[Congressional Record Volume 150, Number 66 (Wednesday, May 12, 2004)]
[Extensions of Remarks]
[Pages E826-E827]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               INTRODUCING THE MEDICARE EARLY ACCESS ACT

                                 ______
                                 

                        HON. FORTNEY PETE STARK

                             of california

                    in the house of representatives

                        Wednesday, May 12, 2004

  Mr. STARK. Mr. Speaker, in honor of ``Cover the Uninsured Week,'' I 
am pleased today to join with my colleague Rep. Sherrod Brown and more 
than 80 additional cosponsors in introducing the ``Medicare Early 
Access Act.'' This important legislation would provide an affordable 
health insurance option for the fastest growing segment of the nearly 
44 million uninsured Americans--those ages 55-64.
  In 2002, 43.6 million Americans were uninsured. There are many 
approaches to how we should address this growing problem. As most of my 
colleagues know, I am an advocate of a universal health care system in 
which each and every American would have health coverage. That is the 
most fair, affordable, and

[[Page E827]]

sustainable solution to our national health care needs.
  However, that won't be accomplished overnight. In the meantime, there 
are steps that Congress can and should be taking to develop immediate, 
if smaller, steps to providing people affordable health insurance 
coverage options. One such step is to pass legislation that would 
provide certain groups of individuals the option of buying into 
Medicare--a program with a proven track record that works. That's 
exactly what the Medicare Early Access Act does for people age 55 
through 64.
  As we all know, the baby-boomers are quickly approaching retirement, 
and health insurance is a major concern. Unfortunately, retiree health 
benefits have vanished or are quickly disappearing, leaving people with 
few or no affordable coverage options. A recent employer survey 
suggests that only 38 percent of large employers offer any type of 
retiree health benefits. Other recent research shows that 10 percent of 
the largest employers terminated all subsidized health benefits for 
future retirees in 2003.
  With shrinking retiree benefits and no affordable options available 
in the individual market, people age 55 through 64 are often uninsured 
or gravely underinsured. Besides the 3.5 million uninsured between ages 
55-64, another 3 million are forced to buy inadequate, overpriced 
coverage in the individual market. Most near elderly cannot purchase 
individual coverage because age rating and other underwriting 
techniques result in excessive premiums. Those that are even offered 
coverage are often required to pay astronomical deductibles and co-
pays, or are severely limited by pre-existing condition exclusions.
  In 1965, Medicare was specifically designed to provide coverage for 
those the market would not insure. Today we have the opportunity to 
expand on the original purpose of Medicare by providing access to 
people the market does not adequately cover. The Medicare Early Access 
Act would reduce the number of uninsured, provide better coverage for 
the underinsured, and improve the health status of this vulnerable 
population without harming Medicare or other insurance markets.

  That's why the Medicare Early Access Act makes so much sense. It 
would allow people in this cohort to buy into Medicare and enjoy the 
exact same benefits available to all other Medicare beneficiaries. 
Premiums for these new participants would be based on actuarial 
calculations of the cost of providing services to the population. There 
would be no effect on the Medicare trust fund because premiums will 
cover the entire cost of services provided.
  To ensure premiums are affordable, the bill provides a 75 percent 
advanceable, refundable tax credit. Thus, participants would pay a 
monthly premium equal to 25 percent of the cost of the program--an 
amount similar to what employed individuals pay for their health 
benefits.
  I am pleased to report that advocacy organizations representing 
consumers and seniors agree with us. The Medicare Early Access Act has 
been endorsed by The Leadership Council of Aging Organizations (LCAO) 
which is a coalition of national nonprofit organizations concerned with 
the well-being of America's older population and committed to 
representing their interests in the policy-making arena. I would like 
to thank the 27 members of the LCAO who signed a letter in support of 
the Medicare Early Access Act. The full text of their letter appears at 
the end of my statement.
  In our quest to reduce the number of uninsured Americans, the 
Medicare Early Access Act, is a great start. This bill would provide 
affordable, comprehensive coverage to the most vulnerable uninsured who 
have few, if any, health insurance options in the current marketplace. 
The system necessary to implement this bill is already in place; all we 
have to do is agree the uninsured deserve viable coverage options. I 
look forward to working with my colleagues on both sides of the aisle 
to enact this proposal.

