[Congressional Record Volume 146, Number 86 (Friday, June 30, 2000)]
[Extensions of Remarks]
[Page E1172]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          H.R. 4680--MEDICARE COVERAGE AND PRESCRIPTION DRUGS

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                               speech of

                             HON. TOM UDALL

                             of new mexico

                    in the house of representatives

                       Wednesday, June 28, 20000

  Mr. UDALL of New Mexico. Mr. Speaker, I speak today about the 
Democratic alternative for providing prescription coverage to all 
Americans on Medicare. Before I discuss the proposal I would like to 
tell you that we have seen great success with the Administration's 
long-term strategy of fiscal discipline. It is working well. Our 
economy is strong and we should use this moment of prosperity to 
lengthen the life and modernize Medicare with a prescription drug 
benefit plan.
  Lack of prescription drug coverage among senior citizens and people 
with disabilities today is similar to the lack of hospital coverage 
among senior citizens when Medicare was created. Three out of five lack 
dependable coverage. Only half of beneficiaries have year-round 
coverage, and one third have no drug coverage at-all.
  It's projected that this year more than half of Medicare 
beneficiaries will use prescription drugs costing $500 or more, and 38 
percent will spend more than $1000. Each year, about 85 percent of 
Medicare beneficiaries fill at least one prescription. Yet one third of 
beneficiaries have no coverage for drugs at all. And in 1996, more than 
half did not have drug coverage for the entire year. In the district 
that I represent, there are 64,822 seniors aged 65 or older who face 
the challenge of paying exorbitant prices for prescription drugs.
  For the 10 million Medicare beneficiaries living in rural areas, 
nearly half have no drug coverage. They have less access to employer 
based retiree health insurance because of the job structure in rural 
areas.
  There is no reason that we in Congress cannot take the necessary 
steps to ensure that every older American has access to the lifesaving, 
life enhancing prescription drugs they need.
  My Democratic colleagues and I are united in a single strategy to 
provide these prescription drugs. I don't know how we can deny the fact 
that with the funds we have, with the obligations we have, with the 
fact that anybody who lives to be 65 in America today has a life 
expectancy of 82 or 83 years that their need for life enhancing and 
life preserving prescription drugs will only increase. Now is the best 
time to address this issue. We must do it now. The timing is right.
  The Republican leaders put forth a plan with a stated goal of 
providing affordable prescription drugs for seniors, but the policy 
falls far short of the promise. Their plan fails to guarantee that all 
seniors who want it will have access to meaningful, affordable, and 
reliable prescription drug coverage. Their plan also suggests a private 
insurance benefit that insurers, themselves, say they will not offer 
and no one will buy if they did offer it because it would be too 
expensive. Limiting direct financial assistance for prescription drugs 
to seniors below the $12,500 income will leave out over half the 
seniors.
  In contrast to the Republican proposal, we as Democrats have a sound 
plan for all of America's seniors. It ensures that all seniors get 
voluntary, affordable and reliable prescription coverage through 
Medicare.
  Specifically under our plan, Medicare would cover half of a 
beneficiary's drug costs up to $2,000 a year, beginning in 2002. That 
would increase to half of $5,000 by 2009. Over that time, monthly 
premiums would rise from an estimated $24 to about $50. There would be 
no deductible, and no senior would pay out-of-pocket expenses of more 
than $4,000 a year.
  The issue of providing affordable prescription drugs for every older 
American is essential. Adding prescription drug coverage to Medicare is 
not only the right thing to do, it is the smart thing to do. It's about 
giving people a chance to fight for a happy and productive long life.

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