[Congressional Record (Bound Edition), Volume 150 (2004), Part 4]
[Extensions of Remarks]
[Page 4285]
[From the U.S. Government Publishing Office, www.gpo.gov]




      INTRODUCTION OF LEGISLATION TO PROTECT CALIFORNIA MEDICARE 
 BENEFICIARIES FROM BEING FORCED INTO HMOS BY THE REPUBLICAN MEDICARE 
                         PRESCRIPTION DRUG BILL

                                 ______
                                 

                        HON. FORTNEY PETE STARK

                             of california

                    in the house of representatives

                        Thursday, March 11, 2004

  Mr. STARK. Mr. Speaker, I rise with my California colleague Henry 
Waxman and 24 of our Democratic California colleagues to introduce 
important legislation to protect California's Medicare beneficiaries 
from being forced into HMOs.
  The Republican Medicare prescription drug law has many downfalls. The 
legislation we are introducing today corrects only one of them, but it 
is an especially important fix for seniors and people with disabilities 
who live in California.
  As part of the prescription drug law, Republicans insisted on 
including a demonstration project beginning in 2010 that would require 
the traditional fee-for-service program to compete against private HMOs 
and other managed care plans for payment. This so-called ``premium 
support'' or ``comparative cost adjustment'' demonstration will cause 
Medicare beneficiaries who choose to remain in traditional fee-for-
service Medicare to pay more and more for that choice. This cost 
differential will economically force people into HMOs--even if those 
plans do not meet their health care needs. Its part of the overall goal 
of the bill to dismantle Medicare as we know it.
  Because we don't want California's seniors to be forced into health 
plans against their will, we've authored legislation to exempt 
California from eligibility for this wrong-headed demonstration 
program.
  Senator Boxer has introduced companion legislation in the Senate (S. 
2116). Upon introduction, she said the following:

       In California, 12 of its metropolitan statistical areas 
     (MSA) now qualify for the demonstration project. If the two 
     largest MSAs are chosen for this demonstration project, 1.4 
     million Californians will be faced with a Hobson's choice. 
     They will be required to join an HMO or pay higher premiums.
       That brings us to the real question: Why is this necessary? 
     Is it because seniors can't choose HMOs under the current 
     system? No. Seniors can choose to join an HMO right now if 
     they wish. I'll tell you why: It is a backdoor attempt to 
     achieve Newt Gingrich's vision for a Medicare that will 
     `wither on the vine.'''

  We agree with Senator Boxer. Seniors and people with disabilities 
should have the right to join a managed care plan in Medicare if they 
feel that plan will best meet their health care needs. That right 
exists in Medicare today and is preserved in the Republican-passed 
prescription drug legislation. However, no senior should be FORCED to 
join an HMO because it is the only way that they can obtain affordable 
health care.
  That's why we've joined together to introduce this bill to exempt 
California from eligibility for the demonstration program--a 
demonstration that would force seniors into a Hobson's choice that will 
limit their access to the health care they need and result in the real 
goal of the Republican-passed Medicare legislation: the dismantling of 
the Medicare program.

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