Frank Pallone: “I wanted to raise three other instances. It is not just seniors that are going to end up paying more because of these…”

“I wanted to raise three other instances. It is not just seniors that are going to end up paying more because of these cuts; the general public will as well. First of all, the fact, I do not think you mentioned it, you may have, the fact when you cut Medicare, and it is already happening, those that have supplemental insurance, most seniors carry supplemental, Medigap type insurance, the cost of that keeps going up. I see the gentlewoman from Connecticut is here, who has been so much involved and taken a leadership role on this issue. In our States, New Jersey, New York, and Connecticut, Medigap insurance costs have gone up from 11 to 14 percent every year in the last few years, all time highs. A lot of that is attributed to the cuts in Medicare. If you cut Medicare, then you are going to see higher costs for your Medigap insurance. Also in New Jersey, let me give you an example, most of the hospitals that I represent in my district rely on Medicare and Medicaid for a majority of their reimbursement, a majority of the money they are taking in. When there is a shortfall, either they close or they find some other way to pay for things. We have seen arise in uncompensated care. We actually have a tax, if you will, on uncompensated care, that we end up paying. So the general public ends up paying for the difference too. Taxes and costs go up for the general public, because the hospitals are not getting the reimbursement rate they were previously getting.”