[Congressional Record (Bound Edition), Volume 151 (2005), Part 2]
[House]
[Page 2669]
[From the U.S. Government Publishing Office, www.gpo.gov]




     REINING IN THE COST OF MEDICARE PRESCRIPTION DRUG ENTITLEMENT

  (Mr. FLAKE asked and was given permission to address the House for 1 
minute.)
  Mr. FLAKE. Mr. Speaker, last week we heard projections that the 
prescription drug benefit is going to be far more expensive than we 
figured. Now, many of us never believed that it would cost just $400 
million, and the fact that it is much higher than that is not 
surprising at all.
  I would encourage the President and our leadership to work with us to 
be able to rein in this monster that we have created.
  Over a period of 75 years, the initial estimates were that this would 
add $7 trillion in unfunded liabilities. I should point out that every 
dime to pay for this new benefit is borrowed. Therefore, every dime 
will be paid for by our kids and our grandkids.
  It is time to get the bridle on the horse before the horse leaves the 
barn, and we need to work now, before this benefit starts next year, to 
make sure that we can reign in the costs.
  Mr. Speaker, last week the White House released budget projections 
that show that the cost of the prescription drug benefit that Congress 
added to Medicare last year could balloon to $1.2 trillion over the 
next ten years. The initial price estimate of the new entitlement was 
$400 billion.
  Frankly, the initial estimate of $400 billion was more than many of 
us could stomach, but we knew that $400 billion was a lowball estimate 
and the real cost was sure to be higher. Having said that, it gives 
none of us pleasure to say ``see, we told you so. ``
  When President Bush first proposed the new prescription drug benefit, 
it was targeted and means-tested for low-income seniors who did not 
currently have prescription drug coverage. President Bush's plan also 
coupled the new benefit with some needed reforms of the Medicare 
program.
  It should come as no surprise that by the time Congress was done with 
the package, it looked nothing like the President's proposal. Congress 
expanded coverage to all seniors and yanked the reforms that would have 
helped curb future costs from the bill.
  What does come as a surprise is President Bush's recent threat to 
veto any attempt by Congress to go back and fix our mistake.
  Shortly after Congress passed the new prescription drug entitlement, 
and the initial cost estimate was already going up, I introduced a bill 
that would cap the cost of the program at the initial estimate of $400 
billion. If the cost overran the estimate, my bill would have required 
Congress to offset the difference or scale back the entitlement.
  I plan to reintroduce that legislation shortly, and I urge Congress 
to take it up quickly. Whether or not Congress acts on this specific 
piece of legislation, we need to begin talking about ways to control 
the monster we created.
  President Bush sent over a budget to Congress a couple of weeks ago 
that proposed cutting or killing over 150 programs. Of course, Members 
of Congress immediately began maneuvering to make sure that their pet 
projects did not get the axe. I think the President is on the right 
track by trying to pare back congressional spending and I will 
certainly be doing what I can to help him in that effort. However, the 
truth is that, compared to federal mandatory spending on entitlement 
programs like Medicare, Medicaid, and Social Security, Congress and 
President Bush are quibbling over pocket change.
  If President Bush is serious about controlling federal spending, and 
I believe that he is, he ought to reconsider his threat to veto any 
attempt to pare back the prescription drug entitlement.
  President Bush's initial prescription drug benefit was much more 
fiscally responsible than the proposal he signed into law. I hope that 
if there is an effort in Congress to make the prescription drug benefit 
look more like President Bush's original plan, he will embrace it 
rather than fight it.

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