[Public Papers of the Presidents of the United States: William J. Clinton (1995, Book I)]
[May 3, 1995]
[Pages 627-632]
[From the U.S. Government Publishing Office www.gpo.gov]



Remarks to the White House Conference on Aging
May 3, 1995

    Thank you so much. Thank you, Mr. Vice President. Thank you for your 
remarks, and thank you for doing such a good job for America. Thank you, 
Secretary Shalala, Secretary Brown, Mr. Flemming, Mr. Blancato, Fernando 
Torres-Gil. Hugh Downs, thank you for being master of ceremonies. I wish 
I could sit here and watch you work the whole time. I'm delighted to see 
you. To Congressman Martinez and Congresswoman Morella; the former 
Members of Congress who are here; the Senators who have gone because 
they have to vote. I want to say a special word of thanks to the 
Conference Chair and one of the best friends I ever had in my life, 
David Pryor. I think he is a wonderful man.
    As all of you know, Senator Pryor is now retiring from the Senate. I 
can remember when, as a young Congressman, he once volunteered as an 
orderly in Washington area nursing homes to document the conditions 
under which seniors were then living. And when he couldn't get the 
Members of Congress to listen, he conducted hearings out of a trailer in 
a parking lot. The trailer led to the creation of Claude Pepper's House 
Aging Committee. And as chairman of the Senate's Special Committee on 
Aging, David Pryor has led fight after fight after fight for the 
interests of the seniors in this country, especially in his efforts to 
expand the availability and limit the cost of prescription drugs. We 
will miss him, and we should be grateful to him.
    I'm glad to see all of you in such good spirits. I hope you will 
stay that way. [Laughter] I hope you'll stay that way because I am 
identifying more and more with you and--[laughter]--and I understand 
Secretary Shalala read the letter we got from the child that said old 
people are smart and Bill Clinton is old. [Laughter]
    I remember very clearly about 6 or 7 years ago when I had 2 events 
occur within 2 days, when I knew I was getting older. My hair had begun 
to gray, but I thought I was still in reasonably good shape. I felt 
fairly chipper. And I was making the rounds in my State, and this 
beautiful young girl, whose parents were very close friends of mine, and 
therefore I felt that I'd almost had a hand in her upbringing from the 
time she was born--she was 18 or 19 years old and she was nearly 6 feet 
tall. And she was just beautiful. And she came up to me--I was so 
pleased to see her--she came up to me and threw her arm around me, 
looked me straight in the eye, and she said, ``Governor, you look so 
good for a man your age.'' [Laughter]
    And then, the very next day I was in a different part of the State, 
and I saw this wonderful retired schoolteacher, who was then 80 years 
old, who had worked in every single campaign I had ever run. And I was 
so happy to see her. And she said, ``Governor, I'm so glad to see you. 
You're aging gracefully.'' [Laughter]
    But I think the right thing about this, you know, is to have a good 
attitude about it. All of you have a good attitude. That's a big part of 
this.
    I just want to tell you one more story that illustrates the right 
attitude. It's a true story. We had a man in north Arkansas in a little 
rural county who ran a tiny phone company back when there were lots of 
these little phone companies. And he was about 92 years old. And they 
decided to give--actually, he was 96. And the people in the town decided 
they'd give him a banquet. And everybody got up and said nice things 
about him, you know, and the time came for him to speak. And he said, 
``The very first thing I want to do is to thank my secretary.'' And he 
introduced her, and she was 72. He introduced her and said, ``I want to 
thank my secretary. She has been with me for 40 years. She has been 
wonderful. I don't know what I'm going to do when she passes on.'' 
[Laughter] So you've got to have the right attitude. Now, if you're all 
in the right attitude, let's get after it.
    I am proud to convene this 1995 White House Conference on Aging. 
This is the fourth of these Conferences in the history of our country, 
the first to be held since 1981, the last of the 20th century. I thank 
the Members of Congress and the citizens of this country from both 
parties who have supported this endeavor. These Conferences have a 
productive history, from the establishment of Medicare, Medicaid, and 
the Older Americans Act, as a result of

