WASHINGTON, DC – U.S. Representative Pete Stark (CA-13), Ranking Democrat on the Ways and Means Health Subcommittee, issued the following statement in response to the 2006 reports of the Board of Trustees of the Social Security and Medicare Trust Funds.

"There is no crisis,” said Representative Stark. “Much as President Bush manipulated intelligence to justify an unnecessary war in Iraq, his Administration is using these projections to rationalize dismantling Medicare. Though the program’s outlook has worsened on President Bush’s watch, there remains plenty of time to mend rather than end Medicare. If Republicans would agree to eliminate corporate pork for HMOs and require the Secretary to negotiate for lower drug prices, Medicare’s financial outlook would improve dramatically.”

“The more predictions change, the more they stay the same. These annual trustees reports have always projected varying levels of solvency. In 1997, Medicare was expected to become insolvent in four years. In 2001, the trustees report projected Medicare funds would run dry in 28 years. In response to those projections, Congress and the Administration have historically worked together to make the changes necessary to extend solvency. The difference today is that Republicans don’t share Democrats’ commitment to protect and improve Medicare as we know it. They’d rather limit government’s obligation by turning the program into a voucher that may or may not provide decent coverage,” continued Stark.

“Analysis of the Bush Administration’s record on Medicare solvency bolsters my concern about Republicans’ ultimate goal. Under President Bush, Medicare solvency has declined by 16 years. Yet under President Clinton, solvency increased by 19 years. These numbers speak for themselves: President Bush does not consider Medicare’s well being a priority,” concluded Rep. Stark.

Below are several links that provide useful information for individuals analyzing these reports. Despite Republican mismanagement, solvency remains strong by historical standards.