[Congressional Record Volume 142, Number 82 (Thursday, June 6, 1996)]
[Extensions of Remarks]
[Pages E1012-E1013]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              HEALTH INSURANCE RELIEF FOR RETIRED TEACHERS

                                 ______


                        HON. FORTNEY PETE STARK

                             of california

                    in the house of representatives

                        Wednesday, June 5, 1996

  Mr. STARK. Mr. Speaker, Representative Matsui and I are today 
introducing a bill to provide Medicare part A hospital insurance

[[Page E1013]]

buy-in relief for certain individuals who, through no fault of their 
own, were not able to participate in the Medicare Program and have 
received no help from their former employers in buying into the 
Medicare program in their retirement years.
  The bill we are introducing is a less expensive variation of a bill 
we introduced last December 18, H.R. 2805.
  The bill will help about 30,000 people, generally retired school 
teachers and other public servants, whose governmental unit did not 
participate in Medicare. For many of these retirees, their original 
health insurance plans have become insanely expensive or been 
terminated as the pool of insureds has shrunk. These individuals have 
been forced into the option of buying into Medicare part A. But the 
monthly premiums for those who buy-in on their own are now a little 
over $250 a month or $3000 a year. For many older retired teachers, 
this expense can easily eat up a third to a half--or even more--of 
their pension.
  Our bill would provide that after a person has purchased on their 
own--without third party help--Medicare part A insurance for 5 years, 
they will have met their obligation and not owe any additional amounts.
  Of the roughly 330,000 people who are buying into part A, 
approximately 300,000 receive help from their former employer or from 
another source. The 30,000 people who are strictly on their own are the 
people this bill would help. After 5 years of buy-in, these individuals 
will have contributed more to part A than the average worker in similar 
professions would have contributed in taxes. By limiting the payment to 
5 years, we provide some measure of fairness and save these individuals 
from crippling costs as they grow older.
  I want to take a minute to thank Mr. Harold Taylor of San Lorenzo, CA 
who has worked on this issue for years and has been an invaluable 
source of information. He has been a constant voice of conscience in 
trying to help older, retired teachers who are facing these 
extraordinary burdens.
  I hope that when we next consider improvements to the Medicare 
Program, we can adopt this legislation to help a small group of 
individuals who are facing terrible financial burdens that are not 
their fault.

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