Mr. President, Senator Wyden and I broke new ground together when we introduced the first bipartisan Medicare Prescription drug bill known as SPICE back in 1999. And after Congress passed the…
Mr. President, Senator Wyden and I broke new ground together when we introduced the first bipartisan Medicare Prescription drug bill known as SPICE back in 1999. And after Congress passed the historic Medicare Modernization Act of 2003, Senator Wyden and I authored legislation aimed at ensuring long term value of the drug benefit to seniors. Today we are joined again by Senator Feinstein, who has been committed with us to forging a bipartisan effort to do what we must today--to move beyond offering a benefit and ensure that we meet our obligation to address affordability.
When we consider both a recent ten year cost estimate of over $534 billion for the prescription drug benefit, and drug price increases which have rapidly outpaced inflation and earnings, we could see the benefit to seniors depreciated--and the cost to the Federal Government increased. So today we introduce The Medicare Enhancements for Needed Drugs Act of 2005, MEND, today to manage costs, and assure seniors will receive better value for their dollar.
This bill provides both better consumer information to help beneficiaries and the negotiation power to assure that the power of millions of seniors will result in competitive pricing. That is why two of our colleagues--Senators McCain and Feingold--have now joined us in this effort.
Ours is a simple approach informed by a ``healthy dosage'' of common sense. It simply makes no sense to cut off the ability of the HHS Secretary--the individual who is responsible for the success of this benefit--from negotiating on behalf of beneficiaries. That's why our legislation repeals the ``noninterference provision'' of the prescription drug bill and authorizes the Secretary of Health and Human Services to participate in negotiations on drug prices. Last month when Secretary Thompson announced his departure from HHS, he described several issues of critical concern--one of these was that he had been barred from negotiating on behalf of beneficiaries. He noted, ``I would like to have had the opportunity to negotiate''. And for good reason! The Congressional Budget
Office has confirmed that this negotiation authority can help us realize savings, particularly for drugs that lack significant competition.
When Senator Gregg recently queried Secretary Leavitt about keeping the cost of the Part D program within the original $400 billion budget, and the Secretary asserted that ``It's my practice as a manager to act within my budget''. That will require competition, so I ask why wouldn't we employ negotiation to do what it does best--drive costs down? I asked Secretary Leavitt about negotiation at his confirmation hearing in the Finance Committee and he told me, ``I know little about negotiation authority, but there are times when the national government should play a role''. Well, that time is now. Senator Wyden and I have received our first report on drug price trends from the GAO, and the news isn't good. Since 2000, the increase in prescription drug prices has increase at two to three times the rate of inflation. And worse, we found the rate spiked in 2002, just as we were working to create a prescription drug benefit. It's no wonder that the Congressional Budget Office projects an annual increase of about 8.5 percent in costs, most of which can be attributed to the rise in prices. But we can address this problem, and avoid depreciating the value of this long sought benefit.
To do so you must do more than simply end the prohibition on the Secretary negotiating, you must do more than simply granting permissive authority, you must actually ensure that when needed, the Secretary will negotiate.
So our legislation will not only empower the HHS Secretary to negotiate but, under two circumstances, requires it. For those beneficiaries who do not have access to two prescription drug plans, the Secretary steps in with a fallback plan, and this plan must be competitive--so the Secretary must assure that he negotiates on behalf of those beneficiaries. In addition, the Secretary must be responsive to the needs of the plan providers. When a manufacturer simply is not inclined to negotiate--as may occur when competition for a drug is lacking--then the Secretary must respond when plans request his assistance in negotiations.
Some will say this will compel excessive involvement by the Secretary, but the truth is quite to the contrary. Plans will compete to gain advantage, and it is when they are stymied and cannot achieve reasonable discounts that they will call upon the Secretary. CBO foresaw one such situation--when a drug lacks significant competition-- and those are among our most expensive drugs!
The buying power of millions of seniors should produce substantial savings, but at the same time, competitive plans won't help if seniors cannot identify which plan is right for them.
