Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks on the subject of this Special Order. Mr. Speaker, we are here…
Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks on the subject of this Special Order.
Mr. Speaker, we are here tonight, I guess it is tonight, to talk about the Medicare Modernization Act. I will say that I was proud to be a part of that small conference committee that worked hours, weekends, weeks that produced this landmark bipartisan legislation. I am the first to say, and I have said it oftentimes to many of my colleagues, and certainly members of the staff, that this law is not perfect. It is far from perfect. But it targets an awful lot of money towards the areas where it will do the most good; towards the areas that will do the most good. The poorest and the sickest among us will certainly benefit the most from this new law.
Back in the mid 1960s, Mr. Speaker, the Congress passed the Medicare bill. Since then, there have been very few major changes made to it. The bill today, the law today regarding Medicare would offer Medicare beneficiaries the basic part A and part B coverage. It would offer very, very little preventive care. In fact, until a few years ago, it offered no preventive care at all.
We added a few things in a few years ago. The gentleman from California (Mr. Thomas) and the gentleman from Maryland (Mr. Cardin) and I got together and we added some preventive care to the bill. No prescription drug coverage available. Very little choice in plans available. If you live in a rural area, much harder to get access to that Medicare.
Today, we have a plan as a result of what this particular Congress did that adds some form of prescription drugs to those benefits. It also adds in an awful lot of preventive health care by way of what we call ``Welcome to Medicare,'' so that when a person is eligible to get on Medicare, Medicare will cover a physical, which is intended, of course, to pick up things that can get an awful lot worse as time goes on. It certainly will result in a lot of savings of money. But the point of the matter is that, hopefully, it will result in a better quality of life for that particular beneficiary because you are picking up something early.
It also provides for much better access in rural areas. One of the fears that Medicare beneficiaries have, those that have retired or their families are retired from some of the larger companies that have given them tremendous retirement coverage, particularly in health care, there is concern as to whether or not they would lose that particular coverage in spite of the fact that over the last few years, and it has nothing at all to do with this Medicare bill, but something like 40 percent of all coverage has been dropped as the result of the high cost of medical costs. But there is some form of protection in this bill. And an additional preventive health care provision is disease management. And there are other areas in it, but those are the additional things.
So, what are the fears or what are the concerns among the beneficiaries out there? God knows an awful lot of Members of this body are certainly working on those fears and on those concerns. Many are concerned that they will lose their traditional fee-for-service coverage. We keep harping on the fact that the bill does not take away that option from them. They can retain traditional fee-for-service and not do anything at all regarding this piece of legislation. There is nothing mandatory whatsoever about it. They can retain fee-for-service and decide to additionally pick up this legislation. So they have the best of two worlds, if you will, if they are in love with the traditional fee-for-service plan that they now have.
I have already said it is not a mandatory plan. People can keep exactly what they have. We have placed money in there to try to encourage employers to keep from dropping. Something has been happening, like I have already said, something like 40 percent over the past few years have already dropped their plans. But we have put some seed money in here, if you will, if you can call $80 billion seed money, to keep employers from dropping plans, and, of course, better accessibility to rural areas.
Mr. Speaker, the history of, let us say the other party, the Democrats, insofar as prescription drug coverage is concerned, is that back in 1999, during the 106th Congress, my friends from the left introduced a bill for prescription drugs, H.R. 1495, which they called the Access to Prescription Medications Act of 1999. Given this legislation, I am puzzled as to why they are having so much difficulty with the benefits in our bill. Why are they having so much difficulty with those benefits? What did that bill, led by the gentleman from California (Mr. Stark), the gentleman from Michigan (Mr. Dingell), the gentleman from California (Mr. Waxman), the gentleman from Ohio (Mr. Brown), et al, offer?
It offered a $200 deductible. It offered a 20 percent cost sharing up to $1,700. It offered catastrophic coverage after $3,000 out-of-pocket. I would ask Members of Congress, through you, Mr. Speaker, to relate those particular provisions with what we are doing in this bill. And there was no defined premium. The program would have used PBMs, which is what we call pharmacy benefit managers. They take issue with that in our bill, but this is what they would have done. Now, you may ask how a PBM would have been selected? How? By competitive bidding, no less. Furthermore, the contracts would be awarded on, among other things, shared risk, capitation or performance.
I make these points, Mr. Speaker, to highlight how far we have come and how obvious it is that Democrats simply want to play politics with seniors' medication needs. Now, the bill they had was not perfect, and I have already said, nor is ours. But what I am wondering about is if it was good enough for them in 1999, what is wrong with it in 2003 when this legislation passed?
I would also be remiss not to address the notion that some of the fatal flaws in their legislation back in 1999 is that they would have placed numerous onerous requirements under the winning bidder, which would have likely raised drug prices for seniors.
