Tonight Republican Members of Congress will be talking about Medicare. Now, as we are getting into this, what I want to make sure that we first look at here is that many talk about is the Federal Government doing much with regard to health…
Tonight Republican Members of Congress will be talking about Medicare. Now, as we are getting into this, what I want to make sure that we first look at here is that many talk about is the Federal Government
doing much with regard to health care? And Medicare, Medicaid, veterans benefits, and other programs that the Federal Government pays for consume a massive amount of the Federal budget. And I wanted to point out, just to begin with, if we can look at this, that about 45 percent of all mandatory spending, all mandatory spending we spend, is on health care, and about 15 percent of all discretionary spending is spent on health care.
If we look at mandatory spending here in health care, we see that the section here which is Medicare is $297 billion, or about 24 percent overall; Social Security disability is in this category here, too, about 6 percent; State Children's Health Insurance Programs, about $5 billion or 4 percent; and Medicaid is $176 billion, or about 14 percent of overall mandatory spending.
So we see that for those seniors and disabled who receive the benefits of Medicare is a large part of the Federal budget and one that has a history of providing good benefits for our seniors; benefits we are proud of, benefits we are pleased to continue to offer them.
But tonight we are going to talk about a number of things happening in Medicare. Some of these will be issues that are staying with Medicare; some will be some positive changes, areas that are growing; some of the new parts that have to do with prescription drug benefits; some some actions on waste, fraud, and abuse; some on new programs that deal with prevention and new physicals for Medicare; and many, many other parts of this we will be talking about tonight.
The overall purpose here is that as we look at the amount of money we spend and the services that we provide, it is Congress' responsibility to be constantly reviewing this and saying can we do it better to provide quality health care that is accessible for our seniors in America? And those who are not seniors yet recognize that about 2.9 percent of wages, half from you and half from your employer, goes to fund Medicare. Thus, every taxpayer is concerned with how this money is spent and what quality is associated with it.
Now, being the first speaker tonight, I want to talk a little bit about one area that I am introducing a bill on to improve Medicare, although it provides a lot of services in many areas of health care. One of those that I believe we need to see some changes in is in mental health coverage.
As a practicing psychologist myself for many years, I recognize that when you integrate the care of mental illness in with other aspects of medical care, it actually is something that reduces the cost of health care and improves health overall.
Let me describe to you now what Medicare does in all this. Currently Medicare beneficiaries pay about a 20 percent copayment for all outpatient health services except for mental health providers, where they have to pay a higher copayment of 50 percent.
According to the National Institutes of Mental Health, nearly 2 million Americans over the age of 65 suffer from depression. The 1999 Surgeon General's Report on Mental Illness found that 20 percent of Americans 55 and older experience mental disorders that are not considered a normal part of aging, such as anxiety, alcoholism, and various other disorders. As many as one in two residents of nursing facilities are at risk for depression.
A June 2002 MED-PAC report, that is the Medicare Payment Advisory Committee that recommends changes to Congress, stated that ``Medicare beneficiaries are apparently having difficulty in obtaining needed mental health services. Despite the availability of proven treatments, one recent analysis found that of those beneficiaries over 65 with need of treatment, 63 percent did not receive it.'' And it goes on to say, ``Beneficiaries face a 50 percent coinsurance for most outpatient mental health services compared with 20 percent for most other outpatient services. Equalizing cost-sharing for outpatient mental health and other outpatient care would reduce the financial barrier to mental health care and provide parity to beneficiaries with mental disorders and those with other illnesses with a small increase in Medicare spending. This change would also simplify Medicare's cost- sharing structure.''
Now, here I am talking about the cost of Medicare and talking about something here which on the surface would appear that we are proposing more spending. And oftentimes when proposals come before Congress, they are scored in terms of what the increased spending would be, but not necessarily scored or reviewed in terms of what the savings would come from this.
Let me describe what happens when you have untreated mental illness. Patients suffering from untreated depression, for example, use health care services more often; pay one and a half to two times more for health care costs that they accrue. They also tend to have increased lengths of hospital stays. Untreated depressed parents tend to have decreased adherence to life-style changes needed for health improvement. Depression also complicates the treatment of those with heart disease. And those with increased psychological stress or depression have increased platelet reactivity to thrombosis or blood clotting, which can complicate heart disease.
Now, as a result of this, I have introduced the Medicare Mental Health Copayment Equity Act to reduce the copayment for mental health services to seniors on Medicare to match the standard 20 percent rate. With such a high amount of seniors afflicted with mental illness, that discriminatory Medicare copayment rate must end.
When we look at ways such as integrating the care for our seniors with something that afflicts so many, such as mental illness and depression, by using such innovative approaches, we can actually save cost and provide better care for our seniors in America.
Now, in addition to some of these things we can look at improving, and we will be talking more about them tonight, a number of aspects, it is important to also recognize that Congress is also being a watchdog of some problem areas for Medicare. What happens sometimes is people see this as a system that they can abuse. Whether it is providers or patients or others, they see this as a way they can get health care that perhaps is not needed, or we have a mechanism that sometimes, quite frankly, just pays too much.
To talk about this issue tonight, I will call upon my colleague, the gentlewoman from Florida (Ms. Ginny Brown-Waite), and she will be discussing waste, fraud, and abuse in Medicare, and I yield to her now.
Mr. Speaker, I thank the gentlewoman from Florida (Ms. Ginny Brown-Waite), and could the gentlewoman repeat how much waste, fraud and abuse is estimated? I believe it is over $20 billion a year.
