The Bush Medicare Bill'S Dirty Laundry
Mr. Speaker, America's newspapers are widely read, except on Saturdays. So it is not much of a surprise that the Bush administration waited until late on a Friday afternoon leading into Labor Day weekend to announce that they were raising…
Mr. Speaker, America's newspapers are widely read, except on Saturdays. So it is not much of a surprise that the Bush administration waited until late on a Friday afternoon leading into Labor Day weekend to announce that they were raising Medicare premiums by a record 17.4 percent. That is the sort of news, however, you just cannot suppress, so the news that Saturday was all about the Bush administration's plans to impose the biggest premium increase in Medicare's 38-year history. But the White House public relations office is nothing, if not tenacious. So faced with the bad news and faced with the blame for that increase that would naturally affix to the Bush administration, they did what they always do, they tried to shift the blame. Even though the Republicans have controlled the House and the Senate and the White House for the last 3\1/2\ years, it is actually the Democrats, they said, who are responsible for the premium increase. But no one bought it then and no one buys it now. The facts are the facts and no amount of spin, no amount of revisionist history, can change the facts.
Before the Bush Medicare bill became law, the nonpartisan Medicare trustees estimated the monthly Medicare premium increase for 2005 would be $2. After the Bush Medicare bill became law, the premium increase instead jumped $11.60. That is the 17.4 percent record increase. The facts are that the premium increase after the Bush Medicare law, which was written by the drug and insurance companies, is five times larger than the premium increase estimated before Congress passed the Medicare law.
So where is all that money going? Where are the billions of dollars out of seniors' pockets, that huge increase, where are those dollars going? The Bush administration is quick to remind us that some of it goes to new preventive health care benefits. That is true. But what they are less eager to say is that a whole lot of it is going directly from seniors' pockets into the pockets of the biggest HMO insurance companies in the country.
The Bush Medicare law creates a $23.5 billion slush fund that HMOs can use to lure seniors out of Medicare and out of Medicare's reliable, equitable core program into the HMO private insurance. This windfall is in addition, this insurance company payoff, to the payments HMOs receive in exchange for covering enrollees. It is a bonus largely paid for because of major political contributions the insurance and the drug industries have made to the Bush administration. Seniors who already spend more than 20 percent of their incomes on out-of-pocket health care costs are receiving a giant increase in their Medicare premiums, and HMOs are receiving a giant boost to their bottom line. HMO profits already, before the Bush administration did this, jumped 50 percent last year. They hardly need more money from America's overstretched seniors.
Social Security benefits for seniors will increase by 2 percent next year. So the Social Security increase and the checks that seniors get will go up 2 percent. The Medicare premiums will go up 17 percent. I will say it again. The Bush administration is draining billions from the Medicare trust fund into the pockets of the big insurance companies. At the same time, the Bush administration is emptying the pockets of America's seniors, again to the tune of billions of dollars.
It is no secret that President Bush and his privatization of Medicare plans wants to take the responsibility for retiree health care away from Medicare and give it to HMOs. But to actually make seniors pay more so the President can pave over their Medicare program, every senior should be enraged, every American taxpayer should be outraged and none of us should put up with it.
The bottom line is the Medicare legislation which the President pushed through this Congress and signed was written by the drug industry and the insurance industry. Medicare premiums went up 17 percent announced by the administration earlier this month and the drug companies and the insurance companies have given President Bush and the Republican leadership tens of millions of dollars in political contributions this year. In the end, it is really as simple as that.