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00:05:37
Thomas, William "Bill" M. - U.S. Representative, [R] California

At the outset, the Chair wants to indicate to Members that there is a minor bit of a static problem in the Committee room, and the Chair would suggest...

00:05:37
Thompson, Michael "Mike" - U.S. Representative, [D] California

Mr. Chairman, could we see that letter?

00:05:37
Shaw, Clay "Eugene" E. Jr. - U.S. Representative, [R] Florida

Yes, I will have it distributed to the Members.

00:05:37
Thompson, Michael "Mike" - U.S. Representative, [D] California

Thank you.

00:05:37
Shaw, Clay "Eugene" E. Jr. - U.S. Representative, [R] Florida

Ms. Hart?

00:05:37
Hart, Melissa A. - U.S. Representative, [R] Pennsylvania

Thank you, Mr. Chairman.

Mr. Secretary, thank you for taking the time to come before us at a very critical time for making sure that Americans...

00:05:37
Leavitt, Michael O. - Secretary, Utah

Let me reconcile the whole experience and then specifically answer your question.

It became evident to us in early January that for the vast majority...

00:05:37
Hart, Melissa A. - U.S. Representative, [R] Pennsylvania

So, the reimbursement then, to make sure that I am following you, would have been, had all the information been correct and up‑to‑date and...

00:05:37
Leavitt, Michael O. - Secretary, Utah

That is right. The plans received a premium for it, and they need to pay the claim. We will reconcile and make certain that the States do not have...

00:05:37
Hart, Melissa A. - U.S. Representative, [R] Pennsylvania

Before I run out of time, I just want to address one other issue as well, and that is specifically making sure that people with disabilities are getting...

00:05:37
Leavitt, Michael O. - Secretary, Utah

We have been working with the States to assure that any of those who are in special need categories are given assistance. There have been those who...

00:05:37
Hart, Melissa A. - U.S. Representative, [R] Pennsylvania

All right. Thank you, Mr. Secretary. I yield back.

00:05:37
Shaw, Clay "Eugene" E. Jr. - U.S. Representative, [R] Florida

Mr. Jefferson may inquire.

00:05:37
Jefferson, William J. - U.S. Representative, [D] Louisiana

Thank you, Mr. Chairman.

Mr. Secretary, I don't know quite where to begin, there is so much to talk about. I appreciate your comments to Mr....

00:05:37
Leavitt, Michael O. - Secretary, Utah

The best incentive for a physician to go back home is a health care system that works, and most of those people will tell you and me that the one that...

00:05:37
Jefferson, William J. - U.S. Representative, [D] Louisiana

Tell me how to do that, how you are supporting that.

00:05:37
Leavitt, Michael O. - Secretary, Utah

I met with the entire medical community, the leaders of the hospital associations, the medical associations, the insurance companies, with the hospital...

00:05:37
Jefferson, William J. - U.S. Representative, [D] Louisiana

You would be committed to substantial new resources?

00:05:37
Leavitt, Michael O. - Secretary, Utah

There are existing resources‑‑

00:05:37
Jefferson, William J. - U.S. Representative, [D] Louisiana

Well, that is what worries me.

00:05:37
Leavitt, Michael O. - Secretary, Utah

There is no health care system in greater New Orleans right now and substantially fewer people. If we can redirect the resources that are there, and...

00:05:37
Jefferson, William J. - U.S. Representative, [D] Louisiana

The other thing I would like to ask you to address for me, although there is no time for it now, your Department invests a lot of money with the Institute...

00:05:37
Leavitt, Michael O. - Secretary, Utah

A good example would be the new HIV/AIDS initiative. We all know in this room that a very high disproportion of minority citizens are in the group...

00:05:37
Jefferson, William J. - U.S. Representative, [D] Louisiana

I agree with that and I thank you for that, but the recommendations that are most outstanding for them, that are most continuous are the ones that relate...

00:05:37
Leavitt, Michael O. - Secretary, Utah

Yes, sir.

00:05:37
Shaw, Clay "Eugene" E. Jr. - U.S. Representative, [R] Florida

The time of the gentleman has expired.

Mr. Foley?

00:05:37
Foley, Mark - U.S. Representative, [R] Florida

Thank you very much, Mr. Chairman. Welcome, Governor. Let me first just take a minute on HSAs, because I think it is important for consumers to be...

00:05:37
Leavitt, Michael O. - Secretary, Utah

Thank you, Congressman. I would like to give you my direct assurance that we will be working with you and the other Members of Congress and your staff...

00:05:37
Foley, Mark - U.S. Representative, [R] Florida

Great. That assurance is swell, and now I see my yellow light, but I also wanted to thank you particularly for Florida, as we embark on our Medicaid...

00:05:37
Leavitt, Michael O. - Secretary, Utah

Thank you.

00:05:37
Shaw, Clay "Eugene" E. Jr. - U.S. Representative, [R] Florida

The time of the gentleman has expired.

Mr. Doggett?

00:05:37

Thank you, Mr. Chairman, and thank you, Mr. Secretary. I gather, Mr. Secretary, you agree with Chairman Thomas's opening comments that the implementation...

