Remarks on Signing the
Medicare Catastrophic Coverage Act of 1988
It
was in my 1987 State of the Union Address -- and by the way, one of the best
parts of this job is that from time to time you get to quote yourself --
[laughter] -- but it was in my State of the Union Address that I said, ``Let us
remove a financial specter facing our older Americans: the fear of an illness
so expensive that it can result in having to make an intolerable choice between
bankruptcy and death.'' Well, our administration, I went on to say, would soon
submit legislation ``to help free the elderly from the fear of catastrophic
illness.''
Well,
that initiative has produced an historic piece of legislation, and in a moment,
I will sign the Medicare Catastrophic Coverage Act of 1988. This legislation
will help remove a terrible threat from the lives of elderly and disabled
Americans, the threat of an illness requiring acute care, one so devastating
that it could wipe out the savings of an entire lifetime. The scene is only too
easy to picture. An elderly couple, perhaps one has a very long stay in the
hospital; the other forced to empty the savings account, to skimp on groceries.
And even for those never actually forced into this situation, there's the
gnawing worry, the fear, that someday it might just happen. This legislation
will change that, replacing worry and fear with peace of mind.
I'm
proud to be able to note that the legislation follows the same premise as all
sound insurance programs. It will be paid for by those who are covered by its
services. Even so, I must add a word of caution. Every administration since the
Medicare program was passed has worried about the seemingly uncontrollable cost
increases in our government health care programs. Whoever the President in
office, program costs have exceeded the best congressional budget estimates.
Unless we're careful, it's possible that aspects of this legislation will do
the same.
In
particular, the legislation provides many new benefits, benefits like respite
care and prescription drugs. Since these have never been covered by Medicare,
we have no real way of knowing how much these services will cost. So, if future
administrations and Congresses aren't diligent, these new benefits could
contribute to a program we can't afford. This could be more than a budget
problem; it could be a tragedy. The program, after all, is to be paid for by
the elderly themselves. So, we must control the costs of these new benefits, or
we'll harm the very people we're trying to help. And yet, if administered with
prudence, this program can, as I said, provide countless Americans with peace
of mind.
Many
people share the credit for this achievement. In fact, I feel a little like an
Academy Award winner back in my old profession: No matter how many I thank, I'm
afraid I'll leave somebody out. There were the hundreds who testified at the
regional meetings. There was the public-private working group consisting of
many of the Nation's leading health experts. There were the Senators and
Representatives of both parties, like Dan Rostenkowski, chairman of the
On
behalf of a grateful nation, I thank you all. And now let me sign this historic
legislation, the Medicare Catastrophic Coverage Act of 1988.
Note: The President
spoke at