[[Page 628]]

the 1961 Conference, to the creation of the House Select Committee on 
Aging, coming out of the 1971 Conference.
    But this Conference must be about looking forward, not looking back. 
All across our country we have seen a dramatic reversal in the way we 
think about older Americans. We have, after all, twice as many older 
Americans as we had 30 years ago. And 30 years from now, we'll have 
twice as many again. People over 55 are younger, healthier, better 
educated than ever before, and beginning entirely new careers and 
endeavors in life as they grow older.
    Your job here, more than anything else, is to help determine how to 
use the accumulated experience and judgment of older Americans to make 
all of our country stronger in the future. That is the purpose of our 
National Senior Corps, which works with AmeriCorps, our national service 
initiative in which--[applause]--thank you. The Ameri- Corps program is 
a national service program in which young people earn money for their 
education by doing community service. And not all of them are young. 
I've met retired naval officers in Texas doing work in AmeriCorps and 
intending to go back to college.
    But the Senior Corps, like the AmeriCorps volunteers, are a new 
source of energy for American social problems and challenges. And they 
make sure that, as the poet said, the best is yet to be. Your conference 
agenda confirms your concern with the future. Issues such as crime, 
ethics, and ways to inspire a renewed sense of community affect all 
Americans, regardless of their age. To be honest, seniors are in a 
better position than ever before to help us address these concerns.
    I want to mention just a couple of things that have happened since 
1981 that are very important with reference to your agenda. First, 
briefly, since 1981, you and your generation won the cold war and the 
battle against communism, and you can be very proud of that. And we are 
now trying to finish that work so that for the first time since the dawn 
of the nuclear age there are no Russian missiles pointing at the 
American people.
    But we know there are still threats to our security, and we were 
reminded of it very painfully in the last few days. So I ask all of you 
as you focus on crime to remember that we need to continue the fight to 
lower the crime rate. And with a strategy of punishment, police, and 
prevention, we can do that. But we must focus on the special problems of 
terrorism to which all open societies are vulnerable. I have sent 
legislation to the Congress to address this terrorism problem. It has 
broad bipartisan support. The leaders of the Congress are working with 
me on it. We must pass it and pass it this month. And I urge you to take 
a stand for that on behalf of all Americans.
    The other truly remarkable thing that's happened since 1981 affects 
you particularly. Just one year after the last Conference in 1982, for 
the first time in the history of the United States, older Americans were 
less likely to be poor than Americans under 65. In the full span of our 
country's history, that is a stunning change and a remarkable 
achievement. We have seen it happening over the course of the past 
several decades. Since 1960, the poverty rate among elderly people has 
declined by 65 percent. It did not happen by accident. It happened 
because the American people kept faith with the social compact first 
forged 60 years ago when President Roosevelt signed the Social Security 
Act.
    That compact has then been strengthened over the last three decades 
with Medicare, with Medicaid, with the cost-of-living adjustments to 
Social Security, with community-based services under the Older Americans 
Act like Meals on Wheels, transportation, and with efforts to prevent 
abuse of the elderly. This is a remarkable record, and you should be 
proud of it. It happened because people understood that their Government 
could be made to work for them in a positive and strong way. And it is 
something our country should be very proud of.
    Now, our administration is committed to continuing that work--first, 
to the core principles that have made Social Security work. America has 
a solemn commitment to every person still working, no matter what their 
age, that Social Security will be there for them and their families when 
they need it.
    We have also worked to strengthen retirement and to make it safer 
through strengthening private pensions. The Retirement Protection Act 
signed late last year reformed the Pension Benefit Guaranty Corporation 
and secured 8\1/2\ million pensions that were at risk in this country, 
stabilizing 40 million others. It was a remarkable bipartisan 
achievement.
    So every American should be proud that we have completely altered 
the way our people live their lives as they grow older, providing new

