[Congressional Record Volume 141, Number 153 (Thursday, September 28, 1995)]
[Extensions of Remarks]
[Page E1868]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                          THE MEDICARE DEBATE

                                 ______


                         HON. BRIAN P. BILBRAY

                             of california

                    in the house of representatives

                      Thursday, September 28, 1995

  Mr. BILBRAY. Mr. Speaker, I ask that the following editorial from the 
San Diego Union Tribune, dated September 22, 1995, be inserted in the 
Record.

                          The Medicare Debate

                           (By Brian Bilbray)

       The current radio and television ad campaign employed to 
     derail Medicare reform efforts reminds me of a B horror 
     movie--a ridculous script, unbelivable characters and a 
     wildly exaggerated villian. If the big-labor-financed 
     advertisements running against me in San Diego weren't so 
     distorted and outrageous they would be humorous.
       But there is nothing funny about the impending bankruptcy 
     of the health-care system upon which 37 million American 
     seniors now depend. However, the distortions and scare 
     tactics surrounding the debate do a great disservice to 
     seniors and those of us in Congress who wish to arrive at a 
     reasonable solution to preserve the system.
       As we begin to debate the specifies of Republican proposals 
     to reform Medicare, we will keep in mind what the opponents 
     of Medicare reform have forgotten: The future of Medicare 
     depends upon a dialogue, not a shouting match. The real 
     villains are those who cheapen the debate and contribute no 
     ideas or solutions of their own.
       The Medicare Preservation Act of 1995, introduced in the 
     House of Representatives this week, is a starting point for 
     debate, not the final product for reform. Since April, when 
     President Clinton's trustees warned that the system would be 
     bankrupt by the year 2002, I have met with seniors, doctors 
     and hospital administrators in San Diego. They provided me 
     with input and ideas, which have become part of the proposal 
     we are now debating in Congress.
       The Republican plan is based upon the belief that 
     individuals will make better choices about their health care 
     than the government. Seniors will be able to choose from the 
     same types of health-care plans now found in the private 
     sector. If a senior is now spending a great deal of out-of-
     pocket expense on MediGap insurance to cover prescription 
     drugs, he or she can choose not to enroll in ``traditional'' 
     Medicare and may instead want to pick a plan that includes 
     drug coverage.
       Seniors also will have an option of a ``MediSave'' program, 
     in which a high-deductible policy is purchased and the 
     government deposits money to cover that deductible in an 
     interest-bearing account in a bank of their choice. This 
     gives them complete control over important medical decisions, 
     with their doctors, without worrying about an insurer's or 
     Medicare's payment policies.
       The bill introduced this week also exposes the shameless 
     fear tactics of the past few months which have alleged that 
     premium costs for seniors enrolled in Medicare Part B will 
     drastically increase. Today, seniors pay premiums that are 
     31.5 percent of Part B costs.
       Under our proposal, the premiums will continue to be 
     calculated that way, so that they will increase slightly 
     every year, just as they have done since the inception of the 
     program. Beneficiaries will not face any increase in 
     deductibles and co-payments, in contrast to what our critics 
     are claiming.
       Under our proposal, doctors and hospitals will be allowed 
     to form provider-service networks to cover Medicare benefits, 
     without the insurance company or managed-care company as an 
     intermediary. A group of doctors or hospitals functioning as 
     a network would be required to meet solvency and marketing 
     requirements. Per-beneficiary contributions will be adjusted 
     for age and other factors so that Medicare is providing funds 
     according to need.
       The health-care dollars spent by a senior in San Diego may 
     be drastically different than those spent by a senior in 
     Nashua, N.H.--our plan provides for this flexibility. Every 
     Medicare provider must agree to take all applicants and allow 
     participants to stay in the plan as long as they want; no one 
     will be shut out due to an illness or a pre-existing 
     condition.
       How do Republicans reduce Medicare's rate of growth--one 
     that has been running at hyperinflationary levels? Two ways: 
     Increased health-care choices for seniors who will spend 
     their dollars more efficiently, and increased competition 
     between providers. In addition, the Medicare Preservation Act 
     will shrink the subsidy Medicare currently provides to more 
     affluent seniors.
       According to the Congressional Budget Office, a 65-year-old 
     couple, both retiring this year, will collect $126,000 more 
     from Medicare than they paid in during their working years.
       For millions of seniors, this subsidy is vital to their 
     retirement income security, but this is a luxury the 
     taxpayers cannot afford for wealthier seniors. Single seniors 
     with incomes over $75,000 and couples with incomes over 
     $150,000 will begin to pay higher premiums instead of 
     receiving a subsidy from the taxpayers.
       The scare tactics and misinformation campaign designed to 
     derail Medicare reform will continue. However, senior 
     participants in the system know that doing nothing to save 
     Medicare is not an option. The calls I have received from 
     seniors in San Diego have been overwhelmingly against the 
     ``Mediscare'' advertisements.
       As one woman from La Jolla asked, ``How gullible do the 
     labor unions think we are? Preservation of Medicare means 
     reform, and as long as reform continues to involve dialogue 
     with San Diegans, I have more confidence in the process.'' I 
     agree, and I urge opponents of Medicare reform to focus on 
     the process of debate, don't further debase the process.

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