Washington Hotline

WEEK OF NOVEMBER 22, 1999

U.S. Rep. Phil English Washington Hotline
1410 Longworth House Office Building
Washington, DC 20515

With the budget finally in place, Congress adjourned for the year so that we could return to our districts to meet with constituents. This also gives us the opportunity to hold various forums and meetings that will have a local, national and international impact.

Congress stops 30-year raid on Social Security

Northwestern Pennsylvania workers, seniors, students and low-income families are among the winners at the end of the budget debate. We’ve stopped the raid on Social Security and that was one of my top priorities. This marks the first time since 1969 that the federal government has not touched the Social Security surplus to fill in holes in the budget. And finally after 30 years, we were able to leave those funds alone while still strengthening education and Medicare and ensuring training for our workers and heat for low-income families.

The $390 billion budget package covers the final five of the 13 annual spending bills that I’ve been updating you on each week. It covers financing the departments of Interior, Health and Human Services, foreign aid and scores of other programs, agencies and departments. President Clinton has signed the eight other bills into law. This budget shows our commitment to fiscal responsibility. Last year, we almost balanced the budget without touching Social Security. But with the economy going well and the tough budget decisions we made a few years ago, we were able to balance the budget without touching those funds earmarked for seniors. And that’s something of which we should all be proud.

While the budget increases federal spending, Congress applied a .38 percent across-the-board spending cut to all aspects of government except for Social Security, Medicare and military salaries. The cut was applied to the congressional pay increases. That .38 percent is our guarantee that the Social Security surplus will be protected. The across-the-board cut compensates for $6 billion in new spending demanded by the Clinton administration.

The budget re-authorizes Trade Adjustment Assistance for an additional two years. The program lends a helping hand through unemployment benefits and job training to workers injured by the impact of foreign trade. It has been re-authorized through Sept. 2001. It also provides $1.4 billion for the Low-Income Heating Energy Assistance Program, which provides funds to help more than 4 million people heat their homes. Money for education increases by 16.8 percent over last year’s budget figures bringing spending to $38 billion. In addition to funding special education and Title I programs, the plan increases spending for the Pell Grant program to $7.7 billion. Current allotments for the Pell Grant would double to $6,000 by the year 2003. Education is the key to the future. We must take strides to ensure that those future leaders do not go deep into debt trying to get that education.

The plan also allows the federal government to begin brining down the $5 billion national debt by $ 147 billion. With a projected budget surplus, there is no reason to touch the Social Security Trust Fund, after all this is the largest surplus in 45 years. This common sense fiscal policy strengthens the government’s finances and allows us to work on paying down the national debt.

Security Blue fixes approved

Seniors will reap the rewards of this legislation included in Thursday’s budget because it increases their access to rehabilitative therapy, cancer-fighting drugs and other vital programs. This legislation also increases payments for hospitals, nursing homes, home health agencies and managed care plan so that they can continue to serve seniors while keeping their costs down. The bill provides some relief for Medicare supplemental programs such as Security Blue. It also increases the formula for payments to HMOs, which will return about $200 million to the Medicare+Choice program, which funds programs such as Security Blue.

Congress has directed the Health Care Financing Administration (HCFA) and the Department of Health and Human Services to stop making a profit from Medicare+Choice and instead return that money to the programs. The bill slows the implementation of the risk adjustment system, which the administration uses to determine the reimbursement rates. It also orders HCFA to collect more updated, accurate data. HCFA 's reimbursement system uses a complicated series of “factors” to determine the amount of money they will reimburse an HMO for Medicare+Choice clients. The factors are based on information from 1996 and include such things as the average number of hospital visits, length of stay, costs for senior hospitalizations and average doctor costs in any given county. Final rates are then calculated by employing a “risk adjustment system” which “fine tunes” reimbursements to reflect actual medical claims by individual seniors. The risk adjustment system was to be phased in this year.

Unfortunately, because of the opposition from President Clinton there is nothing that can be done for seniors facing an increase in the Security Blue rate in January. But what we have done is put a halt to the erosion of the program’s offerings and have stabilized the situation so seniors can continue coverage into the future. This promotes fairer funding for Medicare+Choice plans such as Security Blue in places such as Crawford, Erie and Mercer counties.

Talking trade in Seattle

This time next week I will be writing you from the World Trade Ministerial Congressional Advisory Group. The bipartisan group consists of members of Congress such as myself who have a long interest in the global trading system and share an interest in a successful ministerial. The Advisory Group consists of the Chairmen and Ranking Members of seven committees, the Washington State Congressional delegation, and an additional group of about 20 members selected by the Speaker and Minority Leader Dick Gephardt (D-MO).

I am excited by this opportunity to serve on the Ministerial as a continuation of my efforts to improve trade. I have sponsored nine pieces of legislation dealing with trade including the Fair Trade Law Enhancement Act of 1999 (H.R. 1505), which is designed to prevent unfairly traded imports from undermining the country’s agricultural and manufacturing base. The major provision of the bill is to strengthen U.S. trade laws to allow domestic importers and workers to take advantage of a fuller array of protections against unfair trade. I am also the cosponsor of many other bills dealing with trade issues. I believe that I will be able to offer sound advice on the agenda. I look forward to the opportunity to work with other nations to improve the world economy. Next week’s e-mail will just be full of trade information.

If you would like to offer suggestions or be taken off of this list please contact my press secretary Jennifer Hall at Jennifer.Hall@ mail.house.gov or through the “Write Your Rep” section of my homepage at www.house.gov/english Anyone interested in being added to the mailing list should also contact Jennifer or go to the sign-up form available on my web page. To ensure that you are a constituent, please include your zip code and county.

And if you ever need to contact me feel free to do so through the “Write Your Rep” link. Unfortunately for the time being, making e-mail contacts to my office through the “Write Your Rep” link is the only way to guarantee that your views and concerns will be forwarded properly.

Enjoy a great week,

Phil

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