Regarding The Actuarial Value Of Prescription Drug Benefits Offered To Medicare Eligible Enrollees By A Plan Under Federal Employees Health Benefits Program
Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 2631) to provide that the actuarial value of the prescription drug benefits offered to Medicare eligible enrollees by a plan under the Federal employees health benefits…
Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 2631) to provide that the actuarial value of the prescription drug benefits offered to Medicare eligible enrollees by a plan under the Federal employees health benefits program shall be at least equal to the actuarial value of the prescription drug benefits offered by such plan to its enrollees generally.
Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks on the bill under consideration.
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, last week the House passed H.R. 1, the Medicare Prescription Drug and Modernization Act. Part of this bill recognizes and seeks to address one of the core concerns regarding adding a prescription drug benefit to Medicare; that is, with the implementation of such a benefit, lead employers who currently offer prescription drug coverage to their employees to stop doing so. Obviously, we do not want to put a government entitlement plan into operation and drive the private plans out of existence, or the costs over the long term to the taxpayers will go off the charts.
The bill addressed these concerns by providing subsidies to private employers and unions to encourage them to maintain prescription drug benefits for their retirees. With the help of the gentleman from California (Chairman Thomas), we were able to clarify that the Office of Personnel Management would also be eligible for these subsidies, something that I believe will lead to lower FEHBP premiums for all enrollees. However, I think it is necessary for us to go one step further.
Coming from northern Virginia, I represent over 50,000 Federal employees and retirees. As chairman of the House Committee on Government Reform, I am responsible for issues pertaining to Federal workers and retirees, along with the gentlewoman from Virginia (Mrs. Jo Ann Davis), the chairwoman of the Subcommittee on Civil Service. Thus, not only am I acutely aware of the challenges the Federal Government faces as an employer to recruit and retain quality employees, I am also very aware that Federal retirees are sometimes treated differently than current employees in ways that are not always equitable.
For example, current Federal employees are allowed to deduct their health insurance premiums from pretax dollars, but Federal retirees are not. I look at this issue from an employer's perspective. Remember: In addition to the large number of retirees already in FEHBP, 50 percent of the Federal workforce is eligible for retirement in the next several years. With H.R. 2631, we are telling the people that we are going to live up to our end of the bargain. We are saying that with regard to prescription drug benefits, Federal retirees will continue to be placed on par with current employees, that OPM will not reduce their benefits as opposed to the benefit offered to current employees.
In crafting H.R. 2631, I thought it was important to continue to allow OPM as much flexibility as possible in negotiating future prescription drug benefits. And for the record, Senator Akaka, my colleague in the other body, has offered similar legislation on the other side of the Capitol. Thus, H.R. 2631 does not require OPM to offer a specific dollar amount of coverage that has to be maintained; they can raise or they can lower benefits as they see fit through negotiations with individual plans, but they have to do it for all FEHBP enrollees to treat them the same, regardless of their age. In essence, we are simply telling OPM to continue to do what they have always done.
Mr. Speaker, in closing, I believe H.R. 2631 sends an important message to both Federal retirees and current Federal employees. It will be a helpful tool in our efforts to build and retain an effective Federal workforce and give these employees a career path and retirement they can depend on. Therefore, I urge all Members to support the passage of H.R. 2631.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield such time as she may consume to the gentlewoman from Virginia (Mrs. Jo Ann Davis), chairwoman of the Subcommittee on Civil Service.
Mr. Speaker, I yield such time as he may consume to the gentleman from Virginia (Mr. Wolf), a co-sponsor of this legislation and a leader in the fight for Federal employees' rights.
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I would like to help the gentleman solve the puzzle. The fact of the matter is there are 1.25 million Medicare-eligible Federal employees and annuitants. Only 388 retired Members of Congress are in FEHBP. The majority of retired Members of Congress do not even take FEHBP. They are in other plans or have opted out of this.
The fact is they are eligible for that by virtue of their service here. This legislation was not crafted by Members looking after themselves. It was crafted with the help of the National Association of Retired Federal Employees. It was difficult to write out the 388 retired Members who happen to use this, which is a minority of the retired Members. Most Members do not use FEHBP. I want to clarify for the gentleman that in no way, shape or form was this for Members. In fact, this was called to our attention by the National Association of Retired Federal Employees. I do not know any other way to get at the problem.
