[Congressional Record Volume 142, Number 85 (Tuesday, June 11, 1996)]
[Senate]
[Pages S6082-S6084]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DOLE (for himself, Mr. Roth, Mr. Simpson, Mr. Pressler, 
        Mr. Hatch, Mr. Chafee, Mr. Murkowski, and Mr. Cochran):
  S. 1856. A bill to establish a commission to study and provide 
recommendations on restoring solvency in the Medicare program under 
title XVIII of the Social Security Act; to the Committee on Finance.


                      the medicare restoration act

  Mr. DOLE. Mr. President, last Wednesday the Medicare trustees 
released their report on the state of the Medicare trust fund, and the 
report was grim. Instead of going bankrupt in 2002, as they previously 
forecasted, the

[[Page S6083]]

trustees conclude that Medicare will go bankrupt in 2001--just 5 years 
from now.
  For the past year and a half, this Republican Congress has attempted 
to deal honestly and forthrightly with the impending Medicare meltdown.
  We put forward a budget that would protect, preserve, and strengthen 
Medicare by reducing its unsustainable rate of growth, while still 
allowing for a healthy growth rate.
  We did not claim that our plan was perfect or that it solved the 
long-term problem. But it was a real attempt to alleviate a crisis that 
will immediately impact 37 million seniors and disabled Americans, and 
will have repercussions on tens of millions more.
  In May 1995, I called for a bipartisan Commission to be set up to 
save Medicare similar to the one that saved Social Security. 
Unfortunately the White House dismissed the idea and decided to attack 
Republican plans to save the Medicare system.
  That is why I rise today to introduce the Medicare Restoration Act to 
establish a blue-ribbon bipartisan advisory commission to help deal 
with this crisis.
  In my view, leadership means more than just talking about problems. 
It also means doing something to solve them.
  This Commission will be responsible for reviewing the current, short-
term and long-term condition of the Medicare Trust funds. The 
Commission will be composed of 15 members appointed by the President, 
Senate, and House of Representatives. The members of this commission 
will be from both political parties, because it is clear to me that if 
we are to be successful we must put politics aside and work on a 
bipartisan basis.
  Unfortunately, President Clinton has been unwilling to do that.
  In February 1995, President Clinton submitted a budget that contained 
no provisions for saving Medicare.
  In April 1995, the Medicare trustees--three of whom are members of 
his administration--issued their original report and urged ``prompt, 
effective and decisive action.'' The administration instead chose to 
attack Republican plans to save the system.
  Last March, the President submitted a budget which, according to the 
Congressional Budget Office, would only stave off Medicare's bankruptcy 
for one more year.
  It is an undeniable fact that the Republican proposal allowed 
Medicare spending per beneficiary to increase from $4,800 per person to 
$7,200 per person over 7 years.
  It is also an undeniable fact that in their ill-fated health care 
reform proposal, the Clinton administration advocated slowing 
Medicare's rate of growth.
  Despite these facts, however, the President vetoed our Medicare 
proposal, and we have heard nothing but attacks on Republicans for 
slashing and cutting Medicare.
  And when the President was asked, not long ago at a news conference, 
why he continued to use these terms even though they are not true, his 
response was essentially that the media made him do it.
  With the release of the trustee's report, the inescapable conclusion 
is that while the rhetoric flew, Medicare was put at further risk.
  And those who say that talk is cheap should know that 18 months of 
misleading rhetoric may have gained one side points in the opinion 
polls, it also put Medicare another $90 billion-plus in the red.
  The bottom line is that the 37 million Americans who depend on 
Medicare deserve better. Future generations of Americans who will need 
Medicare deserve better.
  I call on the President to come forward and support this bipartisan 
commission so we can preserve the Medicare Program and to join with 
Republicans on a bipartisan basis, as I have proposed before, to 
address this very serious problem.
  I send the bill to the desk and ask it be appropriately referred. It 
is cosponsored by Senators Roth, Simpson, Pressler, Hatch, Chafee, and 
Murkowski, who are on the Senate Finance Committee. I certainly welcome 
additional cosponsors on either side of the aisle. This will be a 
bipartisan commission.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1856

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Medicare Restoration Act of 
     1996''.

     SEC. 2. ESTABLISHMENT.

       There is established a commission to be known as the 
     National Commission on Medicare Reform (referred to in this 
     Act as the ``Commission'').

     SEC. 3. FINDINGS.

