Medicare Prescription Drug, Improvement, And Modernization Act Of
Mr. President. I have been listening to the debate over the past few days, and I think that a common theme on both sides of the aisle has been this is not a perfect bill. There are those on this side of the aisle who rightly say that this…
Mr. President. I have been listening to the debate over the past few days, and I think that a common theme on both sides of the aisle has been this is not a perfect bill. There are those on this side of the aisle who rightly say that this bill does not go as far as it could; that it doesn't
focus enough of the assistance on low-income seniors and could do more to keep employers from reducing or eliminating benefits for their employees. Others have raised concerns about the fact that there is a $1,400 ``doughnut hole'' and an overly restrictive assets test that will mean less help for too many Americans. There are those on the other side of the aisle that have rightly said that this bill does not do enough to address the long-term solvency issues facing Medicare. They contend that this $400 billion expansion, without making additional structural reforms, puts Medicare on an unsure footing for the future. It is for these reasons that Members on both sides of the aisle have said they will vote against this bill.
Many maxims have been used over the past few days to describe the choice before us. Some have said, ``A bird in the hand is worth two in the bush.'' Others have said, ``Let us not make the perfect be the enemy of the good.'' Still others have said, ``Something is better than nothing.'' I have spent the last 25 years in public service, and if there is one thing I have learned, it is that a true compromise is one from which no one side walks away completely happy. If there is anyone who knows that lesson better than I, it is the senior Senator from Louisiana, Senator Breaux. I have often said that if there is a deal to be had, Senator Breaux will find it. He has an amazing talent for bringing two sides together in a way that preserves the key principles of both. I think he has succeeded in doing that again here.
Going into the conference, Democrats insisted that the final bill must include the following: meaningful assistance to low income beneficiaries; providing Federal assistance to Medicare seniors on Medicaid, dual eligibles; strong Government fallbacks; and real incentives for employers to retain coverage. The conference agreement represents major victories in all four of these key areas.
First, and perhaps most importantly, beneficiaries with low incomes will get immediate assistance in paying for their drugs. The premium, deductible and coverage gap would be waived for people earning up to $12,123 a year, $16,362 per couple. Those making up to $13,470, $18,180 per couple will not have to pay a premium or be subject to a coverage gap and would only have a $50 deductible. What this means in real terms is that one-third of all Medicare beneficiaries, over 200,000 of which are from my State, will get immediate assistance to drugs at little to no cost to themselves. These are people who today have no help.
This bill also provides $88 billion in tax incentives to employers to encourage retaining existing retiree drug coverage. CBO estimates those incentives will greatly diminish the number of employers who will reduce or eliminate their coverage because of passage of this bill. It ensures that all beneficiaries will have access to drug coverage by providing a strong government fallback in the event that private plans do not provide adequate coverage in any particular region. Finally, it provides meaningful support to Medicare providers so that they can continue to care for our Nation's elderly.
These are major victories. I am, however, disappointed by some of the provisions that were ultimately included in this bill, most especially the asset test. I understand that the asset test in this bill is fashioned after asset tests used to determine a person's eligibility for Social Security Income (SSI) and Medicaid. I understand that it is, in fact, three times as generous as the asset tests used by those programs. Yet, in my view, further restricting eligibility for vital Government programs so as to separate out the near poor from the poor is a precedent that should be abolished, not furthered. I think the American public would be shocked to learn how restrictive these asset tests are.
In this bill, if a senior whose income is less than $12,123 a year has more than $6,000 in assets, they will no longer qualify for assistance with their premiums or deductibles. The proponents of the asset test claim that they are necessary to ensure that a person doesn't claim to have an income of $12,123 and at the same time have a vacation home in Florida and $50,000 in stocks. But these are not the people that these asset tests affect. Who they end up affecting is a widow who is living on her husband's $600 a month Social Security check, but just so happens to have a $10,000 life insurance policy or home full of furniture valued at $3,000. That is just not fair. While I am not able to change this policy here, I do intent to work to change it later.
Ten years have passed since this body was first presented with the need to reform Medicare. We have long recognized that the ways of medicine have changed. Medications and outpatient services have taken the place of intrusive surgeries and long-term hospitalization. We know that Medicare has not keep pace with those changes nor does it reflect the current needs of our seniors. Over the past 10 years, we have assembled task forces, engaged in numerous studies, held countless hearings and drafted several legislative proposals, but we have never gotten to where we are today, at the brink of passing a bill that will put us on the path of making reform a reality.
I think we must act now. In a time of rising deficits, it is unlikely we will have $400 billion or the political will to make these improvements any time in the near future. The seniors in my State are tired of waiting for the perfect bill. If we do not pass this bill this year, who knows how much more time will pass before we get to this point. It certainly won't be next year. If we had not reduced our surpluses by giving out tax cuts, perhaps we could have done more, but there is no sense in wondering what could have been. What we need to focus on now is what can be.
One year ago, I was in Louisiana running for re-election and I promised the people of Louisiana that while I would be with the President some of the time and I would be with the Democratic caucus some of the time, no matter what, I would be with the people of Louisiana 100 percent of the time. This bill is good for Louisiana. Ultimately, that is why I support it.
In Louisiana, one out of every two seniors has no prescription drug coverage. Today, 72-year-old Ethel Cernigliaro of Homer is one of them. With only her $727 a month Social Security check to depend on, Mrs. Cernigliaro finds a way to pay her utilities, buy groceries and still cover the $300 and more she pays each month for prescriptions. At this point, Mrs. Cernigliaro doesn't know all of the details of how this Medicare reform will help her, but she is certain of one thing: It has got to be better than what she has now. ``I've been following it closely, and it is certainly encouraging to know someone is trying to do something,'' she said. This bill means seniors like Mrs. Cernigliaro will no longer be without assistance for the drugs they need to maintain their quality of life and health. She and the 200,000 seniors like her will, in most cases, pay no more than $5 a prescription for their medications. Because of this reform, no senior citizen in our State will be without some level of coverage for prescriptions.
What's more, this bill will deliver $551 million over the next 10 years in emergency assistance for Louisiana's hospitals, most of which are struggling to keep their doors open. It will provide $156 million in much needed assistance to Louisiana's doctors. Without this assistance, these doctors could no longer afford to care for Medicare patients. It will provide $25 billion in help for our Nation's rural communities, many of which are in Louisiana. This represents the largest, most comprehensive rural package ever passed by Congress. Finally, this bill provides for much-needed prevention services, including screening for heart disease and diabetes, which could have helped to save the lives of the nearly 10,000 Louisiana seniors who died of these diseases last year.
If this bill does not pass, the people of my State will go yet another year without these important interventions. I, for one, cannot ask them to wait. Since Medicare was first passed into law in 1965, it has been amended and modified hundreds of times. This comprehensive reform package is not the first, nor will it be the last. I look forward to working with my colleagues in the months and years to come to ensure that the Medicare program, and this new prescription drug benefit, will be all that it promises to be and more.