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REMARKS BY:
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TOMMY G. THOMPSON, SECRETARY OF HEALTH AND HUMAN SERVICES
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PLACE:
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Remarks to the House Ways and Means Committee
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DATE:
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February 10, 2004
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Remarks to the House Ways and Means Committee
Mr. Chairman, Mr. Rangel, and members of the Committee: thank you for inviting me to discuss the President's Fiscal Year 2005 budget for the Department of Health and Human Services.
In my first three years at the Department we have made tremendous progress in improving the health, safety, and independence of the American people. We continue to advance in providing health care to seniors and to lower-income Americans, in improving the well-being of children, in strengthening families, and in protecting the homeland.
We are building a new public health infrastructure to give doctors and hospitals the tools they need to respond to any public health emergency. We have reenergized the fight against AIDS at home and abroad. We increased access to quality health care, especially for minorities, the uninsured, and the underinsured. And, with your help, two months ago President Bush signed the most comprehensive improvements to Medicare since it was created nearly four decades ago.
To expand on our achievements, the President proposes $580 billion for HHS for fiscal year 2005 - an increase of $32 billion, or 6 percent, over fiscal year 2004. Our discretionary budget authority is $67 billion, an increase of $819 million, or 1.2%, over fiscal year 2004, and an increase of 26% since 2001.
$580 billion is a big number, and I have a solemn responsibility as Secretary to make sure every one of those dollars is put to good, effective use. I owe it to the people who pay the taxes-and I owe it to the people who consume the services.
President Bush seeks to build on the success of the 1996 welfare reform law by reauthorizing the successful TANF program to help more welfare recipients achieve independence through work and protect children and strengthen families. I appreciate this body's approval of TANF reauthorization last year, and I look forward to working with all of you to shepherd this bill through the Senate this year. We can - and we should - accomplish this critical goal this year.
We are also working to protect our most vulnerable children. The Federal government will spend nearly $5 billion this year for Foster Care. We would fund existing adoption bonuses as well as the new bonuses Congress approved last year with $35 million for 2004 and $32 million for 2005. And to support our commitment to helping families in crisis and to protecting children from abuse and neglect, President Bush has requested full funding - $505 million - for the Promoting Safe and Stable Families program.
And of course, the new Medicare modernization act is a significant accomplishment for our Department. Adding these benefits and choices and educating seniors about them will be a significant challenge. You and your fellow lawmakers were right to follow the CBO score in making decisions. And when CBO scores the budget we submitted last week, it would be expected that their estimate would reflect $400 billion or close to that number.
We are also currently reviewing the new benefit proposals submitted by health plans. It appears that more than half of the current enrollees will see better benefits and that almost half of the current enrollees will see reduced premiums or cost sharing. And this premium may decrease by as much as an average of a third for all enrollees across all plans. The bottom line is that the extra payments are providing more to beneficiaries - just as was intended by the Medicare modernization act.
We look forward to working with Congress, the medical community, and all Americans as we implement the new Medicare law and carry out the initiatives President Bush is proposing to build a healthier, safer, and stronger America.
I look forward to discussing this budget with you.
Last Revised: February 10, 2004
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