Senate Majority Leader Frist and Other Senate Republicans Hold News Conference
FRIST:
Good afternoon.
The focus of the United States Senate today and over the next several weeks will be very much on energy and energy policy, the fact that this nation needs an energy policy, the people of this country deserve an energy policy. And Senator Pete Domenici, who is managing that bill on the floor, will be with us shortly.
Following this week, we will take to the floor of the United States Senate a bill that has as its goal to strengthen and improve Medicare and at the same time add a prescription drug benefit that will be available to all seniors. We'll focus the next few minutes on that Medicare modernization bill, a bill that, again, seniors deserve, soon-to-be seniors deserve, individuals with disabilities deserve.
Weeks ago laid out the process which we have taken the first several steps on so far, and that process is going very well. Over the last several years we've had over 30 hearings in the Finance Committee on Medicare and on Medicare modernization. We have taken this very issue on how best to add a prescription drug benefit to the floor in the past. In the last Congress we had several weeks of debate and we actually got fairly close in terms of passing a bill at that point in time.
Since then we've learned, as we have since the initial bipartisan Medicare commission of now almost four years ago. But now is the time to act, and we will act before this July the 4th recess of the United States Senate.
It'll be done in a bipartisan way. We will be and I will be, as leadership, and our leadership has committed to following regular order, that being to have a plan debated, amended, emerge through the Finance Committee, and that is under way.
This morning an initial chairman's mark has been released. There'll be a lot of debate and discussion over the next couple of days. The chairman will take that bill to committee on Thursday. Following, I'm sure, debate and amendment and discussion, will produce a product that I plan on taking to the floor of the United States Senate on Monday.
We'll stay on that bill until we complete it. That bill is, again, a bipartisan product, one that I am very comfortable, looking at this initial draft, is one that will serve Americans well, again, both seniors today, individuals with disabilities today and in the future.
With that, I think there are several people who are with me who should be given the opportunity to speak. Let me turn to Chairman Grassley, who, along with Senator Baucus, has done a tremendous job, a tremendous job in moving this process forward in a way that both parties, I think, can and should be respectful of.
Mr. Chairman?
GRASSLEY:
I would emphasize two things in my mark. Number one is affordability. Number one, affordability from the standpoint of government help in the purchase of drugs.
GRASSLEY:
And number two, driving down the price of drugs so that they're affordable to everybody through a competitive bidding process.
Number two, I would emphasize the right to choose for seniors, the right to choose to be in a prescription drug program if they want to. They don't have to be. The right to be in a prescription drug program in traditional Medicare or in a new Medicare program that we're going to set up that will make the new Medicare program closer to what baby boomers have in the workplace.
So we're going to come out of this Congress with the first major change in a social program in America in 35 years, and it's going to be something that is affordable and is going to give seniors the maximum right to choose.
Senator Snowe?
SNOWE:
Well, first of all, I want to commend the Senate Majority Leader Frist for setting out an ambitious timetable that laws down a marker to get this done and to achieve the reality of passing a prescription drug benefit as part of the Medicare program. And also to Chairman Grasssley for reaching across the political aisle for his tireless advocacy and tenacity that has brought us to this point. And to the president for issuing a charge to Congress to get this done this year because it is so vital to the seniors' well being.
There are some critical issues here as a result of how this bill transpired. First of all, this was not done in a vacuum. The chairman reached across the political aisle, working with Senator Baucus, learning from the lessons that we drew upon from the last debate in the United States Senate last fall. We incorporated those lessons into this legislative initiative.
So this initiative was not developed in a vacuum, but rather it was done based on all of the issues that had been raised previously. It does provide an equal benefit regardless of what seniors choose for an option. It does provide a private delivery model without undermining the traditional fee-for-service. Very important. It provides $400 billion in a substantial benefit, an increase from where we were last year by more than $30 billion, and targets the subsidies to low-income seniors so that they will get the maximum benefit under this program.
Most importantly, it provides a permanent, sustainable, reliable, meaningful benefit in the Medicare program with this prescription drug coverage as put forward by Chairman Grassely. That's very important because many critics last year, when we were going through this initiative, said, "We have to have a reliable, meaningful benefit." This is a reliable, meaningful benefit and it doesn't sunset and it meets the scoring by the Congressional Budget Office, which was also critical in shaping the legislation so that we make sure that we can live within the boundaries of the budget resolution.
More than anything else, we are at the point of reality. Margaret Thatcher once said, "You have to fight a battle more than once in order to win." Well, this time we can win this battle for the seniors in this country. We have reached the moment of truth, and I happen to believe we're at the point where we can overcome the obstacles of the past, you know, surmount, I think, all of the political policy hurdles that I think are manifested in this bill now that makes it possible and doable to get this done this year.
This is our window of opportunity, and it's one that we cannot forgo. I know it's been elusive in the past in achieving this consensus, but I think this bill represents a very strong, important step forward to bringing us closer to the reality in passing this legislation now.
