Mr. Speaker, I agree with the previous speaker on several issues, and that is that we should delay this bill and try to improve it. And I am going to make comments suggesting that it is not fair to seniors, but it is not fair to our kids…
Mr. Speaker, I agree with the previous speaker on several issues, and that is that we should delay this bill and try to improve it. And I am going to make comments suggesting that it is not fair to seniors, but it is not fair to our kids and our grandkids. I have four children, and they are trying to save money to send my grandchildren to college. And one question I would pose is, why should they pay more taxes to pay for seniors' prescription drugs?
The retiring seniors that we are going to see over the next 10 years are probably the wealthiest seniors this country has ever had in the past, probably will ever have in the future. Mr. Speaker, we now expect a vote on the addition of a prescription drug benefit to Medicare on June 26. And this vote would authorize the largest expansion of our entitlement programs since we amended the Social Security bill back in 1965 and added Medicare. So Social Security, because of the allure of more senior votes, Members of Congress and the President decided to expand the benefits to seniors to add Medicare.
When Medicare was under consideration in 1965, a few Members realized the sort of burdens that would come to place on future taxpayers, and Chairman Wilbur Mills of the House Committee on Ways and Means predicted in September of 1964 that the costs of even part A of Medicare, which was then under consideration, would soon exceed projections and that ever-increasing taxes would be needed to finance it. He predicted it would come to pass that Medicare costs would leave Congress hamstrung, facing uncontrolled increases in costs and to the indefinite future. Mills dropped his opposition to Medicare under pressure from the President of his own party, but he was right about the program's consequences.
This summer, as Congress considers the largest single expansion of any entitlement program since 1965, we should consider how a prescription drug benefit will burden future workers and taxpayers and not give seniors what they expect. The Federal Government is in serious financial problems. When the baby boomers start retiring in the next 10 to 12 years, we see more people going out of the workforce, if you will, paying in to Social Security and taxes and taking out benefits from Medicare and Social Security.
When the Federal Government comes to a pinch in another 12 to 15 years, guess what is going to happen to the prescription drug program that has been promised? Number one, I suggest that government, Congress and the President will say, well, to reduce costs, we need to spread the costs over a wider segment of the population, and so we are going to require all seniors, regardless of whether you have prescription drugs in your retirement program or not, regardless of whether you have a good insurance program that covers prescription drugs, we are going to require everybody to take the government's system.
Guess what comes next as government faces this fiscal pinch? Rationing, and then the government will follow what many other countries have done such as Canada and many other countries that have government-run programs. They are going to say, well, we are going to limit the prescription drugs that are available to seniors. This proposal suggest that $400 billion, and it is pretty much used up, is going to be required for spending in the next 10 years for prescription drugs. We should think carefully about the consequences of making a whatever-it-costs commitment into the indefinite future.
I chair the Subcommittee on Research in Science and the medical technology is now expanding more rapidly than our ability to pay for it. That means the medical technology of the future is going to be very impressive and very successful on maintaining our health and helping us to live longer. In fact, the future has suggested that in the next 20 years, anybody who wants to live to be 100 can do so, but it will cost money. And we are sort of programming that we will pay for those benefits, whether it is $40,000 a treatment or $60,000 a treatment after they
finish their first deductible and the 3,000 or whatever we end up with. And that is another question, none of us have read this bill yet.
It now looks like a bill we will consider this week will add prescription drug benefits with minimum offsets for Medicare. It is not fair to our kids to add this responsibility to everybody else's kids and grandkids and my 10 grandkids, and I would hope we look more carefully at this and review it over the Fourth of July recess and come back and try to have a better bill.
This will add enormous liabilities to a Medicare system which is already predicted to be insolvent. Economists calculate that the newly created unfunded liability of such a reform is $7.5 trillion. This means that a prescription drug bill that adds 12 percent to Medicare's costs comes with a present cost of $7.5 trillion, or a bit more than the entire public debt. You add this to an unfunded liability of $9 trillion for Social Security and you end up saddling our kids with a huge debt.
These projections assume that prescription drug costs will grow at the same rate as the rest of Medicare, and that the prescription drug benefit will not be expanded over time. Recent history would suggest that prescription drug costs are growing more rapidly than the rest of Medicare. In 1965, OMB projected that Medicare would spend $9 billion in 1990. The actual figure was $67 billion. Having projected $26 billion in spending for 2003, we will spend $245 billion. Because medical technology--the cost of prescription drugs will be much higher.
This drives home the point that any expansion of Medicare imposes a cost on taxpayers. Such a reform basically transfers the burden from retirees to taxpayers. More accurately, it means that we are transferring costs from us to our children and grandchildren. We're spending now and sending the bill to people who are yet to be born or too young to defend themselves.
This is selfish and it is wrong. I'm not against a prescription drug benefit if it is responsible. But it must not place heavy and increasing burdens on workers, taxpayers, and the economy in the future. I oppose the bill that is now under consideration because it does not meet this test.
Once again, we have not had an opportunity to see and review a bill on an important topic before we are required to vote on it. It is rumored, in fact, that changes are still being made. Few members will actually know exactly what's in this bill until after it has passed.
I believe that the better approach would be to release the bill tomorrow and then delay the vote until after the upcoming Fourth of July work period. That would allow all of us in Congress to read the bill, consult with our constituents, and make a fully informed decision on a program that could profoundly affect our future and that of our children and grandchildren.
I urge Congress to reject the bill tomorrow so we can take a more responsible and deliberate approach to reforming an important program like Medicare.