[Congressional Record Volume 141, Number 167 (Thursday, October 26, 1995)]
[Extensions of Remarks]
[Pages E2053-E2054]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




           COMMENDING OAK LAWN CHAMBER OF COMMERCE RESOLUTION

                                 ______


                        HON. WILLIAM O. LIPINSKI

                              of illinois

                    in the house of representatives

                       Thursday, October 26, 1995

  Mr. LIPINSKI. Mr. Speaker, I rise today to commend the Oak Lawn 
Chamber of Commerce on their resolution expressing support for Midway 
Airport which is located in my district. In their resolution, the Oak 
Lawn Chamber of Commerce has stated their opposition to the development 
of a third Chicago airport or a metropolitan airport authority as both 
could have negative impacts on the future of Midway Airport. I support 
the efforts of the Oak Lawn Chamber of Commerce and share with you, my 
colleagues, the following:

                Oak Lawn Chamber of Commerce Resolution

       Whereas, the development of a third major airport in the 
     Northeast Region on the State of Illinois has been and is the 
     focus of ongoing studies and debate; and
       Whereas, the comprehensive planning of a third major 
     airport must encompass the future of the existing 
     metropolitan airports; and
       Whereas, Midway Airport, strategically located on the 
     Southwest side of the City of Chicago, is the major economic 
     stabilizing force in the Southwest region of the metropolitan 
     area of the City of Chicago; and
       Whereas, the citizens of the Southwest side of the City and 
     the citizens of many nearby Southwest suburbs including Oak 
     Lawn depend on and benefit from the economic development 
     generated by the operations at Midway Airport; and
       Whereas, strong support for the continuation of commercial 
     air operations at Midway Airport has been urged by the 
     Southwest Conference of Mayors; therefore, be it resolved 
     that the Oak Lawn Chamber of Commerce is opposed to a 
     proposed Peotone Airport and supports the existing Midway 
     Airport, and
       Whereas, we oppose the development of a metropolitan 
     airport authority which would control the operations or 
     finances of either O'Hare or Midway Airports.
     
[[Page E2054]]


