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[Congressional Record Volume 141, Number 81 (Tuesday, May 16, 1995)]
[Extensions of Remarks]
[Pages E1049-E1050]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

                           GOP SAVES MEDICARE

                                 ______

                         HON. STEPHEN E. BUYER

                               of indiana

                    in the house of representatives

                          Tuesday, May 16, 1995
  Mr. BUYER. Mr. Speaker, Medicare is in dire need of improvements. 
Medicare part A will go bankrupt by 2002; in just 7 years. Medicare 
part B, has already begun to lose money. Medicare is our forth largest 
Federal budget item, consuming 12 percent of the budget.
  If the Medicare system is not reformed now, we may not have a program 
to reform in the very near future. Since 1992, Medicare has been paying 
out more money in claims than it has received in payroll taxes. These 
services must be run in a more responsible and fiscally prudent manner 
while maintaining Medicare's quality. [[Page E1050]] 
  Medicare part A, the hospitalization insurance program, draws its 
revenue from a trust fund that currently contains $135 billion. This 
trust fund will begin losing money next year and will be insolvent by 
2002. We must provide security to our seniors that there will be a 
safety net for their use if needed in 7 years.
  Enrollees in Medicare part B, the program that finances outpatient 
medical treatment, will pay a premium of $46.10 a month and a 
deductible of $100 this year. In return they will receive benefits 
averaging nearly $2,400 per enrollee, with taxpayers subsidizing $1,800 
per beneficiary. By 2002, that subsidy will reach $3,900 per 
individual. This subsidy will cost taxpayers $1.5 trillion over the 
next 20 years if the current course continues. The average one-earner 
Medicare couple will receive $126,700 more in benefits than they 
contributed over their working life.
  In April, I completed another round of town meetings in the Fifth 
District of Indiana. The solvency of Medicare was a top concern. I 
heard a similar message from young and old alike from Kokomo to Winamac 
and from Logansport to Plymouth. Hoosiers don't want a quick fix that 
doesn't work. They don't want accounting gimmicks. They don't want 
political posturing. They want Congress to reform the system to ensure 
security for years to come. The solvency of Medicare is very real to 
Hoosier families and seniors.
  House Republicans have proposed a budget plan that balances the 
Federal budget by 2002, without touching Social Security or raising 
taxes. This means that for the first time since 1969, our deficit by 
2002 will be zero. Medicare spending is projected to increase from $178 
billion in 1995 to $258 billion in 2002. That's a 45 percent increase 
over the next 7 years. What does this mean for the average Medicare 
recipient? In 1995, the average Medicare beneficiary will receive 
$4,684 in benefits which increase to $6,293 in 2002. Again, benefits 
increase--not decrease.
  The Board of Trustees for the Medicare Trust Fund, appointed by 
President Clinton, have issued a report saying Medicare's short-term 
fiscal health requires either an immediate increase in payroll taxes of 
44 percent or an immediate decrease in Medicare spending of 30 percent. 
Yet both of their proposals would only ensure solvency for 25 years. I 
support a less draconian approach such
 as reducing the growth of Medicare by just 5 percent a year. No tax 
increase nor enormous cuts. A 5 percent reduction in growth will 
provide for long term security of the Medicare program.

  Because a centralized Government monopoly is inherently inefficient, 
wasteful, and too slow to adapt to new ideas and new solutions, we must 
transform Medicare. Every senior citizen should have more choices in 
health care and more control over their own lives, thus providing more 
security. a transformed Medicare system will provide better health care 
at lower cost with greater choice. Failure to transform Medicare will 
lead to cuts in services and financial crisis.
  The President should be a leader, not a follower. The President's own 
Cabinet members, as trustees of the Medicare Trust Fund, have issued a 
report clearly stating that Medicare is in dire need of reform. 
President Clinton has been absent from this debate. Frankly, I am very 
disappointed that it will take Congressional legislation to bring the 
President into this discussion. I hope the President will take a seat 
at the table and help the Congress address this important issue. If 
not, the Congress clearly has the determination to do so without him. I 
support H.R. 1590.
  Finally, the imminent crisis in Medicare funding is real and 
unavoidable. Responsible reform of Medicare is a top priority of this 
Congress. It should be everyone's purpose to reform and improve 
Medicare to provide the best possible service to its beneficiaries. I 
look forward to working with my constituents, my colleagues, and 
hopefully the President to find real solutions to improve these 
programs.

                          ____________________
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