[Congressional Record (Bound Edition), Volume 149 (2003), Part 11]
[House]
[Pages 14929-14930]
[From the U.S. Government Publishing Office, www.gpo.gov]




                            MEDICARE REFORM

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Ohio (Mr. Brown) is recognized for 5 minutes.
  Mr. BROWN of Ohio. Mr. Speaker, my House Republican friends have 
managed to come up with a prescription drug bill that is even less 
generous and even more destructive to Medicare than last year's 
exercise. Under this year's bill, Medicare as we know it ends in 7 
years. In 7 years, Medicare would be replaced by a voucher to cover 
part of the premium for health insurance. Let me repeat that. Under the 
Republican plan, Medicare would no longer provide guaranteed benefits 
in spite of their talk about more choice. It would instead give seniors 
a defined contribution voucher. So much for the Medicare entitlement. 
So much for guaranteed benefits for America's elderly. So much for the 
choices that matter. Choice of hospital, we have that today. Choice of 
physician, we have that today. Under the Republican plan, their voucher 
scheme would give seniors the choice, the choice, to enroll in whatever 
HMO happens to set up shop temporarily in their neighborhood. That is 
not the kind of choice seniors, who now can choose their doctor, who 
now can choose their hospital, it is not one-size-fits-all, it is 
seniors have full choice, it is not the kind of choice that seniors 
have today.

[[Page 14930]]

  The Republican bill is a privatization bill. It is not a drug bill. 
It is an affront to seniors who depend on Medicare and to taxpayers 
whose money will be wasted paying off private insurance health plans, 
paying off HMOs in order to get them to participate in this Republican 
big insurance company, big drug company program.
  Medicare vouchers are not a fiscally responsible alternative to 
Medicare. In fact, they will increase overall costs. The Republican 
plan reduces government spending by increasing out-of-pocket costs for 
seniors. Private premiums in this country are rising at about 15 
percent compared to Medicare's about 4.1 percent increases. 
Administrative expenses for private insurance historically are 2\1/2\ 
times the administrative expenses of Medicare and Medicaid. So much for 
the argument that privatization is more efficient. Private insurance 
spending per enrollee has grown faster than Medicare in the last 30 
years. If private drug plans can get better prices for drugs than 
Medicare, why is the drug industry lobbying for private plans? The only 
way privatizing Medicare can cut costs is by shifting those costs from 
the Federal Government onto the backs of seniors and their families.
  Here are a couple of other hidden provisions in the House Republican 
drug bill. My colleagues increase Medicare costs for all seniors, not 
just those who enroll in drug coverage, by racheting up the Medicare 
part B premium. Seniors will continue to pay more and more and more 
under the Republican privatization give-it-to-the-insurance-companies 
health plan. They double-tax higher income seniors by income-relating 
Medicare coverage. They have dropped an even bigger doughnut hole in 
their coverage, cutting off benefits to seniors with higher drug costs. 
In other words, as their costs go up, the government no longer covers 
them. They cut reimbursement to hospitals which are already on shaky 
financial ground. I met with hospital administrators in Akron today and 
with physicians. They will tell you how it is going to be harder and 
harder for them to take care of their business providing the kind of 
health care to their patients at that hospital in Akron and other 
hospitals all over northeastern Ohio and all over this country.
  The Republican plan leaves 40 percent of low-income seniors out of 
the bill's low-income assistance program. In summary, Mr. Speaker, the 
Republican prescription drug bill, the Republican plan is good for the 
drug companies. The Republican plan is good for the insurance 
companies; but the Republican plan is bad for seniors, it is bad for 
disabled Americans, it is bad for their families, it is bad for 
hospitals and other providers, and it is bad for the Nation as a whole.

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