[Congressional Record Volume 149, Number 16 (Wednesday, January 29, 2003)]
[Extensions of Remarks]
[Page E92]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    HELP SENIORS LOSING HMO COVERAGE

                                 ______
                                 

                           HON. STEVE ISRAEL

                              of new york

                    in the house of representatives

                      Wednesday, January 29, 2003

  Mr. ISRAEL. Mr. Speaker, in the last Congress, the House passed the 
landmark Israel-Johnson Medicare+Choice Improvement and Stabilization 
Act that I cowrote with Republican Representative Nancy Johnson. 
Unfortunately, despite a bipartisan consensus that something must be 
done and the best efforts of Senator Schumer, the Senate did not pass 
the needed legislation.
  Now, at the beginning of the 108th Congress, and working closely with 
the administration, leadership of both parties and the Senate, the 
first piece of legislation I have introduced in the 108th Congress is a 
bill that will help stabilize the Medicare+Choice program.
  Since 1999 more than 2.4 million beneficiaries, including more than 
85,000 Long Island seniors, have had their service interrupted by a 
severe funding crisis. Millions of other beneficiaries have experienced 
a reduction in benefits or an increase in out-of-pocket costs. These 
problems are a direct result of the fact that funding for the 
Medicare+Choice program has not kept up with rising health costs.
  From the moment I came to Congress, seniors have been asking me when 
relief will arrive. They wonder what is taking so long and why Congress 
can't pass this and the President sign-it. The fact is that while 
Congress blames HMOs for leaving Long Island, HMOs blame the 
administration, and Republicans and Democrats blame each other, seniors 
are suffering.
  As we begin a new session of Congress, it is essential that we put 
partisan politics aside and give seniors the help they so desperately 
need. Playing the blame game won't help seniors pay their medicine 
bills. The time has come to act.
  Over the past three years, there has been a growing consensus in 
Congress that the Balanced Budget Act (BBA) of 1997 has had the 
unintended effect of constricting the Medicare market as a whole, and 
Medicare+Choice health plans in particular. According to a November 
2002 report by the Commonwealth Fund, the BBA is limiting M+C payment 
rates, while health care costs are increasing. As a result, 
beneficiaries looking to Medicare HMOs as an affordable supplemental 
insurance option are being asked to pay more for fewer benefits.
  And that is only part of the problem. The ultimate result of this 
flawed system created by the BBA is that HMOs in the program have been 
deserting seniors on Long Island. Just 4 years ago 12 HMOs offered 
seniors health plans in Suffolk County; now only two remain. More than 
85,000 Long Island seniors have been dropped by their HMOs. This is 
unacceptable.
  It is for this reason that the Medicare+Choice Equity and Access Act 
is so essential. It will stabilize the program and provide critical 
funding. The situation is unconscionable. Our seniors are depending on 
us. I urge my colleagues to quickly pass this bill and correct the 
funding inadequacies in Medicare+Choice.

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