[Congressional Record Volume 141, Number 170 (Tuesday, October 31, 1995)]
[House]
[Page H11574]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




[[Page H11574]]


            BUDGET RECONCILIATION PLAN HARDLY REVOLUTIONARY

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentlewoman from North Carolina [Mrs. Clayton] is recognized for 5 
minutes.
  Mrs. CLAYTON. Mr. Speaker, last week, Congress passed an historical 
budget reconciliation plan--a plan that our Republican colleagues call 
revolutionary.
  A revolution, however, involves more than change--a revolution 
involves change for the better, forward motion, progress. There is 
great doubt in my mind, and the minds of many of my constituents, that 
we are progressing.
  While, the deed has been done, and the plan has passed, we are now in 
conference with the Senate, and there is still time to undo some of the 
damage from that plan.
  If the damage is not undone, we will be left with no choice except to 
urge the President to veto the bill.
  This evening, I want to again highlight the great harm that the 
Republican plan will do to rural America in the area of health care--
because past pleas have been largely ignored.
  Rural North Carolina, including my congressional district, like most 
of rural America, will be especially hard hit by these cuts.
  Rural communities lack high paying jobs, often lack the 
infrastructure necessary for economic expansion and, on average, have 
incomes far below the average American. Rural communities will hurt 
more from the cuts.
  The lack of basic resources and opportunities, such as employment, 
housing, education, and utility services, especially water and sewer, 
is compounded by limited access to quality health care and a shortage 
of health professionals, especially primary and family physicians.
  The Republicans seem to want senior citizens to have health care that 
is cheaper.
  Democrats want senior citizens to have health care that is better.
  Cheaper and better are not the same. You get what you pay for.
  They want to cut corners. We want to cut with conscience.
  The Republicans want to put seniors in groups and choose doctors for 
them, because its cheaper.
  Democrats want seniors to choose their own Health Plan or doctors, 
because it's better.
  Under the Republican plan, many seniors in rural North Carolina will 
be forced to travel many more miles to find a hospital, because it's 
cheaper.
  Democrats want to prevent rural hospitals from closing because of 
cuts in Medicare, because it's better.
  Cheaper could cost less, it could also cost more, but it could cost 
lives.
  Why are the Republicans pushing a cheaper health care plan?
  Because they are also pushing an expensive tax cut plan for wealthy 
Americans.
  They have voted to cut the Medicare Program by $270 billion so that 
they can pay for a tax cut program of $245 billion.
  If the Republicans dropped their expensive tax cut plan for the 
wealthy, they would not have to push their cheaper health care plan for 
seniors.
  Citizens of Rural America have incomes that are 33 percent--yes, one 
third--lower than their urban counterparts.
  The elderly who live in rural areas are 60 percent more likely to 
live in poverty--60 percent.
  Twenty-five percent of rural hospitals already operate at a loss, and 
that is because Medicare alone accounts for almost 40 percent of the 
average hospital's net patient revenue.
  It is estimated that this plan will cost North Carolinians a loss of 
over $3,000 for each Medicare recipient in North Carolina between now 
and the year 2002, and a loss of some $900 for each recipient each year 
thereafter.
  This cut in Medicare will reduce the size of the program by 25 
percent--raising the cost of premiums and copayments to each of North 
Carolina's 999,000 Medicare beneficiaries.
  And, when the Medicare cuts are combined with the cuts in the 
Medicaid Program, Federal health care dollars coming into North 
Carolina will be reduced by more than $15 billion.
  The Medicaid cuts affect North Carolinians of all ages--the elderly, 
children, the disabled, the poor.
  There are some 985,000 Medicaid recipients in our State. We would be 
forced to eliminate coverage for almost half of those Medicaid 
recipients.
  The Medicare cuts will be especially painful, since more than 8 out 
of 10 of all Medicare benefits go to senior citizens with incomes of 
$25,000 or less.
  Those who are pushing this cheaper plan fought the creation of 
Medicare in 1965, and now, in 1995, have voted to do what they failed 
to do in 1965--cut the comfort of retirement from our senior citizens.
  Medicare spending in the rural areas of North Carolina will be cut by 
$3.3 billion--a 20 percent cut in the year 2002 alone.
  Worse, rural North Carolina will lose some of the limited number of 
hospitals we have.
  Because of poverty, rural hospitals lose money on Medicare, while 
urban hospitals make a small profit.
  The typical rural hospital, under the Republican's plan, will lose 
some $5 million in Medicare funding, over 7 years.
  Rural hospitals already need 5,084 more primary care physicians to 
have the same doctor to population ratio as the Nation as a whole.
  This harsh Republican plan will mean tougher times for families and 
especially for senior citizens.
  Mr. Speaker, the people really do want change.
  But, they do not want change that takes us back 30 years, when more 
than one out of every two senior citizens had no health care at all.
  They do not want change that forces our seniors to choose between 
heat and health, that is no real choice. They want change that takes 
America forward. They want change that is better, not cheaper. The 
people want a real revolution. The conferees should keep that in mind.
  If not, the President should veto the bill.

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