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hope for an entire lifetime of purpose and dignity. But we must remember 
that with this kind of opportunity in a democracy goes continued 
responsibility. Our job today is to preserve this progress not only for 
you during your lifetimes but for all generations of Americans to come.
    You are here to look ahead to the next 10 years and beyond, and not 
just to the past or to your personal concerns. We know that with regard 
to seniors, our country has been moving in the right direction. But the 
truth is, we know that too many younger Americans are not. We have to 
think about this: How are we going to pass along the next century with 
the American dream alive and well for our children and grandchildren?
    From the year I was born, right after the war, well into the 
seventies, almost to the end of the decade, people at all levels of our 
country grew economically, and they grew together. Prosperity was 
unprecedented. Without regard to income groups, people's incomes rose. 
Today, we have to face the hard fact that 60 percent of working 
Americans today are working for the same or lower wages than they were 
making 15 years ago, while working, on average, a longer work week.
    We also have a new class of poor people, mostly unmarried, 
uneducated young women and their little children. We must do more to 
discourage the things that create poverty, especially teen pregnancy, 
and to require more education and efforts to enter the work force for 
those who are dependent upon welfare.
    But the real problem facing this country is the problem of the 
middle class and stagnant earnings, and the insecurity of the American 
dream that so many people feel, and the gnawing worry so many working 
people have when they come home at night that they won't be able to give 
their children a better life than they enjoyed.
    The new split in the middle class is caused by the global economy 
and the technology revolution. And it is rooted, more than anything 
else, in one word: education. We know that those who have it and 
continue to get it and learn for a lifetime do well, and those who 
don't, tend not to do very well.
    So as we look ahead to the next 10 years, the question is: How can 
we preserve the gains and enhance the quality of life further and 
enhance opportunities to serve and to live and to grow and to thrive for 
seniors, while reversing the economic fortunes of those who are stuck 
and being driven away from the American dream, who are younger, and 
dealing with the fundamental problems of this country, which include the 
education deficit and also the budget deficit? It exploded in the 12 
years before I became President. It too is undermining our ability to 
give your children a better future and to build opportunity.
    For the past 2 years, our administration has made great strides in 
dealing with that deficit. We've passed two budgets--[applause]--we've 
passed two budgets that cut it by $600 billion over 5 years. I want you 
to hear this very carefully. When you hear that we have not cut 
spending, that we have not reduced the deficit, we have reduced the 
deficit by $600 billion over 5 years. And this is the more important 
fact: If it were not for the interest we must pay this year on the debt 
run up between 1981 and the end of 1992, the budget would be in balance 
today.
    We have also worked to strengthen the Medicare trust fund. It still 
has problems, but it's stronger than it was on the day I became 
President.
    Despite all that, we know we have to do more. I have been 
consistently saying for 3 years, beginning with my first address to the 
Congress and, indeed, all during my campaign in 1992, that we will never 
fundamentally solve the deficit problem and have the funds we need to 
invest in education and the future growth in earnings of our people 
until we are able to moderate the growth of health care spending.
    Ask any Member of Congress here present today. All defense and 
domestic spending are either frozen or declining. Social Security and 
other retirement income is increasing, but only at the rate of 
inflation. We have to pay interest on the debt, and we're driving that 
down, but that changes as interest rates change. The only thing that is 
going up by more than the rate of inflation and the increased population 
growth in the programs are the health care programs. Over the next 5 
years alone, almost 40 percent of the growth in Federal spending will 
come from the rise in Federal health care costs--more than our economy 
is growing, more than inflation is going up, faster than other items of 
Government spending.
    So let us not pretend that there is not a challenge here for us to 
face, and let us face the challenge with good spirits. You and I know

