straight on how the fund is or isn't being used. i know that prevention fund is under your supervision but can you give us a general overview of the hhs agencies and public health programs and activities that have been and will be supported through the fund? >> i would be happy to try congressman. that is not strictly my area but i would be happy to get back with one information about that but i do know the prevention fund is used extensively in tobacco cessation and wellness programs and other programs designed to implement care to people and with respect to work that we are doing, we know that when people had health insurance they get preventive care and they get care for the illnesses that they do have a earlier into get better treatment that is more cost effective so i think the use of the public health fund to help stand up the exchanges and make people, make sure people know about them and take advantage of the benefits they have to offer is really right within the scope of what the fund is intended to do. >> thank you and do state and local governments receive any of the dollar's? >> no, i don't know the answer to that. i'm sorry. >> is their way to check? >> absolutely, happy to do it. >> is in a the funding use by grantees to support local lobbying efforts? >> no, not that i'm aware of but i can check into that and get back to you. >> what is the department's policy on the use of federal grant dollars for lobbying? >> it's not permitted. >> with respect to using the fund to help implement the affordable care act in the insurance marketplace i understand that you and the rest of the administration are experiencing a difficult position because congress has refused to provide funding to support this critical program and help the mom plantation moved smoothly. hhs was forced to reallocate resources to provide short-term immediate funding. my question is can you please explain to us how the secretary has used her transfer authority to help implement the affordable care act? >> the secretary has used the statutory authority she has to transfer funds within hhs. she has used funding from the suspension fund as you mentioned and she has used some funding from the nonrecurring expense fund particularly for i.t. projects. those are the sources that she is used in addition to the implementation obtained in the affordable care act. >> and the i.t. projects you are talking about? >> those are the ones we are doing to get the marketplace is ready for october. >> for october 1. and how will hhs ensure that program supported by the prevention fund won't be negatively impacted with the reallocation if you will, of the fund's? >> obviously the president's budget for 2014 request additional funding for the work that we are doing so going forward we will get that funding and we will rely on that rather than have funding under the -- >> i thank you for your response. the prevention fraud is a significant market and improving health situations for customers who do get caught. it's unfortunate that you had to reallocate some of these funds to pay for implementation. i think it's unfortunate that my republican colleagues had funding requested by the administration to implement the health care law so i appreciate the insight that you have provided today and if you could get back to us with some of those other concerns it would be appreciated. the down payment is the effort to provide for better outcomes and to achieve the ultimate goal of the affordable care act so with all of that i thank you. i thank you for your response and with that mr. chair i will yield that. >> thank you. the gentleman yields back and we now recognize chairman harbor. >> mr. cohen these are very important issues that we need to discuss and i want to follow up on what the gentleman from louisiana just asked you about the preexisting condition insurance program, the fund where you had to stop enrollment. i was under the impression that we stopped because the money was exhausted and you said that he stopped so you wouldn't run out of money. could you explain that in more detail? >> sure. any program like this, claims come in and have to be paid out over period of time so we have to project forward for the people that we have enrolled in the program now. we need to make sure we can cover their costs. >> they are anticipated to project -- >> for the yes rest of the year so he looked at how much we are spending and how much we have an obviously we can't go beyond what's been appropriated so that was the basis for the position. >> how much money was left when it was closed in the enrollment stopped? >> would have to go back and get you those precise numbers. >> can you provide that? >> i would happy -- i would be happy to. >> preexisting, i think everybody here is always talking about preexisting but before the implementation the largest insurer in my home state already provided preexisting coverage for dependent children up to age 25, not quite 26 the 25 and those things were there and available. what i want to know is you said there was not enough money left so you have to stop. is this money we are talking about today funding available? could not, that's been used for navigator's? didn't she have the authority to transfer some of that money available to her, the billions of dollars available to her to help prop this program up for preexisting? >> that is not something that we looked at congressman but i'm sure -- >> i know we don't need you to provide in answer. that money is available. the money is like a slush fund for her to use. we are going to do what should have been done which is to take the money that is there available to you to help these people that are sick and help those with preexisting -- i mean how can we say that some of this money has been used for pet neutering projects and some others was used for lobbying efforts regarding soda taxes? that is unconscionable that we would use money for something like that but yet deny care to those that are in the most need. so i would encourage you to even now if there are funds available within the program we are going to take care of the legislation today. it's interesting that even though some on the other side have been very critical, there are many health advocacy groups, patient advocacy groups that support this bill that will come up for a vote later today. i would like to talk now for a minute about the sequester impact if we could. we have had this administration canceled white house tours but yet have concerts that cost over $40,000 of taxpayer money. we had an easter egg roll and we are going to have another congressional white house christmas ball. all these things are done even though they ordered $50 million of new uniforms before the sequester began. i think some people realize the political gamesmanship that has been taking place in this so i want to know what you have done and now that how that is impacted you and if there's anything we should expect as far as furloughs or impact on this? >> within cms we have worked hard to avoid some of these furloughs. we are hiring -- i can't replace people which is a serious issue for me in terms of trying to run a program. people move onto other on to other jobs and i can't hire replacements. there has been, we have applied the sequester according to the advice we have been given across-the-board. >> i'm almost out of time but are you telling me then that this administration is furloughing air traffic controllers and the public safety of this country but not furloughing anyone in your agency? >> in effect we are because we can't replace people. >> that's not the same. we are talking about a 15% furlough of current air traffic controllers resulting in delays and safety problems but this has been a selected item by the administration and i yield back. >> the gentleman yields back and i recognize the gentleman from texas mr. green for five minutes. >> i share my colleagues concerned but that was passed by huge bipartisan vote and you can't vote for something and say i wish it wasn't happening. it is happening whether it be cms for tsa or anywhere else. i request related exchange and we have both shared the part of the success in the affordable care that is the access to the care they need. your agency has released a series of letters relating to qualified health plans. the insurance exchanges and the essential community partners. in your letter to the stacy must urges issuers to put offer provider networks with robust participation. do you agree that it's important that community health centers would be considered as an integral part of the qualified health plan's? bea, it works. yes. >> is cms encouraging that? >> we are. >> i have another related question but i will so that for the record. on the top of your previous -- we had concerns about the increase from the affordable care at concerns that there will be healthier young men who will pay higher premiums under the affordable care act than they pay in the individual market. if you could tell us how rates are structured for different groups in the individual market now based on factors such as aids, sex and health? >> the market today issuers are allowed to vary rates depending on health status of a person and if they are sick they would have higher costs and there are large chewed -- allowed to charge women -- >> so older and sicker people pay more and women pay more for health care right now? >> that's right to speak how would the rates be structured under the affordable care act going into affect? >> the health status will be able to be used as a factor in gender will be a factor. age can still be used as a factor but the impact is limited compared to what it is today. and where you live can be used as a factor. >> under the affordable care act insurers cannot charge more for women and those with underlying health conditions are limited on how much they can charge and older people more than younger people is that correct? >> that's correct. >> i know there are groups like young healthy males that might pay higher premiums but my understanding is the number of factors that mitigate these premium increases. they may qualify for medicaid so they'll receive coverage without paying a premium. is that correct? cs. >> the affordable care act