Senator Wyden and I believe we must arm beneficiaries with information. Our bill requires GAO to track not only the price of drugs under the Medicare program, but calls for that price to be compared to the price negotiated by the VA, DOD and other privately run systems. We will have a measure of how well the seniors are being served.
This bill will also help seniors determine which Medicare plan offers the most savings by requiring that beginning in 2007 the Centers for Medicare and Medicaid Services will determine the savings received from each plan by the average Medicare beneficiary, using a market basket of commonly-used drugs. This will allow seniors to make the proverbial ``apples to apples'' comparison. This information will be shared with all beneficiaries during the annual enrollment period each fall, and will be a great help as a starting point for seniors to compare plans.
Our legislation will make annual the report Senator Wyden and I first requested following passage of the prescription drug bill in 2003. We asked the GAO to review changes in drug prices from 2000 through 2003, focusing on the drugs most likely to be used by seniors, and the results are in: Prescription drug prices have increased at two to three times the rate of inflation.
Finally, many advocates and seniors alike have raised questions about the restriction of Medigap policies under the new Part D benefit. The prohibition of the sale of new Medigap policies which include prescription drug coverage has prompted the need for a re-examination of the role of Medigap plans. So we have directed the Secretary to work with the National Association of Insurance Commissioners to conduct a review of the changes to the Medigap policies and to evaluate the impact on Medicare beneficiaries. It is an important step in looking at the future of Medigap plans. With this report in hand, we will have the information necessary to make wise adjustments.
Some say we don't need to act now. But we have seen drug price increases which are driving costs upwards--contributing to the estimated 8.5 percent annual increases in costs projected by CBO. We simply cannot wait until 2006 to address the issue of drug prices. This bill provides beneficiaries and our government with the information and tools necessary to achieve access to low-cost prescription drugs. I urge my colleagues to join me in support of this bill so that we can pass it quickly.
Mr. President, I rise today along with Senator Rockefeller and the distinguished Chairman and Ranking Member of the Committee on Commerce, Science, and Transportation, Senators Stevens and Inouye, to introduce legislation to safeguard the Universal Service Fund, or ``USF,'' the institution that allows rural and low-income Americans to obtain affordable telephone service, allows America's schools and libraries to provide Internet access to all segments of society through the E-Rate program, and permits rural health care providers to obtain telecommunications and Internet services at reduced rates. The concept of Universal Service has been with us nearly as long as the telephone itself, and this bill today marks one key step in ensuring that this vital policy remains intact in the 21st Century.
The legislation introduced today pertains specifically to the Universal Service Administration Company, or ``USAC,'' the private, nonprofit corporation that Congress created to administer the USF. This bill is very similar to S. 2994, a Universal Service bill that I introduced during the last session of Congress and that was passed right before adjournment as part of a larger telecommunications package, H.R. 5419. That bill temporarily exempted USAC from complying with new, arbitrarily-imposed accounting rules that had severely disrupted the E-Rate program and threatened to cause huge spikes in consumers' telephone bills. Many will recall that hundreds of millions of dollars in E-Rate funding for schools and libraries stayed unissued for months because of the accounting rule change, and immediate action was necessary to resolve the problem.
According to USAC's Federal regulators, these new accounting rules needed to be imposed to ensure that the USF was compliant with the federal Anti-Deficiency Act, a law which prevents government agencies from incurring financial obligations beyond the amount that has been appropriated to them by Congress. However, USAC, in administering the USF, does not receive any appropriated funds from Congress. Rather, the USF is funded by a regular disbursement, on a more-or-less monthly basis, of monies derived from a surcharge placed on the revenue generated from interstate telephone calls. The existence of this predictable revenue stream negates any of the risks and concerns that the Anti-Deficiency Act was designed to prevent.
After government accounting rules were imposed on USAC last summer, the entire E-Rate program was frozen. On the eve of the start of the school year, this program--which has enabled 93 percent of schools and libraries in the country to hook up to the Internet--was unable to review and act upon the funding recommendations of thousands of applicants. Many recipients of E-Rate funding actually shut off their Internet connections because they had no money available to maintain service. In order to alleviate this problem, Congress decided last fall to exempt the USF from the Anti-Deficiency Act for one year until a permanent solution to this problem was found. Senator Rockefeller and I decided to pursue a one-year exemption in order to ensure speedy passage of the legislation before adjournment, so that schools and libraries could receive their funding again. Today's legislation provides that permanent solution: a permanent exemption from the Anti- Deficiency Act.
