HEARING - U.S. Senate Special Committee on Aging

CATASTROPHIC HEALTH CARE COSTS
MONDAY, JANUARY 26, 1987
U.S. SENATE,
SPECIAL COMMITTEE ON AGING,
Washington, DC
The committee convened, pursuant to notice, at 10:20 a.m., in
room SD-562, Dirksen <strong>Senate</strong> Office Building, Honorable John Melcher,
chairman of the committee, presiding.
Present: Senators Melcher, Heinz, Burdick, Pressler, and Wilson.
Staff present: Max I. Richtman, staff director; James Michie,
chief investigator; David Schulke, investigator; Michael Werner,
counsel for investigations; Stephen R. McConnell, minority staff director.
OPENING STATEMENT BY SENATOR JOHN MELCHER
Chairman MELCHER. The committee will come to order,
We are meeting today to examine the problems of catastrophic
health care costs. So we have three witnesses who will describe to
us their experiences with these devastating health care costs, and
the many sacrifices they have made in order to obtain adequate
health care for their loved ones.
More than 15 percent of the elderly in the United States, those
over 65, have incomes that are equivalent to the poverty line or
less. If they are not on Medicaid, they have to pay their monthly
Medicare premiums; they have to pay for all drugs prescribed outside
of the hospital. Altogether, the elderly spend $30 billion out of
their own pockets each year for health care coverage and protection.
That is about the same as what they were paying, maybe
slightly higher, than before Medicare was enacted.
There is a fear among the elderly in particular of the cost of
health care dragging them down and down financially, to where
they are forced to rely on Medicaid. This certainly runs counter to
the American concept that the elderly ought to be able to live in
decent comfort and dignity and enjoy their so-called "golden
years."
This committee intends to vigorously prod the Congress into solving
this very serious problem of catastrophic health care costs.
First of all, the elderly need to know exactly what Medicare will
pay for and what it will not pay for. I believe that is our responsibility
here in the Aging <strong>Committee</strong> to make sure that the Department
of Health and Human Services clearly states, in language
that is easily understood to those on Medicare, exactly what will be
covered and what will not be covered.
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