[Congressional Record Volume 142, Number 16 (Tuesday, February 6, 1996)]
[Senate]
[Pages S889-S890]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        THE MEDICARE TRUST FUND

  Mr. GREGG. Mr. President, I want to continue part of the discussion 
that occurred earlier which was carried forward by the fine Senator 
from Iowa, Senator Grassley, and to a certain extent by Senator 
Domenici, the chairman of the Budget Committee, which involves the 
issue of where we stand in this whole budget process, because a very 
important fact has been confirmed.
  About 6 months ago we on the Republican side said that the Medicare 
trust fund was in serious trouble, that the senior citizens of this 
country were at risk for their health insurance because the Medicare 
trust fund was going broke. Now, we did not arbitrarily come up with 
that statement. We took that statement from the fact that the Medicare 
trustees, three of whom are appointed by the President and serve in his 
Cabinet, stated in their report of April 3, 1995, that the Medicare 
trust fund was going to go broke in the year 2002 if something was not 
done to fundamentally repair it. So we made the tough decisions of the 
party. We stepped forward, and we made proposals which made the 
Medicare trust fund solvent. Our proposals were included in the 
Balanced Budget Act, which gave this country for the first time in 25 
years a balanced budget and which gave our senior citizens a solvent 
Medicare system.
  What happened? The President of the United States and his legions 
demagogued that act, claimed that we were attacking senior citizens, 
and used every scare tactic they could on senior citizens. The 
fundraising powerhouses here in Washington who scare seniors regularly 
got their machines of paper cranked up and sent out letters to seniors 
across this country representing that the Republicans were 
misrepresenting what was happening with the Medicare trust fund and 
were trying arbitrarily and inappropriately to take on the Medicare 
trust fund, when, in fact, what we were proposing would bring solvency 
to the trust fund.
  A couple of days ago, the chickens came home to roost for this 
administration because now, not only do their trustees have a report 
filed which says that the trust fund is going to go broke, we find that 
the track for the trust fund to go broke, to go bankrupt, has been 
accelerated, and that it is unfortunately ahead of schedule.

  A report by the Medicare trust fund actuary states, ``Things turned 
out a little worse than we expected. We had projected that 1997 would 
be the first fiscal year with a deficit when, in fact, this year 
becomes the first fiscal year with a deficit.''
  What does that mean? That means, for the first time in the history of 
the Medicare trust fund, since 1972, this will be the first year when 
more money goes out of the trust fund than comes into the trust fund. 
That is a bankruptcy spiral that we have begun.
  I have a chart here which we have used before. It looks like a plane 
crash. In fact, it is called the plane crash chart, which shows what is 
happening with the Medicare trust fund. This chart assumed what the 
trustees originally told us, which was the trust fund would go broke in 
the year 2002, that it would start to run a deficit in the year 1997. 
We have to change this chart now. The trust fund now has a track that 
is something like this. It goes to the negative this year, and 
somewhere out here before the year 2002 it goes broke.
  If this administration does not step up and stop demagoging the issue 
and scaring seniors, what they are going to deliver to seniors is a 
trust fund that is broke.
  What right does this administration have to abuse the senior citizens 
in this manner? What right do they have to stand in one room at one 
microphone and say, ``Republicans are harassing and inappropriately 
attacking the trust fund and Medicare,'' while at the same time the 
facts show that, if a correction does not occur, the trust fund goes 
broke?
  A higher level of irresponsibility in managing this country and 
managing the finances and managing the future of our seniors probably 
has not been seen in recent times than what has 

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happened over the issue of Medicare over the past 6 months as this 
administration and this President specifically have consistently 
misrepresented the Republican position and have failed to step up to 
the plate to address what is a critical issue for seniors. Basically 
this administration can no longer hide on the issue. The fact is their 
trustees have said it is going to happen, and now their actuary has 
said it is not only going to happen, but it is happening. It is 
happening in reality. We are now into a bankruptcy spiral in the 
Medicare trust fund.
  So, Mr. President, I suggest you stop running for reelection and that 
you sit down and do the job you are paid for, which is to come forward 
with a proposal which puts the Medicare trust fund back in balance or, 
alternatively, accept ours.
  Mr. President, I thank you for your time.
  Mr. BURNS addressed the Chair.
  The PRESIDING OFFICER. The Senator from Montana.
  Mr. BURNS. Mr. President, I ask unanimous consent that I might be 
yielded 5 minutes as if in morning business.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. BURNS. I thank the Chair.

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