[Congressional Record Volume 141, Number 204 (Tuesday, December 19, 1995)]
[Extensions of Remarks]
[Page E2389]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




    LEGISLATION TO HELP LOWER THE BURDEN OF MEDICARE PART A BUY-INS

                                 ______


                        HON. FORTNEY PETE STARK

                             of california

                    in the house of representatives

                       Monday, December 18, 1995

  Mr. STARK. Mr. Speaker, Representative Robert Matsui and I are today 
introducing a bill to help those who, through no fault of their own, 
were not able to participate in the Medicare Program during their 
working years and now face over $3,000 a year in Medicare part A buy-in 
costs.
  Our bill lowers the cost of the monthly part A buy-in for about 
216,000 people over age 80 who, for no fault of their own, could not 
participate in Medicare during their working years, because their 
employers were not in Social Security. The people in this group are 
mostly retired teachers, policemen, and firemen over age 80 who worked 
for State and local governments which elected not to join the Medicare 
payroll tax system.
  These retirees have been stuck in increasingly expensive small public 
or private insurance policies, and many of them have had to drop 
insurance coverage because they could no longer afford it on their 
shrinking pensions. Since most of them could not afford to maintain 
private insurance, even if it were available, they have been buying 
into Medicare part A, some for as long as 15 years. The Medicare buy-in 
monthly premium is set to equal the full actuarial cost of part A, and 
today premiums are more than $250 a month and now many of these 
retirees cannot afford to buy into this basic level of Medicare 
hospital protection. Many are becoming uninsured--and uninsurable--at 
the most vulnerable period in their lives.
  In the last Congress, Representative Bill Thomas and I developed an 
amendment to help this population by lowering the part A buy-in for 
those who achieved 30 quarters of coverage but not the necessary 40 
required for Medicare eligibility.
  This has been a help to a few of these retirees, but many of the 
poorest of these seniors, of course, do not have even 30 quarters of 
coverage and desperately need help.
  Therefore, the amendment Representative Matsui and I are introducing 
today would lower the cost of the monthly buy-in by about $150 a month. 
Individuals would still have to contribute $100 per month--and the full 
actuarial rate for years before their 80th birthday.
  Our bill does not include a way to pay for this change, but we expect 
to be able to offer a funding proposal at such time as the legislation 
is considered for markup.
  I hope other Members will join us in supporting this much needed 
relief to a group of our older retirees who--to repeat--through no 
fault of their own, were unable to participate in the regular Medicare 
Program during their working years.

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