VOINOVICH:
As one that came here to provide a prescription drug benefit for the citizens of my state and observed what's happened during the last several years, I really almost became despondent, because it seemed that people were more interested in making a political issue out of providing prescription drug benefits than really getting something done for the people who need those benefits.
And I think the American people are looking at what we're doing here very, very carefully, and they've heard the story before about we're going to have a prescription drug benefit, we're going to have one, and nothing is forthcoming.
And I must applaud Chairman Grassley and Senator Baucus in understanding that anything that comes out of the United States Senate has to be on a bipartisan basis. It may not satisfy all of the various groups that are out there in the country, but it certainly will move us on the field to respond to a crying need that we have and one that I think we have an obligation to move forward with.
FRIST:
The second issue -- really the first issue on the floor, as I mentioned earlier, we'll turn to Chairman Domenici, is the energy bill, a bill that we are committed to address. He's done an outstanding job in terms of leadership. And for an update where we are and where we're going is Chairman Pete Domenici.
DOMENICI:
Thank you very much, Mr. Leader.
First, let me say to all of you, a lot of things are getting done. When you hear today that we're about to get a bipartisan agreement, which I think means we're about to get a bipartisan bill on prescription drugs, I hope you know it doesn't happen by accident, it happens with leadership. And I am here to commend the distinguished majority leader. Looking at this year, he is setting an enviable record as the majority leader of the United States Senate.
Having said that, we are moving ahead finally, rapidly. Early this afternoon we will complete a nuclear energy vote. There seems to me to be only one remaining issue, so-called climate control. It doesn't belong on this bill, but somebody will insist that we vote on it. I believe whatever we pass will be something that the community at large in America, not the environmental community's proposal, will pass. And then we are going to begin to put the pressure on for senators to bring their amendments, get them listed and get moving ahead.
We have done an amendment, it passed overwhelmingly, that substitutes for the CAFE standard debate, which is usually of great length. And so I told the leader today and the Republicans and will tell the senators on the floor that we are now ready for any of the other amendments that people have, if they can get them in, so we can get them listed and move ahead.
We will probably be not completed by Friday, but I think we will be in a position to say to the leader, "As soon as you finish Medicare we are ready to come back to the floor and take up energy and get it finished. It, too, is important.
I want to remind all of you today that while Americans are all very happy about natural gas, be it in their homes, be it the source of all the new electrical power in our country, just today we had Mr. Economics himself, Dr. Alan Greenspan, say that there is not going to be enough natural gas for our needs, especially in electricity, which is growing exponentially. And he said, with no prompting from me, obviously, that America better get on to an alternative like clean nuclear power. That's what the debate now is all about.
FRIST:
Thank you.
Any questions?
QUESTION:
Senator Frist, the governors think that this Medicare reform bill should start by picking up the cost of the dual eligibles on Medicare and Medicaid. This bill does not do that, it only has about $15 billion of relief on the Part B. Can you support that given the enormous costs in your own state of the elderly drug bills on the Medicaid program?
FRIST:
The dual eligibles are a population I believe of around 5 million people, although I'll have to check to see how many, who are dually eligible both for Medicare and Medicaid.
In the chairman's mark, the dual eligibles are not covered under the new prescription drug plan, but proposed for right now. I'm sure that will be debated in committee and probably on the floor of the United States Senate whether or not to capture those 5 million individuals at the federal level or at the state level. At this juncture, I can't predict how that debate will play out. But it will be one of the issues that is debated.
Do you want to comment on dual eligibles, Mr. Chairman?
GRASSLEY:
If you took over the dual eligibles, it'd be $40 billion a year, 10 years. That's $400 billion. That's the same size as our package. There's no prescription drugs for anybody else.
If you take over the dual eligibles just for prescription drug costs, it's $16 billion a year. That's $160 billion a year. If we take them over, it brings up a whole lot of issues of qualifications, asset test, a lot of other things that are taken for granted.
So the easiest thing for us to do was to help the states with some of the costs and leave them where they were, because those folks do have a good program.
What we're trying to do through this prescription drug program, whether it's a private sector retiree's corporate plan or whether it's people on Medicare, we're trying to help opine that can't get prescription drugs now. We're trying to fill in the vacuum out there, the people that have a problem, and not create more problems by doing more for people that already have something.
QUESTION:
Senator Frist, on energy, do you have a deadline similar to the July 4th for the Medicare bill?
FRIST:
One of the things I've tried to do over the last several months is lay out a schedule, make it very clear to my colleagues on both sides of the aisle that given the range and the number of bills that we must consider on the floor, time actually taken on the floor has got to be limited in an orderly way.
I said at the outset that we would go on to energy, we would see what the momentum was, what the pace would be, and the pace has been very good. But I also made it very clear we'd go to prescription drugs in order to finish before July 4.
