Barbara Boxer: “I want to ask a couple questions. The Senator used the term ``donut hole.'' I used the phrase ``benefit shutdown.'' It's…”

“I want to ask a couple questions. The Senator used the term ``donut hole.'' I used the phrase ``benefit shutdown.'' It's all the same. But on the chart, between the yellow and the red, is a big white space. That means that between $4,500 and $5,800 essentially there is no benefit. This is a cost. My friend is right. All we had to do is tighten up a little bit on what our colleagues wanted to do for the people who earn $1 million a year. It would not have taken that much. The cost of this, after the $400 billion, is $60 billion. We got that from CBO, a $60 billion cost. My question is basically this: Does he not believe, when you really take a look at this, the administrative costs of making this work are going to be quite large? Think about the accounting that has to go into it, to track everybody's benefit. You have to do it twice. Once between $4,500 and $5,800, and then it goes to 90 percent. I am convinced, I say to my friend, there will be some administrative savings here. Also I would make the point that because this bill--I know he agrees with me on this--relies too much on the private sector, the administrative costs are sky high. Medicare runs a 3 percent administrative cost. The private sector runs between 15 and 25 percent. As a matter of fact, in the House bill they are saying it is a 25 percent cost of the entire bill. So I say to my friend, this particular amendment is not that large a cost when you really look at administrative costs going in.”