[Congressional Record Volume 157, Number 148 (Wednesday, October 5, 2011)]
[Senate]
[Pages S6187-S6188]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
By Mr. CORKER (for himself and Mr. Bennet):
S. 1655. A bill to amend title XI of the Social Security Act to
provide for the annual mailing of statements of Medicare beneficiary
part A contributions and benefits in coordination with the annual
mailing of Social Security account statements; to the Committee on
finance.
Mr. CORKER. I am here today to say that Senator Bennet from Colorado
and myself are introducing a bill that mirrors what has been introduced
in the House by Representative Cooper from Tennessee and Paul Ryan from
Wisconsin.
I have tremendous faith in the American people. I believe when the
American people are given facts and transparency, they make good
decisions. They help us here in Washington make good decisions when I
think they have the information they need.
A lot of Americans are very aware of some of the dilemmas we face
here in Washington regarding Medicare. But I do not think many
Americans are fully aware of the dilemma we face. I think they are
aware that the trustees for Medicare have said that in the year 2024
Medicare is going to become insolvent. But I do not think they are
aware of the math. Actually I was not aware of the math until we began
to look at how we solve the problem.
According to a recent study, the average American couple each earning
$43,500 a year will pay $119,000 into the Medicare Program over their
lifetime. This contribution includes the portion that their employer
pays on their behalf. In other words, the family pays in half, the
employer pays in half. In 2011 dollars, that means if you paid in 30
years ago, and that money was inflated to today's dollars, that family
would have paid in $119,000 over their lifetime.
What most Americans do not know is that over their lifetime, the
average family takes $357,000 out of Medicare. So obviously the math
does not work. I think most Americans did not fully realize this until
we got into the situation we're in--I am not sure most people in the
Senate understood how off the math is, if you will.
Over the next decade, 20 million more Americans are going to be on
Medicare. The situation where the average family and their employer are
paying in $119,000 into the program and taking out $357,000 is going to
be further exacerbated by the fact that over the next 10 years, 20
million more Americans are going to be on Medicare.
Then, on top of that, we are going to have fewer people working per
retiree than ever in the history of this country. For that reason,
today, Senator Bennet and I are offering a bill that says when
Americans receive their Social Security letter, which lays out how much
they have paid in, they would also receive the information regarding
Medicare, so that they will know how much they are paying into the
program and, over time, how much they will have taken out.
I think this type of transparency allows Americans to fully
understand how these programs work. To me, what that will do is help
all of us in the Senate, and over in the House of Representatives, make
better decisions. I think when Americans are informed they help us make
better decisions.
A lot of Americans don't fully appreciate this, I think, sometimes.
But Congress really does reflect more fully than they think the will of
the American people. Again, I think transparency helps us represent the
American people in even a more full way.
Today we introduce this bill, and I thank Senator Bennet from
Colorado for joining me in this effort. I also thank Representatives
Cooper and Ryan for their leadership in the House.
It is my hope that soon, either through unanimous consent or early
action, that this bill will become law. I think as long as Americans
understand where things stand, they help us in Congress make good and
sound decisions. That is why I am introducing this bill today with the
help of Senator Bennet from Colorado.
With that, I yield the floor.
The PRESIDING OFFICER. The senior Senator from Tennessee.
Mr. ALEXANDER. Mr. President, I congratulate the junior Senator from
Tennessee for his usual good judgment and insight in working on a
difficult problem. No Member of this body has done more in the last
year to try to highlight the problem of the Federal debt. Through his
cap plan, which has been a part of almost every discussion we have had
seriously about it, through his effort--more recently to support
efforts to try to achieve $4 trillion in debt reduction as a part of
the select committee, and his suggestion today that allowing Americans
to understand something that most of us hadn't focused on--that during
our lifetimes we are paying in $110,000, $120,000 into Medicare and
taking out, during our lifetimes, $350,000 or so, and that is a problem
that has to be solved.
I have been doing research lately on our debt situation.
Fundamentally speaking, our problem lies with health care costs. It
lies with families, businesses, and with the U.S. Government. Our
discretionary spending--the kind we appropriate every year--on
everything from national parks and national defense to roads and
bridges, that is about 39 percent of the budget. If we stick to our
guns on the agreement we made in early August, that will only grow at a
little less than the rate of inflation. But it would go over to the
mandatory spending, which is about 55 percent of our spending. It is
going to go up three times the rate of inflation, and the fastest
growing part of that mandatory spending is Medicare and Medicaid.
So we need to save our Medicare and Medicaid system so Americans can
rely on them. I think Senator Corker shows respect for the voters of
Tennessee and for Americans by assuming that if they understand the
problem, they will support a serious effort to deal with a solution. I
compliment him for that leadership.
The PRESIDING OFFICER. The junior Senator from Tennessee.
Mr. CORKER. Mr. President, while we are issuing compliments, I want
to say that all of us want to see to it that Medicare is here for
future generations. That will take sound judgment. We have a select
committee that is working on, hopefully, the first step to make that
happen.
I congratulate the senior Senator from Tennessee for this. More than
anybody else recently, I think he has
[[Page S6188]]
pointed out that in this country, as we leave mandatory spending on
autopilot, and as we move to a place where these programs are insolvent
and not there for future generations, what we are doing is eating our
seed corn.
The fact is, our senior Senator from Tennessee knows full well what
it takes to make a strong country. He sits on an appropriations
committee and understands that many of the basic sciences and other
types of efforts that are underway with the Federal Government are the
very things that will make our country stronger.
Yet what we are doing in this country by leaving mandatory spending
on autopilot at the rate at which it is growing is causing us to eat
into those things that make our country strong. I thank him for his
leadership in that regard. As the Governor of Tennessee, he led our
State in making it stronger by making the kinds of priority investments
that made us stronger. He alluded to that earlier--what he did in
making sure investments in our State created higher wages.
I think more than anybody else in this body, the Senator understands
if we allow things to continue as they are, we are going to continue to
invest less and less in those kinds of things that make our country
strong--things such as infrastructure, which we all know needs to
happen. Yet because we haven't had the courage and the will to take on
those mandatory programs, reform them so that future generations will
have them, but also so that we can continue to make these investments
in our country that are so important, our country's greatness will
dissipate.
I thank him for his leadership in many ways. I hope he will continue
to move ahead with informing people as to what is happening in this
country, how that is hurting us, how it causes our greatness to
dissipate as long as we don't take on these mandatory spending programs
which, in my words, are causing us to eat our seed corn.
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