00:05:37
Leavitt, Michael O. - Secretary, Utah

I think we would all agree that having millions of people have prescription drug coverage who didn't before‑‑

00:05:37

As to how many millions fit in that category--you have had all of 2004, all of 2005, we are now into 2006, and the millions that you have covered who...

00:05:37
Leavitt, Michael O. - Secretary, Utah

Sir, we have been enrolling people since October 15th.

00:05:37

Yes, sir, and you have had‑‑

00:05:37
Leavitt, Michael O. - Secretary, Utah

November 15th.

00:05:37

‑‑really 2 years to get ready for it, and you have enrolled‑‑when you say millions, you have enrolled exactly 3.6 million, haven't...

00:05:37
Leavitt, Michael O. - Secretary, Utah

There are 24 million people who participate, and many of those would not have prescription drug coverage today who may have had it a year ago and may...

00:05:37

Everyone‑‑well, I understand the speculation about next year, but of your 24 million that you all boasted about today, only 3.6 million...

00:05:37
Leavitt, Michael O. - Secretary, Utah

Medicaid has been in law for 40 years, and there are still 50 percent of the people who are eligible, regrettably, who have not yet signed up.

00:05:37

Yes, sir, I am glad you make that point, and I assume you don't disagree with my 3.6 million figure or would have said so. You actually have reduced...

00:05:37
Leavitt, Michael O. - Secretary, Utah

It became evident to me that 28 to 30 million would be a great success. The actuary established a 39‑million‑person limit‑‑

00:05:37

Is this‑‑

00:05:37
Leavitt, Michael O. - Secretary, Utah

‑‑but in our judgment and the judgment of those who look at it from Wall Street and the markets, we believe 28 to 30 million is a reasonable...

00:05:37

About 10 million or 11 million less than last year. With reference to this program, you refer in your written testimony to the President's comment...

00:05:37
Leavitt, Michael O. - Secretary, Utah

I think there is no question the fact that the market is now driving the cost of prescription drug coverage down is something we all ought to cheer.

00:05:37

The cost to the taxpayers of this bill currently is estimated to be over $700 billion for this decade, right?

00:05:37
Leavitt, Michael O. - Secretary, Utah

The cost is coming down, and that is good news.

00:05:37

The cost to the taxpayers, the estimate still is over $700 billion for this decade, isn't it?

00:05:37
Leavitt, Michael O. - Secretary, Utah

The cost estimates are as they are, and I am not‑‑

00:05:37

You are not familiar with what it costs?

00:05:37
Leavitt, Michael O. - Secretary, Utah

I am familiar with them, but there are lots of ways to express it, and what is clear is that we are seeing a dramatic reduction in the cost of prescription...

00:05:37

Comparing that reduction‑‑

00:05:37
Leavitt, Michael O. - Secretary, Utah

‑‑and it is because of the consumer‑‑because of the fact that consumers now have choice‑‑

00:05:37

Yes, sir, and comparing that reduction in cost with a program that existed before this bill was signed into law where the Federal Government does some...

00:05:37
Leavitt, Michael O. - Secretary, Utah

I am not familiar with that study‑‑

00:05:37

Not familiar with the tremendous savings‑‑

00:05:37
Leavitt, Michael O. - Secretary, Utah

I don't think it is necessarily the‑‑

00:05:37

‑‑that we get when you use negotiating power. You don't suggest that if your office on behalf of all Medicare recipients were involved...

00:05:37
Leavitt, Michael O. - Secretary, Utah

If that were the case, Secretaries of Health and Human Services would have used that authority with Medicaid, which is now the most expensive‑‑until...

00:05:37

You think‑‑

00:05:37
Leavitt, Michael O. - Secretary, Utah

The truth of the matter is the best way to reduce prescription drug costs is to have a market, which we now have for the first time, and we are seeing...

00:05:37

So, you continue to oppose giving any negotiating authority as this bill does‑‑

00:05:37
Leavitt, Michael O. - Secretary, Utah

It is not the best way to bring prices down. We are seeing the best‑‑

00:05:37

One other quick area‑‑

00:05:37
Leavitt, Michael O. - Secretary, Utah

‑‑way, which is very clearly bringing the cost of prescription drugs down.

00:05:37

One other quick area, since my time is expiring, President Bush made history last year by being the first President in memory, I think, to call a White...

00:05:37
Leavitt, Michael O. - Secretary, Utah

I am not able to respond to that question directly. We will be happy to get the information to you.

00:05:37

Thank you. I believe it does, that the trend continues, that the seniors who are relying on the Older Americans Act, the first priority of a White...

00:05:37
Johnson, Nancy - U.S. Representative, [R] Connecticut

[Presiding.] Mr. Herger?

00:05:37
Herger, Walter "Wally" - U.S. Representative, [R] California

Thank you, Madam Chairman. Mr. Secretary, I want to join in thanking you and commending you for being part of the Administration, for bringing your...