       The Congress finds that--
       (1) the medicare program under title XVIII of the Social 
     Security Act provides essential health care insurance to this 
     Nation's senior citizens and to individuals with 
     disabilities;
       (2) the Federal Hospital Insurance Trust Fund will be 
     bankrupt in the year 2001, and faces even greater solvency 
     problems in the long-run with the aging of the baby boom 
     generation;
       (3) the trustees of the trust funds of the medicare program 
     have reported that growth in spending within the Federal 
     Supplementary Medical Insurance Trust Fund is unsustainable; 
     and
       (4) expeditious action is needed in order to restore the 
     fiscal health of the medicare program and to maintain this 
     Nation's commitment to senior citizens and to individuals 
     with disabilities.

     SEC. 4. DUTIES OF THE COMMISSION.

       The Commission shall--
       (1) review relevant analyses of the current, short-term, 
     and long-term financial condition of the Federal Hospital 
     Insurance Trust Fund and the Federal Supplementary Medical 
     Insurance Trust Fund under title XVIII of the Social Security 
     Act;
       (2) identify problems that threaten the solvency of such 
     trust funds;
       (3) analyze potential solutions to such problems that will 
     both assure the financial integrity of the medicare program 
     under such title and the provision of appropriate benefits 
     under such program;
       (4) make recommendations to restore the short-range and 
     long-range solvency of the Federal Hospital Insurance Trust 
     Fund, to provide for sustainable growth of the Supplementary 
     Medical Insurance Trust Fund, and on related matters as the 
     Commission deems appropriate; and
       (5) review and analyze such other matters as the Commission 
     deems appropriate.

     SEC. 5. MEMBERSHIP.

       (a) Number and Appointment.--The Commission shall be 
     composed of 15 members, of whom--
       (1) five shall be appointed by the President, of whom not 
     more than 3 shall be of the same political party;
       (2) five shall be appointed by the Majority Leader of the 
     Senate, in consultation with the Minority Leader of the 
     Senate, of whom not more than 3 shall be of the same 
     political party; and
       (3) five shall be appointed by the Speaker of the House of 
     Representatives, in consultation with the Minority Leader of 
     the House of Representatives, of whom not more than 3 shall 
     be of the same political party.
       (b) Comptroller General.--The Comptroller General of the 
     United States shall advise the Commission on the methodology 
     to be used in identifying problems and analyzing potential 
     solutions in accordance with section 4.
       (c) Term of Appointment.--The members shall serve on the 
     Commission for the life of the Commission.
       (d) Meetings.--The Commission shall locate its headquarters 
     in the District of Columbia, and shall meet at the call of 
     the Chairperson.
       (e) Quorum.--Ten members of the Commission shall constitute 
     a quorum, but a lesser number may hold hearings.
       (f) Chairperson and Vice Chairperson.--Not later than 15 
     days after all the members of the Commission are appointed, 
     such members shall designate a Chairperson and Vice 
     Chairperson from among the members of the Commission.
       (g) Vacancies.--A vacancy on the Commission shall be filled 
     in the manner in which the original appointment was made not 
     later than 30 days after the Commission is given notice of 
     the vacancy.
       (h) Compensation.--Members of the Commission shall receive 
     no additional pay, allowances, or benefits by reason of their 
     service on the Commission.
       (i) Expenses.--Each member of the Commission shall receive 
     travel expenses and per diem in lieu of subsistence in 
     accordance with sections 5702 and 5703 of title 5, United 
     States Code.

     SEC. 6. STAFF AND SUPPORT SERVICES.

       (a) Director.--
       (1) Appointment.--Upon consultation with the members of the 
     Commission, the Chairperson shall appoint a Director of the 
     Commission.
       (2) Compensation.--The Director shall be paid the rate of 
     basic pay for level V of the Executive Schedule.
       (b) Staff.--With the approval of the Commission, the 
     Director may appoint such personnel as the Director considers 
     appropriate.
       (c) Applicability of Civil Service Laws.--The staff of the 
     Commission shall be appointed without regard to the 
     provisions of

