[Congressional Record Volume 141, Number 121 (Tuesday, July 25, 1995)]
[House]
[Page H7559]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    THE 30TH ANNIVERSARY OF MEDICARE

  The SPEAKER pro tempore. Under the Speaker's announced policy of May 
12, 1995, the gentleman from Florida [Mr. Deutsch] is recognized during 
morning business for 2 minutes.
  Mr. DEUTSCH. Mr. Speaker, as you have heard, today is the 30th 
anniversary of the Medicare Program. I think this is a day to focus on 
what the Republicans in this Congress are proposing to do to that 
program.
  The Republican budget-passed plan has $270 billion in cuts. They have 
said, and they have said recently on this floor, and they continue to 
say that those are necessary to save the plan, to save the plan from 
itself. Well, the reality is in the last 30 years of the Medicare 
Program it has never had more than a 10-year actuarial life. In fact, 
there have been times over the last 30-year period where it has only 
had a 2-year actuarial life.
  The $270 billion number has nothing to do with 10-year actuarial 
life. It has to do with the budget that they have proposed and some of 
the outrageous corporate welfare systems that still exist.
  Now, what can be done? What is that $270 billion to lead to? The $270 
billion will lead to a fundamental change in the Medicare system for 
beneficiaries. When you go through the numbers, the inevitable result 
of $270 billion in cuts is that you will have a Medicare system not 
very similar to the system that exists today. We would have a Medicare 
system that would force a large percentage of the 37 million people in 
this country on Medicare into substandard HMOs.
  Right now, Medicare reimburses HMOs at about 95 percent of the 
prevailing fee-for-service in an area. Only about 10 percent of 
Medicare beneficiaries choose to join those HMOs. The Republican 
proposal will drive down that reimbursement cost in the neighborhood of 
70 percent. I do not doubt there are private for-profit HMOs that will 
be able to provide service at that cost, but at what quality? That is 
the question.


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