allows younger adults to remain on their parents health care until 26. that was part of the affordable care act. as i recall in 2009 it was not a republican vote but anyway let me go on. what about those who are not on medicaid or their parents health plan's? in my correct that they would qualify for tax credits to reduce interest cause? >> that is at 400% of the poverty level. >> to what extent will this mitigate a premium increase? >> you will be significant. >> individuals under the age of 30 may purchase so-called young and invincible plans on health insurance exchanges. i know i used to think that when i was in my 20s and since i joined medicare last month not. can you tell me how the plans will work and how they will reduce cause? >> absolutely. that's a high deductible plan for your typical doctors visit it won't cover but it's something serious would happen if you became ill or an accident that will cover you and those plans are very affordable for younger people. >> the affordable care act contains rate reviews and medical loss ratio's. i come from the state of texas and we typically don't regulate anything in health insurance except policies. to me one of the best reforms in the affordable care act was the 80% loss ratio because as an employer of a small business years ago i was not sure the premiums we were paying were coming back into medical benefits but we only had 13 employees and we didn't have a choice. now that small employer will know that 80% of their premiums will come back in medical benefits. >> that's exactly right and insurers have to pay back over $1 billion to consumers and businesses in 2012 because of that program. >> like i said that seems like one of the best reforms although there are a lot of things in there. again you don't need to say this but i also know we tried to work on that will in our committee and we did have a markup. and again i didn't expect many republicans to vote for it and none of them did but there were a lot of good things in the affordable care act and people talked about it on a bipartisan basis for decades. i realize i'm out of time mr. chairman. thank you. >> we will now go to the gentleman from texas mr. olson for five minutes. >> thank you chair and good morning mr. cohen. you don't have to say this but i'm going to say it anyway. i was elected three times by people of southeast texas in my home and a member as their representative. quite frankly they are frightened. i know you used the word lightly but they are frightened about obamacare and what it's going to do their health care. will it become more expensive? will they have access? will they keep it? many promises have been made and many have already been broken. they want and deserve answers to my questions so i ask you to respect them and direct -- directly answer the questions i asked. i spent nine years as a staffer in the united states senate. i know what a sales buster looks like. i haven't seen one today so thank you for that but if i filibuster i will abruptly interrupt that sequester so thank you for that. but i'm confused. last week right here in this room the secretary said there are no contingency plans for this database changes. mr. cohen today you are saying there aren't plans so are there plans, contingency plans, yes or no? >> we will be ready to operate 20 -- october 1 of 2013 p. we are preparing for the eventuality that different parts of the system we are building may not work perfectly and they need to be improved and those are the kinds of plans we are working on. we are doing testing and we are doing everything that we can to make sure that everything works as well as possible. we know that in any large project -- >> that is your answer. it sounds like you're preparing for the worst. is that correct? yes or no. >> we are realistic in our planning and we will be ready. >> okay, one further question sir. i have talked to many family businesses back home about obamacare and their impact on their businesses. these guys buy health insurance for their employees and every single one i've talked to, every single one has told me congress meant, to provide health care for my employees because it's good for my business and it's a recruiting and retention tool but i have to beat the market. if this thing goes down it cost me anywhere between five to $9000 per employee per year. if they health care comes to pass and these changes don't work out i will -- a two or 3000-dollar fine. they are waiting because they want to keep their employees. are you prepared and the question, have you heard this complaint from small businesses? >> i have smoke in -- spoken to small-business owners and representatives us the small business association. i think it's important to keep in mind that they operate for small business or health insurance has been declining dramatically over the past decade or more because it's not affordable. that was before there was an affordable health care act. i think they're a number of very important positions in the law that will make coverage more affordable one of which certainly is the tax credit for eligible employers that pay up to 6% of the cost if they provide health care for their employees. >> against her every business i've talked to in the situation say they are planning to drop health care insurance. i know what you were saying but the bottom line in america's they're going to be change where people will lose their health care because obamacare? one final question my state of texas has gone to the federal exchange and the enrollment october 1, full rollout january january 1. r. eagan is to impose the one side solution to solve our problems. it won't work. my parents live in vermont and they retired up there and i can assure you vermont's challenges are much larger than texas challenges. texas has -- and a high epidemic of diabetes. west west texas has a high epidemic of skin cancer. urban environments have more issues than other areas so how do you address this? are you going to have a federal change to address -- >> congressman i think you know texas has one of the highest uninsured rates in the country in affordable care act medicaid expansion exchange offers an opportunity for texas to get a lot of those people enrolled in coverage and we welcome texas involvement and partnership that many states have to develop a marketplace that is best suited to the needs of the people of texas. >> i don't have anything further. thank you sir. >> now to the gentlelady from florida ms. castor for five minutes. >> thank you chairman and ranking member to get for calling this hearing because it's very important we have substantial oversight on the implementation of the affordable care act. the good news is that so far families across america have seen vast improvements already even before the marketplaces are set up and people are enrolling in health care. some of the ones that are popular in my community, young people aged 26 now can stay on their parents insurance. that has been a meaningful change to over 3 million young people across america. medicare has gotten better. it's gotten stronger, whether it's prescription drugs that are more affordable for the benefit services when you go in for check-ups. that is a very meaningful change for our parents and grandparents and the one that doesn't get as much attention but shed are the rebates that have come back from insurance companies. in the state of florida alone 1.2 million of florida families have gotten in insurance rebate because of the terms under the affordable care act which say when you pay your premiums and your co-pay that money should go to actual health care and health insurance rather than profit and marketing and ceo salaries. that has brought back to the state of florida $123 million right back into the pockets of florida families at a time when they could really use those extra couple hundred dollars so thank you for that. now we are on the costs of such a positive change for families across america. so many that have not have access to those important doctors visits or being able to call the nurse and get the check-ups they need oars someone with a chronic condition gets the significant health care they need so mr. cohen and i want to ask you about the navigators. we have talked about that a little bit already today. this is going to be a very substantial effort as hhs begins the outreach rollout. how do you inform families about signing up? how do you educate families and small businesses about their insurance options? i know that some are concerned that some of these dollars are going to fund these outreach but how else are we going to educate everyone? i think it's all hands on deck. we need the insurance companies here. we need community groups and community health centers and doctors and nurses and what i hear is everyone is ready to join in this effort. but could you talk about setting the stage for this. we have 50 million uninsured in this country. people are hungry for information wouldn't you agree? could you talk about right here at the outset what you are going to be doing in the coming months? >> thank you. i would be happy to. first of all as you mentioned the $54 million for grants in organizations and church groups and drives and other groups that serve as navigators we are allocating the money based on people who are uninsured in the state so we are going to try to put that money where it can be used the most. in addition to that, there is going to be sort of a media campaign to get people to understand more about the law and the benefits that it can bring to them and we will be directing people to go on line to health care.gov where beginning in june the cost center will be up in healthcare.gov will be changing focus to be a consumer site that will be there to provide information to consumers and help them get ready for the steps they won't need to take to get in for october enrollment. as you mention i'm hearing a terminus amount of excitement out there in the community from foundations, from the insurance companies that have a real incentive to get people to come and buy their product so i think it's a multifaceted effort to make sure that people know what's in store for them. >> looking at the state california texas new mexico florida. in