[[Page S6084]]

     title 5, United States Code, governing appointments in the 
     competitive service, and shall be paid without regard to the 
     provisions of chapter 51 and subchapter III of chapter 53 of 
     such title relating to classification and General Schedule 
     pay rates.
       (d) Experts and Consultants.--With the approval of the 
     Commission, the Director may procure temporary and 
     intermittent services under section 3109(b) of title 5, 
     United States Code.
       (e) Staff of Federal Agencies.--Upon the request of the 
     Commission, the head of any Federal agency may detail any of 
     the personnel of such agency to the Commission to assist in 
     carrying out the duties of the Commission.
       (f) Other Resources.--The Commission shall have reasonable 
     access to materials, resources, statistical data, and other 
     information from the Library of Congress and agencies and 
     elected representatives of the executive and legislative 
     branches of the Federal Government. The Chairperson of the 
     Commission shall make requests for such access in writing 
     when necessary.
       (g) Physical Facilities.--The Administrator of the General 
     Services Administration shall locate suitable office space 
     for the operation of the Commission. The facilities shall 
     serve as the headquarters of the Commission and shall include 
     all necessary equipment and incidentals required for the 
     proper functioning of the Commission.

     SEC. 7. POWERS OF COMMISSION.

       (a) Hearings.--The Commission may conduct public hearings 
     or forums at the discretion of the Commission, at any time 
     and place the Commission is able to secure facilities and 
     witnesses, for the purpose of carrying out the duties of the 
     Commission.
       (b) Delegation of Authority.--Any member or agent of the 
     Commission may, if authorized by the Commission, take any 
     action the Commission is authorized to take by this section.
       (c) Gifts, Bequests, and Devises.--The Commission may 
     accept, use, and dispose of gifts, bequests, or devises of 
     services or property, both real and personal, for the purpose 
     of aiding or facilitating the work of the Commission. Gifts, 
     bequests, or devises of money and proceeds from sales of 
     other property received as gifts, bequests, or devises shall 
     be deposited in the Treasury and shall be available for 
     disbursement upon order of the Commission.
       (d) Mails.--The Commission may use the United States mails 
     in the same manner and under the same conditions as other 
     Federal agencies.

     SEC. 8. REPORTS.

       Not later than June 30, 1997, the Commission shall submit a 
     report to the President and to the Congress on the findings 
     and conclusions of the Commission.

     SEC. 9. TERMINATION.

       The Commission shall terminate on the date which is 30 days 
     after the date the Commission submits its report to the 
     President and to the Congress under section 8.

     SEC. 10. FUNDING.

       The Secretary of Health and Human Services shall provide to 
     the Commission, out of funds otherwise available to such 
     Secretary, such sums as are necessary to carry out the 
     purposes of the Commission.
  Mr. ROTH. Mr. President, I rise as a cosponsor of legislation 
introduced by the majority leader to establish a National Commission on 
Medicare Reform.
  According to the Medicare trustees' report released last Wednesday, 
June 5, the Medicare hospital insurance trust fund will be bankrupt 
earlier than expected. In fact, the trustees, of which three of the six 
trustees are members of President Clinton's Cabinet, indicate that the 
trust fund may run out of money as early as calendar year 2000.
  Senator Dole's proposal is consistent with the recommendations of the 
Medicare trustees. The trustees recommend:

       * * * the establishment of a national advisory group to 
     examine the Medicare Program. The advisory group would 
     collect and disseminate information and help develop 
     recommendations for effective solutions to the long-term 
     financing problem. This work will be of critical importance 
     to the administration, the Congress and the American public 
     in the extensive national discussion that any changes would 
     require.

  We are now 2 years closer to insolvency of the Medicare trust fund 
than we were at this time last year. We lost a year trying to address 
the problem, and the program is 1 more year closer to bankruptcy than 
we expected. Yet, I regret, we are miles away from reaching an 
agreement on a solution.
  Given the very short time that Medicare will remain solvent, and 
given the large number of baby boomers who will be joining the Medicare 
Program in just a few years, we cannot afford more delay. It is time to 
put politics aside and find a solution.
  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.
  Again, I believe it is time to put politics aside. A Medicare Reform 
Commission is an important step in the right direction to bringing 
together a bipartisan, lasting agreement on resolving Medicare's fiscal 
crisis.
  The 1983 National Commission on Social Security Reform was an 
essential catalyst to resolving the then-looming bankruptcy of Social 
Security. The 1983 Commission brought together people in a cooperative 
bipartisan spirit. Ultimately, the work of the Commission laid the 
ground for a solution to the solvency crisis. I believe a Medicare 
Reform Commission might be able to do the same today.
  We are facing a crisis. A crisis requires action. We cannot be a 
government of empty promises. We must restore Medicare to robust health 
for our children and our grandchildren.
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