FINANCIAL CONDITION OF THE MEDICARE PROGRAM HEARING COMMITTEE ON WAYS AND MEANS HOUSE OF REPRESENTATIVES ONE HUNDRED FOURTH CONGRESS SECOND SESSION JUNE 6, 1996 Serial 104-75 Printed for the use of the Committee on Ways and Means a U.S. GOVERNMENT PRINTING OFFICE 95-998 OC WASHINGTON : 1997 For sale by the U.S. Government Printing Office ‘Superintendent of Documents, Congressional Sales Office, Washington, DC 20402 ISBN 0-16-055001-7COMMITTEE ON WAYS AND MEANS BILL ARCHER, Texas, Chairman PHILIP M. CRANE, Illinois SAM M. GIBBONS, Florida BILL THOMAS, California CHARLES B. RANGEL, New York E. CLAY SHAW, Jr., Florida FORTNEY PETE STARK, California NANCY L. JOHNSON, Connecticut ANDY JACOBS, JR, Indiane JIM BUNNING, Kentucky HAROLD E. FORD, ‘Tennessee AMO HOUGHTON, New York ROBERT T. MATSUI, California WALLY HERGER, California BARBARA B. KENNELLY, Connecticut JIM McCRERY, Louisiana WILLIAM J, COYNE, Pennsylvania MEL HANCOCK, Missouri SANDER M. LEVIN, Michigan DAVE CAMP, Michigan BENJAMIN L. CARDIN, Maryland JIM RAMSTAD, Minnesota JIM McDERMOTT, Washington DICK ZIMMER, New Jersey GERALD D. KLECZKA, Wisconsin JIM NUSSLE, iowa JOHN LEWIS, Georgia SAM JOHNSON, Texas LF. PAYNE, Virginia JENNIFER DUNN, Washington RICHARD E. NEAL, Massachusetts MAC COLLINS, Georgia MICHAEL R. MCNULTY, New York ROB PORTMAN, Ohio JIMMY HAYES, Louisiana GREG LAUGHLIN, Texas PHILIP S. ENGLISH, Pennsylvania JOHN ENSIGN, Nevada JON CHRISTENSEN, Nebraska PHILLIP D, MOSELEY, Chief of Staff Janice Mays, Minority Chief Counsel «CONTENTS Advisory of May 30, 1996, announeing the hearing ....... 2 WITNESSES U.S. Department of the Treasury, Hon. Robert E. Rubin, Secretary 9 U.S. Department of Health and Human Services, Hon. Donna E. Shaisla, 12 Secretary .ceencssnsnnniennnnnnes am