florida we have between 25% that are uninsured and did not have health insurance so these are going to be critical areas. in many of those areas english is not the first language. you talked about american systems and are outreach being bilingual in diverse communities and i do think it's important to have insurance agents involved. if i have a large outreach event and community health centers, doctors and nurses and i have brokers there if they are not a navigator but may represent those kinds of outrageous. >> on the language site one of the qualifications for being a navigator is that you are able to serve people in linguistically appropriate ways and we are expected to get applications from groups that we will target specifically, groups that are not english language proficient. we are working closely with the community. i have had a number of meetings with their trade associations directly and we have come up with a way to easily be able to enroll people through the marketplaces and we are definitely expecting they will play a very significant role particularly with regard to small business as they do today. >> the gentlelady's time has expired. are you asking for a written statement because i think the chair would like to know that as well. >> yes, mr. chairman i think it's very important all hands on deck. >> can you get back a written response for the committee? i recognized the gentleman from west virginia mr. grimsley for five minutes. sky was surprised he said the people you talk to their is next that men out there. the excitement in my district is kind of like the excitement esther olson found about his state of texas. people are scared and they are concerned and i have is this people coming to me and say i don't know what i'm going to do. do i lay off some of my employers and if i get below 50 what am i going to do? the commonwealth of virginia which i represent has indicated they will have all of their part-time employees go under 29 hour so they won't have to cover them on insurance and you know, it's becoming kind of interesting to see because you have people who were promised if you like your insurance you can keep it but just recently i think within the last 48 hours or proposal passed in the state of washington out of the senate and it's probably not going to pass the house but it passed out of the state of washington where they currently cover employees down to 30 hours but they will take their state employees and move them into the exchanges. they would give them a 2-dollar per hour bonus and pay that would help defray the cost premium cost but they won't be able to keep the insurance they had and i wonder what your thoughts are on that when folks are being forced out the plans they like because the state and let's face it if the state can't afford it a lot of businesses can't afford it either. the states are doing things that are pushing people away from either the number of hours they work or the insurance that they like and that they have. .. how many hours their employees work in how many employees they employ. how scary is certainly one of days, but we now under the existing cents of, which has been broken and found that difficult or impossible to get coverage at the small employer, just one employee can drive the cost for that employer to no longer provide the coverage. that could no longer have been under the affordable care act. >> clinic to you was going on. to tell you the excitement you my friend is not the excitement of the positive. they are online publication because they go on to say, worker friendly lawmakers that this person was supposed to the bill. workers would have lawmakers such as democratic lawmaker called the bill premature. why you ask. the precise benefits again quoting ms. fraser, senator fraser, because precise benefits changes there's a lot known. there is a chance that some workers cannot afford coverage and plunge their families. they fear putting state workers into the exchanges because they were built before the coverage. how can you tell the american people and senator fraser she saw. that's the excitement inherent in my district in obvious he senator karen fraser the state of washington, member of the democratic party has the same fear from her constituents. how do you respond to that, sir? >> i do know under the affordable care act, tax credits will be avoidable to make coverage in 2014 admitted today. >> ms. fraser wasn't convinced. thank you, sir. i yield back my time. >> you now recognize mr. butterfield for five minutes. >> thank you, mr. chairman. to do that for coming to be with us today. hopefully you probably do some information they cannot benefit from. as you may know, i represent a low-income district in north carolina. my whole state, we have 1.5 elliott people who are uninsured. about one third of those, 500,000 of those are poor people and 10% live in my congressional district. i have listened to the question that answers that i can tell you in my district, i can't speak for other districts, that there is a lot of and that the affordable care act. people i represent are looking forward to it, including business people. those who have taken time out to study benefits of the affordable care act for their business. most if not all are ready to embrace it. i want to take a few minutes to drill down the navigator program. you know when i know that is critically poor teams. i see the navigator program is community-based individuals who will go out into the community to untraditional places, arbor shots in a salon and knock on doors to find people who would qualify for the exchange. >> that's exactly right. >> these are not elitist to sit by and do they go out and find people to inform them about the benefits of the program. >> people have a track record in history helping people in those communities. >> would this include knocking on doors, canvassing neighborhoods? >> absolutely. >> when an individual is bound to a potentially qualify for the program, what happens next? once the navigator determines this individual qualifies her sister for the tax credit, what happened next? to take them by the hand to some central location and process the claim? >> the easiest way to get people signed up as online. they would hope folks who don't have access to a computer at home go to the community organization location and help them through an online process that can be done. >> let's say the citizen has a computer in their home. all the navigator stand their home, since the individual application online click >> and help them walk through the application. if the citizen does not have access to a computer, the navigator will enable individual to go to an office? >> ideally or people can apply. there is a paper application and people can apply with a paper application. they could go through the application under it that way as well. >> while the navigator see it through to completion? is there a procedure for making sure the individual follows through? >> there can be a procedure for the navigator finding out what the result of it has been. >> from what i can gather, it's an individual, see a single, help a come on childless adults who makes $20,000 a year, that individual would qualify for tax credits through the exchange. but an individual who makes $10,000 to a single and childless and healthy would qualify for medicaid. but if a state has declined the expansion of medicaid, the $10,000 individual will have no access to insurance, is that correct? >> even under the federal poverty line? >> those people won't be getting a tax credit. you're correct. >> and anyone under 100% of poverty going to the exchange clinics >> yes. >> if someone makes $50 a year in income, if their capacity to pay for the exchange, they can go into a? >> correct. >> of a family member wanted to assist the individual they could do it. the mac >> thank you very much. i yield back. >> the gentleman yells back. mr. johnson for five minutes. >> thank you, mr. chairman. mr. cohen, has her office done any analysis of the health care law, obama cares impact on premiums? >> no. i have no analysis. >> that's great. they're going to have a fun session here. so are premiums going up or down? you testified earlier that millions of americans who don't have insurance life insurance in october under the low? for the average consumer that has health care today, are premiums going up or down? >> we have to wait and see when the plan submit their rates. >> that is not what the president promised. the president promised supporters would see lower costs. so are people going to see increases or decreases in premiums? >> at this point we have to wait and see how the rates command for 2014. over time, people will see lower cost as we see more competition in the system, broader risk pool and overall health care costs keep absurd given cost credits they will see lower cost. >> who is going to see lower cost? is it going to be beyond? men, when income is it going to be seniors? who is going to see the lower cost? >> women today can they charge 50% more because they're women. yes, women will see lower cost than we know older people can be charged often five or six times as much because of their age and that's going to be limited, so they see lower costs. >> or anyone's premiums going up? >> would have defeat would raise the click. >> wait and see. pass it and let's see what happens down the road. that's a dangerous way to navigate a ship. you also write these programs will keep premiums in the individual and small group arcades reasonably priced. with a reasonable price? surely you've got some idea what a reasonable prices. >> sitting here today, i don't have an answer to the question. what i can say is we know over the last couple of years, health insurance premiums have been going up at a lower rate in decades before. >> the american people were promised two things. they were promised that they like the coverage they could keep it in the costs would be lowered. you just confirmed you don't know that to be true anymore. you're having to wait and see. >> for 2014, over time. he said he don't know. >> are premiums going up or down? >> i expect to premiums will go down relative to what they would've been without the affordable care act. >> for who? >> for