[Congressional Record Volume 146, Number 140 (Monday, October 30, 2000)]
[House]
[Page H11532]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




REPUBLICAN PLAN PROVIDES SENIORS WITH ACCESS TO AFFORDABLE PRESCRIPTION 
                                 DRUGS

  The SPEAKER pro tempore. Under the Speaker's announced policy of 
January 19, 1999, the gentleman from Florida (Mr. Stearns) is 
recognized during morning hour debates for 5 minutes.
  Mr. STEARNS. Madam Speaker, I rise today to talk about prescription 
drugs. I think everybody in this House is committed to affordable 
prescription drugs for our seniors who are on the Medicare program. But 
this morning I would like to talk about the difference between the 
Democrat plan and the Republican plan.
  I would also point out, Madam Speaker, that here in the House we 
passed by a bipartisan margin a prescription drug package for seniors. 
This was not an issue that just came into place from 1995 on, so I 
guess a question would be asked, why have the Democrats made this such 
a major issue, when they had, prior to 1995, an opportunity to solve 
this issue themselves when they were in the majority in the House and 
they had the presidency?
  I think it is easy to criticize someone else's plan, but we offered a 
plan and it passed the House. So let us talk about the difference 
between the two plans.
  The Democrat plan provides less choice, because it would provide 
seniors with a one-size-fits-all government plan. The Republican bill, 
H.R. 4680, would give beneficiaries a choice between at least two 
private sector drug plans. It would allow beneficiaries to choose plans 
that best suit their needs. Our plan is market-based, rather than 
relying on the government to run the plan.
  Now, why is this so important? Because we know that one of the 
overwhelming components of any plan that we offer is that it should 
provide individual choice for our seniors. Choice must be the 
centerpiece, I believe, of whatever plan we adopt here in the House.
  Now, how affordable are these plans? Let us look at these two plans 
and see what they actually provide seniors. H.R. 4680, which was passed 
by the House on June 28, the Republican plan, uses private insurance 
companies as the vehicle to begin prescription drug coverage for 
seniors over 65.
  This plan provides taxpayer subsidies to encourage insurers to offer 
policies with premiums estimated as low as $35 a month. Participation 
is voluntary. That is something else important. Seniors taking part can 
choose between at least two plans. All plans start with a $250 
deductible. It would establish the Medicare Benefits Administration, a 
new agency, to run this program. Volume buying that would be generated 
is expected to even lower the cost. The legislation covers 100 percent 
of drug and premium costs for couples with incomes up to $15,200 and 
singles with income up to $11,300. For all participants it covers at 
least half of drug costs up to $2,100 annually, and 100 percent, Madam 
Speaker, of out-of-pocket costs over $6,000.
  The bill is projected to cost just under $40 billion over 5 years, 
and the money has already been set aside in our budget just for this 
purpose. In other words, my colleagues, it is already paid for. That is 
the Republican plan.
  Now let us look at the Democrat plan that the House defeated here. 
Currently seniors pay a premium and receive reimbursement for a portion 
of their doctor and hospital costs through Medicare. Under the 
Democrat's plan, they would use the new government benefit to reduce 
the cost of pharmaceutical drugs.
  Now, what does this mean? The Democrat plan puts government in charge 
of seniors' prescription drug through the Health Care Financing 
Administration, HCFA. They run Medicare now. The government would 
choose and control a drug purchasing contractor for every region of the 
country; in other words, a new government one-size-fits-all program.
  This is key, because a recent survey of seniors with drug coverage 
found that, by a margin of 2 to 1, they preferred private insurance 
coverage to government price controls. That being said, the Democrats' 
measure offers premiums that would range from $25 to $35 month, but 
with no deductible. Medicare would reimburse half of drug costs, up to 
$2,000 annually, and all costs above $4,000 per year.
  However, the real question, my colleagues, our seniors are faced 
with, is who do they trust to run their prescription drug program, the 
government or the private sector? Do they want to make their own 
choices and control how their money is spent, or do they want a 
government-run plan that leaves them without any say about what works 
best for them?
  I believe the choice is clear, Madam Speaker. We offer a plan here, 
the Republicans, that is voluntary, universal, affordable, with choice 
and security. For those seniors who are happy with what they have, they 
do not have to participate, but those that do can.
  I believe we can and must work together in a bipartisan manner to 
help Medicare beneficiaries gain access to affordable prescription 
drugs. This bill offers coverage that is affordable, accessible, and 
voluntary for our seniors.

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