The plans would be as the chairman said, and that would be to see how much we can accomplish over the next four days on energy and maybe bring it to completion, depending on how many Democrat amendments there are, and hopefully we'll know tonight or in the morning.
If that is not possible, I would expect that we'd come back as soon as the recess is completed and stay on energy.
QUESTION:
(OFF-MIKE)
FRIST:
Well, the child tax credit we have passed twice in this body, and the last time just several days ago. It is now in the hands of the House of Representatives and I've not been in discussions as to what their plans will be. I'll be seeing the speaker today and will get an update on that. So we will let them reflect the will of the House of Representatives and address whatever they do.
QUESTION:
But will you be urging them to go the way the Senate has, Senator?
FRIST:
I will respect their body and let them use their judgment on the input that they can get in terms of what they're going to do. I've tried to give over there...
(CROSSTALK)
QUESTION:
(OFF-MIKE)
FRIST:
First of all, the gap, the donut, the hole -- it'll be a huge issue and the Democrats will use that I'm sure as the number one issue. Why is there a gap at all or a donut hole? And it is simply because there's not enough money to pay for everything for everybody throughout.
FRIST:
Now, what we've tried to do, as the chairman said, is to help everybody who needs it who's low income, and there is no donut, there is no donut, there is no hole, there is no gap for people who are under the poverty level. There is no gap. There is no donut. And it's very important to understand.
And the level where there is, there will be a step function. We don't know if that'll be $3,500 or $3,600, but whatever level that is, up to a catastrophic level to be determined, there may be about a $500 or $600 range in there. But it's not that that person gets no help over the course of that year.
And so we'll help define that, what that donut, what that gap is. Over the course of the year, even people who are not income, over the course of the year will still get 45, 47, 48 -- I won't give the percentages -- but will have coverage over that year, so you don't just drop out totally.
(CROSSTALK)
SNOWE:
... follow up. I mean, obviously we're concerned, and any ways in which we can fill that gap in coverage over time certainly we're going to be looking at and exploring.
The problem was, in the last CBO score last year they estimated it would cost about $200 billion to close that particular gap. Now, at $3,450, 80 percent of the Medicare beneficiaries spend $3,000 or less, so we capture 80 percent.
Now that some additional money is going into the low-income subsidy to move it up from 150 to 160 percent of poverty level for beneficiaries in the type of subsidy that they will be given, we obviously are going to capture more people and may even put more money into closing that gap as well.
QUESTION:
Can I follow up...
SNOWE:
Yes.
QUESTION:
That's now, that's not 2006. (OFF-MIKE)
SNOWE:
In what way are you saying that? You mean it's going to be larger?
QUESTION:
(OFF-MIKE)
SNOWE:
Eighty percent. Based on our current statistics. It may well change, you're right, in 2006. But it also may be higher, given the fact we're going up to a higher income level to provide those beneficiaries with a larger subsidy.
SNOWE:
But you're right, it is something we want to close. The problem is we got to find $200 billion.
Now, I've asked CBO for a follow-up on that last analysis that was done last year to try to explore ways in which to mitigate that over time and also to understand why it is so costly at that point.
So we're looking at a variety of issues. And I know Senator Grassley's interested in putting any additional money that remains from the scoring into closing that gap as well.
VOINOVICH:
I just want to make one point in regard to your question that you asked about the dual eligibles. The fact of the matter is, is that the federal government in my state, our Medicaid picks up the dual-eligible person that's receiving Medicare, but we get reimbursed 60 percent from the federal government for our Medicaid expenses.
So in a way the federal government, through mandatory spending, is dealing with the problem that the states have with dual eligibles and it does get at many of the people that are really low income who cannot afford prescription drugs that are picked up under the state plan.
FRIST:
Let me just say one more thing, and then we probably need to close.
If we pass this prescription drug plan before July 1 and the House is on schedule to do likewise, we'll go to conference. The president of the United States in a very short period of time can sign this legislation.
Within six months of the time we sign this legislation, every single senior, every single senior and individual with disability who is Medicare eligible, but every single senior within six months can begin to get help with their prescription drugs because of this program. And that's the prescription drug card part of this program.
Number two, seniors are going to have this opportunity, but they don't have to do anything. They can keep exactly what they want to today, they're not forced into any sort of program. So we'll be able to look seniors in the eye and say, "You can keep exactly what you have. The benefits you have today will continue into the future."
Thirdly, what we're doing is basically giving seniors an opportunity to have the sort of coverage that we as federal employees have, coverage that is comprehensive, which Medicare is not; coverage which includes preventive care, which Medicare does not; coverage which includes chronic disease management, which Medicare does not; catastrophic coverage, which Medicare does not offer.
We're going to give them voluntarily that option. That's the opportunity that is before us, that every senior within six months, or seven months, will get help with prescription drugs and eventually, as the program is implemented, will have access to the sort of health care, the type of coverage that best meets their individual needs, and that is the goal.
Thank you.