everyone. >> you must know what to find some reasonable cause. if you think they're going down, you've got some idea of what the ranges. >> the primary factor that goes into a health care premium is the cost of medical care. so in order to have premiums truly go down, we need to address the cost of medical care in the affordable care act has a number of different ways. >> would have a different understanding of what is driving the cost. it is the bureaucracy that has set itself up in washington to oversee. i've only got a little bit of time left. on the application, one of the questions the applicants are asking is do you think the employer's coverage is affordable? do you think it's affordable? by the u.s. this? >> it is defined in the statute. the question is fast because it's an eligibility requirement defined up to 9.5% of your income. >> 9.5 is almost 10% for health care. >> what is your opinion of what is affordable? >> i don't have an opinion. >> that's good. got you. i yield back. >> gentlelady from alumni, ms. schakowsky for five minutes. >> mr. cohen, it is not surprising in the republican side the aisle the robot unstrung the opposition of the affordable care act or upon the care goes on after 33 efforts -- successful to repeal the entire bill. i recharge my colleagues to explain to some of their constituents, for example, parents of children with existing conditions they want to take insurance to them. the annual lifetime coverage limits should be reinstated. the rescissions of policies should once again going to play, but all the preventive health services without car sharing out to go back into effect, that the young people and their parents policies are off. you explain that to them. the medical loss ratio required insurance companies to pay for health coverage should be changed until women we think you should be discriminated against. i'd are not how many billions of dollars for health insurance. you can list by problems with the program and we can list many, many more good things. but it's like to work with each other to try and correct them, rather than just complain. no, the program is not perfect. i wanted to ask you. we're months away now from implementation and obama cares coverage in the administration has requested additional resources to implement the low end those requests have been ignored and it seems to the refusal of my republican colleagues to appropriate hhs to implement the law to inform americans about obamacare, expanding coverage options. let me say what part the whispered into effect, 600000% for blimps to talk about just allowed. could you explain how to use resources the administration has requested to implement the law and how might the refusal to appropriate adequate resources enter the ability of consumers to know about october 1st. >> thank you, congresswoman. we would welcome the ability to provide more grants to navigators in the community. we welcome the ability to do more outreach ourselves, as you know, there has been a lot of misinformation about this law. people really need to understand the benefits and what it can do for them. with the president's budget request, we could use the money to make sure people understand how it can benefit them. >> i would like to say you talk about fear in the districts. to the extent there's problems with the bill come if we could fit down and figure out how to make it better, a lot of the fear is the misinformation quite liberally sent out. is hard not to be scared about obamacare what it might do to you. i suggest the fear mongering going on about this law, which is now upheld by the united states constitution will bring up to 30 million people of the united states of america to have health care, that will help us join nations of the world that declare health care is the right of the citizens of their countries. we could use the help. all americans could use help to perfect this legislation. i yield back. >> thank you. we now recognize the gentleman colorado, mr. gardner for five minutes. >> thank you, mr. chairman. thank you for your time this morning. there's fear mongering on this bill, but i think to point out the roofers union backtracks on obamacare and wants repeal or reform of the bill. i think when you have a union concerned about obamacare we have significant concerns that must be addressed. are you familiar with richard foster, the actuary of medicare? >> i know who he is, sure. >> the house of representatives budget committee year ago or so? >> in that testimony talked about the promises, juan davila knothole costs down and keep the insurance if they like it. >> as i said, i believe costs will be down relative to where they would've been without the affordable care act. >> so that's an increase? >> the cost of insurance will increase. >> costs down >> of these people will have the security of knowing if they have an illness, their care will be paid for. >> we're talking about cost increases. >> for someone who's never had health insurance before -- >> are they going to experience cost increases quakes >> it depends on the individual situation. there are fact or so cause cause to go down and credits available. >> are you insured through the federal system would give us an insurance? has your insurance gone down or up? >> you know, i not remember what happened. i think we had a small increase this year. the way lower increases in the last two years been a long time before that. it is not new. >> the progress made if i'm not mistaken that this is the cost of health care. >> above relative to the law. >> this is the washington two-step because you're decreasing the rate of increases. this amateur seen obamacare has done? >> i believe health care insurance at the total out-of-pocket cost people absorb will be lower than it would've been without without the law. >> that's an increase in cost. what is an acceptable increase? >> for women infected a 50%% more than men, the effect will be to reduce their costs. for people who pay out of pocket -- >> even though cost increase to near dear? what you are saying is that my not in recent match. >> i think it's going to depend on factors including the cost of medical care. >> will obamacare reduce the cost of medical choir? mac relative to what it would've been without without the law. >> u.s.a. and health care were increase? >> external to the affordable care act. >> maybe not asking clear. will health care cost the next year after the implementation of this bill? >> that will depend -- i can't answer the question. i don't know what's going to happen. i was going to happen to the underlying cost of medical care. >> what about insurance to people like? are they going to be able to? >> if they were grandfathered plan and doesn't change significantly, they can keep the coverage and it is not affect good by the affordable care act. >> right now people across this country are being misinformed. >> they are misinformed if they don't understand they plan grandfathered that they can keep the coverage coming as they are misinformed. >> if the employer switches they plan, they get to keep their old health care? >> employers can keep employees in a grandfathered plan and not be affected by provisions of the affordable care act. >> the health care bill requires them to change. >> the health care law doesn't require them to change the plan. you don't have to change it if you're in a grandfathered plan. >> employers never have to change the health care plans they're offered. >> as long as the plan does not change significantly in the benefits they offer. >> they can keep a grandfathered land and do not have to comply with provisions of the affordable care act. that is a grandfathered means. >> the gentleman from missouri for five minutes. >> thank you, mr. chairman. thank you for being here today. i've got to say if rod serling walked through that door right there, i wouldn't be surprised because you walk in there and say you have now entered the twilight zone. there cannot be so much difference in interpretation, i don't think, other than it's unexplainable. it is twilight zone-ish. we have friends on the other side of the aisle, a good friend of book a while ago, mrs. schakowsky said the republican side of the aisle -- on the republican side of the outdoes rootless drumbeat to the president's health care plan. so many other good friend over there, gene green said something to the fat people across the america has seen vast improvements in health care and from the questions he seen today, that is now a somewhat lesser hearing. i want to stir the couple answers on things democrats have said and see if you agree with them. democrat senator max baucus said and i quote, i see a huge train wreck coming down because of fumbling implementation. yesterday i do agree with? >> i do not agree. >> was moved to tom harkin. senator tom harkin and mr. cohen, do you agree the administration should not be reading prevention fund for funding exchange expenditures. >> congressmen, i am not going to express a view on that. >> you can't answer yes or no question that a democrat senator made? >> i can. >> you don't want to? >> i don't have a view. >> you don't have a view whether you agree with this statement of senator made? >> i don't. >> i really don't know what to say. i guess i'll wait for rod serling to come through the door. >> that would be the second coming. i think he passed away. >> the way things have been going i wouldn't doubt it. i could see it happening. >> this morning, senator tom harkin blasted hhs secretary kathleen sebelius at a hearing this morning after we started this hearing, blasted sebelius for prevention fund money to pay for insurance navigator, saying the obama administration treats preventive care as an afterthought. to quote the senator, and sorry to say the administration just doesn't get it. first of all come a $5 billion rate by assuring prevention funds to the payroll tax extension signed into law last year to cut 5 billion the prevention fund. $332 million rate, sort of like prevention fund is an afterthought. let me ask you one more time. dierker senator harkin for funding exchange expenditures. >> i would've been happy if congress had appropriated funding for us to do the work we need to do. that didn't happen, so