[Congressional Record Volume 142, Number 90 (Tuesday, June 18, 1996)]
[House]
[Page H6427]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                              {time}  1245
       GOP SLASHES MEDICARE AND MEDICAID WHILE INCREASING DEFICIT

  The SPEAKER pro tempore (Mr. Weller). Under the Speaker's announced 
policy of May 12, 1995, the gentleman from New Jersey [Mr. Pallone] is 
recognized during morning business for 5 minutes.
  Mr. PALLONE. Mr. Speaker, last week the Republicans passed their 
budget plan which actually increases the deficit starting next year. 
Projections show that the 1996 deficit will be approximately $130 
billion, but under the GOP plan it will increase to $153 billion in 
1997. The GOP deficit is also higher in 1998 than this year's deficit.
  I ask why. The reason is because the GOP are intent on their large 
tax breaks for the wealthy, part of which are paid for through 
excessive Medicare cuts.
  In 1992 the deficit was $290 billion and in 1993 it was $255 billion. 
Under Democratic leadership the deficit has actually dropped 4 years in 
a row to the projected $130 billion of this year.
  What is the reason for the Republican deficit increase? Misplaced 
priorities, tax breaks for their wealthy friends, and a slush fund for 
future unnecessary tax breaks. While the Republicans claim to be 
deficit hawks and the saviors of Medicare, the facts indicate that they 
are intent on pushing this country further into debt and making large 
and unnecessary cuts in Medicare.

  This Republican deficit-increasing budget also makes extreme cuts of 
$72 billion over 6 years to the Medicaid Program and allows States to 
cut an additional $178 billion, for a grand total of $250 billion in 
Medicaid cuts. We are talking about major cuts in Medicaid as well as 
Medicare.
  Many people look at the Medicaid Program as primarily for the poor, 
and, of course, it does assist poor people, but it also pays about 50 
percent of all nursing home care for senior citizens. Without Medicaid, 
many middle-class adult children of nursing home parents will have to 
pay for their parents' expensive care, while at the same time trying to 
send their own children through college.
  Last Thursday, Mr. Speaker, the Committee on Commerce, of which I am 
a member, voted on the Medicaid Repeal Act, which I vigorously fought. 
The Medicaid Repeal Act will eliminate all current guarantees of health 
care coverage and eliminate current guarantees of nursing home benefits 
to the elderly. This is the Medicaid Repeal Act that the Republican 
leadership is putting forward.
  I offered an amendment to this act that would return these guarantees 
in this terrible legislation, but it was rejected by every Republican. 
Other Democrats offered similar amendments to continue health care 
coverage for the disabled, for children, for pregnant women, but again 
all those amendments were defeated by the Republicans.
  On top of all this, the GOP Medicaid Repeal Act will sharply reduce 
payments to hospitals for care. Compounded with the extreme Gingrich-
Dole Medicare cuts to hospitals, many will be forced to close their 
doors, especially hospitals that receive a majority of their income 
from Medicare and Medicaid.
  Many hospitals in my home State of New Jersey are in this situation. 
They are highly Medicare and Medicaid dependent. I am very concerned 
about their being able to survive these steep cuts that have been 
proposed by the Republicans in Medicare and Medicaid.
  Again, the Republican plans will reduce access to health care 
services. At a time when Congress should be seeking ways to decrease 
the number of uninsured and underinsured, the Republican leadership's 
answers will make these problems worse.
  I thought it was interesting to see Speaker Gingrich take the floor 
this morning and talk about how he is trying to increase portability 
and also increase health insurance for those with preexisting health 
conditions through the Kennedy-Kassebaum legislation. But that reality 
is that the Speaker and the rest of the Republican leadership have been 
insisting on including medical savings accounts in this Kennedy-
Kassebaum health care reform.
  What that will mean is that the healthy and the wealthy will opt out 
of the traditional health insurance programs and the cost for everyone 
else for health insurance will go up. So again, even though the 
Republican leadership talks about how they are trying to expand health 
care options, in fact what they are doing is making those options fewer 
because more and more people will not be able to afford health 
insurance.
  Mr. Speaker, I just wanted to say in conclusion that in the past 
Democrats were able to decrease the deficit and preserve Medicare and 
Medicaid. The Republicans have misplaced priorities and values. The 
Democrats have a proven track record of reducing the deficit and 
ensuring that senior citizens have adequate health care. I remain 
committed to fighting these Republicans efforts that would raise the 
deficit while at the same time slashing Medicare and Medicaid.

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