Mr. Speaker, what we have to make sure is understanding in a budget that is approaching $300 billion for Medicare overall, and when people are concerned is it providing enough coverage, the issues that the gentlewoman from Florida (Ms. Ginny Brown-Waite) brought forth is an area where every senior and their family member can help deal with the spiraling cost of health care.
I have a chart here, and notice how health care costs are spiraling up. Notice the growth in terms of Federal outlays and how much it has climbed over the years. It is quite dramatic. The area of waste, fraud and abuse has grown with it. I would like to advise that one of the messages that we as Members of Congress need to get out to constituents is understand how we can help our constituents find and report waste, fraud and abuse.
Sometimes Medicare fraud is purposely billing for services never provided, billing Medicare and another insurer for services someone never received, for equipment because you received equipment different from what you are billed for, and using another person's Medicare card to get medical care, supplies or equipment, and billing Medicare for home medical equipment after it has been returned.
I have heard of constituents who have reported these kinds of things, and it is important that we do this as a mechanism to save government money, save taxpayer money, and make sure that money goes towards care. People also need to be suspicious. Anytime a provider tells you a test is free, they only need your Medicare number for their records, and the provider may state that the cost to the person with Medicare is free, be wary if tests are being provided and the patient is told they are free, make sure you understand why they are being done and what they are. Or if the provider says Medicare wants you to have the item or service, Medicare does not recommend services, it is up to the physician and health care provider to recommend services. Or if someone says I know how to get Medicare to pay for it, again, the questions family members and Medicare recipients should be asking is I want to know what I really need, and do not be afraid to get other opinions.
Sometimes people say the more tests you have, the cheaper they are; or the equipment or service is free, it will not cost you anything. But be aware, and Members need to educate their constituents that anytime someone is offering that, this is taxpayer money being spent on services that may or may not be needed. And it is important that we encourage Americans to review that and determine if it is medically necessary.
There are ways that you can prevent Medicare abuse, and there are ways you can report this: by contacting the inspector general of Medicare, by looking at the Medicare Web sites to report specific information. It is a way that every American citizen can be a watchdog and can lead to cost savings for Medicare and make sure that care goes to patients.
I would like to turn toward the gentleman from Georgia (Mr. Price), an orthopedic surgeon, a good friend to the health care caucus and one who has been very diligent in dealing with health care costs. He will be addressing patient choice and satisfaction with the Medicare program.
Mr. Speaker, I yield to the gentleman from Georgia (Mr. Price).
Mr. Speaker, I thank the gentleman from Georgia (Mr. Price) for his important information about other areas of care. As we continue on this evening, I want to turn to one of our colleagues, the gentleman from Louisiana (Mr. Jindal), who is an expert on Medicare. He wants to talk about the need to address premium cost and recommendations of the National Bipartisan Commission on the Future of Medicare.
I thank the gentleman from Louisiana not only for the depth of his knowledge in Medicare, but his service before to our country. Certainly if we are able to implement some of the changes he has spoken about so eloquently tonight in changing not only the waste, fraud and abuse, but making Medicare work more effectively, we can make it last longer.
The points made here about when we think about Social Security hitting its financial demise sometime around 2042, when they talk about Medicare, if we do not make some changes to improve the system, again that is what we are talking about, improving the system, it may face its own demise in 2024, some 20 years ahead of Social Security, not because the difference in more people retiring at faster rates and less money going in, but because of the waste, fraud and abuse that is in the system and because of inefficiencies.
It is so important that we work together in a bipartisan way to improve the efficiency of Social Security so that money goes to care for our seniors in ways that we need to make sure they get that care.
I would like to turn to another one of my colleagues for the wrap-up in our session tonight, and that is the gentleman from Georgia (Mr. Gingrey), who is no stranger to speaking on health care issues. He and I chair this conference team on dealing with health care issues. He is as dedicated as they come to working on this.
Mr. Speaker, reclaiming my time, I thank the good doctor from Georgia for his comments, as well as the gentleman from Georgia (Mr. Price), the gentlewoman from Florida (Ms. Ginny Brown-Waite), and the gentleman from Louisiana (Mr. Jindal) for their comments tonight.
And noting that what we have discussed tonight as we recognize that Medicare is a program that albeit is expensive in terms of what it costs the Federal Government and taxpayers to pay for it, we believe it is worthwhile to protect and ensure the health and health care of our elderly; but we also have to note here, as even the best of programs can use better care, in this case the best of care, what we want to make sure that Members do on both sides of the aisle is work towards eliminating waste, fraud and abuse, updating the Medicare program to make sure it is providing that high-quality care, recognizing that there have been changes in how health care is provided since the 1960s when this program began, and we need to make those things work better.
We need to apply some of the changes that were recommended by the Commission on the Future of Medicare. We need to make sure that care is integrated together with examples of what I presented before, with such things as mental health care integrated with other aspects of care; making sure that we improve the system so that we have electronic prescribing that we would reduce the many medical errors that occur, reduce the about 16 million errors that occur on prescriptions every year that are written in part because we still use an old system of paper and pencil where someone may misspell a word or not be able to review it correctly or a physician cannot possibly know all the medications the patient is on, all of those things to be corrected with the major moves that were in the Medicare bill that we voted on a couple of years ago, but will begin to take effect in January of next year.
These are positive changes that I believe will help reduce the thousands of deaths, the millions of errors that occur with prescription drugs, and work for the betterment of health care in America to save lives, to save money, and to improve that.