Trent Lott: “the headline in Monday's New York Times, February 5, was even more chilling than Washington's weather. It read…”

“the headline in Monday's New York Times, February 5, was even more chilling than Washington's weather. It read, ``Shortfall Posted by Medicare Fund Two Years Early. A Surplus Was Expected.'' The chief actuary of the Health Care Finance Administration observed, ``Things turned out a little worse than we expected.'' I will say they did. The administration had projected a $4.5 billion increase in the Medicare fund balance for fiscal year 1995. Instead, the balance fell by $35.7 million. The reason for the shortfall was twofold. First, income from payroll taxes was less than expected. Second, and more important, outlays were higher because of more hospital admissions than were expected. Whatever the reasons, the day of reckoning is coming sooner than anyone had expected. Throughout last year, the Republicans in the House and the Senate have urged a solution for Medicare's fiscal ills. We have hammered home the estimates by the Medicare trustees that the program would slip into the red ink by 1997, and would go bankrupt by 2002. Now it turns out even that dire forecast was on the optimistic side. Medicare has already started paying out more than it takes in. I cannot help but wonder how the White House will respond to this news. The administration spin experts must be wracking their brains on this one. In the face of all the facts, they have to come up with some way to portray President Clinton as the champion and savior of Medicare.…”