[Congressional Record Volume 149, Number 63 (Wednesday, April 30, 2003)]
[Senate]
[Pages S5597-S5598]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. WARNER (for himself, Mr. Dayton, and Ms. Collins):
  S. 951. A bill to amend the Internal Revenue Code of 1986 to allow 
medicare beneficiaries a refundable credit against income tax for the 
purchase of outpatient prescription drugs; to the Committee on Finance.
  Mr. WARNER. Mr. President, I rise today to introduce this morning a 
bill on which my distinguished colleagues from Minnesota and Maine and 
I have collaborated. That is the Older Americans Prescription Drug Tax 
Relief Act. I will speak a minute or two on it, then should the Senator 
from Minnesota desire to speak to this, I will yield to the Senator and 
then resume the balance of my statement.
  By way of introduction, all Members of this body have heard the 
tragic stories about older Americans who must choose between paying for 
their groceries and paying for their medicines. Many older Americans 
are forced into this choice because, unbelievably, the Medicare program 
still lacks an outpatient prescription drug benefit. America's seniors 
deserve much better.
  Our President, the House of Representatives, and every single Member 
of this Senate, all 100 Members, share the common goal of enacting a 
comprehensive Medicare prescription drug benefit. Over the years, we 
worked diligently to achieve those goals but have yet not reached what 
I would consider, and I think others would consider, success. We have 
all worked in support of this vitally important goal, but, again, 
success has alluded us. Unfortunately, we have not been able to reach a 
consensus.
  I hope this bill might be a new initiative that would merit the 
attention of my colleagues, and that it might provide a basis for that 
consensus. As we here in the Nation's Capital debate how best to add a 
Medicare prescription drug benefit and continue to debate the specifics 
of such benefits such as premiums, co-pays, deductibles, formularies, 
and whether to run the program through the existing Medicare system or 
through a public-private partnership, our seniors continue to suffer. 
Medicare beneficiaries have waited far too long for Congress to provide 
some sort of relief for their prescription drug costs.
  I remain committed, as are my distinguished colleagues from Minnesota 
and Maine, to working with our colleagues on creating a comprehensive 
prescription drug benefit in the Medicare program. I believe we must 
act now, however, to provide some relief at this point in time. We 
cannot defer this decision any longer. The Warner-Dayton-Collins 
proposal will provide real relief to Medicare beneficiaries. The 
legislation is simple and can be described in three points.
  The PRESIDING OFFICER. The Senator from Minnesota.
  Mr. DAYTON. Mr. President, I thank the senior Senator from Virginia, 
a leader on this measure. I will be brief because I am scheduled to 
meet in my office in just a few moments with the nominee for the new 
superintendent of the Air Force Academy, which is a matter on which the 
Senator from Virginia has also exhibited great leadership on behalf of 
this country.
  I am very proud to join with Senator Warner in sponsoring this 
legislation. I agree and associate myself with everything the Senator 
has said regarding this matter.

[[Page S5598]]

  I came to the Senate a little over 2 years ago, believing the most 
urgent matter facing our country in the area of social legislation was 
to provide prescription drug coverage for all of our elderly. I have 
been dismayed at our inability--all of us--to reach necessary 
agreements so such legislation could be enacted.
  I could not agree more with the Senator from Virginia that this is 
something I hope our colleagues will consider. If there is a better 
approach that we can all agree on this year, then so be it. But in the 
absence of that, as there has been that failure during the last 2 
years, I hope our colleagues will look at this as a very feeling 
alternative. Even if long-term legislation is enacted, I believe it 
will be at least a year or two before that is available to our senior 
citizens, before that program is set up. This is an approach that could 
be implemented very swiftly, could be available almost immediately, and 
could provide, on an interim basis if not a long-term basis, the 
financial assistance our elderly citizens desperately need.
  I thank the senior Senator from Virginia. I am proud to associate 
myself with this legislation.
  I yield the floor.
  Mr. WARNER. I thank my distinguished colleague for responding. I wish 
to emphasize a very important point the Senator from Minnesota made.
  This may not be the final resolution of this complex set of issues. 