the secretary made it under authority and i don't have an opinion as to those decisions, no. >> who would you direct me to? let's say for a minute that i staff the come to me if they were a little confused. what government agency would you direct me to to get the questions answered, with a plan for the health care next year, my staff. >> if your staff is covered by the federal program, the information they would want to get would be the program that administers health care. >> lead agency? >> at cfp, whatever coverage they have. >> we have tried without leslie leslie -- you laugh at it, but my staff is not laughing. it's a very serious turn for me. when you have staffers on the hill that got college educations, some of them law degrees in there including two in three people from the apartment because the cost of living to get by with a legitimate question about what they pay next year, they think about leaving government service and taking jobs other places, it's a very serious thing. we have tried and tried and tried to get the answer but they'll be paying opm cannot tell us. >> i didn't mean to minimize it. i was only smiling because i can't help but opm. i wish i could, but i can't. >> i gave rats to admit that he didn't make it. i yield back. >> thank you, mr. chairman. thank you mr. cohen for being with us today. i have to go back and reiterate points at points of authority could the need to get you. .. >> continuously tried to paint us common meaning republicans on the other side, as the ones who were interfering with anyone getting coverage and looking at it from the unsympathetic standpoint however this program has been cut off and they support that and here we are attempting to pass legislation to help those individuals. this is my time. you had your time. i am perplexed and if you could clarify that for me. we are talking about months of time individuals go without that. also, for clarification purposes, and the discussion you had with mr. johnson and also mr. gardner you stated that as of 2014 january 1st health care premiums will go down. is that correct? >> no. what i believe it is first of all, the don't know yet the coverage because the plans are just now getting those rates to the state insurance department for approval to the exchange's. >> that was not a promise. the promise that was made continuously when this is implemented how health care costs would go down. under oath today as you see it, that you are no longer standing behind that statement. you are now saying that we do not know am probably more than likely seeing health insurance premiums going up. is that correct? >> no. what i think i said its 2014 we have to wait to see how the rates come in and over time i believe the affordable care act will result in the world for all cost. >> what is that based on? cbo does a culmination of studies and i will cite to north carolina that the north carolina health premium rates will go up by 61 percent. water you basing your data? and if you do have studies that show this i would like you to submit them to the subcommittee. >> i am basing it on the increased competition that will exist in the it marketplace compared to today's. >> but that would exist with or without the affordable care act going into effect. we in congress could enact many pieces of legislation to help increase competition >> it could congresswoman but in many states today the individual markets are dominated by 90 percent of the market. >> that could be easily remedied with legislation. we don't need massive health care increasing rates by 61% from north carolina and i would really help you could gather data and again under oath since you're basically saying i am incredibly unclear as to what will happen with health care rates as of 2014. >> for millions of americans covered by insurance through their employer, they will not see the effects. >> my time is up for i don't even understand what you base that on. >> u.s. to questioned while he was under oath about the prices going up but you did not get a chance to answer that question. with regard you previously stated the price not going up you said you could not guarantee that and you were going to elaborate on that statement? >> mr. chairman, mr. cohen. >> mr. chairman i think i am next in the queue if you don't mind. >> listen, the previous questioner advise the witness he was under oath and then ask a question and refused to let him finish answering that question and it is inappropriate. mr. chairman i think the witness should be allowed to complete his answer. >> i just said that. >> i am not sure of the question. >> i would be more than happy to restate my question. >> could you submit the question for the record? >> it is wrong for members of this committee to put the witnesses in a perjury trapper go. >> no man. i am completely stating the gentleman is under oath and he was answering the questions. >> with the gentle ladies of but the question? >> i will answer for that question to be sure that ms. ellmers has an answer to the question. >> thank you, mr. chairman you have been patient with us and we do appreciate it. want to go to your statement you made in response to mr. "harper's" question over time of the insurance cost would come down. this is something i watched closely because i am out of tennessee. you're probably familiar with the program i have worn out might committee members about tenncare and i asked secretary sebelius about it but from what we have found, from what i have found in my research i have more working on this since we got tenncare off of hillary care in 1995 and bear in mind it has quadrupled in cost over five years. but what we found is there is no example where the near-term expenses are going to yield a long-term savings in health care. and if you do have those examples of love to see them. because with the debate of obamacare nobody has been able to show one. not with public option, a guaranteed issue, community rating, now with any of this in new jersey jersey, tennessee, hawaii, a nywhere else. not with the waiver program, there is no example where you decrease costs, increase access and get better outcomes. if you can prove us wrong on that, then feel free to bring forward an example. you have an example? >> i think the person today who does not have health insurance coverage or do not know how to pay medical bills and worries about going into bankruptcy because their child is it, for that person, a lot of this discussion is irrelevant. that is what we will change. >> let me ask you this about the navigator's. is it true the navigator's cannot have health care or health insurance experience? >> no. >> that is not true? tt has been part of the understanding that is out there. also with the increased competition theory, what we have seen in tennessee, when you have government control control, that is what runs people out of the marketplace. >> this is an to government control but a commercial marketplace. >> i beg to differ. when we give you examples of what is happening in tennessee. yesterday's it shows marilyn small group coverage increase will go up 145%. we have examples in tennessee we have been pulling our companies this year and next year this year anywhere between 26 through 1302% and we see 40 and 50% increases expected for next year and the young adult population, this survey we have from energy and commerce committee looks at 145 through 185%. families sonorities said insurance go up $3,000 since the law was passed. so what do i tell people who come to my town hall to say the president promised my premium would go down $2,500 per year. what do we tell these people? >> they should shop in the marketplace to find a plan that is best for their family that is the most affordable for them. that is what we are expected to provide. >> but it will cost more. >> but health care costs have been going up year after year long before we ever had obamacare. it has nothing to do. >> but the percentage is greater and i thank you probably are aware of that. do you believe the increases are tied to the taxes and mandates in obamacare? you believe that is the driver? >> the impact of taxes on health care premiums is very small. >> $165 billion is small? >> the impact on the premium. >> $165 billion of new taxes has a small impact on premiums? what do you call large? how do you classify small and large? >> we have a reinsurance program going into effect estimated to reduce premiums from what they would have spent. >> let me ask you about that. i would like to know if you find it ironic we are now acidizing insurance purchase at the same time we're making it more expensive by the mandates and taxes piled on. but we have increasing subsidies and putting even higher federal spending do find that ironic part. >> americans are paying for the cost of uncompensated care today when they show up without coverage in the emergency room those costs have to be passed on the. >> you are comfortable with the cost boeing up? i yield back. >> we will move through a system with more insurance coverage and spread the costs over more people that would be to the benefit all americans. >> i might also add to the issue of uncompensated care i hope you will submit more questions for the record. i ask unanimous consent the opening statements of members be introduced into the record without objection and in conclusion i would like to thank the witnesses who have participated in today's hearing. i remind members they have 10 business days to submit those other questions for the record and also mr. cohen will respond promptly. i appreciate you being here i am sure we will see you again soon. the committee is adjourned. >> mr. chairman, i have the yellow light so i yield back. >> thank you, mr. pastor. . >> when did the furlough policy go into a defect? polic >> the furlough itself went into effect with a pate period sunday april 21st there furlough itself we had to notify employees, there were to notifications starting about five weeks ahead of that notifying of the possibility of furloughheree and the intent we've would carry it out. the >> that was april when theyoinga got the details? >> they got the detailedhe -- word, i will get back toword, within exact date but we didno. provide the official notification it would