[Congressional Record Volume 142, Number 82 (Thursday, June 6, 1996)]
[Senate]
[Pages S5916-S5917]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                      MEDICARE TRUST FUND SOLVENCY

  Mr. ROTH. Mr. President, I rise today with grave concerns that the 
Medicare hospital insurance trust fund is no longer creeping toward 
insolvency, but galloping toward it.
  This is very serious news. Based on the Medicare trustees' report 
released yesterday, Wednesday, June 5, the Medicare HI trust fund is 
going bankrupt earlier than expected. In fact, according to the 
trustees' report, of which three of the six trustees are members of 
President Clinton's Cabinet, the trust fund may run out of money as 
early as calendar year 2000.
  What is happening to the Medicare trust fund is pretty basic. The 
program is paying out more than it is taking in. This simple dynamic, 
if left unchecked, will lead Medicare to bankruptcy in less than 5 
years. And, simply put, bankruptcy of the trust fund means there will 
not be money to pay the hospital bills of our senior citizens and 
disabled individuals reliant on Medicare.
  Medicare is on a collision course, and we cannot afford not to act. 
Taking no action to avert Medicare's collision course toward bankruptcy 
means leaving millions of seniors and disabled beneficiaries with an 
empty promise. I believe this is wrong.
  It is time to put politics aside.
  To address Medicare's financial crisis, it has been suggested 
appointing a bipartisan commission to develop a solution. I support the 
establishment of a commission. A commission could facilitate addressing 
the Medicare crisis. But, I cannot support the idea of establishing a 
commission if this is a delay tactic or a tactic to avoid addressing 
the issue.
  I am concerned because, frankly, the administration's track record in 
proposing a solution is not good. Last year, the administration ignored 
the Medicare crisis. President Clinton's fiscal year 1996 budget did 
not include any proposals to shore up Medicare's fiscal debt, nor did 
his budget claim there was a problem. We are facing a crisis. A crisis 
requires action.
  There is a lot of talk about wanting to get down to business to solve 
the Medicare trust fund crisis. Didn't anyone notice that we tried that 
last year? That in the Senate we put forward a proposal that would have 
truly preserved and protected the Medicare Program, not just through 
the next 5 years, but for the next generation.
  Our proposal would have kept our promise to leave a legacy of a 
robust Medicare program for our children and our grandchildren. And 
yet, the Clinton administration played politics with Medicare and waged 
a ``Medi-Scare'' campaign. Yet, again, Democrats now are saying that 
Republicans are resorting to scare tactics.
  I do not agree that scare tactics include alerting the public to 
factual information reported by the Medicare trustees.
  ``Medi-Scare'' tactics were used last fall as Congress worked to 
preserve and strengthen the Medicare program.
  Instead of debating the issues and focusing on the need to preserve 
Medicare, others resorted to political rhetoric that played on the 
public's emotions and distorted the truth. Democrats kept talking about 
Medicare ``cuts'', when not one of the Republican proposals would have 
cut benefits. The program was not ``cut,'' in fact, spending would have 
increased every year under the Republican reforms. And, then there was 
the final emotional play linking changes to the Medicare program to a 
tax cut. According to the Washington Post last September, even this 
tactic was refuted: ``The Democrats have fabricated the Medicare-tax 
cut connection because it is useful politically.''
  Now, is the time to put partisanship aside. Time is running short, 
and we need to work together to avert the crisis.
  There are three very basic, but crucial facts that we can not avoid--
these three facts are:
  Fact: if changes are not enacted into law, the trust fund will 
continue on its course toward bankruptcy and there is no provision in 
the law allowing for HI expenditures to be made on behalf of Medicare 
beneficiaries.
  Fact: according to the Medicare trustees, Medicare will be bankrupt 
in 2001.
  Fact: the year 2000--the last year the Trustees believe Medicare will 
be solvent, is less than five years away.
  Given the very short time-time Medicare will remain solvent, and 
given the demographic progression of the Medicare program, we cannot 
afford more delay. We are already 2 years closer to insolvency because 
we lost a year to address the problem, and the program is one more year 
closer to bankruptcy than we expected, yet we are miles away from 
reaching an agreement on a solution.
  Demographic trends will continue to increase financial pressure on 
the trust fund. Today, there are less than 40 million Americans who 
qualify to receive Medicare. By the year 2010, the number will be 
approaching 50 million, and by 2020, it will be over 60 million. While 
these numbers are increasing, the number of workers supporting 
retirees will decrease. While we have almost four workers per retiree 
today, we will have about two per retiree by the year 2030.

  Yet, my friends on the other side of the aisle will point out that 
the President took action in 1993 to extend the life of the HI Trust 
Fund--he raised taxes. President Clinton's 1993 budget he enacted into 
law included two taxes to bail out the trust fund. First, the 1993 
Clinton budget increased taxes on workers by taxing all wages earned, 
and second, the 1993 budget increased the amount Social Security 
benefits are subject to taxation from 50 percent to 85 percent.

[[Page S5917]]

  Increased taxes were not a solution in 1993, and they will not be a 
solution in the future.
  Last year, Republicans proposed to preserve, protect and strengthen 
the Medicare program. We worked hard to put together a balanced 
proposal that did not cut Medicare but slowed the rate the cost of the 
program was expected to grow. Under our plan that was approved by 
Congress, annual per beneficiary Medicare spending would have increased 
from average spending of $4,800 in 1995 to more than $7,200 in 2002.
  Under the original Senate Balanced Budget Act as reported out of 
Finance Committee, the Medicare program would have remained solvent for 
about 18 years. According to the CBO estimates, under our proposal, the 
Medicare HI Trust Fund balance would have totaled $300 billion in 2005. 
The CBO stated, the HI Trust Fund would meet the Trustees' test of 
short-range financial adequacy.'' In other words, for the next 10 
years, the HI Trust Fund balance, at the end of every year, would have 
been more than enough to pay Medicare benefits for the following year.
  More importantly, using the CBO's estimates through 2005, our Finance 
Committee staff, in consultation with the Office of the Actuary within 
the Department of Health and Human Services, estimated that the 
Medicare HI Trust Fund would have been solvent through about the year 
2020. That would have meant 10 years after the baby-boom generation 
begins to retire a quarter of a century from today.
  We need to preserve and protect the Medicare program. We need to make 
sure we leave a solid legacy for the next generations. The demographics 
and the predictions of cost growth confirm that the program is not 
sustainable. It is no longer time for rhetoric, but time for action. 
Playing politics with Medicare is simply wrong. Putting off what needs 
to be done is the cruelest tactic.
  I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The legislative clerk proceeded to call the roll.
  Mr. REID. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. REID. Mr. President, I ask unanimous consent that I be allowed to 
proceed as in morning business.
  The PRESIDING OFFICER. The Chair advises the Senator that we are in 
morning business for statements of up to 10 minutes.

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