Mr. Speaker, I offer a motion to instruct. Mr. Speaker, I yield myself such time as I may consume. I rise today to make this motion to instruct the conferees. We are dealing now with a prescription drug benefit to Medicare that is simply…
Mr. Speaker, I offer a motion to instruct.
Mr. Speaker, I yield myself such time as I may consume.
I rise today to make this motion to instruct the conferees. We are dealing now with a prescription drug benefit to Medicare that is simply uncontrollable in terms of cost. We believe that we ought to control that cost by means-testing the program. There is no reason in the world why we ought to be paying the prescription drug benefits for the wealthiest in society, the Bill Gates, the Barbra Streisands, the Ted Turners, the Warren Buffetts.
Think about this: With this prescription drug benefit that is part of Medicare if this bill passes, we will be paying the prescription drug benefits for the wealthiest in society.
Let me tell you what that means. The current drug bills are estimated to cost $400 billion over the next 10 years. That is $400 billion over the next 10 years to add this prescription drug benefit. If we look beyond that 10-year window into the next 10-year window, then it gets even uglier. From the years 2014 through 2023, that 10-year period after the first 10-year period, the drug benefit is projected to cost $772 billion. So $400 billion the first 10 years, $772 billion the next 10 years. That rapid growth rate will continue all the way through the year 2030.
In fact, what it means in the year 2030, let me just give you a scenario here. Married couple, 40 years old. This strikes home because I am 40 years old myself. This particular couple already pays 15.3 percent in payroll tax to fund current Medicare and Social Security beneficiaries. Because the payroll tax will not provide enough revenue to fund Medicare for all retirees, this couple also faces $39,894 in additional taxes between now and their own retirement in the year 2030.
Think about that. Because we are going to run out of money, because we do not have enough money in the Treasury and in trust fund accounts to fund this, one couple between now and 2030 will have to pay $39,894.
The proposed prescription Medicare drug benefit will make up, of this amount, $16,127. Sixteen thousand extra dollars between now and 2030 will be paid simply to pay this prescription drug benefit, largely because it is an entitlement. It is an entitlement. That means that we give the benefit to everyone.
Entitlements are out of control simply because you set a level for benefits and you say whoever enrolls will get that benefit and they are labeled uncontrollable in terms of what the costs are. We simply cannot control it, because it depends on how many are eligible and what the benefit levels are, and we are setting the benefit levels here, and so we have that kind of cost to look forward to.
When we look back to 1965 when Medicare was created, it was projected to cost $10 billion annually. It is costing $244 billion annually at the moment. That is on a pace to double over the next decade, and then it will expand exponentially beyond that time when the baby boomers start to retire. We simply cannot afford to do what we are proposing to do.
When we look at what we are proposing to do as well, it does not make any sense, given how demographics have played out. Census Bureau figures show that poverty among the elderly has plummeted. In 1959, 35 percent of the elderly lived in poverty compared to just 10 percent today. That is a reversal in relative position of the general population. In 1959, 35 percent of the elderly lived in poverty compared to 25 percent of the general population. In 2001, 10 percent of the elderly lived in poverty compared to 12 percent of the overall U.S. population.
And what this means is that we are shifting a huge financial burden to those who can least afford it, the young, from those who can most afford it at this point, the elderly. That is simply unwarranted.
During the break when I was home, I ran into a gentleman who was in his 80's and he pulled me aside and said, ``I know you are a Member of Congress.'' He said, ``Let me tell you, my wife is ill, and we spend about $600 per month for prescription drug benefits.'' And I thought, oh, no, here it comes. He is going to say get back here and vote for that bill. Instead, he said exactly the opposite. He said, ``We can afford it. Don't you dare saddle that burden on my grandkids.'' And I know there are a lot of people who feel the same way, a lot of people who say there is no way we should saddle this burden on generations to come. It is simply unconscionable.
When I announced my intention to vote against the House version of the bill in its present form, I gave a quote from George Washington after the Constitutional Convention. He simply said, when asked, when he was defending the kind of government that was set up, when it was a different kind of government than the people expected he said, we cannot do what we know is wrong; otherwise, how will we defend our work later? In particular, he said, ``If to please the people, we offer what we ourselves disprove, how can we afterwards defend our work?''
We as, Members of Congress, know the costs. We know the history of Medicare. We know what this new benefit will cost. And unless we means test it, unless we make sure that it is not a benefit for everyone, that it is simply targeted to those who can least afford it now rather than everyone, we know what will happen. We know that we cannot afford it. We know that future generations and ourselves, our own kids are not going to be able to afford the tax burden to sustain it. We know that it will make an already insolvent situation for Medicare insolvent all that much faster. So we simply cannot afford to go on the road we are going. And I think we ought to heed George Washington's word and do what we know is right, regardless of what we think the people want, regardless of what the last poll says, regardless of what we hear at one meeting or this one. We are sent here to do what we know is right, and we know that this will bankrupt us. So we know we have to take a different course, and I would submit that the course we need to take is to means test it.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield myself such time as I may consume.
