Ehrlich on Washington column, June 15, 1997

MEWS FROM Robert L. Ehrlich, Jr. Second Congressional District of Maryland 1407 York Road, Suite 304 Lutherville, Maryland 21093 Ehrlich on Washington By Congressman Robert L. Ehrlich, Jr. 315 Cannon House Office Building Washington, D.C. 20515 Week of June 15, 1997 A BIPARTISAN CURE FOR MEDICARE’S PROBLEMS In June 1996, 1 warned you about the way in which some liberal legislators were trying to scare seniors with talk about nonexistent Medicare spending “cuts” contained within the House-passed plan to save and strengthen Medicare. But early last week, the House Ways and Means Committee approved — with overwhelming bipartisan support - a plan to extend the life of the Medicare program for ten years while reining in program costs and increasing choice for seniors. Ironically, the Medicare reform bill that enjoys strong bipartisan support in 1997 is substantially similar to the proposal which Congress passed - and liberals roundly criticized - in 1995 and 1996. Why this sudden change? First, if Congress and the President fail to act, the Medicare Hospital Insurance Trust Fund (better known as Medicare Part A) will go bankrupt by 2001 . This essential fact has not changed. Fortunately, a majority of my colleagues of both parties now realize that, while attacking proposed Medicare reforms made for great election year politics, it did nothing to fix the program’s impending fiscal problems. Second, and perhaps most importantly, modernizing Medicare is a vital component of a balanced budget. When White House and congressional negotiators agreed on a balanced budget framework, they agreed upon three changes to the Medicare system: extending the solvency of Medicare Part A for ten years; slowing the rate of growth in Medicare and using those savings to help balance the budget; and providing additional preventive health benefits for seniors enrolled in Medicare. While deficit reduction is obviously a guiding consideration behind Medicare reform, these changes are also intended to improve