00:05:37
Leavitt, Michael O. - Secretary, Utah

Congressman, to give you specifics, I will need to submit them to you and for the record. I will, however, reflect a little on this subject from my...

00:05:37
Herger, Walter "Wally" - U.S. Representative, [R] California

Thank you, and I agree completely. In another area, the DRA proposes $150 million per year in new funding for healthy marriage and responsible fatherhood...

00:05:37
Leavitt, Michael O. - Secretary, Utah

Congressman, in the early testimony I made, I indicated that one of the principles that I believe in, a principle of investment, is that you invest...

00:05:37
Herger, Walter "Wally" - U.S. Representative, [R] California

Thank you very much, Secretary Leavitt.

00:05:37
Johnson, Nancy - U.S. Representative, [R] Connecticut

Mr. Pomeroy?

00:05:37
Pomeroy, Earl - U.S. Representative, [D] North Dakota

Madam Chair, Mr. Thompson was here before me, and if you are calling in order, I have to acknowledge that.

00:05:37
Johnson, Nancy - U.S. Representative, [R] Connecticut

Mr. Thompson?

00:05:37
Thompson, Michael "Mike" - U.S. Representative, [D] California

Thank you, Madam Chair. Thank you, Mr. Pomeroy. Mr. Secretary, thank you for being here. I want to get back to this issue of California. I have...

00:05:37
Leavitt, Michael O. - Secretary, Utah

The data that they have requested is being provided, and I will tell you that I have asked the Governor to work for a transition as of the 15th of February,...

00:05:37
Thompson, Michael "Mike" - U.S. Representative, [D] California

If it is not, is there an extension in the works?

00:05:37
Leavitt, Michael O. - Secretary, Utah

We are prepared to make an extension if the States are, in fact, doing what they need to do to take care of this. I have waivers signed now with 30...

00:05:37
Thompson, Michael "Mike" - U.S. Representative, [D] California

Notwithstanding that, the issue that I was interested in is the fact that California is having to pay for and do the Federal Government's work on 11,000...

00:05:37
Leavitt, Michael O. - Secretary, Utah

We have the data, and it has been provided and it is being provided. It is ultimately going to require that the State begin what I refer to as pressurize...

00:05:37
Thompson, Michael "Mike" - U.S. Representative, [D] California

Well, I think our Republican Governor wants to make sure these guys are covered, and they are willing to work with you to make sure that that happens.

00:05:37
Leavitt, Michael O. - Secretary, Utah

I am pleased about that, and I flew to Sacramento and I met with him personally. I have talked with him several times. I will‑‑

00:05:37
Thompson, Michael "Mike" - U.S. Representative, [D] California

He mentions that in the letter, but as I say, the letter was dated February 6th, and it mentions that although you have had phone conversations and...

00:05:37
Leavitt, Michael O. - Secretary, Utah

There is no reason to think that California is any different than the 30 States which we have been able to strike a waiver with, as they seem to think...

00:05:37
Thompson, Michael "Mike" - U.S. Representative, [D] California

Thank you, Mr. Secretary. If you could‑‑you say you have the data. If I could get copies of that so I could‑‑

00:05:37
Leavitt, Michael O. - Secretary, Utah

We will be happy to supply you with the data.

00:05:37
Thompson, Michael "Mike" - U.S. Representative, [D] California

On the State Health Insurance Program (SHIP), I haven't had the same experience as some of the other folks on the Committee, nor the experience that...

00:05:37
Leavitt, Michael O. - Secretary, Utah

The State Health Insurance Implementation Plans have been very helpful, but, gratefully, they are not the only avenue. They have been one. There are...

00:05:37
Thompson, Michael "Mike" - U.S. Representative, [D] California

How much funding are they going to get?

00:05:37
Leavitt, Michael O. - Secretary, Utah

I don't know the exact budget number, Congressman. I can get that to you, but I can tell you I have met with them all over the country, and they are...

00:05:37
Thompson, Michael "Mike" - U.S. Representative, [D] California

Can we try and get them the level that they need to fund their program?

00:05:37
Leavitt, Michael O. - Secretary, Utah

We need to fund them to the extent that they need, but I want to make clear that they are not the only way in which enrollment takes place. We are...

00:05:37
Thompson, Michael "Mike" - U.S. Representative, [D] California

I don't disagree with you, Mr. Secretary, but if the community‑based outreach level of funding, the $43 million--if the SHIPs got all of that,...

00:05:37
Leavitt, Michael O. - Secretary, Utah

As you know, the SHIPs are for the most part volunteers, and those are highly leveraged dollars, and they are a good investment, and they do a wonderful...

00:05:37
Thompson, Michael "Mike" - U.S. Representative, [D] California

I have heard from them, also.

00:05:37
Leavitt, Michael O. - Secretary, Utah

Well, it is a very important part of this, and they need to help.

00:05:37
Thompson, Michael "Mike" - U.S. Representative, [D] California

I have heard very few positive stories from those children, but, Madam Chair‑‑

00:05:37
Leavitt, Michael O. - Secretary, Utah

We appreciate the fact that they worked through it.

