At first glance, H.R. 1 looked like the answer to the prayers of seniors who have been faced with paying outrageous prices for prescription drugs. Unfortunately, this will not be the case. The bill creates an ill-conceived and incredibly expensive open-ended entitlement program that places a huge financial yoke around the necks of American taxpayers for decades to come. Also, seniors will more than likely be burdened with thousands of dollars in new expenses and prescription drug costs. In addition, I believe that H.R. 1 will result in businesses eliminating drug coverage for their retirees and subsequently shifting the cost of their retirees' health care to American taxpayers. While I favor passing Medicare reform legislation that will help seniors who cannot afford health insurance, I could not support a bill that will do more harm than good.

The estimated price-tag for the Medicare Prescription Drug program as outlined in H.R. 1 exceeds $400 Billion over the next 10 years. You may be interested to know that the Congressional Budge Office director told lawmakers that the new drug entitlement could cost between $1.7 Trillion and $2 Trillion in the second decade, adding to Medicare's current unfunded liability of more than $33 Trillion. With current Medicare spending out of control, and Medicaid programs literally bankrupting our States, adding a new entitlement will only exacerbate Medicare's out-of-control costs.

Unfortunately, most seniors do not know what they will have to pay for their prescriptions under this legislation. Seniors who participate in the program will now have to pay an annual premium of at least $420, an annual deductible of $250, and 25% of the first $2000 spent, which is another $500. In addition to that amount, seniors must pay for all of their drug expenses between $2250 and $5100, which is another $2850. All together, when seniors reach the $5100 catastrophic threshold, they will have paid $4020 in premiums, deductibles, and copayments. Each year, seniors will have to pay that same amount out-of-pocket just to be eligible for drug coverage above $5100.

Millions of Americans could lose part of their existing drug coverage with the passage of this legislation. The "Medicare Prescription Drug Modernization Act" commits Congress to spending more than $70 Billion in Federal subsidies to entice corporations to retain private drug coverage for their retirees. I believe that corporations will look down the road at the uncertainty of receiving government funding in the future and-with an eye on the bottom line-look to unload their retirees onto the new Federal system. Many health policy analysts estimate that one out of every three retirees with employer-based coverage would lose it in the near future. As a result, they could receive fewer benefits under the new government drug entitlement, and it could cost them more money than if they had remained covered under their current drug benefit plan.

I believe we owe it to our children and grandchildren to leave behind a legacy of sound financial planning that includes responsible healthcare coverage. For all of these reasons, I reached the conclusion that I could not support the Conference Report to the "Medicare Prescription Drug Modernization Act of 2003." I could not bring myself to burden American taxpayers well into the next millennium with a bill that could ultimately bankrupt our Nation.

Sincerely,

Dan Burton
Your Member of Congress

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