Clear precedent exists for such an exemption. Numerous other federal programs already are exempt from complying with the Anti-Deficiency Act, including the National Park Service and the Conservation Trust. Moreover, an exemption is the rational solution to ensure that this problem does not continue to recur. As I previously mentioned, an exemption is particularly appropriate in this instance because the USF has a funding mechanism different from most federal programs. The USF functioned very well for many years utilizing the Generally Accepted Accounting Principles used by the entire American business world. Trying to engraft special government rules onto USF is akin to forcing a square peg into a round hole. And the result would be another stoppage in E-Rate--and likely the USF Rural High Cost Fund as well-- and also a spike in the USF surcharge on consumers' telephone bills.
Finally, I want to ensure my colleagues that a permanent exemption from the Anti-Deficiency Act poses no risk of increased fraud or abuse in the E-Rate Program or in Universal Service as a whole. Some well- publicized abuses of E-Rate did in fact occur, and I will fully support efforts to stamp out such government waste. But the Federal Communications Commission has repeatedly stated that there is absolutely no connection between the Anti-Deficiency Act land the ability of the Inspector General to effectively monitor the program to stamp out waste, fraud, and abuse. As such, government waste cannot be used as a valid reason for opposing this bill.
Last fall we undertook a bipartisan effort among Members on the committees of jurisdiction in both Houses of Congress to enact a temporary exemption for the USF from unnecessary, burdensome regulations. In undertaking that effort we worked closely with the Federal Communications Commission, and enjoyed widespread support among the telecom industry, educators, and State and local governments. I am grateful of the continuing bipartisan support of the Chairman and Ranking Member, as well as of Senator Rockefeller, and it is my hope that we can proceed in similar fashion to make this exemption permanent.
Mr. President, I rise today to cosponsor the Abrupt Climate Change Research Act of 2005, legislation which will address the critical, comprehensive and integrated research needed for abrupt climate change. In the 108th, this legislation was passed by the Senate Commerce Committee. Its merits are just as pressing, if not more critical, for the 109th Congress as the legislation calls for developing and coordinating a research program over 6 years aimed at understanding, assessing, and predicting both human-induced and natural processes of abrupt climate change.
The abrupt climate change research issue is one that the Maine Senate delegation has been working on for the past 3\1/2\ years, the genesis of which goes back to a Climate Change Conference in Maine in October 2001, which was attended by a wide array of stakeholders in the State who have been active in climate change issues for a number of years.
I believe we all ought to be concerned by the picture scientific research is painting, which points to the reality and potential impact of abrupt shifts in climate. The December 2001 National Academy of Sciences report documented a growing body of scientific evidence that suggests our global climate can swing abruptly, not gradually over time. Moreover, such sudden jumps, and I quote from the Academies' report, ``are not only possible but likely in the future.''
Rather than dismiss this, as some have, as the ``science de jour'' I prefer to take this as a serious warning, based on the best available evidence and analysis. The risk of complacency is to gamble immense environmental and societal consequences. That's why the NAS report urged that a new research program be initiated to examine the potential impact of a sudden change in climate in response to global warming. And that's also why, back in May of 2002, when NOAA's Admiral Lautenbacher was before the Commerce Committee testifying on NOAA's FY 2003 Budget, I raised the need for abrupt climate change studies, and the Admiral agreed this is a pressing priority. Since the introduction of the research bill in the 108th Congress, NOAA, in a January 15, 2004 report, stated that calendar year 2003 tied 2002 as the 2nd warmest year on record.
Mr. President, as co-chair of the independent International Climate Change Taskforce, I was pleased to disseminate to my colleagues the recently published Taskforce report, ``Meeting the Climate Challenge.'' The ICCT includes leaders from public service, science, business and civil society, from both developed and developing countries. Our goal was to find common ground through recommendations that could be helpful to all governments and policymakers worldwide for developing solutions to address climate change.