00:05:37
Thompson, Michael "Mike" - U.S. Representative, [D] California

Thank you, Mr. Secretary. I would like to ask unanimous consent to submit this February 6th letter from Governor Schwarzenegger into the record.

00:05:37
Johnson, Nancy - U.S. Representative, [R] Connecticut

So, ordered, but I thought that letter was submitted earlier.

00:05:37
Thompson, Michael "Mike" - U.S. Representative, [D] California

There are two different letters. Mr. Becerra had one that was from, I think, earlier in the month or from last month. Mr. Shaw's letter that he referenced...

00:05:37
Johnson, Nancy - U.S. Representative, [R] Connecticut

Thank you, so ordered, and if the Secretary would like to submit the answer he sent back to either of those letters, we would be happy to include them...

00:05:37
Leavitt, Michael O. - Secretary, Utah

Thank you.

00:05:37
Thompson, Michael "Mike" - U.S. Representative, [D] California

Could we submit other questions to be answered?

00:05:37
Johnson, Nancy - U.S. Representative, [R] Connecticut

Yes, you are always free to submit written questions. Mr. Brady?

00:05:37
Brady, Kevin - U.S. Representative, [R] Texas

Thank you, Madam Chairman. Mr. Secretary, thank for being here today. Partisan comments aside, I think the criticism of the rollout for Medicare in...

00:05:37
Leavitt, Michael O. - Secretary, Utah

Thank you. I am appreciative of your acknowledgment of the Social Services Block Grant and the allocation that is an attempt to do just that, but I...

00:05:37
Brady, Kevin - U.S. Representative, [R] Texas

We were very disheartened by HUD's decisions. We are heartened by HHS, so thank you for helping us move back into progress.

00:05:37
Leavitt, Michael O. - Secretary, Utah

Thank you.

00:05:37
Brady, Kevin - U.S. Representative, [R] Texas

Thank you, Madam Chairman.

00:05:37
Johnson, Nancy - U.S. Representative, [R] Connecticut

Thank you. Mr. Secretary, it is my turn to question now, so I have the privilege of welcoming you to our hearing, and I look forward to working with...

00:05:37
Leavitt, Michael O. - Secretary, Utah

We have a clear vision of a health care system that is interoperable, where medical records can be the part of the life of every American if they choose....

00:05:37
Johnson, Nancy - U.S. Representative, [R] Connecticut

Thank you very much. I agree. It is one of the key answers to controlling Medicare costs while improving quality. I thank you.

Mr. Larson?

00:05:37
Larson, John B. - U.S. Representative, [D] Connecticut

I thank the gentlelady from Connecticut, and I thank you, Mr. Secretary, for your service to the country. I just have first, more of an information...

00:05:37
Leavitt, Michael O. - Secretary, Utah

I will do my best.

00:05:37
Larson, John B. - U.S. Representative, [D] Connecticut

I thank you for that, and that is very important. I think there are an awful lot of good questions, and I do a lot of hearings throughout my district...

00:05:37
Leavitt, Michael O. - Secretary, Utah

Congressman, I have traveled to, I suspect, 42 or 43 States regarding Medicare and stood in front of seniors and talked to them about their individual...

00:05:37
Larson, John B. - U.S. Representative, [D] Connecticut

Well, I guess the seniors then in the groups that I have been talking to are struggling through 44 different choices that they have and coming up and...

00:05:37
Leavitt, Michael O. - Secretary, Utah

Well, it may be‑‑

00:05:37
Larson, John B. - U.S. Representative, [D] Connecticut

Would you call them winners?

00:05:37
Leavitt, Michael O. - Secretary, Utah

I would say it may be that their neighbor is in the veterans' plan, which has, in fact, one of the most restrictive formularies.

00:05:37
Larson, John B. - U.S. Representative, [D] Connecticut

Which goes directly to my point.

00:05:37
Leavitt, Michael O. - Secretary, Utah

It may have been one of the‑‑it is one of the more restrictive formularies we have.

00:05:37
Larson, John B. - U.S. Representative, [D] Connecticut

They will take that restriction, I will tell you that right now.

00:05:37
Leavitt, Michael O. - Secretary, Utah

Then one of the good things we could do is have a plan in the choice of plans that would emulate that. If we had‑‑

00:05:37
Larson, John B. - U.S. Representative, [D] Connecticut

Your predecessor said that he would, and he recommended negotiating directly with the pharmaceutical companies to lower the price. Tommy Thompson said...

00:05:37
Leavitt, Michael O. - Secretary, Utah

I believe that the best way to reduce prices is to have a robust, competitive market, and we have seen that demonstrated in Part D.

00:05:37
Larson, John B. - U.S. Representative, [D] Connecticut

If this was competitive, when the government is providing the money to the companies to compete against the government, how is that competitive?

00:05:37
Leavitt, Michael O. - Secretary, Utah

We have regulated prices in Medicaid, and‑‑

00:05:37
Larson, John B. - U.S. Representative, [D] Connecticut

When every other Nation in an industrial economy negotiates on behalf of their citizens and we don't, we end up subsidizing them with our citizens....

