OPENING STATEMENT BY U.S. REP. JERRY COSTELLO, ILLINOIS

HOUSE SELECT COMMITTEE ON AGING

MARCH 5, 1990

"IN POOR HEALTH

THE FEDERAL COMMITMENT TO VULNERABLE AMERICANS"

Many of my constituents in the 21st District in Illinois have contacted me to describe their dissatisfaction with the current status of our nation's heath care system. What I find equally disturbing is the fact that President Bush, in his FY 1991 budget proposed $5.5 billion cuts to the Medicare program at a time when over 31 million Americans are uninsured and 200 million Americans do not have long-term health care protection.

Today's hearing will focus on the growing number of people in our society like the frail elderly, the homeless, ethnic minorities, poor pregnant women and children, who continue to fall through the cracks of the Medicare and Medicaid programs and receive inadequate health care services.

The Honorable Louis W. Sullivan, Secretary of the U.S. Department of Health and Human Services will be our expert witness today. Dr. Sullivan will address the health and long-term care problem in America as it pertains to the frail elderly, and I look forward to his comments regarding the report by the "Pepper Commission" which specifically addresses this issue.

I would like to take this opportunity to thank you, Mr. Chairman,

for your continued leadership in health care, and for conducting

today's important and timely hearing.

PREPARED STATEMENT OF REPRESENTATIVE JAMES H. BILBRAY

MR. CHAIRMAN, JUST LIKE EVERYBODY
ELSE HERE TODAY, I SPENT SOME TIME
THIS WEEKEND GOING OVER THE PEPPER
COMMISSION'S RECOMMENDATIONS. I
WANT TO THANK THE MEMBERS OF THE
COMMISSION FOR ALL THE TIME THAT
THEY SPENT STUDYING THESE TWO COM-
PLEX ISSUES THAT, TO THIS DATE, STILL
HAVE NOT BEEN ADDRESSED BY CON-
GRESS ADEQUATELY. WHILE I, LIKE MANY
OTHERS, AM DISAPPOINTED THAT THE
COMMISSION'S PLAN DID NOT CONTAIN A
FINANCING PACKAGE TO PAY FOR THE REC-
OMMENDED BENEFITS, I STILL FEEL THAT
IT CONTAINS MANY WORTHWHILE FEA-
TURES, ESPECIALLY IN THE AREA OF LONG
TERM CARE.

THERE CAN BE NO DOUBT TODAY, ESPE

CIALLY IN LIGHT OF LAST YEAR'S REPEAL

OF THE CATASTROPHIC ACT, THAT LONG TERM CARE IS NUMBER ONE ON THE PRIORITY LIST OF OLDER AMERICANS. ACCORDING TO THE ESTIMATES I HAVE SEEN, ONLY SOMEWHERE AROUND 10 TO 15 PERCENT OF THE SENIOR POPULATION OF THE UNITED STATES HAS LONG TERM CARE INSURANCE. AS IT NOW STANDS, EVEN A SHORT NURSING HOME STAY CAN BREAK ALL BUT THE WEALTHIEST OF AMERICANS

ON THE WHOLE, THE LONG TERM CARE BENEFITS PACKAGE PROPOSED BY THE PEPPER COMMISSION IS SOUND. I WAS ESPECIALLY PLEASED TO SEE THAT THE COMMISSION INCLUDED A THREE MONTH FRONT END COVERAGE THAT WILL COST THE BENEFICIARY NOTHING MORE THAN A MODEST CO-PAYMENT. DUE TO A NUMBER OF FACTORS, INCLUDING THE SEVERITY OF

THE ILLNESS AND THE INABILITY OF THE HUMAN BODY TO HEAL AS QUICKLY AS IT ONCE DID, MANY SENIORS REQUIRE SOME RECUPERATION TIME IN A NURSING HOME AFTER THEY HAVE BEEN HOSPITALIZED. WITH NURSING HOME COSTS FREQUENTLY IN EXCESS OF $2,000 PER MONTH, JUST ONE OR TWO SHORT NURSING HOME STAYS LIKE THIS COULD RAPIDLY DEPLETE THE ASSETS OF MANY SENIORS.

ADDITIONALLY, I WAS ENCOURAGED BY
THE COMMISSION'S INCLUSION OF HOME
AND COMMUNITY BASED CARE IN ITS
PLAN. CURRENTLY, WE HAVE FAR TOO
MANY ELDERLY WHO ARE NEEDLESSLY
CONFINED IN NURSING HOMES SIMPLY BE-
CAUSE THEY NEED HELP WITH SOMETHING
LIKE EATING OR DRESSING. MEDICARE
JUST DOESN'T PROVIDE THIS TYPE OF COV-