[Congressional Record (Bound Edition), Volume 150 (2004), Part 2]
[Extensions of Remarks]
[Page 2531]
[From the U.S. Government Publishing Office, www.gpo.gov]




INTRODUCING LEGISLATION TO EXEMPT NEW MEXICO FROM THE COMPARATIVE COST 
                           ADJUSTMENT PROGRAM

                                 ______
                                 

                             HON. TOM UDALL

                             of new mexico

                    in the house of representatives

                      Wednesday, February 25, 2004

  Mr. UDALL of New Mexico. Mr. Speaker, I rise today to introduce 
legislation to exempt my home state of New Mexico from the Comparative 
Cost Adjustment (CCA), or ``premium support'' provisions included in 
the recently passed Medicare Prescription Drug Bill. I am pleased to 
introduce this bill as companion legislation to a bill that Senator 
Jeff Bingaman is introducing in the other chamber today.
  Mr. Speaker, when the House passed H.R. 1 at the end of November, I 
strongly opposed this legislation and voted accordingly. Today, I stand 
here still as strongly opposed to the newly implemented law as I did 
when we passed the bill the first two times it came to the floor last 
year. One of my strongest objections to the legislation was the 
inclusion of the CCA program, which requires the Medicare fee-for-
service program to compete against the new Medicare Advantage program. 
This CCA program will last for 6 years and will be applied in a limited 
number of Metropolitan Statistical Areas (MSAs).
  This provision is one of the worst in what was an extremely 
disappointing piece of legislation. Not only does this provision 
undercut the Medicare program, it outright threatens it by taking it 
down the road toward privatization. Rather than defined benefits 
beginning in 2010, seniors would receive a set premium payment--like a 
voucher--from the government, based on a combination of the process 
private plans charged and the cost of Medicare fee-for-service in their 
area. Seniors would enroll in either a private plan or fee-for-service, 
but those who picked a plan that was more expensive than the defined 
premium contribution would need to pay the difference out of their own 
pocket. This is not the way the Medicare program has been run in the 
past and its not the way it should run in the future.
  In order to ensure that New Mexico's seniors keep their defined 
benefit plans when the time comes for the CCA to go into effect, I am 
introducing this legislation today. This legislation will exempt 
regions of New Mexico from being one of the MSA's used as part of the 
CCA program. Many studies have shown that a likely outcome of these 
privatization provisions in the new law is that seniors will have to 
pay more than they do now to stay in fee-for-service.
  Mr. Speaker, these demonstration plans will dramatically alter the 
Medicare landscape for our seniors. For the first time in the history 
of Medicare, seniors would end up paying different premiums for the 
exact same fee-for-service benefit. I don't want New Mexico's seniors, 
or our nation's seniors facing the end of the safety and security they 
have come to know under the Medicare program.
  Mr. Speaker, I know Mr. Bingaman and I are not the only members in 
our respective chamber's who feel this way. Several other Senators and 
Members have either introduced or are preparing to introduce similar 
legislation. I hope the leadership of each chamber recognizes the 
danger of the CCA program and takes action to protect New Mexico and 
our nation's seniors.

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