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Mike Leavitt Gets Committee Nod Today to be HHS Secretary
 Confirmation by Senate
next week will make him head largest agency that oversees critical
senior programs – Medicare and Medicaid
Jan. 25, 2005 – Former Utah Governor and head of
the Environmental Protection Agency, Mike Leavitt, was endorsed today by the Senate Finance Committee as the new leader of
the Department of Health and Human Services,
the largest federal agency, and the one that manages the key health
programs for senior citizens, Medicare and Medicaid, which use
four-fifths of the HHS budget. The Senate is
expected to approve him next week.
HHS has a 2005 budget of
$580 billion - $67 billion of which is discretionary funds – and spends
nearly 25 percent of federal dollars. HHS also manages the Food and Drug
Administration, the National Institutes of Health and the Centers for
Disease Control and Prevention. Specifically, it has 67,000
employees, 300 programs and a $540 billion annual budget.
Leavitt, 53, was picked by President George W. Bush
to replace retiring HHS Secretary Tommy G. Thompson. Leavitt was
governor of Utah for 11 years before Bush chose him to head the EPA in
November of 2003.
"He has managed the EPA
with skill and with a focus on results," Bush in announcing the
appointment.
"I look forward, as the
president said, to the implementation of the Medicare prescription drug
program in 2006, medical liability reform and finding ways to reduce the
cost of health care," Leavitt said in his acceptance. "I am persuaded
that we can use technology and innovation to meet our most noble
aspirations and not compromise our other values that we hold so dear."
“Governor Leavitt has a compassion for the hopes and health of people,
which makes him a strong fit to lead what we call the Department of
Compassion,” commented Thompson on the nomination. “He will be a willing
partner with state and local governments to better the lives of our
citizens.”
Major Financial Interests in Pharmaceuticals,
Insurance
The Leavitt hearing in the Senate committee has
received little publicity outside of Utah. Reporter Christopher Smith
pointed out in the Salt Lake City Tribune before the hearings began that
Leavitt held major stock positions in “companies that develop
pharmaceuticals and health care products.”
Here is part of what Smith reported:
“Before confirmation, Leavitt may have to
restructure his personal investment portfolio to avoid any potential
conflict of interest with companies subject to regulatory action by
agencies under his control. Leavitt has ownership valued between $1
million and $5 million in Smith Leavitt Co. LLC, which holds stock in
companies that develop pharmaceuticals and health care products.
“According to 2003 executive branch financial
disclosures, Smith Leavitt has shares valued between $4,000 and $60,000
in Johnson & Johnson, Medtronic Inc., Merck & Co. and Agilent
Technology.
“Leavitt also has a $5 million-to-$25 million stake
in his family's Leavitt Group Enterprises, which owns approximately 100
independent insurance agencies in the United States. Many of those
agencies market insurance for health care, long-term care, and business
liability. Leavitt's share of corporate earnings in the 2003 reporting
period was $1.1 million.
“Another potential conflict could stem from
Leavitt's pledge Monday to address medical malpractice reform. Dane
Leavitt, president of the Leavitt Group, said at least two of the
offices - in South Dakota and Colorado - sell medical malpractice
insurance.
“’But it's not a major part of what we do,’ Dane
Leavitt said, estimating that those clients represent about 1 percent of
the company's business. A former president of the company, Mike Leavitt
has not been directly involved in its operations since 1992, when he was
elected governor.” (To read the story in the Tribune –
click here.)
The Los Angeles Times said Leavitt is “a pragmatist
who seeks to balance competing policy interests, Leavitt was criticized
by environmental groups for falling short in efforts to reduce power
plant emissions. But he instituted a new regulation to reduce pollution
from diesel engines.”
“Leavitt's short tenure at EPA produced a mixed
record. He faced intense criticism from congressional Democrats and
environmental activists over a proposal to control mercury emissions
from power plants, which the critics said fell far short of Clean Air
Act requirements,” wrote LA Times reporters Ricardo Alonso-Zaldivar and
Elizabeth Shogren.
“And he was unable to complete a plan to reduce
emissions of nitrogen oxides and sulfur dioxide from power plants to
help states meet new stiffer health-based air quality standards for
ground-based ozone and fine particles, contaminants that can cause
life-shortening illnesses,” they said. (To read the LA Times story –
click here.)
Reuters reported on Jan.
18 that “Leavitt, won bipartisan praise at the opening of his
confirmation hearings on Tuesday where he provided few specifics on his
vision for the nation's health system.”
“Bush is widely expected
to call for sharp cuts in Medicaid, the joint federal-state health
program for the poor in his budget next month. In addition, many
advocates expect Bush to revive a proposal to turn Medicaid into a
block-grant program to the states, although that idea is controversial
even among Republicans. Block grants would give states greater leeway in
covering the poor but would put a cap on federal contributions.
“Leavitt gave no hints
as to Bush's precise intentions but said he thought the country could do
a better job of providing "basic care" to more people within the current
spending levels if states were given "greater flexibility" to cover the
poor.
“There is concern among
some lawmakers that Bush also will seek cuts in Medicare, the federal
health program for everyone from age 65. A federal advisory panel has
backed cutting hospital payments in Medicare and freezing nursing home
and home health care payments.” (To read the Reuters story –
click here.)
Biography of Mike Leavitt from EPA Website
Michael O. Leavitt was sworn in as the 10th
Administrator of the United States Environmental Protection Agency on
November 6, 2003. Prior to leading the agency, Leavitt served as Utah’s
14th governor and was a national leader on homeland security, welfare
reform and environmental management. Six times during his
administration, independent public policy analysts ranked Utah among the
best-managed states in the nation. He now brings his proven management
record to the EPA.
As a pioneer of collaborative environmental
management, Leavitt helped clean up the air over the Grand Canyon. He
served as vice-chair of the Grand Canyon Visibility Transport Commission
and co-chair of the Western Regional Air Partnership. These efforts
resulted in 70 recommendations to improve visibility on the Colorado
Plateau and a regulatory commitment and strategies to dramatically
reduce sulfur dioxide levels in 13 states.
Leavitt also led his state during the 2002 Olympic
Winter Games, the most environmentally-sensitive games ever. Organizers
achieved net zero air emissions, zero waste and full compliance with all
safety and environmental regulations. One-hundred-thousand trees were
planted as a lasting legacy of the environmental accomplishments.
As a thoughtful leader on environmental management,
Leavitt co-authored, with former Governor John Kitzhaber, D-Or, a
balanced environmental philosophy known as Enlibra. Enlibra, derived
from Latin roots, means “moving toward balance” and emphasizes
collaboration over confrontation.
Leavitt is a nationally recognized leader in the
areas of health care and welfare reform. During his three terms as Utah
governor, he was chosen by the nation’s governors to represent states in
working with Congress on welfare reform, Medicaid and children’s’ health
insurance. The Children's Health Insurance Program (CHIP) helped reduce
the uninsured rates for children in Utah to its lowest point ever. His
administration worked to increase the number of Utahns with health
insurance by 400,000, improve immunization rates by nearly 75%, increase
collection of child support and dramatically improve the child welfare
system.
In Leavitt’s previous public service he has always
pursued three goals: to leave things better than he found them; to plant
seeds for the next generation; and to give it all he has. These are his
goals as leader of the United States Environmental Protection Agency.
Born February 11,
1951, in Cedar City, Utah, Leavitt graduated with a bachelor’s degree in
economics and business from Southern Utah University. After earning his
degree, he eventually became president and chief executive officer of a
regional insurance firm, establishing it as one of the top insurance
brokers in America. He is married to Jacalyn S. Leavitt; they are the
parents of five children.
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