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that there is a right way to face this challenge and a wrong way to face 
the challenge. But not facing the challenge is not an option.
    I believe it is wrong simply to slash Medicare and Medicaid to pay 
for tax cuts for people who are well-off. Beyond that, reducing the 
deficit is terribly important. But it is also important that Congress 
protect programs for seniors like Medicare. We must have a sense of what 
our obligations are. Some proposals would increase the out-of-pocket 
costs on Medicare by up to $3,500 for our seniors.
    I also think it's wrong to cut Medicaid over $150 billion in ways 
that threaten long-term care for seniors. Let me just say in parentheses 
here, I hope that if nothing else comes out of this Conference, the 
American people will come to understand that Medicaid is not simply a 
program for poor people. Yes, it provides health coverage to people on 
welfare and their children. But two-thirds of the Medicaid budget goes 
to care for the seniors and the disabled in this country, two thirds of 
the Medicaid budget. To give you a stark example, if Medicaid were not 
there, middle class people all across this country struggling to raise 
and educate their children would face nursing home bills for their 
parents that would average $38,000 a year. Medicaid is primarily a 
program for the elderly and the disabled.
    It is wrong in my judgment to reduce coverage under the Medicare 
program, or to undermine health services in rural and urban areas that 
are already underserved, or to make changes that just simply coerce 
beneficiaries into managed care. We can't save Medicare and Medicaid by 
using savings to fund tax cuts for people who are already well-off or 
other purposes. That is the wrong way to approach this problem. But we 
must approach the problem. The right way is to start from the 
perspective of the people the system is intended to serve, to ask, what 
does it take to preserve and strengthen it, and what is fair to expect 
of everyone to do that, to preserve and strengthen it.
    For 3 years I have said that the right way is to strengthen Medicare 
and Medicaid by containing costs as part of a sensible overall health 
care reform proposal that works for everyone.
    If you want to hold down costs, expand coverage, and reduce the 
deficit, you must reform the health care system. You have to expand 
long-term care, for example, in terms of the options for seniors, not 
restrict it. Look at the growth in the population. Look at what's going 
to happen in the next 30 years. If you don't provide for people to get 
more long-term care in their homes and in other less expensive settings, 
if you don't provide--[applause]--thank you. If you don't provide for 
alternatives to more expensive hospital care, if you don't provide, in 
other words, for the problem in the least costly way, given what you 
know is going to happen to our population, then we will have greater 
costs, not lower costs.
    So let's look at this in the right way. I do want to work with the 
Congress. But we must do it in the right way. I have said all along that 
I will evaluate proposals to change Medicare and Medicaid based on the 
issues of coverage, choice, quality, affordability, and costs.
    We ought to have some simple tests. For example, does a proposed 
change reduce health care coverage by eliminating services or by 
charging seniors with modest incomes more than they can possibly be 
expected to pay? Does it deal with this long-term care problem in a way 
that will lower costs per person in long-term care but recognize that we 
have to have more options? Does it restrict choice by forcing seniors to 
give up their doctors and enter into managed care programs whether 
they're good ones or not? Or does it instead increase choice by giving 
people incentives and options to enter into managed care programs and 
other less costly options that might be made more attractive to them? 
Does it reform Medicare and Medicaid to lower the rate of cost increases 
without threatening the quality of care? Does it keep health care 
affordable for seniors, and does it help to control costs for the 
Government?
    Many people say, well, all these things are mutually inconsistent. 
But that cannot be. We are spending over 14 percent of our income as 
Americans on health care. No other country is over 10 percent. We know 
that there are changes that we can make that will improve coverage, 
broaden services, control costs, and help us with the deficit. But we 
can only do it if we start from the point of view of what it takes to 
have a health care system with integrity that can be fairly paid for, in 
a fair manner.
    So, while I will not support proposals to slash these programs, to 
undermine their integrity, to pay for tax cuts for people who are well-
off or to pay for--all by themselves to pay for these kinds of arbitrary 
targets on the budget, I cannot support the status quo. And neither can 
you.

