In 1965, Congress enacted the Medicare program because we believed all seniors have a right to health care in their older years.  It was clear even then that the private insurance market simply could not provide access to affordable health care coverage for this group. 

Two generations later, we clearly must modernize the benefits of this critical safety net.  But unfortunately, this week, the House of Representatives missed a momentous opportunity to improve the lives of millions of Americans by passing a bill that may potentially cause great harm to the Medicare program our seniors know and trust.

For years, I have heard from seniors throughout San Luis Obispo County about their struggles with prescription drug costs.  The alternative Medicare plan that I voted for would have satisfied their key concerns:

·        Voluntary – If seniors have a pension or other coverage plan that works well for them, they can stay in it.

·        Available – to all seniors and disabled people, no matter if they live in rural, suburban or urban areas or how much money they have.

·        Affordable – with reasonable premiums and deductibles. 

·        Within the current Medicare system – millions of beneficiaries know and trust Medicare; we should let them stay in it if they so choose.

In contrast, that were many reasons I could not support the final Republican bill passed by the House of Representatives.  The plan’s coverage is spotty, unreliable and expensive.  It relies on private insurance companies to provide coverage and undermines the very program that has provided quality health care to millions of seniors. 

For example, under the House bill, a senior would pay a monthly premium of at least $35.   After a $250 annual deductible, she would be responsible for 20% of the cost of her medications.  However, when drug costs reach $2,000, the insurance plan pays nothing.  The senior must pay all costs for the next $2900 in medications herself - with no assistance from the plan, even though she must continue to pay the $35 monthly premium.  Coverage will restart only after this senior has incurred $4900 in drug costs.

Of serious concern to the San Luis Obispo area is the bill’s plan to rely on private insurance for a large portion of Medicare coverage.  Central Coast seniors have already experimented with Medicare HMOs, and without great success. 

Seniors in San Luis Obispo County bought into Medicare managed care plans because they promised greater benefits and reduced costs.  But unable to make the profits they expected, most of the plans dropped thousands of Central Coast seniors.  Blue Cross, Lifeguard, Health Net and Prudential all pulled out of the area.  Today, only one plan remains and covers only part of San Luis Obispo County.  It has raised rates and cut back on coverage of brand name drugs and vision services.  Seniors in North County have no Medicare HMOs available to them.  Relying on private insurance companies to provide coverage for seniors is a risky proposition.

In the end, I could not support a plan that would actually endanger the Medicare program.  I could not lead my constituents to believe that we had passed a true “benefit” when in fact many of them could be worse off for our actions.  As we continue to work on this legislation in conference with the Senate, I will continue to fight for fair and adequate coverage within the Medicare program.  Seniors on the Central Coast deserve nothing less.

In 1965, Congress enacted the Medicare program because we believed all seniors have a right to health care in their older years.  It was clear even then that the private insurance market simply could not provide access to affordable health care coverage for this group. 

Two generations later, we clearly must modernize the benefits of this critical safety net.  But unfortunately, this week, the House of Representatives missed a momentous opportunity to improve the lives of millions of Americans by passing a bill that may potentially cause great harm to the Medicare program our seniors know and trust.

For years, I have heard from seniors throughout San Luis Obispo County about their struggles with prescription drug costs.  The alternative Medicare plan that I voted for would have satisfied their key concerns:

·        Voluntary – If seniors have a pension or other coverage plan that works well for them, they can stay in it.

·        Available – to all seniors and disabled people, no matter if they live in rural, suburban or urban areas or how much money they have.

·        Affordable – with reasonable premiums and deductibles. 

·        Within the current Medicare system – millions of beneficiaries know and trust Medicare; we should let them stay in it if they so choose.

In contrast, that were many reasons I could not support the final Republican bill passed by the House of Representatives.  The plan’s coverage is spotty, unreliable and expensive.  It relies on private insurance companies to provide coverage and undermines the very program that has provided quality health care to millions of seniors. 

For example, under the House bill, a senior would pay a monthly premium of at least $35.   After a $250 annual deductible, she would be responsible for 20% of the cost of her medications.  However, when drug costs reach $2,000, the insurance plan pays nothing.  The senior must pay all costs for the next $2900 in medications herself - with no assistance from the plan, even though she must continue to pay the $35 monthly premium.  Coverage will restart only after this senior has incurred $4900 in drug costs.

Of serious concern to the San Luis Obispo area is the bill’s plan to rely on private insurance for a large portion of Medicare coverage.  Central Coast seniors have already experimented with Medicare HMOs, and without great success. 

Seniors in San Luis Obispo County bought into Medicare managed care plans because they promised greater benefits and reduced costs.  But unable to make the profits they expected, most of the plans dropped thousands of Central Coast seniors.  Blue Cross, Lifeguard, Health Net and Prudential all pulled out of the area.  Today, only one plan remains and covers only part of San Luis Obispo County.  It has raised rates and cut back on coverage of brand name drugs and vision services.  Seniors in North County have no Medicare HMOs available to them.  Relying on private insurance companies to provide coverage for seniors is a risky proposition.

In the end, I could not support a plan that would actually endanger the Medicare program.  I could not lead my constituents to believe that we had passed a true “benefit” when in fact many of them could be worse off for our actions.  As we continue to work on this legislation in conference with the Senate, I will continue to fight for fair and adequate coverage within the Medicare program.  Seniors on the Central Coast deserve nothing less.