I yield to the gentleman from Ohio.
Mr. Speaker, all it does is ensures that Federal retirees will be treated the same as current Federal employees in regard to the Federal Employee Health Benefit plan. Currently, they are not in some areas. The feeling is that with this other plan, that retirees could have a different benefit program and that creates some difficulty. So we are trying to even this up and give that assurance.
Most Members of Congress do not opt for FEHBP. That is what the record shows after this is done. So that is kind of a misnomer. It is a small percentage that ends up in FEHBP when they retire. A few do, I grant to the gentleman; but that is not the purpose.
Mr. Speaker, I yield 2 minutes to the gentleman from Pennsylvania (Mr. Murphy).
Mr. Speaker, how much time remains on each side?
Mr. Speaker, I yield 3 minutes to the gentleman from Virginia (Mr. Moran).
Mr. Speaker, I yield myself such time as I may consume to respond that The New York Times chart is absolutely wrong when it says Federal employees have no deductible for their prescription drug coverage. What they get is, they get a set amount of dollars, and it is a cafeteria style. They can spend it on prescription drugs, preventive care, HMOs or whatever. So there is certainly a cost to that. But the way the system is set up, it is a total health care program.
So when the gentleman gets up and quotes this New York Times article, it is entirely misleading. Of course there is a cost to Federal employees opting for that over something else.
The other underlying part of the bill that this body passed 2 weeks ago is the fact that we did not want to drive private programs out of existence. Should we drive the 60 percent of seniors that are currently satisfied with their prescription drug program out of existence, then the Federal Government ends up picking up the total tab, and the cost rises significantly.
We are setting an example with this legislation that we are, in fact, making sure that the FEHBP program is not driven out of existence; that we maintain the parity it has always had with existing Federal employees. And this program ought not be diminished. It is the same thing that we have incentivized in the program passed 2 weeks ago by the subsidies that are in that program as well.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield myself such time as I may consume, and let me just say in all candor that we have 1.25 million FEHBP employees covered by this, with 388 former Members of Congress. The vast majority of former Members do not even sign up for FEHBP, those who would be eligible for the plan passed by this body 2 weeks ago, and do not even use FEHBP, which is a more comprehensive option for retired Federal employees, including Members of Congress. So this really has nothing to do with Members of Congress.
The other question I pose is, why, when my colleagues on the other side of the aisle controlled this body for 40 years, did they not bring up any prescription drug benefit plan before this body for a vote? We have passed plans now the last 3 years, only this time has the Senate passed a plan as well, and we are giving meaningful relief to seniors who want it. It is a voluntary plan. It is not a perfect plan by any means, but it is within the budget limitations passed by this Congress. Their plan was outside the budget limitations.
I think we have to get real. I think we have a good deal for Americans in the plan that we passed 2 weeks ago. As we work with the Senate, we will try to refine it and make it better. I think this legislation today makes it better as well, recognizing that as we look at our Federal workforce, trying to make sure we have the right incentives to attract and retain the best and the brightest to fight for homeland security, to fight the battles for this country, to develop cures for cancer, that we are treating our employees well.
So I am very proud to support this legislation. I think it enhances and goes with the underlying theme of the legislation passed 2 weeks ago, and that is we do not want to drive current prescription drug benefit plans out of existence, which, if we do not pass this, we will be setting a terrible example here at the Federal level.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield myself such time as I may consume to say two things. This vaunted Senate bill that passed a couple of weeks ago, Senator Akaka has also offered legislation in the Senate for their legislation as well. I think whatever happens under whoever's bill that passes, we want to ensure that we do not get that separation between the retired Federal employees and current employees in their health benefit premiums, and that is what this bill is about.
We had a spirited debate 2 weeks ago on a health benefit plan, and I do not think we need to continue to air this today. But I think this is good legislation, it is good protection for our retired Federal employees, and I urge my colleagues to support this legislation and thank them for the bipartisan support this bill is getting today.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield back the balance of my time.