I thank Chairman Herger for holding this hearing. I believe this is the first legislative hearing Republicans have held in the Ways and Means Committee to advance their plan to end Medicare as we know it. They want to take away Medicare’s guaranteed benefits, replace it with a voucher and put insurance companies back in charge. I disagree with the Republican plan, but appreciate their honesty in flying their flag to dismantle Medicare high and proud.
This year, Republicans have modified their plan by saying that traditional Medicare would remain an option. But, that promise isn’t worth much. Traditional Medicare might be theoretically available, but would be out of reach for many because the voucher would not be guaranteed to cover its costs. Traditional Medicare would undoubtedly attract sicker patients and quickly enter a death spiral.
My Republican colleagues don’t like the sound of the word “voucher" to describe their plan -- so they’re cloaking it behind the term, “premium support." They also dislike being the sole owners of this proposal which is why they’re holding this hearing today. They want to share the blame.
They are trying to overshadow the fact that every single Democrat in the House of Representatives voted against their budget which includes their Medicare voucher proposal.
I can count on one hand the Democratic proponents of vouchers or similar proposals. Our invited witness, Henry Aaron, actually has the dubious honor of having coined the phrase “premium support" in the mid 1990s, but now considers himself “reformed". His written testimony makes clear that he’s no proponent of the Ryan plan.
The only Democrat I’ve heard saying nice things about premium support these days is Senator Ron Wyden. Yet even he quickly disavowed the Ryan Budget earlier this year saying, “I didn’t write it and I can’t imagine a scenario where I would vote for it."
This Democrat will go on record yet again making clear my strong opposition to the House Republican Medicare proposal. By any name, it would prove devastating to Medicare beneficiaries -- raising their costs and negating the gains made from Medicare that ensure all our senior citizens have quality, affordable health care. Instead, returning us to a time when private health insurers control what care seniors get and what price they’re forced to pay. CBO has said it would lead to an increase in overall national health spending, as senior citizens and people with disabilities are moved into less efficient, more costly private plans. It simply takes us in the wrong direction.
None of this is to say that there aren’t reforms we can and should continue to make to Medicare. I’m proud of the provisions included in the health reform law that are already moving forward payment and delivery system reforms in Medicare, reducing overpayments to private health insurance plans that cost taxpayers tens of billions of dollars each year, and adding years of solvency to the Trust Fund. We did this while preserving and even improving Medicare benefits, proving you don’t have to kill the patient to save her.
With that, I look forward to hearing from our witnesses today.