Indeed, our first recommendation calls for a long-term objective to prevent global average temperature from rising more than 2 degrees Centigrade, or 3.6 degrees Fahrenheit, above the pre-industrial level by 2100. This target would limit the extent and magnitude of the impacts of climate change if all countries take various actions. I will ask unanimous consent to submit the ICCT's ten recommendations for the Record. In the upcoming weeks and months, I will be introducing legislation that reflects these public policy recommendations.
The temperature goal is crucial to the debate on abrupt climate change because, if the earth goes beyond the 2 degree C level, scientists have suggested that risks to both ecosystems and humans increase significantly. As the risks of accelerated or--as our report stated--``runaway'' climate change increases, a ``tipping point'' could be reached that would include the loss of the West Antarctic and Greenland ice sheets, leading to the rise of sea levels.
On this score, abrupt and paleoclimate research can greatly enhance the evolving body of scientific evidence, and that is why Senator Lautenberg and I spearheaded the effort last year to restore the FY2005 National Oceanic and Atmospheric Administration, NOAA, research programs that will enable us to examine past climate change patterns. This information will guide the development of future models to assist both scientists and policymakers to improve their understanding of climate change through, for instance, the CORC-ARCHES program and paleo- climate research. The University of Maine, under the direction of Dr. George Denton, has been part of the decades-long consortium that has been studying deep ocean currents in the Weddell Sea in Antarctica, and ice core samples from northern latitudes, which is helping scientists command a greater understanding of abrupt climate change.
There have also been other, newer scientific reports that should give us great pause. Among those reports, the Arctic Climate Impact Assessment states, ``Arctic average temperature has risen at almost twice the rate as the rest of the world in the past few decades. Widespread melting of glaciers and sea ice and rising permafrost temperatures present additional evidence of strong arctic warming. These changes in the Arctic provide an early indication of the environmental and societal significance of global warming.''
There is scientific observational evidence that indicates that regional changes in climate, particularly increases in temperature, are already affecting a diverse set of physical and biological systems in many parts of the
world. Off the coast of Canada lies a 150-square mile, 100-foot thick mass of ice that has existed on the coast for 3,000 years, but it is now disintegrating. That melting has been accelerating over the past 2 years. In addition, coral reefs, an irreplaceable marine resource around the world, are under tremendous stress as coral bleaching is induced by high water temperatures. Indeed, there are reports of a massive region-wide decline of coral which supports a huge variety of sea life across the entire Caribbean Basin.
As we turn to the future, we should harbor no illusions that we are looking at a timetable measured in epochs. We are talking about tens of thousands of years. To the contrary, observed changes tell us that the snows of Kilimanjaro could vanish in 15 years, the glaciers in the Bolivian Andes that once appeared indestructible may disappear in another 10 years, and in Alaska, where the average temperature has risen almost 5 and one half degrees over the past 30 years, there is evidence of melting permafrost and dying forests.
So my question is, what are we waiting for? Is this the kind of legacy we want to leave to future generations and the next millennium? Why not apply now the lessons of the past and present?
Indeed, if ``past is prologue,'' and I believe it is, this bill will improve our understanding of climate change by calling for research to bolster existing, global records of past abrupt climate change, through the study of ice cores, for instance. In this manner we can improve scientific understanding of the mechanisms of abrupt climate change, and incorporate this knowledge into current scientific models. Even for those who question prevailing scientific opinion on the climate change issue, this bill should hold the appeal of increasing our stock of knowledge, wherever it may lead.
In the final analysis, we need to carry out research that will allow us to gauge climate change secrets of the past, so we in turn might develop future models that will assist both scientists and policymakers in understanding climate change. The reality is, there is no doubt our global climate has changed in the past. There should similarly be no question that it would be beneficial to understand the manner in which that change has occurred and why, and so I urge my colleague's support for this legislation, and will work for its passage out of the Commerce Committee and to the Senate floor.
I ask unanimous consent that the Summary of Main Recommendations be printed in the Record.