[Congressional Record (Bound Edition), Volume 149 (2003), Part 13]
[Extensions of Remarks]
[Page 17459]
[From the U.S. Government Publishing Office, www.gpo.gov]




REGARDING THE ACTUARIAL VALUE OF PRESCRIPTION DRUG BENEFITS OFFERED TO 
 MEDICARE ELIGIBLE ENROLLEES BY A PLAN UNDER FEDERAL EMPLOYEES HEALTH 
                            BENEFITS PROGRAM

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                               speech of

                         HON. CHRIS VAN HOLLEN

                              of maryland

                    in the house of representatives

                         Tuesday, July 8, 2003

  Mr. VAN HOLLEN. Mr. Speaker, yesterday, I was pleased to support H.R. 
2631 which guarantees that the legislation designed to provide Medicare 
recipients with some prescription drug coverage would not lead to the 
creation of an inferior prescription-drug benefit for retired federal 
employees.
  The Republican version of the Medicare Prescription Drug Bill, which 
passed the House on June 27, 2003 is a bad piece of legislation for 
many reasons. One of its many serious flaws is that it could result in 
a reduction of coverage for federal employees. Because of how the bill 
was written, the Congressional Budget Office has estimated that as many 
as \1/3\ of all retirees who currently have prescription drug coverage 
through their employer's private plan will lose their coverage to the 
generally inferior set of benefits outlined in the House proposal. We 
cannot allow our retired federal workers to fall victim to capricious 
business practices geared toward increasing profits above all else. 
Federal employees who have dedicated many years of their lives to 
public service deserve to live out their retirement with dignity and 
security. H.R. 2631 will help achieve this.
  The legislation proposes nothing radical in seeking to ensure that 
the prescription drug package enjoyed by current federal employees will 
be available to federal retirees as well. Currently there is parity 
between the two benefits packages. And, this non-partisan effort is 
dedicated to guaranteeing that this remains true.
  Given the difficulties involved in retaining federal employees, we 
should all recognize that supporting this legislation will help 
communicate to new and current employees that their efforts and 
sacrifices are appreciated and will be honored even after they have 
completed their public service.
  The rate of growth of premiums in the Federal Employees Health 
Benefit Program (FEHBP), in comparison to the disproportionately slow 
growth in the cost of living adjustment (COLA), is a major concern for 
federal retirees. Since 1998, FEHBP premiums have increased more than 
10% per year. Last year alone, FEHBP premiums increased 11%. During the 
same period, the federal retirement annuity COLA was only 1.4%. It is 
difficult enough to keep pace with these changes without the added 
pressure of having to deal with the possibility that the level of 
choice and service they have grown accustomed to during their 
employment will suffer in their retirement.
  It is important that we do all that we can to help our federal 
retirees deal with the burden of financial shocks. Therefore I thank 
those of my colleagues who joined me in supporting H.R. 2631 and I 
commend Mr. Davis of Virginia for introducing the bill.

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