Statements On Introduced Bills And Joint Resolutions
Mr. President, I rise today to introduce this morning a bill on which my distinguished colleagues from Minnesota and Maine and I have collaborated. That is the Older Americans Prescription Drug Tax Relief Act. I will speak a minute or two…
Mr. President, I rise today to introduce this morning a bill on which my distinguished colleagues from Minnesota and Maine and I have collaborated. That is the Older Americans Prescription Drug Tax Relief Act. I will speak a minute or two on it, then should the Senator from Minnesota desire to speak to this, I will yield to the Senator and then resume the balance of my statement.
By way of introduction, all Members of this body have heard the tragic stories about older Americans who must choose between paying for their groceries and paying for their medicines. Many older Americans are forced into this choice because, unbelievably, the Medicare program still lacks an outpatient prescription drug benefit. America's seniors deserve much better.
Our President, the House of Representatives, and every single Member of this Senate, all 100 Members, share the common goal of enacting a comprehensive Medicare prescription drug benefit. Over the years, we worked diligently to achieve those goals but have yet not reached what I would consider, and I think others would consider, success. We have all worked in support of this vitally important goal, but, again, success has alluded us. Unfortunately, we have not been able to reach a consensus.
I hope this bill might be a new initiative that would merit the attention of my colleagues, and that it might provide a basis for that consensus. As we here in the Nation's Capital debate how best to add a Medicare prescription drug benefit and continue to debate the specifics of such benefits such as premiums, co-pays, deductibles, formularies, and whether to run the program through the existing Medicare system or through a public-private partnership, our seniors continue to suffer. Medicare beneficiaries have waited far too long for Congress to provide some sort of relief for their prescription drug costs.
I remain committed, as are my distinguished colleagues from Minnesota and Maine, to working with our colleagues on creating a comprehensive prescription drug benefit in the Medicare program. I believe we must act now, however, to provide some relief at this point in time. We cannot defer this decision any longer. The Warner-Dayton-Collins proposal will provide real relief to Medicare beneficiaries. The legislation is simple and can be described in three points.
I thank my distinguished colleague for responding. I wish to emphasize a very important point the Senator from Minnesota made.
This may not be the final resolution of this complex set of issues. But given the desperate circumstances of so many who have to make the choice between food and drugs, I think it is a very carefully crafted interim step that could be enacted into law and later quickly superseded should that hoped-for event occur in the future of a more comprehensive piece of legislation.
I think the emphasis on that is very important.
I would say, all of us here in the Senate benefit greatly by professional staff. On my staff, Chris Yianilos really worked diligently to bring this legislation into being and he collaborated with a distinguished member of your staff, Mr. Bob Hall. I also thank Priscilla Hanley, who worked with Senator Collins on the legislation.
The first is that the Warner-Dayton-Collins bill provides Medicare beneficiaries with a refundable--I repeat--a refundable tax credit of 50 cents on every dollar of out-of-pocket prescription drug costs. Whether you actually pay income taxes or not, you are eligible to get the benefit of this tax credit.
The benefit is capped at $500 for the expenses of an individual senior. Married seniors would be eligible for a credit up to $1,000. The cap is based on a recent study by the Kaiser Family Foundation that estimates that the average senior's out-of-pocket prescription drug costs is almost $1,000. Thus the proposal will cover 50 percent of the out-of-pocket drug costs for the average senior.
To take advantage of this refundable tax credit, Medicare beneficiaries will not have to worry about whether their drug is covered under some formulary. In addition, there are no premiums, no deductibles. Medicare beneficiaries will simply take their prescriptions, get them filled, and then apply for their refundable tax credit.
Second, in recognition that a generous but necessary refundable tax credit such as this can be costly, we have imposed a responsible income phase-out on older Americans who can benefit from this tax credit. The phase-out level begins for individuals who earn $75,000 per year. Married Medicare beneficiaries begin to phase-out of the benefit at $150,000 a year. This cost containment mechanism will affect less than 10 percent of all Medicare beneficiaries but allows us to responsibly provide a refundable tax credit that will cover about 50 percent of the average Medicare beneficiary's out-of-pocket drug costs.
Again 90 percent of all Medicare beneficiaries will not be affected by the phase-out. In other words, they are beneath the phase-out caps. Only those individuals who are blessed with a larger income among America's seniors, who can afford in large measure to pay for their prescription drugs, will be phased-out.
Third, the legislation will sunset once a comprehensive Medicare prescription drug benefit is signed into law. Again, as my colleague from Minnesota mentioned, and others, this is an interim proposal. Therefore, it can be superseded by a more comprehensive bill.
We wholeheartedly agree this legislation is not a substitute for a comprehensive prescription drug Medicare benefit, and we will continue to work with the President and our colleagues from both sides of the aisle in the Senate who support a more comprehensive piece of legislation. But as I stated earlier, America's seniors cannot wait any longer for relief, and this proposal provides a real benefit to America's seniors.
I am pleased to be joined by Senator Dayton and Senator Collins in introducing the Older Americans Prescription Drug Tax Relief Act. I urge my colleagues to give this matter consideration and, hopefully, it can be enacted into law.
Let us do something. Let us open the door and talk to the Cuban people.
Travel and other policies that deal with Cuba will continue to be a top priority for those of us in the newly formed Senate Cuba Working Group. The working group members have expressed their support for changes in our policies toward Cuba, and we will continue to be a part of the dialogue. I do encourage all of my colleagues to join us in that effort.
I encourage all of my colleagues to take a look at this bill that has been introduced today. I know there are people looking at it. I expect a lot more cosponsors on it. This is the most reasonable provision dealing with Cuba that has been presented during the 6 years I have been here. We have tried some bigger bites at the apple. They have not worked. So we are moving back to the travel restrictions, a bill that is very limited. It allows one to travel and to have those things that are necessary for travel. For instance, the right to take baggage to Cuba cannot be cut off. That is another way the law can be subverted. So it is a very straightforward travel policy that will get Americans into Cuba to talk to Cubans to promote the ideas we believe in. I ask my colleagues to join me in this effort.