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    We must find a way to make this system work better that deals with 
the internal issues of the system, your health care issues and those 
that are coming behind you, and that deals with the genuine problems the 
Congress faces with our budgetary situation. That's why I have said 
repeatedly that when the Republicans present their budget as required by 
law, we will evaluate where they are in terms of their commitments and 
what they want to do, where we are, and then we will do our best to work 
through this. I will not walk away from this issue.
    I watched from afar, when I was a Governor and a citizen, for 12 
years while people here walked away from problem after problem. And I 
sustained, as President, an agonizing experience when large numbers of 
people walked away from problems that I asked them to face for short-
term political gain. I will not do that. The status quo is not an 
option.
    But in order for us to have discussions, we have to know where 
everyone stands. I have presented a budget. I have said for 3 years 
where I stand. As soon as we see the budget that is legally mandated 
from the Members of Congress who are in the majority, we will then talk 
about where we go from there and what we can do, so that I can make sure 
that your interests and the interests of people coming behind you are 
protected but that no one pretends that the status quo is an option. We 
can pursue both those goals and do it in the right way.
    Now, let me also say there are other right ways to address this 
problem that we in the executive branch can be doing right now. You 
know, waste, fraud, and abuse has become a tired phrase in politics. But 
the truth is there's a lot of it in the health care system, and you know 
it as well as I do. With all the problems we have today with income for 
citizens and with the budget for the Government, people who rip this 
system off jeopardize the health of beneficiaries and the stability of 
our Government and our economy.
    Since the beginning of this administration, Secretary Shalala and 
Attorney General Reno have worked hard to crack down on fraud and abuse. 
And I am pleased to announce today that, as a part of phase two of the 
Vice President's outstanding reinventing Government initiative, we are 
taking an additional strong measure. We are forming a multistate effort 
to identify, prosecute, and punish those who willingly defraud the 
Government and who victimize the public.
    In five States, with nearly 40 percent of all the Medicare and 
Medicaid beneficiaries--New York, Florida, Illinois, Texas, and 
California--we will have an unprecedented partnership of Federal, State, 
and private agencies. For every dollar we spend, we will save you $6 to 
$8 in the Government's health care programs to stabilize what we need to 
be doing. This is a win-win situation for everybody except the 
perpetrators of fraud. And it's about time they lost one.
    Let me close with this thought. This should be an exciting time for 
you. You should welcome this challenge. You should know that I will be 
there, with you and for you, to protect the legitimate interests of the 
senior citizens of this country and not to see us trade the long-term 
welfare and health of the American people for anybody's short-term gain. 
But you should also know that we need you to be here for us. We need for 
you to say, ``These are changes that make sense. These are changes that 
don't. These are things that will make us all stronger. These are things 
that will help you guarantee higher incomes and better wages and a 
better future for our children and our grandchildren. These are things 
that will bring us together.'' This country is always strongest when we 
are together.
    We are always strongest when we are together. I'll bet you more than 
half of the people in this room wept in the aftermath of that terrible 
tragedy in Oklahoma City. We were for a moment once again one family, 
outraged and heartbroken. And you saw what happened when people gave up 
their lives and came from all over the country to go there to help with 
the rescue effort, to help to deal with the families who are grieving, 
to help with all the efforts that were going on. That's when we're 
strong.
    The theme of this conference is ``Generations Aging Together.'' You 
know when we're together we're strong. And so many forces in America 
today are trying to turn us all into consumers of goods or politics or 
other things, so that we're all divided up in little markets and 
segmented and we fight with each other all the time. And the people that 
provoke the fights make a lot of money or votes or whatever out of us 
when we do that. But that's not when we're strong.
    I saw the end of the film, when you quoted my speech at Normandy. I 
don't know that I have ever or ever will have a greater honor

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than to go and honor the generation of my parents for winning the Second 
World War. We were one, because of what you did, because of your 
sacrifice.
    And I just want to say to you today, we can win the challenges of 
today and tomorrow. We can make the 21st century an American century. We 
can continue the progress in expanding the quality of life for our 
seniors. We can solve the health care crisis. We can do it if we will do 
it together. Lead us there. Help us there. And I will stay with you.
    Thank you, and God bless you all.

Note: The President spoke at 11:52 a.m. at the Washington Hilton. In his 
remarks, he referred to Arthur Flemming, Chairman, and Robert B. 
Blancato, Executive Director, White House Conference on Aging; and Hugh 
Downs, co-anchor, ABC News' television program ``20/20.''