[Congressional Record Volume 151, Number 133 (Wednesday, October 19, 2005)]
[Senate]
[Pages S11564-S11565]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. HAGEL:
  S. 1889. A bill to establish the Comprehensive Entitlement Reform 
Commission; to the Committee on Finance.
  Mr. HAGEL. Mr. President, today I introduce legislation to create a 
bi-partisan Entitlement Reform Commission. The Commission will review 
America's three major entitlement programs, Social Security, Medicare 
and Medicaid, and make comprehensive recommendations to Congress and 
the President that would sustain the solvency and stability of these 
three programs for future generations. Representative John Tanner, D-
TN, has joined me by introducing this legislation in the House of 
Representatives.
  Social Security, Medicare and Medicaid have played a vital role for 
millions of Americans to cope with the financial burdens of retirement 
and health care costs. However, over the next 75 years these three 
programs represent a 42 trillion dollar unfunded commitment are on a 
trajectory that cannot be sustained. The Social Security Trust Fund 
faces a four trillion dollar unfunded commitment and will pay out more 
money than it takes in beginning in 2017; it will be exhausted in 2041. 
The Medicare Part A Trust Fund, hospital insurance, faces an 8.6 
trillion dollar unfunded commitment and will be exhausted even sooner 
in 2020. The remainder of the 42 trillion dollar unfunded commitment 
includes 12.4 trillion dollars for Medicare Part B, supplementary 
medical insurance; 8.7 trillion dollars for Medicare Part D, 
prescription drugs; and 8.4 trillion dollars for Medicaid.
  We have no idea where we are going to get the money to pay for these 
commitments. We must deal with these challenges today while we still 
have options so that our children will not be severely burdened with 
paying for huge entitlement commitments when they are competing in a 
far more competitive world than exists today. To leave future 
generations in this predicament would be an irresponsible and colossal 
failure of our generation.
  Eight members will sit on the Commission established in my 
legislation. The House Speaker, House Minority Leader, Senate Majority 
Leader and Senate Minority Leader will each appoint two members. 
Members cannot be elected officials. The Commission will select two Co-
Chairmen from among its members and hire an Executive Director.
  The Commission must submit its final report to the President and 
Congress one year after the selection of the two Co-Chairmen of the 
Commission and the Executive Director. Congress will hold Committee 
hearings to review the Commission's recommendations. The bill 
authorizes 1.5 million dollars to carry out the Commission's tasks.
  In March 2005, Federal Reserve Chairman Alan Greenspan urged Congress 
to act on modernizing entitlement programs, ``sooner rather than 
later.'' He warned that unless we act now to meet the huge unfunded 
commitments of our entitlement programs, there will be significant 
economic consequences for our nation. Dealing with this problem now 
means facing less dramatic and difficult choices down the road. The 
earlier we confront this reality, the more options we will have to 
pursue a wise and sustainable course of action.
  I am 59 years old. I am at the front end of the ``baby boom'' 
generation. My daughter is 15 years old and my son is 13 years old. I 
don't want to fail their generation. That means addressing these 
entitlement programs now while we have time to do it in a responsible 
way. This is a defining debate for today's leaders. Doing nothing is 
irresponsible and cowardly. It is in every American's interest to deal 
with this challenge now. We have it in us to do what needs to be done. 
I invite my colleagues to cosponsor this legislation.

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