Statements On Introduced Bills And Joint Resolutions

Floor Speech

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By Mr. MERKLEY (for himself, Mr. JOHANNS, Mr. CASEY, and Mr. BROWN of Ohio):

S. 3418. A bill to amend the Public Health Service Act to specifically include, in programs of the Substance Abuse and Mental Health Services Administration, programs to research, prevent, and address the harmful consequences of pathological and other problem gambling, and for other purposes; to the Committee on Health, Education, Labor, and Pensions.

Mr. MERKLEY. Mr. President, I rise today to discuss the Comprehensive Problem Gambling Act, a bill I introduced just moments ago with Senator Mike Johanns. This bill would establish and implement programs targeted at preventing, treating, and researching problem gambling.

Currently, the Federal Government provides millions of dollars to treat alcohol and drug addiction, but does not dedicate resources to treat the effects of problem gambling, which can destroy a person's career and financial standing, disrupt marriages and personal relationships, and encourage participation in criminal activity.

Over the past decade, gaming and gambling has grown significantly in the United States. According to the National Council on Problem Gambling, approximately 6 to 9 million American adults are problem gamblers.

The recent economic downturn only compounds this situation as many States consider relaxing gaming laws in an effort to raise state revenues. At the same time, the Federal Government and most states have devoted very little, if any, resources to the prevention and treatment of compulsive gambling. In fact, no Federal agency is currently responsible for coordinating efforts for treatment and prevention. Prevention and treatment programs have been proven to save money by decreasing the severity and prevalence of problem gambling, but cash-strapped states are struggling just to maintain funding for pre-existing programs.

I believe that if State governments benefit from gambling and lottery proceeds, then those governments have an obligation to provide assistance to those suffering from a gambling addiction. I am proud that the State of Oregon understands this concept and has one of the most comprehensive treatment systems in the country.

Through Oregon's Gambling Treatment Fund, one percent of Oregon Lottery revenues are transferred to the Oregon Department of Human Services for the administration of problem gambling services. However, decreasing lottery revenues has resulted in reduced treatment dollars.

I'd like to share the story of one of my constituents. For Toni, gambling started out as a fun trip to Reno or Las Vegas. She began playing video poker on occasion, and when she ran out of money, she would simply go home. But then the casinos brought in ATM machines, and she no longer had to leave the facility to access money. She could stay for hours, and did. Gambling quickly went from being a fun activity to an escape from problems and stresses in her life.

Before long, gambling had consumed Toni's life. She gambled away her life savings and went through credit card after credit card, racking up the cash advance limits and borrowing money from family members to pay it off. She tried to quit numerous times, but, as she describes it, the urge to gamble was much stronger than she was. Eventually, she couldn't do it anymore. She couldn't stop thinking about how she was going to get her next ``fix''. She ``felt about as low as you can go.'' She knew she had to get help.

Toni sought treatment in May 2009, and will soon reach the one year goal she set with her counselor to be gambling-free. However, she continues to face the long-term impacts of her gambling. Toni and her family live paycheck to paycheck and she worries that the debt she has accrued could cause her family to lose their house if the bank decides to raise interest on their mortgage. But Toni sees hope in her future because she had access to treatment and critical support services. While Toni has been able to start her own recovery, thousands of individuals across the country continue to struggle with their gambling addictions because there are so few prevention and treatment resources in place.

Unfortunately, the lack of education and research surrounding this issue has made it difficult to allot the appropriate resources to address these problems. The Comprehensive Problem Gambling Act would provide $14.2 million in competitive grants annually for 5 years to non-profits, universities, state agencies, and tribal governments for prevention, research, and treatment of problem gambling.

Recent studies show conclusively that every $1 spent on treatment saves more than $2 in social costs. This legislation is a minimal investment with life-changing returns.

I urge my colleagues to join me in supporting Toni and the countless other individuals who struggle without supports by cosponsoring the Comprehensive Problem Gambling Act of 2010.

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

There being no objection, the text of the bill was ordered to be printed in the RECORD

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By Mr. MERKLEY (for himself, Mr. Dorgan, Mr. Schumer, Mr. Menendez, Mr. Durbin, and Mr. Harkin):

S. 3419. A bill to exclude from consumer credit reports medical debt that has been in collection and has been fully paid or settled, and for other purposes; to the Committee on Banking, Housing, and Urban Affairs.

Mr. MERKLEY. Mr. President, I rise today to propose legislation to address the problem of medical debt and credit scores. While historic health reform legislation enacted this year sets us on a path towards ending the crushing problem of Americans who lack health insurance, the challenges of our health care billing system remain a work in progress. One of those problems arises when our system of third-party payment leads to errors in billing and payments that, through no fault of the borrower, nevertheless undermine a borrower's credit scores. The borrower then must pay more for a home, a car, or his or her credit card, and in some cases, cannot at all get the loan he or she needs and deserves. To address this unfair burden, I have introduced the Medical Debt Relief Act.

Unlike consumer debt, Americans do not get to choose when accidents or medical emergencies happen. Medical debt is not the result of irresponsible consumer spending and is a not an indicator of poor credit. According to the Commonwealth Fund, accrued medical debt plagued nearly 72 million adults in 2007, and over 28 million American consumers were harassed by collection agencies for unpaid medical bills that same year. Research done by the Federal Reserve has found that medical bills make up the majority of non-credit card related accounts in collection and found on credit reports.

Nor is the problem of medical debt in relation to credit scores simply a question of whether one has insurance or not. Rather, medical debt credit challenges are a direct function of the nature of our insurance system. Because of the third-party payment system of insurance, medical debt is far more likely to be in dispute, inconsistently reported, mired in the complex medical payment bureaucracy, or transferred to collections without the consumer's knowledge. It can often take months, if not years, to adjudicate these claims. Unfortunately, even one negative medical collection mark can damage a consumer's credit score, thereby costing the consumer higher interest rates on automobile loans, home loans, and credit cards. It can even block the consumer from making purchases entirely. Sadly, even after the consumer has paid off or settled delinquent medical debt, the negative mark on the credit report continues to plague the consumer for years.

The Medical Debt Relief Act is a straight forward solution to this problem. It would require the removal from a consumer's credit report those medical-related debts that have been fully paid. Companion legislation has already been introduced in the House by Rep. Mary Jo Kilroy and presently enjoys the support of 70 cosponsors. This legislation is also supported by the Consumer's Union, National Consumer Law Center and the National Association of Consumer Advocates.

I am honored today to be joined by Senators Dorgan, Schumer, Menendez, and Harkin in this effort to fix this important problem in how Americans access credit. This is common sense legislation that will offer tangible relief to the ordinary Americans who work hard, pay their bills, and want to borrow money at reasonable rates to finance the next step in their American dream. I urge my colleagues to join us in the effort.

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

There being no objection, the text of the bill was ordered to be printed in the Record

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