[Congressional Record Volume 141, Number 183 (Friday, November 17, 1995)]
[House]
[Pages H13294-H13295]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              THE BUDGET AND THE MEDICARE PRESERVATION ACT

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Iowa [Mr. Ganske] is recognized for 5 minutes.
  Mr. GANSKE. Mr. Speaker, I was proud to vote for the Balanced Budget 
Act today, which included the Medicare Preservation Act. I do not want 
to sound like a broken record, but this bill does not cut a dime of 
spending on Medicare or Medicaid. In fact, both programs, in both 
programs, spending increases every year. Medicare spending will 
increase by 45 percent over the next 7 years. That is more than twice 
the rate of inflation. Medicare spending in the last 7 years was $926 
billion. Over the next 7 years, we will spend $1.6 trillion on 
Medicare. I defy any of my colleagues to explain to the American people 
how that is a cut.
  The same is true for Medicaid, which has grown an astronomical 11,000 
percent in the last 30 years. Medicaid spending over the last 30 years 
was $443 billion. Over the next 7, we will spend almost double that 
amount, $785 billion. I renew my challenge to the other side: Tell the 
American people how that is a cut.
  Mr. Speaker, in April the six Medicare trustees, concluded that 
Medicare is going broke. The trustees included three Members of the 
President's Cabinet: Donna Shalala, Secretary of Health and Human 
Services; Robert Rubin, Secretary of Treasury; and Robert Reich, 
Secretary of Labor, and the President's appointed head of Medicare, 
Bruce Vladic, they all concluded that Medicare is going bankrupt in the 
year 2002.
  Now, what does the Medicare Preservation Act do and what does it not 
do? Mr. Speaker, the Medicare Preservation Act will not raise Medicare 
copayments and deductibles, other than an increase in premiums for the 
very wealthy. It will not reduce services or benefits in the Medicare 
program. It will not force anyone to join an HMO.
  The Medicare Preservation Act will retain the current fee-for-service 
plan, which means that beneficiaries can retain their choice of health 
providers and not be forced into an HMO. It will insure the solvency of 
Medicare, until at least the year 2010. It will increase the average 
annual spending per beneficiary, from $4,800 this year to $6,700 in the 
year 2002. It will require Part B beneficiary premiums to cover 31.5 
percent of the program costs, the same that it is doing today. It does 
ensure that core benefits in the current Medicare program will be 
retained and must be offered to all beneficiaries, regardless of health 
status or age.

                              {time}  2340

  It will increase the amount to be spent over the next 7 years by $659 
billion over that spent in the last 7 years, and it will attack fraud 
and abuse in tough new programs that have criminal penalties.
  The Medicare Preservation Act will provide new and attractive choices 
for beneficiaries, provider-sponsored networks, medical savings 
accounts, but, Mr. Speaker, the plan will provide for significant 
patient and consumer protections.
  Many have raised questions regarding increases in their Medicare Part 
B premiums. In 1988, Medicare Part B premiums were $24.80 per month. 
This year the premium is $46.10 per month. Premiums have doubled in the 
last 7 years, and if nothing is done, they will increase to $87 in the 
year 2002. But, Mr. Speaker, let me also add that 

[[Page H 13295]]
monthly Social Security benefits for retired workers will increase from 
$702 a month today to $965 a month in the same program in the same 
period.
  Mr. Speaker, a top priority of this bill is combating Medicare fraud 
and abuse. I am on the Subcommittee on Health and the Environment and 
we held several hearings on this subject. The General Accounting Office 
has estimated that we can save possibly 5 or 10 percent in Medicare 
spending. From now on seniors will have the right to review their 
Medicare bills and if they discover fraud, they can receive a portion 
of the savings.
  Mr. Speaker, by providing seniors with added choices, while not 
increasing their share of the percent of the premiums, the Medicare 
Preservation Act will be good for senior citizens, and for taxpayers.

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