Let me say I have never heard so much concern for the rich coming from the other side of the aisle here. I just am overwhelmed with the concern that is over there that people like Arnold Schwarzenegger and others will not be able to afford prescription drugs without Government help.
And if you are concerned about the health of Medicare as a program, do not go with this program as it is outlined without a means test, because this will bankrupt it, and it will all be gone unless we do something to bring down the cost, and the best way is to ensure that it is targeted to those who need it most, not the wealthy who do not need it.
Mr. Speaker, I yield such time as he may consume to the gentleman from Indiana (Mr. Pence), who has been a leader on this issue.
(Mr. PENCE asked and was given permission to revise and extend his remarks.)
Mr. Speaker, I yield myself such time as I may consume to note that our motion to instruct contains no income figures or thresholds at all. The $60,000 figure that is cited is simply part of the Republican base bill that was passed in this House. We are simply establishing the principle of means testing. Now, I would suppose that if that was set at $100,000 or $200,000 or $300,000 or $400,000 or a half a million dollars, the cry from the other side of the aisle would be the same: do not means test it. Do not means test it. We want an entitlement. And that is what we are fighting about here. We simply want to say that we ought to target those who need it most, not spread it out so we bankrupt the system too quickly.
Mr. Speaker, I yield 3 minutes to the gentleman from Iowa (Mr. King).
Mr. Speaker, I yield 3 minutes to the gentlewoman from Colorado (Mrs. Musgrave).
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I want to point out I am a little confused myself in terms of what is rich. On the other side of the aisle, they argued throughout the entire tax debate that the same middle-class individual, $60,000, $70,000, $50,000, are not going to benefit from taxes for the rich? What is rich? We set no standard in this motion to instruct. We simply say that we ought to have a means test. We have not pegged it at $60,000, at $70,000, $200,000, $300,000. We are simply establishing the principle that it should not be an entitlement.
If people are worried about it being a slippery slope, set it at $200,000. By the time that slippery slope ends, someone starting at 65 surely will not be around to collect. But set it somewhere, establish a principle that we should not be paying prescription drug benefits for the Bill Gates of the world.
Mr. Speaker, I yield 3 minutes to the gentleman from Indiana (Mr. Pence).
(Mr. PENCE asked and was given permission to revise and extend his remarks.)
Madam Speaker, I yield myself such time as I may consume.
Madam Speaker, I thank those who have participated in this debate. I want all Americans to know that tonight they will all get a big raise. It seems that tomorrow that those on the other side of the aisle will come back and talk about how those who are earning $60,000 who are decidedly middle class when it refers to this bill, will be rich when it comes to talking about tax cuts. Which is it? Which is it?
I want to remind my colleagues here, again, that this motion to instruct says nothing about which income levels we ought to set this at. It simply says we ought establish the principle that this be targeted at those who need it the most. And this debate about whether or not we ought to look at the income of older Americans will probably be moot in another 30 years because, as I pointed out before, someone 40 years old today, like me, will spend, like me and my family, will spend about $40,000 in additional taxes, in additional taxes over the next 30 years. We will spend $40,000 in additional taxes because the payroll tax does not provide enough revenue to fund Medicare. This adds fuel to the fire. This simply blows it up out of control.
Now, anybody who has watched my voting record, or the voting record of my colleague from Indiana (Mr. Pence), knows that we are not proud of our fiscal restraint here in this House, be it Republican or Democrat, over the years. But we ought to look at this program right now. This is what is up for debate. We cannot say, well, Republicans have grown the deficit or Democrats have done this, so it is okay. We are going to take this program, and we are going to blow it up over the next 30 years and even greater beyond that. That is simply not acceptable. We know better than to do that.
If we are spending $40,000 in additional taxes for the average family of four over the next 30 years, we will not have a debate about whether to means test anything in the year 2030 because too few seniors will have enough disposable income to actually fund it. We will all be dependent on Government. Maybe the other side of the aisle would like that, but I do not.
I think people ought to have the ability to save for themselves. There is a difference between tax cuts and benefits like this. Tax cuts, you are taking money that somebody has paid, or will pay, in taxes and saying, You do not have to pay that any more.
This benefit is taking from people who have paid in already, and you are taking that money and saying, We will give it to this person, instead of giving it back to you who earned it.
Madam Speaker, I would conclude and simply urge support for this motion to instruct. Let us do what is right. Let us do what we know is right.
Madam Speaker, I yield back the balance of my time.