Mr. President, I rise today to offer an amendment to S. 1 which would ensure that the Federal Employees Health Benefits Program could not reduce the level of prescription drug coverage available to Medicare-covered federal civilian annuitants. I want to thank my colleagues from Maryland, Senator Mikulski and Senator Sarbanes, for cosponsoring the amendment.
I strongly support the creation of a prescription drug benefit for Medicare beneficiaries. Thirty-eight percent of Medicare beneficiaries report that they do not have prescription drug coverage. Far too many seniors are unable to afford the medications that they need, and the establishment of a prescription drug benefit will provide much needed access to medications that our seniors desperately need.
However, Mr. President, the Congressional Budget Office (CBO) believes that Medicare drug coverage authorized by this bill is likely to act as an incentive for employers to drop their employer-sponsored drug benefits. An estimated 37 percent of retired workers with employer- sponsored drug benefits could lose their coverage under this bill according to CBO. I am troubled that older Americans who already have earned coverage through an employer-sponsored plan could lose their existing benefits. We have seen over the past few years that there has been a disturbing trend of reducing benefits for retirees. Creating this voluntary benefit could only accelerate this trend. The intent of the legislation is to expand prescription drug coverage for seniors, not merely to shift the financial burden of existing coverage to the federal government. If Medicare beneficiaries lose their employer-based coverage, they may have to pay more for a Medicare drug benefit that provides less comprehensive coverage.
We must encourage employers to maintain their current coverage, and I will support efforts to do so. We should not shift the existing costs of prescription drug coverage to the Medicare program. If this occurs, there will be fewer resources available to pay for the medications of those who currently need insurance.
My amendment will ensure that present and future federal retirees retain their current level of prescription drug coverage. They should not face a situation in which they must rely on Medicare. My amendment requires the FEHBP to preserve current-level drug coverage for federal retirees and survivors. The government health care plan stands as a model employer-sponsored health care plan, and my amendment protects the nation's federal annuitants and their survivors. Accepting this amendment sends a message to other employer-sponsored plans that the federal government stands behind its commitment to retired workers.
Mr. President, I ask unanimous consent that the letters from the National Association of Retired Federal Employees and the National Treasury Employees Union in support of my amendment be included in the Record.
Mr. President, I urge my colleagues to support my amendment, and I look forward to working with them to ensure drug coverage for retirees under other plans.