In 2000, the Democratic budget substitute for fiscal year 2001, offered by the gentleman from South Carolina (Mr. Spratt) their ranking member on the Committee on the Budget, included $155 billion for a Medicare prescription drug benefit. All of their leading leaders over there supported this figure. Our bill is at $390 billion, $395 billion, depending on what figure you want to believe. They had $155 billion. We are well over twice that.
In 2001, the Democratic budget substitute for fiscal year 2002, offered by the gentleman from South Carolina (Mr. Spratt), upped the ante and called for a $330 billion reserve fund to help create a Medicare prescription drug benefit. Their leadership all supported that figure.
I wish I could tell you what the Democrats support in 2002 and their fiscal year 2003 substitute, but I cannot, because they did not offer one. Of course, that did not stop them from offering a $1 trillion benefit during committee consideration of H.R. 4954, the Medicare Modernization and Prescription Drug Act of 2002.
The fiscal year 2004 budget resolution offered, Mr. Speaker, by the Democrats this year, does not reference a specific dollar figure regarding Medicare modernization and prescription drugs. It just says that the cumulative effect of Medicare reform and programs for the uninsured cannot increase the deficit by more than $528 billion over a 10-year period. Yet they still busted their own budget by offering a drug bill that CBO estimated would cost, what? $1 trillion.
So I think, Mr. Speaker, the point here is obvious. No matter what Republicans commit to Medicare reform and prescription drugs, the Democrats will always outbid us in an attempt to scare seniors and score political talking points. Unfortunately, for them, the Republican majority, along with President Bush, has put $400 billion on
the table to craft a prescription drug benefit that will greatly assist our Nation's seniors. And that is why it was endorsed by AARP and a long list of others that I might read into the record as time goes on.
Mr. Speaker, I will now yield at this point to the gentleman from Pennsylvania (Mr. Greenwood), a member of the Subcommittee on Health to supplement and complement my remarks
Mr. Speaker, I thank the chairman, the gentleman from Pennsylvania (Mr. Greenwood). He has worked hard; and he has been a real leader on this subject and, frankly, on all health matters, because I chair the Committee on Energy and Commerce Subcommittee on Health, and he is a very vocal and active member of it.
I would like to say that we have heard all sorts of arguments against what we have done. The doughnut hole, which is a gap in terms of dollars and what benefits can be acquired during that time and before and after that, the Democrats, as I have already said, have in their 1999 bill a $200 deductible and they had a cost sharing up to $1,700 and then catastrophic coverage after $3,000 out of pocket. So they had a doughnut hole from $1,700 to $3,000. We also have a doughnut hole because of the limited dollars that were available.
Our doughnut hole goes from $2,250 to $3,600. So they had a $1,700, as I understand it, as I interpret it, up to $3,000; and we have a doughnut hole from $2,250 up to $3,600. So we learned about the doughnut hole from them.
I would now gladly recognize the gentleman from Texas (Mr. Burgess) to talk more specifically about the Medicare-endorsed prescription drug card program, because as the gentleman from Pennsylvania (Mr. Greenwood) has already shared with us, the prescription drug provisions go into effect in January of 2006. So during that interim period of time, we wanted to be able to afford some help to the potential beneficiaries, and that is where the discount card program came into effect.
Mr. Speaker, I yield to the gentleman from Texas (Mr. Burgess).
Mr. Speaker, day after day we hear a good deal of criticism about many aspects of this new Medicare discount card that the gentleman from Texas was referring to. We hear, of course, criticism about the entire thing, but particularly that. Some will say that the savings are not large enough. To that I would say that the savings available through these cards, and, more importantly, as the gentleman from Texas said, the $600 per individual transitional assistance for the poorest of our seniors, are a heck of a lot better than what many seniors were getting before this Congress and this President acted to provide Medicare beneficiaries with prescription drug coverage. I have always maintained, I have already said it, that since we have limited resources available to us, we should target our resources to those who need help the most, the poorest and the sickest. The transitional assistance available under these cards will provide a lot of help to an awful lot of people.
Mr. Speaker, I am aware that other Members will argue that the high number of drug discount card sponsors will needlessly confuse seniors. We have had a presentation, and there are a large number. Granted there is some confusion there. The system still has a few kinks that need to be worked out. I agree that some beneficiaries will need extra assistance in choosing the card that is right for them. But, Mr. Speaker, I would enter into the Record here a 1966 article in The Washington Post that is entitled Medicare Bug, Thousands Fail to Pay Premiums. It
goes on to say, Thousands of elderly workers have gotten off to a bad start with Medicare by failing to pay their premiums on time. The Social Security Administration has reported delinquency rates for the $3-a-month payments are running as high as 50 percent in some parts of the South, a spokesman said. Nationally it is about 30 percent. The payments were due July 1. The slow payments, it goes on to say, represent only one of several bugs to appear in the massive machinery of Medicare during its first 6 weeks of operation. It goes on to say, however, the program generally is working better than expected and an official said, he is quoted in here, We think there is some confusion.
