[Congressional Record Volume 148, Number 88 (Thursday, June 27, 2002)]
[Extensions of Remarks]
[Pages E1161-E1162]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          INTRODUCTION OF MEDICARE RX BENEFIT AND DISCOUNT ACT

                                 ______
                                 

                          HON. JOHN D. DINGELL

                              of michigan

                    in the house of representatives

                        Wednesday, June 26, 2002

  Mr. DINGELL. Mr. Speaker, I am pleased to join with my Democratic 
colleagues in introducing a real prescription drug benefit bill.
  Unlike the bill introduced by our Republican colleagues, our bill can 
be simply explained, because it is built on a simple, known, and 
effective model--Medicare itself.
  Just like seniors pay a voluntary premium for Part B medical costs 
such as doctor visits, our bill provides for a voluntary Part D drug 
premium of $25 per month. For that, the Government will pay 80% of drug 
costs after a $100 deductible. And no senior will have to pay more than 
$2,000 in costs per year.
  These are real numbers, not estimates. The benefits and the $25 
monthly premium are specified on page 1 of the bill. Unfortunately, 
there are no such guarantees in the Republican bill.
  On top of that, we will be arming seniors with the most potent 
protection from soaring drug costs. Forty million seniors banded 
together under the buying power of Medicare,

[[Page E1162]]

we can begin to use the necessary bargaining power to rein in high drug 
prices.
  This is not price controls; it is competition and bargaining. We saw 
that the Government was effective in negotiating a competitive price 
for the prescription drug Cipro during the anthrax outbreak. Why 
shouldn't we do the same for other life saving drugs for seniors?
  In contrast to our simple and effective prescription drug benefit, 
the Republican bill is a complex scheme that would make Rube Goldberg 
blush. In fact, it is not a drug benefit at all. It is a host of 
subsidies to private insurers in the hope that they will offer a drug-
only benefit to seniors. Will they? Time and again they have told us 
no.
  Why would the Republicans put forward such a model? Well, quite 
simply they have a larger agenda--they want to privatize all of 
Medicare, and this is just another step. That is the only reason why 
seniors are not even given a choice of getting the benefit through 
their traditional Medicare provider.
  And why don't they endorse our plan? Our plan is simple; it is 
comprehensive; it is what seniors want. The Republicans have raised 
just one issue: they say it costs too much. Well, I can tell you that 
we can afford it. It is just a matter of priorities.
  To put the costs in perspective, we are told that our bill may cost 
$500 billion dollars more than the Republican proposal over 10 years. 
Well, just a couple of weeks ago our Republican colleagues voted for a 
bill to make permanent the repeal of the estate tax on the wealthiest 
people in this country. In the second decade when that permanent repeal 
kicks in, it will cost the Treasury $750 billion.
  So, yes, this bill may be expensive. Seniors will spend $1.8 trillion 
on prescription drugs over the next decade. That is expensive. But we 
can do something about it. It is a matter of choices.
  Our prescription drug benefit has the strong support of organizations 
representing millions of seniors, such as the National Committee to 
Preserve Social Security and Medicare, the Alliance for Retired 
Americans, the National Council on Aging, and AARP. They recognize our 
benefit is a good value for seniors.
  The bill we are introducing today also includes provisions to shore 
up the Medicare fee-for-service system such as increased payments to 
hospitals, doctors, and nursing homes. Senior citizens and individuals 
with disabilities depend on Medicare fee-for-service and ensuring its 
continued viability has always been a priority for Democrats.
  The Medicare Rx Benefit and Discount Act is a solid bill that 
provides a comprehensive, affordable, and much needed prescription drug 
benefit in Medicare. It also moves towards ensuring that seniors and 
those with disabilities can continue to count on the same high quality 
care from their providers as they receive today.
  It is a good bill, and I hope my colleagues in the House will join us 
in supporting it.

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