start i think it was one week or two before.hi >> nevertheless it was one b week ago or 10 days ago? did i hear you correctly say you first gave the airlines and airports the say infrastructure notice on how this would be applied lastinfrat wednesday? >> no. we provided notification tod la? them of the general impact. >> i am not worried about the general impact but whenl im. you told them the details of which airports and what times they would haveo tell trouble. u them t that was last wednesday as its t understand it. >> tuesday.sday as pardon me which was a few>> p days which was a few days before it went into effect. >> that's correct. >> and we've got hundreds of rp airlines, we've got millions of americans wanting to make their plans for travel. why did you wait until that long to tell these functionaries, the airlines, airports and personnel the detailed impact of sequester? why wait that long? you've had this under consideration as you've said for several months. but you waited until hours before it was to be placed into effect to tell the relevant stakeholders. i find that shog. a shocking lps of management. would you comment on that? >> we built detailed schedules within each of these facilities. and we shared this information with the airlines as we had it. >> and that was a few hours before it went into effect. but you've been doing this for months. why couldn't you have brought them in earlier so that they could make their plans? >> we have been talking about general impacts -- >> general impacts, again. i'm not worried about -- they knew the general impacts. >> we have been talking about reduction in available controller hours of 10% for months. >> but you didn't tell them which airports, which airlines? >> we told them that they should expect significant impacts at major hub facilities. >> well, la-ti-da. everyone knew that. that's what sequester's all about. but it's important for them to plan their schedules and their hours and their planes and the airports their management personnel, they needed to know detailed impact on them as early as could be had. and you had months to do that. and yet refused. i find that shocking. >> i don't think we refused. i would say that what we wanted to do was conduct a proper schedule and analysis of it and then provide them the best information we could. >> how did you inform them? >> we informed them in a meeting that we had at the command center. >> a meeting? >> yes. >> between whom? >> our operations team led by our air traffic organization. >> what did you inform the airlines, the airports? >> we -- >> how did you inform them? >> we talked in a meeting. we've had a number of meetings with the aviation industry. first about contract towers, and then talking about the impacts associated from the furlough. >> you got all the airlines in the room? >> we get together with them every day in an operational capacity. >> and there's hundreds of airports. did you have them in the meeting? >> the airports, we certainly -- not every airport is affected by the impacts of the -- of the furloughs. but we certainly identified through their associations the major impacted airports. >> so you did this with a conference call? >> no. with a meeting. >> were you -- did you ask them for their input? their suggestions? their ideas? >> we are continuing to have that conversation. we shared with them, this is what our analysis showed and we will continue that discussion every day going forward. >> did you take into account the complaints, the information that they gave to you? >> absolutely. >> were they shocked when you told them at the last minute the >> the museum is supposed to help him relive the first eight years of the 21st century to explain the of decision making process that i went there as president. we hope it inspires people y in some way. community orcoun >> we really didn't want to be a school. we wanted to be the do tank. i dunno if there is a lesson that we go in a different rection aprt with the museum of programs from which programs would be merged. -- to emerge >> y have to let her visi as a partner. several first lady's consider themselves to be partners with their husband. not that they were trying to show them what to do but helped advise them to take care of them mentally or physically or politically. and she was a significant influence. >> it is a tragedy but that's did help to contribute his becoming president because they were destroyed by the war. and to work together to achieve. >> the subcommittee on the oceans and fisheries and co-starred in order to day. we will be covering a the coast guard and the operating budget of noaa. again, well, it that admiral papp and dr. kathy sullivan acting administrator of the national oceanic and atmospheric administration. thank you for both being here. both the coast guard and noaa provide vital services. 41,000 men and women in the u.s. coast guard carry out a wideaay of civil and military responsibilities that touch every aspect of u.s. maritime sector they protect the buyer may defend the borders and save those in peril on the sea. last year they responded to 20,000 search and rescue cases saving more than 3,500 lives. to stop thousands of undocumented migrants from him legally entering the country and seizing hundreds of tons of drugs. it forces in support of the troops overseas conducts humanitarian missions andleaveso pollution. perhaps nowhere is there fortunes better known than in my state of alaska where we will say we have a great tv show about the coast guard. and based on the fishing industry and other maritime commerce and recreational boating. proud to be the home of the largest coastguard base is in kodiak with covering aerostation san small boat stations and dedicated talented guardsman's and women mastercard shield was the unprecedented deployment of personnel, cutters and aircraft to respond to the increase shipping and energy market in a fast-changing environment. congress it is to the coast guard has the tools they need to do all we ask them to do. our nation struggles with finding a responsible balance of fiscal restraint with the budget that meets our needs and responsibilities with the $1 billion reduction. last year repass the authorization bill that authorized over 700 million more of discretionary funding than the president's request would provide. with a strong consensus of support of both houses and the need of the essential missions to perform. i am worried about the lower funding means not only for readiness before the significant cuts slated of acquisitions. that means prepared as for future activities including the need for the lower class icebreakers 74 jews discussing this with admiral papp. noaa also plays a vital role and that what -- welcome dr. sullivan. the forecasts are essentials to the nation's weather agriculture aviation and shipping and of course, fishing. for these sectors with the forecast means more than planning a picnic and economic vitality and critical business decisions and lives depend on there accuracy. i commend noaa for the response of increase of severe weather we have experienced and be forecast of the se hrricane sandy david vance warning which saved the lives and property from the devastating superstorm and in the wake its vessels went to work to ensure the shipping panels remained clear and open to bring needed supplies to restore along the atlantic's seaboard. venations fishermen also depend on the noaa assessment to make sure the rvest that drives the community to make sure it is sustainable also approved as a producer of a half of the nation's seafood this is critical for alaska. also the permit of oil and gas activities to ensure compatibility with marine mammal population and the way the alaskan and native people rely on for a the source of nutrition. i am pleased they have proposed a modest increase of the noaa budget. some for ocean observation observation, a fish stock assessments in basic research among otr programs. i share concerns better cut to afford and the impact on furlough of noaa personal and maintaining essential services for private for today's discussion with dr. sullivan but let me ask my ranking member to make his opening statement. >> by one to think that our witnesses. last year the coast guard responded 20,000 search and rescue cases and 30500 lives were saved the plays an important role in so many areas coming from a state like florida we are very much appreciative of your service to our country and also thank the chairman for hearing one negative holding this hearing we live in a time of record deficits to appreciate the opportunity what the administration's priorities are for the upcoming fiscal year for the upcoming coast guard and noaa i am interested to hear from the coast guard of the recapitalization efforts that is vital to our national security saw was disappointed to see the effort is being scaled back and we will have a few questions of that topic. additionally with the ranking member on the east asian and pacific affairs subcommittee i recognize the importance for a strong presence in the region that however i will have questions of the reduction of our presence in the western hemisphere in the application of the counter trafficking mission of our task force. as for the noaa budget i long called for improved data collection to support the proper management and i am encouraged by increase emphasis and stock assessments however i am equally disappointed to see the diversion of money from the kennedy grant program and i will have a few questions on this topic. additionally noaa has proposed to with 66 species of coral under the endangered species act some found off the coast of florida i am concerned of the implications how it will impact vital industries in the state of florida such as commercial and recreational fishing proprietress a two-year drug agency intends to move forward. and the president resurveyed release implementation plan for the national ocean policy i'm concerned about the unintended consequences from the implementation plan. too often this administration puts forth the voluntary quote-unquote like the national ocean policy when said and done refaced the new regulatory regime with severe e. economic consequences. last congress i requested an