[Congressional Record Volume 141, Number 180 (Tuesday, November 14, 1995)]
[House]
[Pages H12318-H12319]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                              87 VERSUS 83

  The SPEAKER pro tempore (Mr. Taylor of North Carolina). Under a 
previous order of the House, the gentleman from California [Mr. Kim] is 
recognized for 5 minutes.
  Mr. KIM. Mr. Speaker, before I joined this body, I had been an 
engineer all my life, practicing engineering. Engineers are good at 
dealing with the facts and numbers because numbers do not lie. What I 
like to do tonight is not attack anybody, just present facts, exactly 
what is happening, why the Government has to be shut down, and I leave 
up to your judgment. I wish the people in California listen to me 
carefully tonight.
  There are two problems. One is so-called Medicare part B premium. It 
is cutting too deep; in other words, raising Medicare part B premium to 
subsidize tax credit to rich people. That is the whole idea. I am going 
to talk about that, break it into two parts. Let me explain to you what 
is exactly happening in Medicare part B.
  The Medicare plan has a part A and part B, two sections. Part A is to 
pay for all the hospital costs. It is financed by payroll taxes, 1.45 
percent by employee, and employer match. Then money will be deposited 
into hospital trust fund. Then money will be spent for all the hospital 
costs. That is an issue for some reason.
  Part B is an issue. The whole argument is part B. What is it? Part B 
is all the expenses outside of hospital costs such as doctor's bill, 
such as outpatient, and et cetera. That is paid by the senior citizens 
from their own pocket and then the rest of them subsidized by the 
Government.
  Let me tell you exactly what happens now. Used to be the 50 percent 
paid by the senior citizens, the other half subsidized by the 
Government. It is now a little bit more than two-thirds subsidized by 
the taxpayers, one-third paid by the beneficiaries, senior citizens.
  Who are these folks? Those are people working right now, some of them 
making only $50,000 a year, supporting children, sending them to 
school. Tough. They cannot even afford to have their own medical care, 
but they have to support senior citizens. That is what it is, one-third 
by senior citizens, two-thirds by the rest of the taxpayers.
  Next year, 25 percent paid by the beneficiary, 75 percent paid by the 
other taxpayers; one-quarter, three-quarter relationship. Eventually, 
year 2002, 18 percent will be paid by the beneficiary, remaining 82 
percent paid by the other taxpayers. All we are trying to do is 
maintain the same ratio, one-third, two-thirds relationship, because we 
cannot afford to have this kind of relationship. There is no money to 
subsidize this any more.
  Medical costs keep going up, so we all have to pay a little more. 
Senior citizens have to pay a little more, a few dollars a month more. 
The remaining taxpayers have to pay a little more to subsidize this. 
Let us take a look at the second to see what is happening.
  Why are we having this trouble? Let us take a look at this. The 
senior citizens paying $42.50, $46.10 a month. That is all they are 
paying. Actually costs about $150. The remaining balance is subsidized 
by the other taxpayers. This was the Republican plan, keeping one-third 
to two-thirds relationship because the hospital costs keep going up. 
Eventually we are going to ask senior citizens to pay a little ore each 
month. By the end of the seventh year, end up paying $87 a month.
  They say, ``My God, it is a huge increase.'' Let us take a look at 
Mr. Clinton's plan.

  His plan is at the end 7 years $83 a month, only $4 difference. 
Eighty-seven versus eighty-three, this is such an important issue so 
that Government has to shut down?
  Let us take a look at the second, how to pay for these things. 
Interesting. Take a look at the second. Mr. Clinton proposed actually 
next year that the senior citizens premium will go down and go up 
again. Why is that? It is a question of it happens to be election year.
  I am not accusing anybody. I want to take a look closely at what are 
the big differences here. Eighty-seven versus eighty-three; is that 
really critically important to shut down the Government for this? Why 
do we lower the next year premium and then raise it again? Why? This is 
exactly what happened to part B.
  I want to take a look at this, make your own judgment. Let us talk 
about the second issue.
  The rich people do not pay their share, and we are taking advantage 
of them at the expense of poor people, putting all the poor people out 
in the cold to pay for huge tax cuts. 

[[Page H 12319]]

  My time is up already. I will talk about this tomorrow night.

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