There was confusion in the mid-1960s. If the Congress had taken a look at that confusion and all those problems and whatnot and done what so many in this body on the other side of the aisle do, complaining about it and calling it names and trying to discourage the seniors from going into it, we would not have Medicare today.
[From the Washington Post, Aug. 21, 1996]
Medicare ``Bug,'' Thousands Fail to Pay Premiums
(By Philip Meyer)
Thousands of elderly workers have gotten off to a bad start
with Medicare by failing to pay their premiums on time the
Social Security Administration has reported.
Delinquency rates for the $3-a-month payments are running
as high as 50 per cent in some parts of the South, a
spokesman said. Nationally, it is about 30 percent. the
payments were due July 1.
The slow payments represent only one of several bugs to
appear in the massive machinery of Medicare during its first
six weeks of operation. However, the program generally is
working better than expected.
The problem of delinquent payment affect only the group of
2 million Medicare beneficiaries who are still working. Those
who have retired have the monthly $3 checked off their
retirement benefits.
Elderly workers who signed up for Plan B, the part of
Medicare that covers doctor bills, were billed for $9 to
cover the program's first three months. Payments of $3 or $6
also are accepted.
3 Months Grace Period
No one has yet lost any benefits for failure to pay, a
Social Security spokesman said. The grace period is three
months.
Biggest lag in premium payments is in Southern States,
where as many as 50 percent of the beneficiaries who are
supposed to pay in cash failed to send in the money on time.
``We think there's some confusion,'' an official said.
The $3 premium is matched by another $3 from the Federal
Treasury to support the program. It pays 80 percent of doctor
bills after the first $50.
That $50 deductible is also causing some confusion, the
official reported.
``Some people thought they had to pay the first $50 charged
by each doctor they saw,'' he said, ``Others thought it was a
premium they had to pay whether they needed a doctor or
not.''
As the rule actually works, the $50 deductible must be met
only once in each calendar year.
Another problem reported to the Social Security
Administration headquarters by district offices is that many
people who turn 65 are late in signing up for Plan B.
Should Join Before 65
Those who wait for their 65th birthday to enroll miss the
first month of eligibility. The proper time for joining is
from one to three months before the birthday.
Once enrolled, many persons have caused themselves
unnecessary inconvenience by becoming ``overly protective''
of their Medicare cards.
The wallet-sized cards are issued to identify beneficiaries
to doctors and hospitals. Some people are so afraid of losing
them, they have rented safe deposit boxes to store them in.
Others have sent them to sons or daughters in distant cities
for safekeeping.
``The card isn't all that important,'' the Social Security
spokesman said. ``It's nice to have, but losing it won't keep
you from getting benefits. The worst that can happen is the
inconveniences of apply for a new card.''
Mr. Speaker, I would also say in that connection, there are companies which have already said that they would offer pharmacy assistance programs around the low-income subsidy for the drug card. So once these poorest seniors among us use up that $600 that they have available, the $600 per individual, $1,200 per couple, these companies have come into the picture and said they would go ahead and not charge them anything extra.
Merck. Under the Merck program, once a beneficiary has exhausted his or her annual $600 traditional assistance allowance, Merck will provide its medicines free to that beneficiary's participating discount card plan.
Johnson & Johnson. After Medicare beneficiaries who are eligible for the government's $600 transitional assistance allowance have exhausted this benefit, they can receive medicines made by Johnson & Johnson- operating companies free of charge.
Eli Lilly will partner with government-approved programs to make the LillyAnswers program available to seniors with incomes below 200 percent, considerably better than just the real low-income, below 200 percent of the Federal poverty level and who do not currently have prescription drug coverage.
Abbott will partner with drug-discount cards approved by the Centers for Medicare and Medicaid Services to offer Synthroid tablets for $5 per monthly prescription. It goes on and on.
Pfizer. The Pfizer Share Card program provides qualified low-income Medicare beneficiaries, those with gross incomes less than $18,000 single and $24,000 couple, with access to up to a 30-day supply of any Pfizer prescription medicine for a flat fee of $15 per prescription.
As a result of what we have done here, we have partnered with an awful lot of the pharmaceutical companies.
Mr. Speaker, I yield to the gentleman from Illinois (Mr. Shimkus), another terribly valuable member of our committee.
Mr. Speaker, I yield to the gentleman from Georgia (Mr. Gingrey) to continue on this subject.
Mr. Speaker, I thank the gentleman for his comments.