00:05:37
Leavitt, Michael O. - Secretary, Utah

We currently have a high number, some argue too many, but we have a high number of plans who are going to the pharmaceuticals and saying to them, "If...

00:05:37
Larson, John B. - U.S. Representative, [D] Connecticut

Not according to the report that was most recently issued by Henry Waxman. In fact, you can go to drugstore.com, for that matter, and get lower rates...

00:05:37
Leavitt, Michael O. - Secretary, Utah

All I can tell you, Congressman, all that needs to be said, is that when this program was started, the average cost to an American would have been $37...

00:05:37
Larson, John B. - U.S. Representative, [D] Connecticut

Respectfully, Mr. Secretary, you are an honorable man and so are all the people that serve on this Committee, but when seniors make decisions, "lower"...

00:05:37
Leavitt, Michael O. - Secretary, Utah

Congressman, I would argue that for the first time in the history of this country, there is no reason that a senior should have the worry that their...

00:05:37
Larson, John B. - U.S. Representative, [D] Connecticut

It is an imperfect plan that needs to be perfected by the willingness of the government to step forward on behalf of those seniors and negotiate a price...

00:05:37
Johnson, Nancy - U.S. Representative, [R] Connecticut

Mr. Beauprez?

00:05:37
Beauprez, Bob - U.S. Representative, [R] Colorado

Thank you, Madam Chair. Mr. Secretary, thank you for being here. I actually would commend the prescription drug plan. My seniors are very happy that...

00:05:37
Leavitt, Michael O. - Secretary, Utah

The practice has been, when people use oxygen, to rent the machine and the service. It has seemed inconsistent to many in the Congress and to many...

00:05:37
Beauprez, Bob - U.S. Representative, [R] Colorado

At the end of that 13 months, you are not going to cut off payments to where people no longer get their oxygen?

00:05:37
Leavitt, Michael O. - Secretary, Utah

We just want them to own the machine.

00:05:37
Beauprez, Bob - U.S. Representative, [R] Colorado

Okay. Well, in my district‑‑and I believe probably nationwide‑‑oxygen suppliers specifically sent out letters and informed...

00:05:37
Leavitt, Michael O. - Secretary, Utah

It is true often that the enthusiasm of critics rarely has‑‑they rarely temper their criticism with realism. In this case, we simply wanted...

00:05:37
Beauprez, Bob - U.S. Representative, [R] Colorado

Well, on durable medical goods, such as an oxygen concentrator, it isn't only the government in this case, which I am going to get to in a minute; it...

00:05:37
Leavitt, Michael O. - Secretary, Utah

We want people to have the oxygen they need. We just don't want the taxpayers to have to pay an unreasonable amount for it. The system needs to work....

00:05:37
Beauprez, Bob - U.S. Representative, [R] Colorado

It makes sense to me. I think it is shameless when you have individuals, such as my dad was before he passed away, that were absolutely dependent on...

00:05:37
Johnson, Nancy - U.S. Representative, [R] Connecticut

Mr. Emanuel?

00:05:37
Emanuel, Rahm - U.S. Representative, [D] Illinois

Thank you. I would like to thank the Chairperson for the time, Mr. Secretary, for the hearing, to your father for being here, who I am sure is proud....

00:05:37
Johnson, Nancy - U.S. Representative, [R] Connecticut

I am sorry to gavel my colleagues down, but the ones who have been waiting have been waiting for a very long time.

00:05:37
Emanuel, Rahm - U.S. Representative, [D] Illinois

I apologize for being long‑winded.

00:05:37
Johnson, Nancy - U.S. Representative, [R] Connecticut

I would like to recognize Mr. Ramstad.

00:05:37
Ramstad, James - U.S. Representative, [R] Minnesota

Thank you, Madam Chair. Mr. Secretary, good to see you. Thank you for your indulgence here today and your participation. Mr. Secretary, I want to...

00:05:37
Leavitt, Michael O. - Secretary, Utah

First of all, our job is not to block it. It is to find out if it is safe, and we are not certain and cannot guarantee that it is. It is the Congress...

00:05:37
Ramstad, James - U.S. Representative, [R] Minnesota

Well, is it your‑‑and I will yield back, Madam Chair. Is it your suspicion, at least, that there is a nexus there to the 100 cases I referenced...

00:05:37
Leavitt, Michael O. - Secretary, Utah

I don't know the answer to that, except that we know that drug counterfeiting is a substantially greater risk every day. I can tell you that if you‑‑

00:05:37
Ramstad, James - U.S. Representative, [R] Minnesota

Well, can you find out the answer to that question?

00:05:37
Leavitt, Michael O. - Secretary, Utah

I would be happy to.

00:05:37
Ramstad, James - U.S. Representative, [R] Minnesota

The seniors in Minnesota, I think, deserve to know. Is the policy shifting? Should the Minnesota Senior Federation change‑‑they are trying...