                   IMPROVING AND PRESERVING MEDICARE

                                 ______


                          HON. STEVE GUNDERSON

                              of wisconsin

                    in the house of representatives

                       Thursday, October 26, 1995

  Mr. GUNDERSON. Mr. Speaker, over the past few weeks, I am sure we 
have all read the scary headlines or heard radio and television news 
stories and commercials about Congress cutting Medicare. People are 
understandably confused. It is true that Congress is working to reform 
Medicare as we know it today, but the changes are to improve, not ruin 
Medicare. Let me try to explain what will be happening to Medicare as 
it affects beneficiaries in my western Wisconsin district.
  First and foremost, there are no cuts of Medicare benefits and 
services received by beneficiaries. No Medicare beneficiary will 
receive less than they do now. In fact Federal spending for Medicare 
will continue to increase from $170 billion in 1996 to $244 billion in 
2002, a 40 percent increase over 7 years. How is that a cut?
  The confusion comes from the fact that Medicare payments will not 
increase as fast in the future as they have in the past. We, as a 
Nation, can no longer afford a Medicare program that continues to grow 
at 10.5 percent a year. If we maintain this double digit growth, we 
would face a dilemma of either increasing premiums paid by 
beneficiaries to an unaffordable rate, turn Medicare into a welfare 
program funded by general tax revenues, or worse yet, do nothing and 
bankrupt the Medicare system. None of these options is desirable or 
responsible public policy.
  Most of us agree that Congress needed to find a way to control 
Medicare growth, update and improve services and maintain the system 
for today's and tomorrow's beneficiaries.
  H.R. 2525, the Medicare Preservation Act Passed by the House of 
Representatives begins our effort to improve and preserve Medicare in a 
balanced, sensible way. It gives Medicare beneficiaries the right to 
stay in the traditional fee for service Medicare without an increase in 
copayments or deductibles. Beneficiaries also will be able to choose 
from private health care plans available in their community--managed 
care plans [HMOs], a new Medical Savings Account, or plans offered by 
new Provider Service Organizations [PSOs], a network of doctor and 
hospitals, especially important to an area like western Wisconsin where 
traditional HMOs are not always practical. Beneficiaries will not be 
forced to change to enroll in an HMO, MSA or PSO. Congress makes it an 
option that helps control costs.
  For rural America, the House passed bill makes some of the most 
significant improvements to Medicare since the program was created in 
1965. One provisions in particular will do must to help establish and 
begin to make Medicare HMOs and PSOs a choice for beneficiaries 
throughout western Wisconsin. Pat Robert, chairman of the House 
Agriculture Committee, and I, as the Republican chairman of the Rural 
Health Care Coalition along with others negotiated an improved Medicare 
payment formula with the Leadership in the Adjusted Average Per Capita 
Cost [AAPCC] for each county. Improving the payment formula will 
actually allow for greater health care options and competition in rural 
America.
  Right now, in my home county of Trempealeau, beneficiaries do not 
have the choice of selecting an HMO or PSO. Traditional fee for service 
is the only delivery system available for Trempealeau County Medicare 
beneficiaries. Many may be happy with the fee for service system, and 
it will remain available to them, but an update of improved health care 
delivery systems is long overdue. It is important that Congress provide 
Medicare beneficiaries with health care options that are available to 
other Americans.
  What does an increased AAPCC payment formula mean to beneficiaries in 
Trempealeau County? Currently, the Trempealeau County AAPCC payment is 
$231 a month per beneficiary. Generally, managed care providers will 
consider offering a Medicare plan when the monthly payment reaches $320 
per beneficiary. The current payment of $231 in Trempealeau County is 
not attractive enough for an HMO or PSO to offer health care coverage. 
Under the provisions we negotiated, the Trempealeau County payment will 
jump to $300 in 1996 and a minimum of $320 in the following year. Below 
is a chart demonstrating that this new payment formula is beneficial 
for western Wisconsin as well as other rural communities and efficient 
markets. Given this payment increase, a managed care provider might 
actually find it economically viable to set up shop in western 
Wisconsin.

HEALTH PLAN CONTRIBUTION LEVELS [SIMULATIONS] BY COUNTY UNDER H.R. 2425,
                   THE MEDICARE PRESERVATION ACT [MPA]                  
------------------------------------------------------------------------
                                        Current                         
                                          1995      1996      1996 AAPCC
                County                   AAPCC     Update      payment  
                                        payment  percentage             
------------------------------------------------------------------------
Barron................................     $258          9     $281-$300
Buffalo...............................      238          9       259-300
Chippewa..............................      271          9       295-300
Clark.................................      273          9       297-300
Crawford..............................      245          9       267-300
Dunn..................................      241          9       262-300
Eau Claire............................      306          8           330
Grant.................................      251          9       273-300
Jackson...............................      246          9       268-300
La Crosse.............................      266          9       289-300
Monroe................................      225          9       245-300
Pepin.................................      265          9       288-300
Pierce................................      254          9       276-300
Polk..................................      274          9       298-300
St. Croix.............................      297          9           323
Tremplealeau..........................      231          9       251-300
Vernon................................      211          9       229-300
------------------------------------------------------------------------
Note: These figures are simulations, which do not include the service   
  index. The actual results could differ, but probably only marginally. 
  For 1997, all counties will achieve a funding floor of $320 or higher.

       Some may paint a picture of doom and gloom suggesting that 
     Medicare reform is bad, but nothing could be further from the 
     truth. Working to reform Medicare does not destroy Medicare. 
     Earlier this year the future of Medicare was uncertain. Today 
     because of House passage of the Medicare Preservation Act the 
     future is brighter and more secure. My support of this 
     legislation helped to guarantee Medicare's survival. I hope 
     you will agree with me that Medicare is worth saving.

                          ____________________