[Congressional Record Volume 150, Number 21 (Wednesday, February 25, 2004)]
[Senate]
[Page S1591]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. BOXER:
  S. 2116. A bill to amend part C of title XVIII of the Social Security 
Act to prohibit the comparative cost adjustment (CCA) program from 
operating in the State of California; to the Committee on Finance.
  Mrs. BOXER. Mr. President, in accordance with the Medicare 
legislation that Congress passed and the President signed into law last 
year included, beginning in 2010, a ``premium support'' demonstration 
project in up to 6 areas of the country. If included in this project, 
seniors will face increased premiums if they choose to stay in 
traditional ``fee-for-service'' Medicare instead of joining an HMO. 
They call it a ``demonstration project'' but it ought to be called a 
``demolition project'' because this plan will demolish Medicare for 
millions of seniors.
  CBO estimates that 1 to 1.5 million Medicare beneficiaries are likely 
to be involved in the demolition project. In reality, the numbers could 
be much higher--one in six Medicare beneficiaries could be forced to 
participate in this experiment. In California, 12 of its metropolitan 
statistical areas (MSAs) now qualify for the demonstration project. If 
the two largest MSAs are chosen for this demonstration project, 1.4 
million Californians will be forced into this experiment and will be 
faced with a Hobson's choice. They will be required to join an HMO or 
pay higher premiums.
  We know what happens in these situations. Healthy people will choose 
the HMO, leaving sicker seniors in fee-for-service plans. As costs in 
traditional Medicare spiral even higher due to its pool of sicker 
seniors, the costs of Medicare will rise. Medicare will be weaker.
  That brings us to the real question: Why is this necessary? Is it 
because seniors can't choose HMOs under the current system? No. Seniors 
can choose to join an HMO right now if they wish. I'll tell you why: It 
is a backdoor attempt to achieve Newt Gingrich's vision for a Medicare 
that will ``whither on the vine.''
  Twenty-two of my colleagues are introducing bills to exempt their 
States from this demolition project. Along with them, I am introducing 
a bill that will exempt California as well. I do not want California 
seniors to be forced to swallow the bitter choice between high costs or 
lower quality HMO service.
  I urge my colleagues to support this legislation.
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