oversight committee i am hopeful they will renew the focus on this initiative. now we think the chairman and witnesses for being here and i look forward to your testimony. >> let's go ahead and we will start, thank you very much for being here. i know the folks in alaska when you visit always appreciated visit from those in washington d.c.. thank you for doing that on a regularais. >> we will be back. it is great to be here and appear before you the first time because it is my honor to be here about our coast guard and the fyi 14 budget. of a bite to begin by thanking all of you for the tremendous support we received for the fyi 13 budget and the emergency supplemental for hurricane sandy that enables us to recapitalize the aging fleet to sustain front-line operation and care for people and these were hard earned gains that helped to sustain despite the uncertain and stormy seas caused by the current fiscal environment. yesterday in boston foundation began to pay tribute and final respects for those killed last week. the collective parts of our coastguard family go out to those in boston and those families harmed by the tragedy. but they also go out because the coast guard is a part of that committee and we could respond immediately with boats and crews and armed helicopters and boarding teams and maritime transportation security posture. our ability to respond that only in boston but allport's is a direct some results of support we have received from the congress and administration over the last 12 years. the results demonstrated during hurricane sandy when we rescued 40 behalf crewmembers and 30-foot seas and 60 not wins 80 miles offshore and also part of the community in new york and new jersey is a we were plate -- please to be able to get the port running after this'' -- storm and worked to reopen the port to provide the vital commerce it provides. last year with the arctic demands we completed hour to shield nine month interagency effort with the national security cover, two helicopters 300 miles above the arctic circle. given the lack of short and the extreme conditions the capabilities provided by the cutter were critical. executing the department of romance security cleared strategy it interdicted threats far from our shores to the central america coastal trafficking in interagency aircraft could detected drug smuggling vessels carrying 107 metric tons of cocaine nearly worth $15 billion in reid disrupted transnational criminal organizations. closer to short the growing if threat of the vessels that smugglers are using to avoid a security. it continues to threaten our nation those engaged in a trader growing smarter boulder and taking greater risks and increasing danger to the homeland. transnational criminal organizations are financed by narcotics by way of the see leaving crime and instability in there wake. in december we were reminded of the dangers as i presided over the memorial service of the coast guard cutters, but he was killed by cutters as his boat was rammed so we had to honor his memory which strengthens our resolve to be to threats but much like the weather on this sees the coast guard cannot control the fiscal environment within which we operate. will make the best use of the resources we provide to safely and effectively conduct operation of greatest risk to the nation by recapitalizing cutters and go and aircraft to address the emerging threats in the offshore environment. he made great strides number five is under construction and we are about ready to award the contract number six and we have taken five new response patrol boats and contract it then completed the other patrol boats with the other medium endurance cutters. we have a long way to go the capital investment plan which delivered recently to congress helps to give form -- reform the discussion in maritime activity increases in the arctic and we focus on the southwest border is increasing and 378 insurance cutters have serve the offshore and firemen for 50 years that as a lee testify in the past there at the end of the service lives. received -- receive strong support at the highest acquisition priorities including funding for the seventh national security cover in the 14 budget. it sustains the most critical front-line operation while finding the most critical acquisition products this required debt -- tough decisions they were difficult decisions for me but they read that best to insure we provide the next generation of coast guard the tools required to protect our nation. while realistic and mindful of the current environment i remain optimistic of the future of the coast guard. it to look beyond the budget cycle to move forward to address the greatest maritime safety and security risk now and in the future the men and women give their all and make sacrifices every day we owe them our best efforts to provide the support they need the subcommittee long supported the men and women recognizing there sacrifice and on behalf of all shipmates an accord to answering your questions. >> let me move to do dr. sullivan. >> mr. chairman i am pleased to be here today. >> is your microphone on? >> my apologies. to present that fly 14 budget request for noaa to build on your considerable achievements made possible by our employees and many partners to help to achieve our mission. the past year provided evidence of the tremendous i do that noaa delivers to the public. things to the agency's national oceanic and atmospheric administration science and stewardship and what we have developed to the 48 year long history with these elements effective lee the response of the issue of the moment and the challenges of our time the value of disintegrated approach was demonstrated vividly the past october was hurricane sandy bore down on the caribbean east coast. with the efforts to help americans prepare for and respond to and recover from the devastating storm. people products and services made final contributions to emergency managers and communities throughout the affected region. from forecasting that impact to record storm surges days and advanced user king just hours after the passage to enable the delivery of critical supplies to remapping devastated sure lines and coastal communities so it could be to the scene the proposal advances noaa ability to of communities across the country safeguard the lives of their citizens and prepare for extreme weather events and adapt to the changing world to make the environment sustainable and enhance there community. my written testimony provides more detailed information but for now i wish to emphasize three important precepts underlying the budget. first, focus on fiscal discipline within the program. second, make targeted investments in key areas of our vital program and third, i continue to promote efficiency and program operations per our focus is reinforced from many partners over the past year we listen and believe that lays out a path forward that addresses those concerns for the most notable example to fiscal discipline lies in the changes we propose to to the satellite system. working closely with our partners at nasa has sharpened the focus while ensuring a the continuity of faith based -- sir traneleven we have strengthened program management and decrease the possibility of a gap by moving the launch date of the second satellite for word. fisheries management is another court noaa mission. we propose to increase investment of fisheries science and monitoring the management of these programs to ensure we have the information needed to realize the economic opportunities. with respect to achieving a better mission balance this budget has a carefully chosen set of investments that improve the balance of the oceanic and atmospheric program the intramural funding, the research and operational activities and the resulting long-term and immediate benefits the nation receives. in the interest of time i will highlight many of the points cv and. the first is in research and data acquisition and conservation noaa cannot accomplish its mission without the talents and capacities of our external partners. second as the president has stated we must not let pressures killed investment in the future. the budget proposal targeted investment of habitat restoration, research and activities that set the stage for long-term environmental sustainability and economic vitality and enhancements. in some the budget proposal makes important strides to the healthier balance among and across the needs of today an important demands of tomorrow. finally we remain committed to good government using taxpayer dollars that are appropriated the effectively and efficiently. we made to give a progress in recent years by consolidating activities activities, streamlining programs, stocking more acquisition vehicles vehicles, carefully controlling discretionary expenditures this budget continues those efforts to propose additional efficiencies and 90 savings, consolidation and termination of a lower priority program. inclosing noaa is science based enter disciplinary interbedded agency that provides environmental intelligence to businesses and committees the work of the people of partners touches the life of every american every single day in this budget enables us to continue and approve the support of work and service to our nation. thank you for the privilege of appearing before you today and i look forward to your questions. >> i will start with the ranking members in go through the list at that point*. >> admiral papp my opening question is to shift the focus to the eastern pacific of which is important to do but i'm worried about the impact and in particular how is that impacted of the u.s. navy heavily utilized that is now being retired? salad be the replacement rate on expect to see them fully operational until all 2018. said you could comment on operations in the western hemisphere and in the caribbean. >> the western hemisphere is a particular focus since becoming comment on. that is right with the focus to asia and that coastguard could provide contributions and we have in the past there are many nations including china looking to the u.s. coast guard for the maritime force they should be building that controls ruled lot see a major have great purpose out there but the