               The Medicare Early Access Act Bill Summary


                              ELIGIBILITY

       Starting January 2005, individuals age 55-64 who do not 
     have access to coverage under another public or group health 
     plan are eligible to purchase Medicare. Enrollees will 
     receive the full range of Medicare benefits. Participants are 
     not required to exhaust employer-based COBRA coverage before 
     choosing the Medicare buy-in option. At age 65, buy-in 
     participants move into regular Medicare.
       In addition, because employers are dropping retiree health 
     benefits at an alarming rate, early retirees who have access 
     to retiree health coverage may also participate, and their 
     employers can wrap around the Medicare benefit.


                                PREMIUMS

       Enrollees must pay a premium to receive Medicare coverage. 
     The premium will be set by the Centers for Medicare and 
     Medicaid Services at the actuarial level necessary to cover 
     the full cost of services provided to the buy-in population. 
     The premium will be adjusted annually to ensure its accuracy.


                               TAX CREDIT

       Program enrollees receive a 75 percent refundable, 
     advanceable tax credit to offset premium costs. Thus, 
     participants in the Medicare buy-in are only personally 
     responsible for their 25 percent of the monthly premiums. The 
     tax credit is modeled on the payment mechanism created by the 
     Trade Adjustment Assistance (TAA) health care tax credit for 
     displaced workers, which was enacted in 2002.


                               FINANCING

       Premiums are deposited in a new Medicare Early Access Trust 
     Fund. Participant premiums and tax credits are transferred to 
     the Early Access Trust Fund to pay for Medicare services, 
     ensuring this new program does not financially affect 
     Medicare.
                                  ____

                                                Leadership Council


                                       of Aging Organizations,

                                      Washington, DC, May 5, 2004.
     Hon. Sherrod Brown,
     Hon. Pete Stark,
     Member of Congress,
     Washington, DC.
       Dear Representatives Brown and Stark: The undersigned 
     members of the Leadership Council of Aging Organizations 
     (LCAO) strongly endorse the bill you proposed to help 
     individuals age 55-64 years buy into the Medicare program at 
     an affordable price.
       Older Americans who are not yet eligible for Medicare have 
     a difficult time finding affordable health care and in some 
     cases may find that no insurer will cover them at a time in 
     their life when they most need health insurance protection.
       Your bill, which combines the efficiency of Medicare's mass 
     market purchasing power with the affordability provided by 
     refundable tax credits, effectively solves one of our 
     nation's toughest uninsured problems.
       We wish you success in this important legislative effort, 
     and we will be happy to work with you and your co-sponsors in 
     promoting its passage.
           Sincerely,
       AFSCME Retiree Program.
       Alliance for Retired Americans.
       American Association for International Aging.
       American Association of Homes and Services for the Aging.
       American Federation of Teachers Program on Retirement & 
     Retirees.
       American Foundation for the Blind.
       American Public Health Association.
       Association for Gerontology and Human Development in 
     Historically Black Colleges and Universities.
       Association of Jewish Aging Services of North America.
       B'nai B'rith International.
       Catholic Health Association.
       FamiliesUSA.
       Gray Panthers.
       International Union, UAW.
       National Asian Pacific Center on Aging.
       National Association for Hispanic Elderly.
       National Association of Professional Geriatric Care 
     Managers.
       National Association of Retired and Senior Volunteer 
     Program Directors.
       National Association of Retired Federal Employees.
       National Association of Senior Companion Project Directors.
       National Association of Social Workers.
       National Caucus and Center on Black Aged.
       National Committee to Preserve Social Security and 
     Medicare.
       National Indian Council on Aging.
       National Senior Citizens Law Center.
       OWL, the voice of midlife and older women.
       Volunteers of America.

                          ____________________