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WASHINGTON - Congressman Charles B. Rangel warned Americans, especially seniors in his District, not to be misled by efforts to derail legislation that would provide health insurance to 11 million children and strengthen the existing Medicare system.
The Congressman's New York office has heard from countless of senior citizens complaining of calls warning them that they stand to lose their Medicare benefits if Congress passes the Child Health and Medicare Protection Act. (CHAMP). These calls coincide with what Reuters and other media outlets report as media blitz sponsored by private U.S. insurers. At stake are billions of dollars that these companies receive as incentives for enrolling seniors in their private programs -- excess payments that Democrats say comes at the expense of taxpayers.
"It's shameful that there are those that would take advantage of our seniors and use them in their campaign of misinformation," said Rangel. "Let me be clear: the changes to the Medicare Advantage program we propose will not eliminate seniors’ benefits, but instead, preserve the Medicare system by making the federal payments to insurance companies fair and equal across the board.”
The CHAMP Act looks to shore up health care for both the “Greatest Generation" and the next generation by filling in much-needed gaps in health coverage. At the heart of the effort is the renewal and expansion of the highly successful State Child Health Insurance Program (SCHIP). If Congress fails to pass CHAMP, children who are now covered under SCHIP could lose their health insurance on September 30, 2007. “There is no question in my mind that we have to expand healthcare for all children. It's not just the right thing to do morally, but also the best thing to do for this country in the long run," said Rangel. "Preventing expensive and debilitating chronic diseases will help save the government money in emergency room and other rising medical costs. Just as important, by making this kind of investment at the very beginning of their lives, we give our youngest Americans the best opportunity to be healthy enough to learn, get a good education, secure a good job and ultimately be productive members of our communities." Part of the funding for the bill comes from an increase in the federal tax on tobacco, a decision that Rangel does not take lightly.
"I realize that just talking about a tax can be politically difficult," the Congressman said at the beginning of the bill's mark-up in the Ways and Means Committee this week. "I have a history of opposition to excise taxes, but in light of the heavy financial weight smokers place on Medicare expenditures and the overwhelming proof linking the increase in cost of tobacco products with a decrease in youngsters buying cigarettes; it’s the right call."
Of greater fear to the insurance industry is the Democratic plan to cut subsidies that companies receive to entice seniors into private plans. It's a strategy that would not only help pay for reforms, but would also turn back the Republican efforts to privatize Medicare. As a result of the 2003 GOP Medicare  Reduction Act, companies are now paid on average 12 percent more to sign up Medicare patients as a back-door means to privatize Medicare and entice seniors to move into private plans. However, in recent Senate and House Congressional hearings, a variety of groups, including the American Association of Retired People (AARP), independent research conducted by the Medicare Payment Advisory Commission, the Congressional Budget Office, the Center for Budget and Policy Priorities, Families USA, and the Kaiser Family Foundation, all verified that this overpayment is a waste of taxpayer dollars that weakens the Medicare system and hastens insolvency.
CHAMP opponents have also tried to spread the message the legislation is being opposed by groups like the National Association of Colored People (NAACP). However, those claims are also false, leading the NAACP to issue a statement supporting the bill.
"H.R. 3162 will go along way to ensuring that all American children and seniors, regardless of their race, ethnicity or socioeconomic status receive the high-quality health care they need and deserve," writes the nation's oldest grassroots civil rights organization. "….Taking care of our seniors and guaranteeing that every American child has the opportunity to grow up healthy and strong are imperative if we are going to progress as a Nation and as a society. "
For more information on the Children's Health and Medicare Protection Act, visit http://rangel.house.gov/CHAMPRESOURCES.shtml.
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