00:05:37
Johnson, Nancy - U.S. Representative, [R] Connecticut

Thank you. This is an important point‑‑

00:05:37
Ramstad, James - U.S. Representative, [R] Minnesota

‑‑buy prescription drugs for seniors. So, if you would get back to me, Mr. Secretary. Thank you. I look forward to your response.

00:05:37
Johnson, Nancy - U.S. Representative, [R] Connecticut

Yes, if the Secretary would get that information and get back to us, I would appreciate it.

00:05:37
Ramstad, James - U.S. Representative, [R] Minnesota

Thank you, Madam Chair.

00:05:37
Johnson, Nancy - U.S. Representative, [R] Connecticut

Mr. English?

00:05:37
English, Phil - U.S. Representative, [R] Pennsylvania

Thank you, Madam Chair. Mr. Secretary, I appreciate your testimony today. Like some of the others who have posed questions, I have gone through an...

00:05:37
Leavitt, Michael O. - Secretary, Utah

Congressman, that is at the heart of the reason that the drug prices are going down. We now have an organized competitive market for the first time...

00:05:37
English, Phil - U.S. Representative, [R] Pennsylvania

I am concerned, though, about one of the aspects of the benefit that I have been skeptical of from the outset, and that I have heard a lot about from...

00:05:37
Leavitt, Michael O. - Secretary, Utah

Part D is an insurance program. Like any insurance program, if you wait until just before you are going to use it, it is quite expensive. For example,...

00:05:37
English, Phil - U.S. Representative, [R] Pennsylvania

At some point, would the Administration consider a proposal that would establish‑‑even as we have a window for people to make changes every...

00:05:37
Leavitt, Michael O. - Secretary, Utah

That is a policy question that would require the approval of Congress. The basic construct of the program now is the actuarial soundness that I have...

00:05:37
English, Phil - U.S. Representative, [R] Pennsylvania

Understood. That is a policy question, and what I would like to do is engage CMS and your Department and explore the policy implications of perhaps...

00:05:37
Johnson, Nancy - U.S. Representative, [R] Connecticut

Thank you. Mrs. Tubbs Jones?

00:05:37
Jones, Stephanie Tubbs - U.S. Representative, [D] Ohio

Thank you, Madam Chairwoman. Mr. Secretary, good afternoon. I am Stephanie Tubbs Jones. I come from Cleveland, Ohio. How many letters did you get...

00:05:37
Leavitt, Michael O. - Secretary, Utah

I actually spent a fair amount of time in Ohio directly with the Governor and with those who are applying for the benefits and visiting with beneficiaries...

00:05:37
Jones, Stephanie Tubbs - U.S. Representative, [D] Ohio

Does your picture include that tons of seniors‑‑I don't even know how to put numbers on it‑‑were having problems getting through...

00:05:37
Leavitt, Michael O. - Secretary, Utah

Perhaps I could show you generally how that is occurring. If I could show these charts, this might be an appropriate‑‑

00:05:37
Jones, Stephanie Tubbs - U.S. Representative, [D] Ohio

You know what? I don't think I have time for charts. Why don't you get those charts to my office and then I will review them. I don't have but 5...

00:05:37
Leavitt, Michael O. - Secretary, Utah

Then just let me give you the quick version, that the time waits were absolutely unacceptable during the first week or week and half, and they have...

00:05:37
Jones, Stephanie Tubbs - U.S. Representative, [D] Ohio

This is just Ohio?

00:05:37
Leavitt, Michael O. - Secretary, Utah

No, that is not just Ohio, but that is the national picture. Ohio would have not been any different.

00:05:37
Jones, Stephanie Tubbs - U.S. Representative, [D] Ohio

Well, then, that won't help me, Mr. Secretary. I would love for you to send me these charts so I can review them, but I have a lot of other questions...

00:05:37
Leavitt, Michael O. - Secretary, Utah

Perhaps I could mention to you that that isn't necessarily‑‑they are getting the vast majority of that Social Services Block Grant funding;...

00:05:37
Jones, Stephanie Tubbs - U.S. Representative, [D] Ohio

Well, I am not sure either, but maybe you can get back to him. He asked me to ask the question, and I am doing that on his behalf. Another thing that...

00:05:37
Leavitt, Michael O. - Secretary, Utah

I can give you an explanation on why it is that we are increasing the dollars going into community health centers, where a large percentage of them...

00:05:37
Jones, Stephanie Tubbs - U.S. Representative, [D] Ohio

You know what? It is funny because your response is, "The way I am going to fix it is I am going to help community health centers." I am looking at...

00:05:37
Leavitt, Michael O. - Secretary, Utah

Every program is important to someone in a budget, and we are in a period of time where we are reducing deficits. I have been forced to make decisions...

00:05:37
Jones, Stephanie Tubbs - U.S. Representative, [D] Ohio

You recognize‑‑a last question, Madam Chairwoman. You recognize that the programs that I just talked about for seniors are some of the...

00:05:37
Leavitt, Michael O. - Secretary, Utah

No one in this Administration has anything but enthusiasm about being able to have seniors served in their homes. You will see many programs in this...

