Legislation To Fix The Medicare Modernization Act
Mr. Speaker, I ask unanimous consent to take the time of the gentlewoman from California (Ms. Solis). Mr. Speaker, I join my colleague and friend, Representative Marcy Kaptur, in talking about the trip to Ohio this week of Michael Leavitt,…
Mr. Speaker, I ask unanimous consent to take the time of the gentlewoman from California (Ms. Solis).
Mr. Speaker, I join my colleague and friend, Representative Marcy Kaptur, in talking about the trip to Ohio this week of Michael Leavitt, who oversees Medicare and Medicaid and our Nation's various health agencies as America's Secretary of the Department of Health and Human Services.
Michael Leavitt is a decent man, but he is manning a ship weighed down by wrongheaded laws and misplaced priorities. Take the so-called Medicare Modernization Act, the legislation written by the drug industry, written by the HMOs in this Congress, pushed through Congress in the middle of the night by literally one vote. The Federal Government, through that bill, the Federal Government is hand-feeding the prescription drug and HMO industries literally hundreds of billions of dollars of our tax dollars to manufacture or to make up and to build a new private insurance market for seniors' drug coverage, and not to provide the coverage directly through Medicare the way people choose their doctor in Medicare, the way people choose their hospital. This is done through 30, 40, or 50 different private insurance companies instead of being done the way that history shows works best.
Why? Because the drug and insurance industry want it that way. This new drug law, this new Medicare law, as I said, written by the drug industry and written by the HMOs, with seniors barely given a second thought, prohibits the Medicare program from negotiating bulk discounts on prescription drugs. And according to the Congressional Budget Office, it overpays insurers, the HMOs, by tens of billions of dollars. So much for fiscal responsibility.
The new drug law also undercuts the core Medicare program. If you want Medicare to wither on the vine, as former Speaker Gingrich said, wall it off and force seniors into the private market, force them out of Medicare, put them into the private market to give them additional benefits. It is ingenious. It is also underhanded and it is fiscal suicide.
Do my Republican colleagues really believe that when the private insurance market controls Medicare that they will give the government and they will give seniors a good deal on coverage? Do they really believe the drug industry will voluntarily charge lower prices for prescription drugs?
The new Medicare drug law isn't about seniors, it isn't about modernization, it isn't about fiscal responsibility. It is about a Republican-run Congress that is a little too cozy with the drug industry and the HMOs.
I am a cosponsor of legislation that would begin to fix this bill. It would enable seniors and disabled Medicare enrollees to bypass the private insurance market, to say, no, I don't want to compare 30 or 40 different insurance plans and 30 or 40 different insurance company brochures, and talk to 30 or 40 different insurance agents. I want to bypass the private insurance market, check a box, and simply add a prescription drug benefit to my Medicare. I get to choose my doctor as a Medicare beneficiary, I get to choose the hospital, I ought to be able to choose my drug formulary.
It would also authorize Medicare to negotiate bulk discounts on prescription drugs. That is the way the Veterans' Administration does it. That is the way most countries in the world do it. That is why drug prices are a third or a fourth or a fifth in every other country in the world, much, much lower prices than there are in the United States.
In other words, this legislation, this new law as we propose the changes, would give seniors and taxpayers a break. Perhaps Secretary Leavitt will make use of his Ohio trip to announce the administration's support for these bills. Perhaps.
May 15 is the cutoff for Medicare beneficiaries to enroll in the new prescription drug program. If they enroll after that date, believe it or not, they have to pay a penalty for late enrollment. Let's think about that. My Republican colleagues in Congress and the Bush administration have finally acknowledged that the drug program got off to a rocky start and is very confusing to seniors. Seniors have sat on the phone for up to 2 hours waiting for someone from the Medicare hotline to help with enrollment questions.
I talked to seniors in Vandalia, Ohio, in Cincinnati, in Norton, and in London, Ohio. All of them say this Medicare drug benefit is way too confusing. Not just prospective enrollees are confused, but State agencies, local service agencies, Federal bureaucrats, even the insurers who offer the new coverage. Finding the right answer to an enrollment question is almost as difficult as choosing which of the 30 or 40 plans to enroll in.
And when seniors did enroll in a plan, there were paperwork problems, there were systems problems, there were transition problems, there were formulary problems, and there were problems in the drugstores where one pharmacist at least, one pharmacy in London, Ohio, had to close because of the additional cost imposed on these small businesses by this bureaucracy created by a Congress that listened to the drug industry and the HMOs more than it listened to drugstores, to pharmacists or to seniors.
The various failings of this drug program made the news virtually every day for 4 months. Maybe Secretary Leavitt will make use of his trip to Ohio to announce the Republican leadership is listening, they have changed their minds, and they want to see a better law. Maybe.