HEARING - U.S. Senate Special Committee on Aging

3
be poor, or must "spend down" their assets to meet the eligibility
standards.
Clearly, we have a problem of enormous proportions. I am as
committed as you to finding a workable solution, so that those in
our society who have worked all their lives can maintain their dignity
and enjoy the independence that is rightfully theirs.
Thank you.
Chairman MELCHER. Thank you, Senator.
Currently, there is a debate concerning the definition of catastrophic
cost. For instance, we have been led to believe by some insurance
companies that catastrophic costs occur mainly after a patient
receives hospital care for many years. In addition, Dr.
Bowen's proposal for catastrophic coverage completely leaves out
long-term health care whether it is provided in a nursing home or
in the patient's home.
I think it is important to avoid this misconception and realize
that catastrophic costs can arise from a variety of circumstances. I
think these witnesses can help us, therefore, because they will explain
their circumstances, and that will help us better understand
the causes of catastrophic medical costs.
Senator Pressler, can you give us some advice?
STATEMENT BY SENATOR LARRY PRESSLER
Senator PRESSLER. First of all, thank you very much, Mr. Chairman,
for holding these hearings. I apologize for being late, but I
had to fight through this snow blizzard greater than many I find in
South Dakota.
Before I begin my remarks, I want to express my best wishes to
you, Senator Melcher, as the new Chairman of this committee for
the 100th Congress. I look forward to working closely with you and
the ranking member, Senator Heinz, my good friend, Senator Burdick,
and others on many issues concerning the aging of our population.
Coming from a rural Midwestern State, I hope we can work specifically
on some of the very unique problems of our elderly population
in those rural areas.
However, today we are here to examine a problem that affects
our senior citizens across the Nation-catastrophic health care
costs.
I commend you, Chairman Melcher, for tackling such an important
issue in our first official hearing of the new Congress. I am
sure we all agree that access to catastrophic care coverage is one of
the most pressing problems facing our Nation today. South Dakota
ranks sixth in the Nation for the highest percentage of senior citizens
in its population. Over 14 percent of South Dakota's citizens
are elderly. Many of the letters I receive in my office and the
people I talk to in my State tell me they simply cannot afford
health care anymore.
Most people do not understand why Medicare does not cover all
of their medical bills. Many individuals purchase Medigap insurance
under the belief that they will be covered in areas where
Medicare falls short. I am sure this is a familiar scenario, not just
in South Dakota but across the country.