highest focus is for the western hemisphere the arctic closer to the shores and most notably in the caribbean and eastern pacific with the drug trafficking routes. in years past the navy is a forceful supplier work for joint interagency task force in the detection of the monitoring mission and tear a coastguard law-enforcement attachment so we can change operational control when we detected drug smugglers and use it just the same as the coast guard cutter. the loss of the navy ship in the caribbean will ultimately we'll resolve and more drugs. i know talking to the other interagency south and as a director that right now we are on the intercepting one-third of the tracks that we are aware of smuggling drugs to central america. last year we interdicted 170 metric tons of pure cocaine that did not make it into south central america to go across our borders. by comparison all law-enforcement agencies in the 48 states on the interdicted 40 metric tons of cocaine after was broken down. more drugs and fewer assets to reach a verdict like migrant interdiction and other activities. >> the gist of it is the fact it is not replaced by anything. it is deemed to be pretty significant. and those ships will be up there and it will take away. and right now we're only capable and glad to give you a classified briefing of the numbers of ships we provide on a regular basis but because of sequestration and future effects there well below the numbers of ships they need. >> to talk about the kennedy grant program is the percent of this amount? the budget was eight-point to million. what is with the u.s. department of agriculture? my notes john b. received 123 million and the percentage of to in the program is that accurate? >> senator those numbers correspond to what i have we had $132 million from eight-point to will be applied specifically to the grant activities. and i would point* out that very same activities that they are clamoring for more of of stock assessment. >> do talk about the 66 coral species endangered put into this protective status status, if i am not mistaken and it is about $1 million to implement in the first year. is that correct? roughly? >> and of the of budget figure for first year implementation. >> we will confirm but the biggest question is how much will this cost over time? will increase as the years go on with the workload and industries are impacted? i am not saying it is better bad but i am focusing on the cost. of might notes is it is about $1 million of the first year to have any estimates what that looks like going forward in the future years? >> the out your profile i do not have the answer for which depends on which really come through the final decision earlier working very hard to get things right. as you know, we extended the analysis period and the public comment period in anticipation reaching out to the affected communities. to see what the impacts would be. >> senator wicker is next on the of list. let me start with admiral papp date you both for your testimony and service. and with u.s. national security cutters, now the first three are operational tell them how they are performing and how they compare with the vintage high endurance cutters that are replaced and in the budget and with no mention of funding for the eighth when the coast guard has said it is the minimum required to replace the 12 aging cutters. >> good to see you again. the national security tatter is the best performing coastguard cutter we ever had in our history. heads above the ship is replacing and i say that foliate dodging the endurance cover was a superb ship. it is just old structurally unsound and environmentally unfriendly and not up to taking on the missions we do today. national security cover is a massive improvement and really performing above and beyond what we asked of it. the greatest example the national security cover operating in the bering sea where we will primarily employed these ships and in 20 footsies and 60 not wind could launch its helicopter and recover the helicopter to conduct those drills. that is a major cat capability for the we need to do rescues and surveillance has an engineering plant at higher speeds with greater fuel in efficiency with engines and propulsion and that allow us to loiter or sprint depending on the mission greater sensor capability and a skip to do intelligence work and we finally have a ship that appropriately recognizing the patriots that step forward to serve our country and gives them what they deserve rather than being in dank dark berthing area is stacked three high they now have opprobrium living spaces because the internal capacity of the ship allows us to expand out to give us more room and better ability to take care of them. i am a big fan of the national security tatter. the capital investment plan should be up here flash shows answering questions lie national security cover number seven was not in the of flight 14 budget as exhibited in the five-year plan. >> the program of record has not changed? >> nosair. retelling the subcommittee we should feel optimistic and comfortable? >> yes, sir. it is a long lead money that is put in the a flight 13 we have that already. we have the construction money for number seven in the 14 budget right now. >> it was so long lead the number eight that caused me concern because i don't see it there. >> you are exactly right. it is not there. nobody is more disappointed than i am but with the fiscal constraints and was confronted with tough decisions to make the least at minimum levels and that is why the money is not in their spee make you made as strong and clear statement about the value of this program and i appreciate your assurance we can feel relatively comfortable but let's meet the that could you comment the overrun of original cost estimates? resulting in shrinking of the other programs within noaa including many important to my state of mississippi how did the budget requests rain in excessive cost with the satellite and acquisition and will noaa strive to bush and sure it is not negatively impacted of the core issues? >> good morning. the short answer is we have been working terribly hard over the last two years to be sure we have the program of the successful lee program as you will recall was unwound and dismantled and exist no more. the programming have today is a far cry it has been hitting a the schedule quite regularly. that we now have a well-managed program gaining stride and on track. and in the management contract by most reckonings with the estimates of scope and budget and to get a response early enough in the program it has now constituted of sound management hands this budget proposes to refocus the program with this committee and others on the hill as well as reviews that urged a sharp focus on the requirements of there core whether mission. we do that with this budget for the life cycle costs over $1 billion in the very much appreciate the concern you raised about the necessary help the balance along the coastal mission setter just as vital we work very hard over the last year in the budget proposal to move that to a healthier point* and are committed to insure that stays true in the futures. >> i look forward to working with you on the gulf coast ecosystem restoration council which is part of the restore act to make sure it aligns with state priorities. i afford to talking to you about that interoffice. >> thank you very much. we would have a second round for those who by to ask a second round of questions in a dinky for holding the hearing. very important purpose you might not think of co-starred with minnesota but commandant he mouthed the word. i knew. [laughter] but they. . . a being here and you know, the it the importance of to lose as a port with the ice breaking issues we have and others so i appreciate the help you have given us there as well as the issue we have with the ti service issues but today i want to focus on the floods of the red river valley in the national weather service's forecast center in to give you a sense of this two weekends ago i went home and it was 70 degrees in washington with 1 foot of snow. today we got another half a foot of snow that is unheard of so we're very concerned we thought of us off our go area would be fine with the chances but now there is a 40 percent chance it will set a new record with a 75% chance it will be the second highest on record. if anybody remembered we were so close to losing more head and it was in north dakota. i was there and met with them mayor of morehead to discuss preparations as cities and local officials based there planning on preparation of the predictions i come from the national weather service. and literally they are adjusting resources according to how high they anticipate the water to crest with this unforeseen problem of all this no. there well-prepared but they need this information. my question is in addition to modeling the weather service provides out is noaa working with local officials to make sure they have the appropriate resources in place? >> senator, you quashed any complaints of it trying to be spring in washington. we're working closely with the state level and local level officials in your state we begin with travel and local officials and, including cross border into canada. back in february we would hold at least weekly briefing on negative briefings are more often if requested. last month we briefed north dandi congressional delegations in sending your office last week. lee monitor this no pact rivers variate carefully to make sure we bring the most current data possible into those production models and we are nning or maybe with emergency response specialist in the appropriate locations to make sure the mayors and governors have a timely and focused on their information th they need. >> and with sequestration there are some furloughs will this affect the emergency efforts you may have to make coming up in the next few weeks? >> senator the national weather service that we provide are among the most important tasks that t. levin has. and with our response personnel is of the critical response capability we have to have the of flexible approach to do with the realities of sequestration. . .

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