Mr. Speaker, I very much appreciate particularly the gentleman's emphasizing the discounts because fortunately for America's seniors, and we will not hear this from the other side, the principles of competition that drive this new benefit are already showing real, real results. And CMS found during the first week, and I am talking about the first week in May now, the first week in May, which was really when all this started in terms of posting prescription drug discount card pricing information, et cetera, the CMS found that the discounted prices available through the program had already fallen 11\1/2\ percent for brand names and 12\1/2\ percent for generics over that first week.
I do not know what the current picture is. I have not looked into that.
But the fact of the matter is we can see what will happen here with competition. And these discounted prices are already less, already less, than what seniors without drug coverage are paying for their medications.
And that is why, Mr. Speaker, it is so disappointing that some continue to demagogue this issue. When I learn of a partisan analysis, if you will, of the prescription drug discount card benefit that concludes that the program is a failure, before a single beneficiary uses the card, before a single beneficiary uses the card, it makes us all wonder. But I guess we do not have to wonder too much. Scare tactics are designed to frighten, to confuse seniors. That will only ensure that some beneficiaries would choose, as the gentleman from Georgia (Mr. Gingrey) said, not to access a benefit that could save them hundreds, if not thousands, of dollars annually.
Mr. Speaker, I yield to the gentleman from Oklahoma (Mr. Sullivan) to continue on in this conversation. Newly added to the Committee on Energy and Commerce, I am very proud to say.
Mr. Speaker, I thank the gentleman.
Before I yield again to Mr. Greenwood, I have in my hand four pages worth of supporters of the Medicare conference report. These are all patient groups. I am going to read off just a handful of the long list:
AARP; ALS Association; Alzheimer's Association; American Autoimmune Related Diseases Association; American Diabetes Association; Arthritis Foundation; Coalition to Protect America's Health Care; Coalition to Protect Health Care Access; Cuban-American National Council; Epilepsy Foundation of Florida; Florida Coalition on Hispanic Aging; Hepatitis C Global Foundation; Kidney Cancer Association; Latino Coalition; Mental Health Association of Central Florida; Montel Williams Foundation; National Alliance For Hispanic Health; National Alliance For the Mentally Ill; the National Council on the Aging; Polycystic Kidney Disease Foundation; Robbie Vierra-Lambert Spinal Cord Organization; Sickle Cell Disease Foundation of California; 60-plus Association; United Seniors Association; We Are Family Foundation; Women Heart Group.
This is just a handful of the long list here, Mr. Speaker, which I will include for the Record.
Groups Supporting the Medicare Conference Report
patient groups
Mr. Speaker, I yield to the gentleman from Pennsylvania (Mr. Greenwood).
Mr. Chairman, I thank the gentleman so much for his contribution tonight and all through the years. I would again remind all of us that the PBM, the pharmacy benefit managers, was an idea, an invention of the other party, and we did learn a few things from it. We learned about the gap, if you will, or the donut. We learned about the PBM and that sort of thing. We took the best, I think, of their ideas and cranked them into this and made some minor changes.
Mr. Speaker, this new prescription drug benefit also functions, and this is something I guess we do not talk about as much as we should, as a sort of insurance program, when you stop to think about it.
Most senior citizens that I represent are very risk adverse. One of their great fears is to fall victim to a debilitating illness that will wipe out their life savings and burden their families.
Since prescription medications are obviously crucial to the treatment of a myriad of conditions, it goes without saying that a long-term chronic illness will most likely result in high spending on prescription drugs.
Under this bill, seniors who elect to join the program will pay around $35 per month for their Part D coverage. This premium buys them two things: First, it buys them the peace of mind that if they suffer from a catastrophic illness, that seniors will pay only 5 percent of their medications after spending $3,600 out of their own pocket; insurance, if you will, for if they really get sick. We all have life insurance and all sort of insurances that, God help us, we will never use. We do not complain about it.
Beneficiaries who qualify for low income assistance will not pay anything once they reach this threshold. The others will pay 5 percent after spending $3,600 out of their pocket.
Second, the premium buys them very good first dollar prescription coverage. After meeting the $250 deductible, their Medicare prescription drug plan will pay 75 percent of the drug costs up to a $2,250 limit. I have already said the Democrat plan had it up to $1,700, so we even go above that. Over half of Medicare beneficiaries spends less than this in a year, so for them, this is really a great deal.
Mr. Speaker, the benefits of the bill are clear: Superior assistance for those on fixed incomes, peace of mind for all seniors that a catastrophic illness will not devastate them financially, and excellent first dollar coverage that will benefit millions of American seniors.
There are a lot of folks who want to see this new bill fail. They will say and do most anything to scare senior citizens in their quest to discredit this program. I think they are going to fail.