June 27, 2003

 “Like many people, I am not completely satisfied with this bill, but I am also not satisfied to see Medicare collapse,” Hall said.  “The close vote in the House illustrates the complexity of this issue – and the work that still needs to be done.  However, we are closer than we have ever been to making some meaningful reforms and providing a prescription drug benefit to seniors.”

 Hall, a longtime supporter of a voluntary prescription drug benefit and efforts to strengthen Medicare, spoke on the Floor of the House during the debate.  Earlier in the week he attended a bipartisan meeting on the issue with President Bush at the White House.

“Medicare needs to be modernized to include a meaningful provision for drug coverage,” Hall said.  “In my lifetime, we have seen how prescription drugs have greatly improved and extended the lives of Americans.  We have also seen how the costs of those life-providing drugs can trouble families every day.”

 The House-passed bill extends Medicare coverage to include prescription drugs, using private insurers to provide coverage to all Medicare patients who choose to enroll.  Patients would pay the first $250, 20 percent of drug costs between $251 and $2,000, and all the costs until their expenses reach $3,500, at which time the private insurer would pay the remaining drug costs for the year.  The monthly premium for most seniors is estimated to be about 35 dollars.  Low-income seniors would pay a lower premium or none at all.

 The bill provides for private insurers, beginning in 2010, to compete with Medicare in offering coverage for hospital and doctor services.  Supporters believe that competition will hold down costs and help ensure the financial viability of Medicare.  “We desperately need to do something to save a great program for people in their golden years,” Hall said.  The bill also includes support for rural health providers and importation of drugs from Canada.

 Hall cautioned, however, that seniors and the disabled “have paid for and have come to expect the traditional Medicare system and the safety net it provides them – and they should be able to retain their current plans if they continue to be pleased with them.”  

 Hall called for lower drug prices for seniors and noted that, for ten key drugs for seniors, Americans pay on average 150 percent more than Canadians.  “This is unacceptable.  I don’t like price controls – the marketplace provides the competition necessary to deliver the best price for people in need.  We must lower the cost of prescription drugs, and my hope is that we can all work together, including drug companies, to come up with new, better, and more creative ways to achieve affordable prescription drugs.”

 Hall also supported the Blue Dog Democrats’ alternative plan that is based on the bipartisan Senate Medicare bill.  This plan included low monthly premiums and deductible, 50 percent co-insurance through $4,500, catastrophic coverage, Medicare fall-back plans in areas without two competitive plan options, and additional relief for rural providers.  The measure was defeated by a vote of 208 – 223.

 The Senate is scheduled to approve its Medicare/prescription drug bill this week, and a House-Senate Conference will resolve the differences between the two versions.  “My thrust for the Conference will be to contain prescription drug costs, provide a safety net for seniors who want to remain in Medicare and ensure that rural health care providers receive the support they need,” Hall said.

 The House also approved the Health Savings and Affordability Act, a bill that will permit personal savings accounts to be used for out-of-pocket medical expenses.  The accounts would be available to taxpayers who are either uninsured or covered through a high-deductible health insurance policy.  Individuals could make tax-deductible contributions of up to $2,000 or $4,000 for families.