[Congressional Record Volume 144, Number 141 (Friday, October 9, 1998)]
[Senate]
[Pages S12178-S12179]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. ROTH (for himself, Mr. Lieberman, and Mr. Mack):
  S. 2611. A bill to amend title XVIII of the Social Security Act to 
enable medicare beneficiaries to remain enrolled in their chosen 
medicare health plan; to the Committee on the Judiciary.


                          Medicare Legislation

  Mr. ROTH. Mr. President, yesterday the President announced his plans 
for helping Medicare beneficiaries who are enrolled in health plans 
which are not renewing their Medicare contracts for next year. I am 
glad that President Clinton recognizes the problems Medicare 
beneficiaries are facing and I think it is important that we all work 
together to address this issue. But I am concerned that the President 
offered a `tomorrow' solution for today's problem.
  The problems facing Medicare HMO beneficiaries need attention now and 
cannot wait until next year. The President's proposal is inadequate and 
we must take immediate action to help Medicare beneficiaries to stay in 
their chosen health plans.
  Across the country, including in my home state of Delaware, thousands 
of Medicare beneficiaries are losing their HMO coverage and being 
forced back into the original Medicare program with expensive Medigap 
policies. We need to help these beneficiaries today.
  I am urging my colleagues in the House and Senate to act now to allow 
Medicare managed care plans that have withdrawn from the program to get 
back into Medicare. The legislation I am introducing today, along with 
my colleagues Senator Liebermann and Senator Mack, would instruct the 
Health Care Financing Administration to allow these plans to 
restructure their costs where justified. This would give many of the 
health insurance providers the flexibility they need to go back in to 
these markets. But most critically important, it would give 
beneficiaries the opportunity to remain in their current plans without 
the disruption and increased costs that they will otherwise face.
  I am presenting this legislation today after several attempts over 
the last month to work with the Administration to allow Medicare+Choice 
plans to update their cost and beneficiary filings for 1999. I had 
hoped to resolve this problem administratively--before these plans made 
their final decisions to pull out of 371 counties leaving 220 thousand 
beneficiaries to find another Medicare option. I sent a letter to HCFA 
head Nancy-Ann Min Deparle urging HCFA to take immediate action to 
prevent these manage care plans from leaving the Medicare+Choice 
program.
  I find it highly regrettable that the Health Care Financing 
Administration decided not to allow Medicare+Choice plans to update 
their cost and benefit filings for 1999. This decision could undermine 
the Medicare+Choice program enacted into law just last year and which I 
believe holds so much promise for improving Medicare for seniors.
  HCFA's shortsighted decision will result in large out-of-pocket cost 
increases, fewer benefits, and fewer choices for hundreds of thousands 
of Medicare beneficiaries. The beneficiaries who will bear the hardest 
brunt of the Administration's decision are the 455,000 enrolled in non-
renewing Medicare+Choice plans in counties where no additional plans 
exist. These beneficiaries will now be left with only a significantly 
more expensive Medicare option; that is, the original Medicare program 
combined with a Medigap insurance policy. This is particularly 
unfortunate given that premiums for Medigap insurance policies have 
been sharply increasing each year. In fact, the American Association 
for Retired Persons announced just this week that its Medigap insurance 
premiums will increase by an average of 9 percent nationwide next year.

[[Page S12179]]

  And even in areas where beneficiaries will be left with one or more 
health plan options, the plan withdrawal will result in reduced 
competition which translates to higher out-of-pocket costs for Medicare 
beneficiaries.
  I am very concerned by the agency's failure to evaluate potential 
increased beneficiary cost-sharing when making the critical decision 
not to allow plans to update their cost and benefit filings. I believe 
this action demonstrates HCFA's continued resistance to facilitate 
private plan choices for Medicare beneficiaries, regardless of the 
consequence to beneficiaries.
  I hope that the Congress and President Clinton will fight the 
temptation to play politics with Medicare and instead do the right 
thing for beneficiaries by taking action before Congress adjourns for 
the year to help beneficiaries to remain in their current Medicare 
health plans if they so choose. Next year, we can work together toward 
a more comprehensive solution to this issue.
                                 ______