[Congressional Record Volume 141, Number 111 (Tuesday, July 11, 1995)]
[House]
[Pages H6740-H6741]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                          THE MEDICARE CRISIS

  The SPEAKER pro tempore. Under the Speaker's announced policy of May 
12, 1995, the gentleman from Colorado [Mr. Allard] is recognized during 
morning business for 5 minutes.
  Mr. ALLARD. Mr. Speaker, the most important act of this Congress over 
the next 3 months will be the reform of Medicare. I would like to take 
a few minutes this morning to talk about what is at stake for America's 
seniors.
  The Medicare Program is in trouble. In April, the trustees of the 
Social Security and Medicare trust funds issued an alarming report. The 
report concluded that next year the trust fund that finances Medicare 
will begin spending more than it takes in and will be bankrupt in 7 
years. This will put the health care of 36 million Americans in 
jeopardy.
  Remarkably, this report received almost no coverage by the media. 
Uncomfortable as it might be, the trustee's report cannot be ignored. 
The trustees include the Secretaries of Health and Human Services, 
Labor, and Treasury, as well as the Social Security Commissioner and 
two other public trustees, one Republican and one Democrat.
  The reason for the crisis is clear. Medicare spending is growing at 
an alarming rate. This year alone, it will increase from $176 billion 
to $196 billion, a growth of 11 percent. This will be nearly three 
times the level of spending in 1986. It is obvious that any Federal 
program that triples its level of spending in a decade is headed for 
trouble.

[[Page H 6741]]

  Doing nothing might be the easiest course politically, but in my view 
that is not an option. The crisis must be addressed now. If Medicare 
goes bankrupt, by law, no payments can be made for hospital care for 
Medicare beneficiaries or for any other trust fund-paid services. This
 means that anyone age 58 or older today will be immediately impacted 
in 2002. And if the system is not then made solvent, millions of 
Americans who are much younger will be hurt.

  Medicare can be fixed right now. And if we do it now, we can make the 
trust fund solvent without reducing current Medicare expenditures.
  Those who oppose reform will make wild charges of draconian cuts. But 
when you hear those charges ask yourself what opponents of reform are 
proposing as a solution. The only other options are to either postpone 
the crisis a few more years, or substantially raise payroll taxes.
  While three members of the President's Cabinet are Medicare trustees 
and signed onto the trustees report, the President's first budget 
included no reforms. The only response the President and his Democrat 
colleagues gave to this problem was criticism. However, the new Clinton 
budget has changed all that.
  President Clinton has admitted that a balanced budget is best for our 
Nation--though his budget falls close to $1 trillion short of the 
amount actually needed to achieve a balanced budget. But most 
importantly for our seniors and soon to be seniors, the President 
admits that Medicare must be reformed and saved from bankruptcy. Still, 
even with this, many of his Democrat colleagues still only criticize.
  In order to reform the Medicare system, we have slowed the rate of 
growth from over 10 percent to 6.5 percent a year--a rate that will 
still exceed private-sector health care spending increases and 
inflation rate increases. Even with this level of reform, the country's 
annual Medicare spending will still rise from the current $4,700 per 
beneficiary to $6,400 per beneficiary in 7 years. Similarly, in my own 
State of Colorado, overall Medicare spending between 1995 and 2002 will 
increase 60 percent, which results in an increase of $1,385 per 
beneficiary.
  Much of the reform can be accomplished with more private sector 
involvement in the program, and by giving seniors more choices and more 
power over the way their health care dollars are spent. Currently, 
Medicare beneficiaries are given only one option--the bureaucratic, 
outdated, 30-year-old, one-size-fits-all program. It is time to bring 
Medicare into the 1990's. No longer should the Government interfere in 
the relationship between patients and their doctors. We should ensure 
that Medicare beneficiaries and soon to be beneficiaries are able to 
continue their existing coverage--including their choice of doctors and 
hospitals, or choose new coverage that better fits their health care 
needs--such as coverage for prescription drugs, dental, or even to 
establish a medical savings account.
  The goal is to save Medicare. It will not be easy or painless, but it 
will be much less painful if we do it now, rather than pass the buck 
one more time. My hope is that reform can be accomplished in a serious 
manner, without a high level of misinformation and distortion. Congress 
is now working carefully on a reform plan. Many organizations, such as 
the American Medical Association, and individuals are providing helpful 
proposals. The final plan will be available in early fall.
  Two things in particular should be kept in mind as the debate 
progresses. First, no one is proposing any cuts in Medicare, only a 
slower rate of growth. Second, those who decry the proposed reforms 
should be challenged to present their solution. Strengthening Medicare 
is too important to be left to politics as usual. Doing nothing is not 
an option.


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