00:05:37
Jones, Stephanie Tubbs - U.S. Representative, [D] Ohio

Well, we differ on it, and I thank you, Madam Chairwoman, for‑‑

00:05:37
Johnson, Nancy - U.S. Representative, [R] Connecticut

If the gentlelady will suspend, I am going to give the Secretary a chance at the end to make some comments, because so many of the questions have taken...

00:05:37
Jones, Stephanie Tubbs - U.S. Representative, [D] Ohio

Madam Chair, I‑‑

00:05:37
Johnson, Nancy - U.S. Representative, [R] Connecticut

Your questions at this point‑‑

00:05:37
Jones, Stephanie Tubbs - U.S. Representative, [D] Ohio

‑‑am not the only one that took all the‑‑

00:05:37
Johnson, Nancy - U.S. Representative, [R] Connecticut

Your question at this point is repetitive of your earlier questions, and as I say, there are Members that have been waiting a long time to question,...

00:05:37
Jones, Stephanie Tubbs - U.S. Representative, [D] Ohio

I appreciate it, Madam Chairwoman, but don't just chastise me. I am not the only one‑‑

00:05:37
Johnson, Nancy - U.S. Representative, [R] Connecticut

Oh, I am not. I have been having to gavel down a lot of my colleagues. I am sorry to do that, but I am doing that out of fairness to the ones who...

00:05:37
Chocola, Chris - U.S. Representative, [R] Indiana

Thank you, Madam Chair, and thank you, Mr. Secretary, for being here. Thank you for your patience. A lot of the questions I was going to ask have...

00:05:37
Leavitt, Michael O. - Secretary, Utah

There are 250,000 people a week enrolling in this benefit. They are not enrolling in it because people said they had trouble at the drug counter. ...

00:05:37
Chocola, Chris - U.S. Representative, [R] Indiana

I appreciate your efforts. Just Friday, I had a call from a constituent that had called our office earlier and said this plan is incomprehensible,...

00:05:37
Leavitt, Michael O. - Secretary, Utah

We are getting through this. This is the implementation of the largest change in Medicare's history. Medicare was not implemented originally without...

00:05:37
Chocola, Chris - U.S. Representative, [R] Indiana

I agree. Just on another issue, I used to be in the manufacturing business, used to make things like chicken feeders, and we could make thousands of...

00:05:37
Leavitt, Michael O. - Secretary, Utah

Yes. The Chairperson referenced the American Health Information Community. That is an effort to create standards so that electronic medical records...

00:05:37
Chocola, Chris - U.S. Representative, [R] Indiana

Well, every conversation I have with health care providers, I ask the question: Why can't we apply proven practices and procedures and technology that...

00:05:37
Leavitt, Michael O. - Secretary, Utah

Thank you.

00:05:37
Chocola, Chris - U.S. Representative, [R] Indiana

Thank you, and I yield back, Madam Chair.

00:05:37
Johnson, Nancy - U.S. Representative, [R] Connecticut

Thank you. Mr. Pomeroy?

00:05:37
Pomeroy, Earl - U.S. Representative, [D] North Dakota

I thank the Chair. I have worked very hard to try and get the Medicare Part D program explained to the senior citizens I represent and to assist them...

00:05:37
Leavitt, Michael O. - Secretary, Utah

No, I know of no change in policy that would have been reflected in his story. That does not mean that there haven't been changes, but they have not...

00:05:37
Pomeroy, Earl - U.S. Representative, [D] North Dakota

Okay, but you are stepping up efforts to restrict drugs coming down from Canada?

00:05:37
Leavitt, Michael O. - Secretary, Utah

We are stepping up efforts to protect people from counterfeit drugs. That is what I was referencing.

00:05:37
Pomeroy, Earl - U.S. Representative, [D] North Dakota

Right, although the situation‑‑Mr. Ramstad referenced a situation similar to what some in my State have talked about. They have been doing...

00:05:37
Leavitt, Michael O. - Secretary, Utah

It is hard to hear about one anecdote and respond in terms of if it was caused by one thing or another. I don't know the answer to it.

00:05:37
Pomeroy, Earl - U.S. Representative, [D] North Dakota

I do note the part of the your answer that said the policy was pre‑existing, we are stepping up efforts to enforce the policy.

00:05:37
Leavitt, Michael O. - Secretary, Utah

On counterfeit drugs.

00:05:37
Pomeroy, Earl - U.S. Representative, [D] North Dakota

On imported drugs from Canada?

00:05:37
Leavitt, Michael O. - Secretary, Utah

Not specifically. We are working to assure that consumers are protected from counterfeit drugs.

00:05:37
Pomeroy, Earl - U.S. Representative, [D] North Dakota

By stepping up efforts to restrict imported drugs from Canada coming into the United States?

00:05:37
Leavitt, Michael O. - Secretary, Utah

Not specifically Canada, but generally. I am not able to make reference‑‑I am happy to respond, but I have no knowledge of any policy change...

00:05:37
Pomeroy, Earl - U.S. Representative, [D] North Dakota

Not a policy change, but stepped‑up enforcement activity.

