[Congressional Record Volume 142, Number 83 (Friday, June 7, 1996)]
[Senate]
[Pages S5963-S5964]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                          MEDICARE TRUST FUND

  Mr. COCHRAN. Mr. President, first, I want to commend the 
distinguished Senator from Georgia [Mr. Cover- 
dell], and those who spoke this morning on the subject of a balanced 
budget amendment and the unfortunate consequences of our failure to 
deal with the problem of the ever-increasing deficits.
  We also had a few of those Senators mention, as an aside, the problem 
with the Medicare trust fund. I wanted to remind Senators that we had a 
hearing yesterday in the Appropriations Subcommittee that funds the 
Department of Health and Human Services, and Secretary Donna Shalala 
came before the committee to present the President's proposed budget 
for that Department for the next fiscal year. She serves, along with 
others in the administration, on this panel of trustees, whose 
responsibility it is to monitor and help keep Congress and the 
administration informed about the integrity of the trust fund, and 
supports the Medicare Program.
  The trustees, earlier this week, talked about the fact that the worst 
case scenario for future deficits in that program had been exceeded, 
and that rather than having the program go bankrupt, be hopelessly 
insolvent by the year 2002, it was going to be bankrupt earlier. By the 
year 2000, it would be out of balance by over $30 billion, and the 
following year, it would be out of balance and in deficit at the figure 
of $100 billion.
  The consequences of this report have to wake up everybody to the 
realization that unless Congress and the administration quit playing 
politics with this issue, it is going to be insolvent. This program is 
going to be in jeopardy, and benefits are going to be in jeopardy as 
well.
  I think the time has come for us to say, OK, the Republican Congress 
passed a balanced budget act last year. It included in that suggested 
reforms in the Medicare Program that would have put it in balance, 
would have kept it solvent, would have made some needed changes in the 
program to give older citizens more choices, more protection, so that 
their medical expenses and benefits could continue to be paid through 
this program.
  The President vetoed the bill. He rejected the balanced budget act. 
So we started over again. This year, the Budget Committee is wrestling 
with the problem of reconciling budget resolutions, which contain 
projected expenditures under this program, as well as all other Federal 
programs, with an effort to continue to build toward a balanced budget 
plan as soon as possible. Their projection is the year 2002.
  What I am going to suggest is that, in this politically charged 
environment of Presidential politics and campaigns for House and Senate 
seats underway--and we have to admit it--it is unlikely that this 
administration is going to change its mind and embrace the Republican 
proposals. And so we have to acknowledge that.
  The President, at the same time, has made a counteroffer, as I 
understand it, and has proposed some changes in the Medicare Program, 
which would achieve savings of $116 billion over the same period of 
time. The Republican proposals would have achieved savings of almost 
$170 billion.

  Let us say, OK, Mr. President, have it your way for the short term. 
Let us introduce the President's proposed changes in the Medicare 
Program. Let us accept his proposals for changes and cuts in the 
Medicare Program and enact them next week, or the week following. If 
the reconciliation bill from the Budget Committee's resolution is 
vetoed by the President or not supported by the Democrats in that area 
of the budget, let us isolate the Medicare Program changes and enact 
some changes.
  I suggest, let us enact the President's proposed changes and cuts in 
the program and, at the same time, establish a commission--which the 
President has recommended, the trustees have recommended in their 
report, including Secretary Shalala, Secretary Reich, Secretary Rubin, 
and others, who serve on that trustee panel--to recommend long-term 
changes in the Medicare Program that would ensure its solvency and 
protect the benefits for the older citizens in our society over the 
long term.
  I do not see anything wrong with that. As a matter of fact, I have 
been suggesting that that be considered as an alternative. If Congress 
and the President cannot agree on what changes ought to be made, get a 
commission together, much like the Base Closure Commission, or the 
Social Security Commission, which was formed in 1983 and chaired by 
Alan Greenspan. It made recommendations to save the Social Security 
trust fund from bankruptcy, and Congress and the President agreed at 
that time to accept the recommendation of that commission and implement 
it.
  That ought to be a part of this legislation--that we establish that 
commission, agree to implement its recommendations, and have a vote on 
it. If you do not want to implement them, vote no; be against 
everything. But we have to come to terms with the reality of the 
situation. The longer we wait, the harder the solution is going to be 
and the more sacrifices that are going to have to be made by 
everybody--the taxpayers. If we do not make these changes, do you know 
what is going to happen? Pretty soon, you are going to see the taxes on 
the employers and employees to fund this program being increased--and 
by substantial sums.
  Now, the older population is getting older and, thank goodness, 
medical science is wonderful and it is giving us all opportunities for 
longer lives. But coming with that, too, are added expenses, as you get 
older, for medical care. Our senior citizens confront the reality every 
day of this terrible fear, and that is that they will not have the 
funds, they will not have access to the care they need to enjoy the 
longevity that they now have, compliments of medical science, good 
nutrition, and the advances that we have made for good health in our 
society.
  So I say that it is time to stop the partisan politics. Let us quit 
throwing rocks at each other across the aisle, blaming each other for 
not getting anything done. I am prepared to say, as a Member of the 
Republican leadership in the Senate, OK, Mr. President, let us enact 
your proposal.
  I am going to introduce a bill next week, and I hope there will be 
Senators on both sides of the aisle who will say, OK, let us go along 
with this suggestion as an alternative to what we have

[[Page S5964]]

been getting. And what we have been getting is nothing--gridlock, 
confrontation, yelling at each other, people getting red in the face, 
and nothing getting done.
  I think the American people are fed up with that kind of politics, 
fed up with that kind of Government. I am fed up with it. It is time to 
change. We ought to do it now--before it is too late.
  I yield the floor.
  Mr. THOMAS addressed the Chair.
  The PRESIDING OFFICER. The Senator from Wyoming is recognized.
  Mr. THOMAS. Mr. President, are we in morning business?
  The PRESIDING OFFICER. Let the Chair advise the Senator that he may 
proceed as in morning business.

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