[Congressional Record (Bound Edition), Volume 146 (2000), Part 9]
[Senate]
[Page 11924]
[From the U.S. Government Publishing Office, www.gpo.gov]



                            MEDICARE LOCKBOX

  Mr. ASHCROFT. Mr. President, I am pleased to speak for a few moments 
to call attention and applaud the actions of the House of 
Representatives this week in taking a fundamentally important step 
toward protecting both the Medicare and Social Security programs.
  I want all Americans to know that the full House passed Medicare 
Lockbox legislation--H.R. 3859, sponsored by Representative Wally 
Herger--by an overwhelming 420-2 margin. What months ago some inside 
the Beltway said was impossible has happened--one chamber of Congress 
has spoken in an almost unanimous voice to protect the Medicare and 
Social Security surpluses.
  For decades, Congress and the President have used Social Security and 
Medicare surpluses to finance additional government deficits. Last 
year, for the first time since 1957, Congress balanced the budget 
without spending a penny of the Social Security surplus.
  When Congress accomplished this important goal, I immediately set my 
sights on a higher goal--that is, to protect the Medicare Part A 
surplus in the same manner. So on November 18, 1999, I introduced S. 
1962, the Social Security and Medicare Safe Deposit Box Act. The bill 
the House passed yesterday is very similar to my legislation, and I am 
encouraged about the prospects of passing the Medicare Lockbox in the 
Senate and seeing it signed into law.
  We need to ensure that the payroll taxes Americans contribute to pay 
for Social Security and Medicare are used solely to pay Social Security 
and Medicare benefits. Any surpluses in these accounts should be used 
to reduce publicly-held debt. It is wrong for Washington to spend this 
money on additional government programs or to finance additional 
government deficits.
  The Medicare lockbox will wall off the surpluses in the Social 
Security and Medicare Part A Trust Funds, barring Congress from even 
considering a budget that used Social Security or Medicare surpluses to 
finance deficits in the rest of the government; only a three-fifth vote 
in the Senate and a majority in the House could override the new rule.
  It will impose discipline and clarity on the spending practices in 
Washington. If Congress or the President wants to spend Medicare Part A 
or Social Security surpluses, Congress will need to have a separate 
vote to suspend the Lockbox protections in order to do so.
  Not only have nearly all Republicans and Democrats in the House 
endorsed the Lockbox concept; Vice President Al Gore announced several 
weeks ago that he, too, supports erecting a wall of protection around 
the Medicare surplus. His support is welcome, and his assistance in 
helping to pass this measure is eagerly anticipated.
  I urge the leadership on both sides of the aisle to agree to call up 
and pass the Medicare Lockbox. By doing this, we will send the powerful 
message that protecting both Medicare and Social Security is our 
highest priority.
  It is essential that we make this change. Social Security is 
scheduled to go bankrupt by 2037. Medicare is projected to become 
insolvent even sooner, in 2023. It is vitally important that we ensure 
that the government not spend monies dedicated for the trust funds that 
sustain these essential programs.
  While protecting the Medicare surplus seemed to be an unattainable 
goal just a few short years ago, this goal is now within our reach. In 
addition to funding the government for fiscal year 2000 without 
spending a penny out of the Social Security trust fund, CBO's new 
projections will demonstrate that we will have enough revenue available 
to protect the $22 billion Part A Medicare surplus as well.
  It is imperative that we limit spending this year so that we do not 
dip into the Medicare surplus in FY 2001 and in years to come.
  Both Medicare and Social Security are funded out of payroll taxes 
specifically delineated for their respective purposes, and are supposed 
to be reserved for those purposes. If there are surpluses in these 
accounts, if these accounts take in more money than is necessary for 
their stated purposes in a specific year, then that money should not 
suddenly be available for general government spending.
  Any and all surpluses in those two accounts should be reserved for 
their stated purpose, or be used to help shore up those accounts. The 
Medicare Lockbox promotes honest accounting, and requires the 
government to use funds for their advertised purposes.
  Lockboxing Social Security and Medicare surpluses is an essential 
first step in securing the long term financial solvency of Medicare and 
Social Security.
  The Medicare Lockbox will change the way business is done in 
Washington. I commend the House and Congressman Herger for taking the 
first step in protecting the Medicare Part A trust fund.
  The House bill is not perfect, but it will protect all of the 
Medicare Part A and Social Security trust funds. It also has the 
support of 420 members of the House of Representatives. The 
overwhelming support for the Medicare lockbox in the House should send 
a powerful signal to the Senate to take up and pass this bill.
  Passing this law will be the next step on our journey to secure the 
long term solvency of Social Security and Medicare.

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