Mr. Chairman, thank you for holding this hearing. In the Balanced Budget Act of 1997, Congress created a new program called Medicare+Choice, which substantially expands options for beneficiaries. On June 26, 1998, the Secretary of Health and Human Services issued regulations implementing the Medicare+Choice program. We have given the Secretary and the Health Care Financing Administration a tremendous challenge.

The new choices in the Medicare program will work only if the health care industry, and seniors, choose to participate in the new plans created under Medicare+Choice. More importantly, however, it will only be successful if Seniors get the high quality health care they deserve and have come to depend on.

Fortunately, Congress has insured that seniors are protected by allowing them to stay in the traditional fee-for-service program they have relied on for 30 years, thus maintaining our commitment to seniors during an implementation period fraught with uncertainties.

I am pleased that we will hear today from Bruce Bradley, Director of Managed Care Plans for General Motors. Mr. Bradley has been a leader in the health care quality community and recognizes that both corporate and public purchasers must assume a leadership role in driving quality improvement in our nation's health care system. Purchasers must demand performance measurements on quality and work with providers to identify and implement opportunities for improvement. If Medicare is to become a prudent purchaser like GM, it must demand that plans meet appropriate quality standards.

I would also like to acknowledge and welcome Mr. Michael Hash, Deputy Administrator from the Health Care Financing Administration to our committee. Mr. Hash was a respected subcommittee staff member for five years and we are pleased to see that he has brought his talents to the implementation of this program. I look forward to hearing from both Mr. Hash and Mr. Bradley and the other witnesses here today.

Thank you again, Mr. Chairman for holding this hearing.

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