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PURCHASING HEALTH CARE SERVICES IN A

COMPETITIVE ENVIRONMENT

THURSDAY, APRIL 3, 2003

U.S. SENATE,
COMMITTEE ON FINANCE,

Washington, DC.

The hearing was convened, pursuant to notice, at 9:18 a.m., in room 215, Dirksen Senate Office Building, Hon. Charles E. Grassley (chairman of the committee) presiding.

Also present: Senators Thomas, Santorum, Baucus, Rockefeller, Breaux, Conrad, and Lincoln.

OPENING STATEMENT OF HON. CHARLES E. GRASSLEY, A U.S. SENATOR FROM IOWA, CHAIRMAN, COMMITTEE ON FINANCE

The CHAIRMAN. I thank all of you for being so prompt, because this is kind of an unusual starting time for a committee. Usually we would do this at 10:00. We accommodate more members by starting at 10:00 rather than 9:15, but today's early start is because, as I told some of the witnesses privately, later on I am going to have to go down the hall here and probably spend most of the time of this hearing in the Judiciary Committee, where there is a piece of legislation that I have worked hard on for about 5 years that is going to be up for consideration in that committee.

So I welcome not only the witnesses, but obviously I welcome everybody who has come to our hearing, and particularly for the time that it takes our witnesses to prepare for testimony and to help us in what might appear to be an inconsequential subject. But it is very basic to some of the legislation that this committee will be considering during the month of June that is very, very comprehensive.

Making health care in general, and Medicare in particular, more competitive has been a goal of many legislators over the years from both sides of the aisle.

And just to mention two members of this committee that have been involved in that. Senator Breaux, for one, and Senator Frist, the Majority Leader, for another, are just two examples of 100 Senators-well, I am not saying 100 Senators are interested in making Medicare more competitive, but at least a large number of people have been.

I believe that competition in Medicare, if done right, has the potential to change the lives of patients by improving benefits and increasing quality.

What this hearing is about, is gathering information so that that can be done in the right manner. Today, our witnesses, all of whom

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