Date: 2003-10-08
Speaker: LINDA T. SANCHEZ (democrat)
Chamber: H
State: Cali

fornia. Mr. Speaker. I thank the gentlewoman for yielding me this time. and I rise in support of her motion to reject the use of the $174 billion for Health Savings Security Accounts included in the Republit.ans prescription drug bill. On June 26. I %oted against the Health Savings and Affordability Act. H.R. 2595. Wlhile it sounds like a great idea to let folks save for their outofpocket costs. in reality these Health Savings Accounts are a $174 billion tax cut for tile wealthy. Republicans tell us that these accounts will help those without health insurance. but in reality those without health insurance have incomes that are too low to take advantage of the tax breaks in this bill. The truth is these folks do not have tle additional $2.000 to $4.000 a year to put into these savings accounts. When America is experiencing record deficits. this Republican Congress highest priority remains increased tax cuts. and I am outraged that they are placing them into the Medicare prescription drug bill. When is this type of deception going to stop? All I ask is that my colleagues be honest with the American people. I do not think It is asking a lot for them to really be honest and level with Americans about what- they are really getting in this bill. I ask this Congress If $174 billion could not be better used? At a time when retirees are struggling with rising prescription drug costs. could the $174 billion not be used to increase incentives for employers not to drop prescription drug coverage for their retirees? If passed as is. the Medicare prescription drug bill will make those receiving- employee retirement plans worse off. Currently. this Is the largest source of prescription drug coverage for Medicare beneficiaries. and these plans are significantly better than anything that they would receive under the Republican bill. Under the Republican bill. the likelihood that employers will drop prescription drug coverage is great because retirees will not be able to use their health plans towards the gap in coverage. Therefore. these higher costs do not provide an incentive for employers to make prescription drug coverage available to their retirees. The Congressional Budget Office projects that approximately onethird of employers who are currently providing retiree prescription drug benefits would drop the coverage if the Republican prescription drug bill becomes law. making some 4 million retirees worse off. In fact. this possibility of losing drug benefits from former employers is the biggest fear currently facing retirees. Already we are seeing a decline in retiree coverage due to increased prescription drug costs. which accounts for 40 to 60 percent of an employers retiree health care costs. We cannot stand here and allow the Republican bill to expedite this process. Therefore. I urge my colleagues to support the Schakowsky motion and reject more tax cuts for the wealthy. Instead. why not be honest and do something that is right for the American people and use the $174 billion for employer subsidies to help ensure that employers do not drop their current prescription drug plans for their retirees.