00:05:37
Leavitt, Michael O. - Secretary, Utah

I am not able to respond to that because I have no specific knowledge.

00:05:37
Pomeroy, Earl - U.S. Representative, [D] North Dakota

I would request information to the extent that you can get it. The complexity of this plan is bewildering. It is not a start‑up bump. It is...

00:05:37
Leavitt, Michael O. - Secretary, Utah

Congressman, can I say that we are currently dealing with what I will refer to euphemistically as Part D 1.0. We are going to be starting very soon...

00:05:37
Pomeroy, Earl - U.S. Representative, [D] North Dakota

I know my time has expired. I appreciate the acknowledgment of the need to work on this program and make it more simple. I did not hear that in your...

00:05:37
Leavitt, Michael O. - Secretary, Utah

How long did it take you to sign your mother up?

00:05:37
Pomeroy, Earl - U.S. Representative, [D] North Dakota

It took about 45 minutes once we had all her stuff together.

00:05:37
Leavitt, Michael O. - Secretary, Utah

That matches my experience. If you can get the drug bottles and the Medicare card, it is half an hour or 45 minutes, depending on if it is the first...

00:05:37
Pomeroy, Earl - U.S. Representative, [D] North Dakota

I was the insurance commissioner of North Dakota for 8 years. I know a little bit about coverages, and I can use a computer. She would have had a...

00:05:37
Johnson, Nancy - U.S. Representative, [R] Connecticut

The gentleman from Massachusetts, would you like to inquire?

00:05:37
Neal, Richard - U.S. Representative, [D] Massachusetts

Thank you, Madam Chairperson. I apologize for being late. Mr. Bolten is at the Committee on the Budget, and that is where I was. They were simultaneously...

00:05:37
Leavitt, Michael O. - Secretary, Utah

I guess I am relieved.

00:05:37
Neal, Richard - U.S. Representative, [D] Massachusetts

You did indicate a couple of moments ago‑‑and I am going to go back to Social Security in a second--that the cost of the program is going...

00:05:37
Leavitt, Michael O. - Secretary, Utah

Part D.

00:05:37
Neal, Richard - U.S. Representative, [D] Massachusetts

Mr. Secretary, is it not fair for those of us who were critical of the initiative as proposed to have heard the former Director of the Center for Medicare...

00:05:37
Leavitt, Michael O. - Secretary, Utah

I am aware that there were differences of view on what it was going to cost, not between 700 and 400, but there were differences that were smaller than...

00:05:37
Neal, Richard - U.S. Representative, [D] Massachusetts

Thank you. Mr. Bolten is coming back here I think at 4:30 today, and he will be delighted to see me based on the testimony you have offered after we...

00:05:37
Leavitt, Michael O. - Secretary, Utah

It is clear‑‑I am not referring to differences‑‑I know that it started at one number and numbers were re‑estimated. That...

00:05:37
Neal, Richard - U.S. Representative, [D] Massachusetts

Right, and I appreciate that line. Thank you very much. Mr. Secretary, last year we began the Social Security discussion here, really never began...

00:05:37
Leavitt, Michael O. - Secretary, Utah

The President in his State of the Union address indicated that he believes, as I suspect you do, and I do, that the entitlements need to be dealt with....

00:05:37
Neal, Richard - U.S. Representative, [D] Massachusetts

I raise that question because, if you recall last year, the President suggested as part of the proposal that the only thing that was necessary was that...

00:05:37
Leavitt, Michael O. - Secretary, Utah

I understand your point.

00:05:37
Neal, Richard - U.S. Representative, [D] Massachusetts

Thank you, Madam Chairman.

00:05:37
Johnson, Nancy - U.S. Representative, [R] Connecticut

Thank you very much. As we conclude on this issue of the numbers, I do want the record to reflect that our estimate of our bill was $400 billion. ...

00:05:37
Neal, Richard - U.S. Representative, [D] Massachusetts

Would the gentlelady yield?

00:05:37
Johnson, Nancy - U.S. Representative, [R] Connecticut

I would be happy to yield.

00:05:37
Neal, Richard - U.S. Representative, [D] Massachusetts

Thank you. Madam Chairperson, do you think that there would be a reasonable conclusion on this side, given testimony of the professionals who have...

00:05:37
Johnson, Nancy - U.S. Representative, [R] Connecticut

That is‑‑

00:05:37
Neal, Richard - U.S. Representative, [D] Massachusetts

Is that reasonable?

00:05:37
Johnson, Nancy - U.S. Representative, [R] Connecticut

‑‑an interesting issue, reclaiming my time. You will remember that at that point your bill had not been subjected to a rigorous estimate,...

00:05:37
Neal, Richard - U.S. Representative, [D] Massachusetts

Would the gentlelady yield?

00:05:37
Johnson, Nancy - U.S. Representative, [R] Connecticut

‑‑for being here. I am going to wrap this up. The Secretary has been here a long time, but I would be happy to talk with you afterwards....

00:05:373 hr.
Leavitt, Michael O. - Secretary, Utah

Thank you.

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