I congratulate the House of Representatives on the introduction of the Affordable Health Care for America Act, another critical milestone in the effort to reform our health care system.

This legislation is the product of unprecedented cooperation and countless hours of hard work by Speaker Pelosi, Chairmen Waxman, Rangel, and Miller, Congressman Dingell, and scores of House members who share my conviction that we can’t wait another year for health insurance reform. They have forged a strong consensus that represents a historic step forward.

The House legislation includes critical reforms to the insurance industry, so that Americans will no longer have to worry that they will be denied coverage, or that their coverage will be dropped or watered down when they need it most. I’m also pleased that the bill includes a public option offered in an exchange. As I’ve said throughout this process, a public option that competes with private insurers is the best way to ensure choice and competition that are so badly needed in today’s market. And the House bill clearly meets two of the fundamental criteria I have set out: it is fully paid for and will reduce the deficit in the long term.

While we know there will may more steps and much spirited debate before a bill reaches my desk, I congratulate the House on their work so far, and I’m confident that members will continue to work together to deliver meaningful reform for America’s families and businesses.

Some major provisions of the act:

Sets forth provisions governing health insurance plans and issuers, including: (1) exempting grandfathered health insurance coverage from requirements of this Act; (2) prohibiting preexisting condition exclusions; (3) providing for guaranteed coverage to all individuals and employers and automatic renewal of coverage; (4) prohibiting premium variances, except for reasons of age, area, or family enrollment; and (5) prohibiting rescission of health insurance coverage without clear and convincing evidence of fraud.

Requires qualified health benefits plans to provide essential benefits. Prohibits an essential benefits package from imposing any annual or lifetime coverage limits. Lists required covered services, including hospitalization, prescription drugs, mental health services, preventive services, maternity care, and children's dental, vision, and hearing services and equipment. Limits annual out-of-pocket expenses to $5,000 for an individual and $10,000 for a family.

Establishes the Health Choices Administration as an independent agency to be headed by a Health Choices Commissioner. Establishes the Health Insurance Exchange within the Health Choices Administration in order to provide individuals and employers access to health insurance coverage choices, including a public health insurance option. Requires the Commissioner to: (1) contract with entities to offer health benefit plans through the Exchange to eligible individuals; and (2) establish a risk-pooling mechanism for Exchange-participating health plans.

Provides for an affordability premium credit and an affordability cost-sharing credit for low-income individuals and families participating in the Exchange.

Requires employers to offer health benefits coverage to employees and make specified contributions towards such coverage or make contributions to the Exchange for employees obtaining coverage through the Exchange. Exempts businesses with payrolls below $250,000 from such requirement.