[Congressional Record Volume 152, Number 14 (Wednesday, February 8, 2006)]
[Extensions of Remarks]
[Page E117]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  PATIENTS BEFORE PROFITS ACT OF 2006

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                          HON. JOHN D. DINGELL

                              of michigan

                    in the house of representatives

                      Wednesday, February 8, 2006

  Mr. DINGELL. Mr. Speaker, today I am introducing legislation--the 
Patients Before Profits Act of 2006--that will right some of the many 
wrongs in the budget reconciliation bill passed by Congress last week 
and signed by the President today. This legislation, which is also 
being introduced today in the Senate by Senator Clinton, will realign 
our priorities to protect the healthcare coverage of working families 
rather than the profiteering of HMOs and private insurance companies.
  The Patients Before Profits Act eliminates Government overpayments to 
Medicare HMOs through removal of a ``slush fund'' provision and 
ensuring these HMOs are only paid what is appropriate for the consumers 
they serve. This bill would then use these savings to restore 
protections against excessive out-of-pocket costs for necessary medical 
visits, prescription drugs, and emergency room care. It will also 
restore the benefit protections that provide medically necessary 
treatments under Medicaid and ensure families have adequate benefit 
coverage, not bare-bone packages.
  The Patients Before Profits Act is needed because of the recently 
passed so-called Deficit Reduction Act, which the Republicans designed 
and the President is signing into law today. In the dark of the night, 
the Republicans removed provisions that transferred $32 billion in 
taxpayer overpayments to Medicare HMOs and insurance plans.
  The Senate bill had cut $36 billion in overpayments to the HMOs in 
Medicare. That included $26 billion in savings by more accurately 
calculating their payments. But the negotiators rewrote the provision 
to save just $4 billion, providing a $22 billion windfall to the HMOs. 
The Senate bill also eliminated a $10 billion slush fund designed to 
entice HMOs to participate in the prescription drug program. The 
Republican conferees dropped this provision, providing another $10 
billion gift to the HMOs for a total of $32 billion.
  This bill takes back the money given to Republican-favored companies 
and restores to our most vulnerable citizens the needed healthcare that 
was cut. According to the non-partisan Congressional Budget Office, of 
the $28 billion in savings from Medicaid over 10 years, about 75 
percent of that amount is due to provisions that reduce the number of 
people who can afford to participate. It will increase the number of 
uninsured and under-insured by raising the copayments that people will 
have to pay to see their doctors, increasing premiums, cutting 
medically necessary treatments, and tightening access to long-term 
care.
  By 2015, 4.5 million children will be affected by higher cost-sharing 
charges for healthcare services such as doctor visits. A total of 13 
million people will face higher charges to access their healthcare 
services. Twenty million people will face higher charges to obtain 
needed prescription drugs. One-third of those individuals affected by 
the drug cost-sharing (6.6 million) will be children and half (10 
million) will have incomes below the Federal poverty level (monthly 
incomes of less than $1,380 for a family of three). All this because of 
a Republican unwillingness to take back overpayments to HMOs.
  Congressional Budget Office analysis also concludes that the 
Republican legislation assumes that the number of uninsured will 
increase. Twenty percent of the savings from new premium charges under 
this law will derive from families who are no longer able to maintain 
their Medicaid coverage due to increased costs. Sixty percent of those 
who will lose coverage due to new premium charges will be children. 
Again, all of this because of a Republican unwillingness to take back 
overpayments to HMOs.
  The Patients Before Profits Act of 2006 is a good start to right some 
of the wrongs that the Republican-led Congress and the President have 
inflicted on working families, individuals with disabilities, the 
elderly, pregnant women, and children. I urge my colleagues to join me 
in this fight.

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