[Congressional Record Volume 144, Number 30 (Wednesday, March 18, 1998)]
[House]
[Pages H1295-H1296]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             MEDICARE EXPANSION FOR AMERICANS AGE 55 TO 65

  The SPEAKER pro tempore (Mr. Dickey). Under the Speaker's announced 
policy of January 7, 1997, the gentleman from New Jersey (Mr. Pallone) 
is recognized for 5 minutes as the designee of the minority leader.
  Mr. PALLONE. Mr. Speaker, I just wanted to mention today how 
important it is for this Congress and this House to address the issue 
of Medicare expansion with regard to Americans age 55 to 65.

[[Page H1296]]

  The President in his State of the Union Address, and just this past 
Tuesday, just yesterday, had a press conference where he discussed the 
need to move quickly on the issue of Medicare expansion for what we 
call the near elderly, those between 55 and 65. I believe it is crucial 
for us to address this issue. The Democrats are making it one of their 
priorities for this Congress. So far the Republican leadership has 
refused to acknowledge the need for such legislation, or to even 
suggest that it be moved in committee and moved out to the floor of the 
House of Representatives.
  Today, for a variety of reasons, more and more Americans are losing 
their employment-based health insurance before they become eligible for 
Medicare at age 65.
  Some of these Americans lose their health coverage because their 
older spouse becomes eligible for Medicare and retires, ending their 
work-based coverage. Others lose their coverage because of downsizing 
or layoffs. Still others lose their insurance when their employers 
unexpectedly drop their retirement health care plans.
  These people worked hard, usually in most cases for a lifetime, 
supporting their families and contributing to society. Now, just when 
they need it most, they lose their coverage and are unattractive to 
health insurers, who demand high premiums or simply deny coverage 
outright.
  I am getting more and more of my constituents who come into my office 
in New Jersey and complain about the fact that they cannot get access 
to affordable health care when they are in this age bracket, from 55 to 
65. They find it very difficult in this age group to get coverage 
outside of the workplace. Many are often left with no alternative but 
to buy into the individual insurance market, where premiums can exceed 
$1,000 per month for a person with a preexisting condition. For those 
with serious health problems, they may not be able to find insurance at 
all, at any price.
  What the President has proposed, and what the Democrats in the 
Congress are suggesting be done and be moved, is a bill that presents 
three options to this age group to obtain health insurance.
  One, individuals 62 to 65 years old with no access to health 
insurance may buy into Medicare by paying a base premium now and a 
deferred premium during their post-65 Medicare enrollment.
  Individuals in the second category, from 55 to 62, who have been laid 
off and have no access to health insurance, as well as their spouse, 
may buy into Medicare by paying a monthly premium of about $400.
  Retirees, and this is the third category, aged 65 or older whose 
employer-sponsored coverage is terminated may buy into their employer's 
health insurance for active workers at 125 percent of the group rate.
  So we are talking about three categories of people in this age 
bracket who face different problems. But the main thing, Mr. Speaker, 
is the Democrats understand that Americans in this age group have 
difficulty getting health insurance at one of the most vulnerable times 
in their lives.
  We want to help these people out. They have greater risks of health 
problems, with twice the risk of heart disease, strokes, and cancer as 
people whose ages are in the 10 years from 45 to 54 or below, but they 
are having a very hard time obtaining affordable health insurance for 
themselves and their spouse. This is a problem that is growing. It is 
getting to crisis proportions. It will only grow as retiree health 
coverage is reduced and as the baby boom generation ages.
  What we are trying to do here is address a health concern without 
putting any additional financial burden on the Medicare program. I 
think this is a very good piece of legislation. The Republican 
leadership has not addressed it, but they should address it.
  One issue that also comes up, and I have actually suggested it, is 
that we find some way to provide some financial assistance to the near 
elderly who will have a problem buying into the Medicare system because 
of the cost of the monthly premium.
  I have been working on legislation that would provide economic 
assistance for those age 62 to 64 who choose to buy into the Medicare 
program, and for those age 55 to 64 who have been laid off or 
displaced.

                              {time}  1700

  There may be some way to provide some sort of subsidy so that those 
who cannot afford the full cost of the Medicare premium on a sliding 
scale, based on their affordability, would be able to get some sort of 
subsidy so that they could successfully buy into this program. With or 
without that type of subsidy, though, this is a good program. It is 
something that needs to be addressed.
  Like the issue of managed care reform or like the issue of kids' 
health care that was addressed in the last Congress, I hope that, as 
the Democrats keep pushing for this, the Republican leadership will 
eventually wake up and allow this type of legislation to be taken up so 
that those in that 55 to 65 category can buy into Medicare, and we can 
see Medicare expanded in a way that is both fiscally responsible, but 
also addresses a growing health care concern.

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