But given the desperate circumstances of so many who have to make the 
choice between food and drugs, I think it is a very carefully crafted 
interim step that could be enacted into law and later quickly 
superseded should that hoped-for event occur in the future of a more 
comprehensive piece of legislation.
  I think the emphasis on that is very important.
  I would say, all of us here in the Senate benefit greatly by 
professional staff. On my staff, Chris Yianilos really worked 
diligently to bring this legislation into being and he collaborated 
with a distinguished member of your staff, Mr. Bob Hall. I also thank 
Priscilla Hanley, who worked with Senator Collins on the legislation.
  The first is that the Warner-Dayton-Collins bill provides Medicare 
beneficiaries with a refundable--I repeat--a refundable tax credit of 
50 cents on every dollar of out-of-pocket prescription drug costs. 
Whether you actually pay income taxes or not, you are eligible to get 
the benefit of this tax credit.
  The benefit is capped at $500 for the expenses of an individual 
senior. Married seniors would be eligible for a credit up to $1,000. 
The cap is based on a recent study by the Kaiser Family Foundation that 
estimates that the average senior's out-of-pocket prescription drug 
costs is almost $1,000. Thus the proposal will cover 50 percent of the 
out-of-pocket drug costs for the average senior.
  To take advantage of this refundable tax credit, Medicare 
beneficiaries will not have to worry about whether their drug is 
covered under some formulary. In addition, there are no premiums, no 
deductibles. Medicare beneficiaries will simply take their 
prescriptions, get them filled, and then apply for their refundable tax 
credit.
  Second, in recognition that a generous but necessary refundable tax 
credit such as this can be costly, we have imposed a responsible income 
phase-out on older Americans who can benefit from this tax credit. The 
phase-out level begins for individuals who earn $75,000 per year. 
Married Medicare beneficiaries begin to phase-out of the benefit at 
$150,000 a year. This cost containment mechanism will affect less than 
10 percent of all Medicare beneficiaries but allows us to responsibly 
provide a refundable tax credit that will cover about 50 percent of the 
average Medicare beneficiary's out-of-pocket drug costs.
  Again 90 percent of all Medicare beneficiaries will not be affected 
by the phase-out. In other words, they are beneath the phase-out caps. 
Only those individuals who are blessed with a larger income among 
America's seniors, who can afford in large measure to pay for their 
prescription drugs, will be phased-out.
  Third, the legislation will sunset once a comprehensive Medicare 
prescription drug benefit is signed into law. Again, as my colleague 
from Minnesota mentioned, and others, this is an interim proposal. 
Therefore, it can be superseded by a more comprehensive bill.
  We wholeheartedly agree this legislation is not a substitute for a 
comprehensive prescription drug Medicare benefit, and we will continue 
to work with the President and our colleagues from both sides of the 
aisle in the Senate who support a more comprehensive piece of 
legislation. But as I stated earlier, America's seniors cannot wait any 
longer for relief, and this proposal provides a real benefit to 
America's seniors.
  I am pleased to be joined by Senator Dayton and Senator Collins in 
introducing the Older Americans Prescription Drug Tax Relief Act. I 
urge my colleagues to give this matter consideration and, hopefully, it 
can be enacted into law.
  Let us do something. Let us open the door and talk to the Cuban 
people.
  Travel and other policies that deal with Cuba will continue to be a 
top priority for those of us in the newly formed Senate Cuba Working 
Group. The working group members have expressed their support for 
changes in our policies toward Cuba, and we will continue to be a part 
of the dialogue. I do encourage all of my colleagues to join us in that 
effort.
  I encourage all of my colleagues to take a look at this bill that has 
been introduced today. I know there are people looking at it. I expect 
a lot more cosponsors on it. This is the most reasonable provision 
dealing with Cuba that has been presented during the 6 years I have 
been here. We have tried some bigger bites at the apple. They have not 
worked. So we are moving back to the travel restrictions, a bill that 
is very limited. It allows one to travel and to have those things that 
are necessary for travel. For instance, the right to take baggage to 
Cuba cannot be cut off. That is another way the law can be subverted. 
So it is a very straightforward travel policy that will get Americans 
into Cuba to talk to Cubans to promote the ideas we believe in. I ask 
my colleagues to join me in this effort.
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