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| Date: |
March 19, 2001 |
| Contact: |
Dave Lemmon, Director of Communications
Robert Meissner, Deputy Director of Communications
Bryan Fisher, Press Secretary
202-628-3030 |
MEDICARE SOLVENCY REPORT MUST NOT PROMPT RAID ON TRUST FUND
Families USA calls on administration to make clear Trust Fund will not help pay for tax cut
Families USA executive director Ron Pollack today issued the following statement regarding the Medicare Trustees' projection that Medicare will remain solvent until 2029:
"We are pleased to learn the Medicare Trustees believe Medicare will be solvent for almost 30 years, the longest period in the history of the program. However, this welcome news should not provide a pretext for raiding the Medicare Hospital Insurance Trust Fund to pay for a tax cut largely benefiting the wealthiest Americans. "The Bush administration should make its intentions clear. We were deeply troubled to read that the administration's budget blueprint appeared to transfer $526 billion out of the Trust Fund over the next 10 years to help pay for the president's proposed $1.6 billion tax cut. This would be a short-sighted action that would seriously undermine Medicare and, in fact, hasten Medicare's insolvency, causing great harm to future generations who will depend on Medicare. "Health and Human Services Secretary Tommy Thompson testified last week before the House Ways and Means Committee that, "every penny of [Medicare money] is going to be used for Medicare." However, that assertion seemed to contradict other statements Secretary Thompson has made to the effect that Medicare Part A Trust Fund money could be used to pay for Part B services. This would free up some Part B general fund revenues to help pay for the tax cut. "We need to hear the administration say clearly that money from the Medicare Hospital Insurance Trust Fund will not be diverted for any other purpose. Otherwise, the administration will be putting the future health security of millions of Americans at risk." Families USA last week issued a report showing how the Bush administration's budget plan would result in Medicare's becoming insolvent in 2010. The report is available on the Families USA website,www.familiesusa.org. Families USA is a non-profit, non-partisan organization dedicated to the achievement of high-quality, affordable health care for all Americans.
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Families USA is the national organization for health care consumers. It is nonprofit and nonpartisan and advocates for high-quality, affordable health care for all Americans.
1201 New York Avenue NW, Suite 1100 · Washington, DC 20005
202-628-3030 · Email: info@familiesusa.org · www.familiesusa.org
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