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REMARKS BY:	DONNA E. SHALALA,  SECRETARY OF HEALTH & HUMAN SERVICES, 
PLACE: 		Capitol Hill, Medicare Anniversary, Washington, D.C.
DATE: 		July 29, 1999

But we're not only here to salute Medicare's past. We're here to stand up and speak out for Medicare's future. Because since 1965, medicine has moved ahead, but Medicare hasn't always kept pace. And nowhere is this more true than where prescription drugs are concerned.

Prescription medicines play as vital a role in health care today as hospitals did when Medicare was created. But even though we know that prescription drugs -- when properly used -- can help Americans avoid some hospital stays entirely, today, millions of beneficiaries lack coverage and millions more are at risk for losing it.

That's why, on June 29th, President Clinton proposed the drug benefit beneficiaries need, but at a price America can afford. It's part of a well crafted action-plan to modernize Medicare's benefits and strengthen its finances for years to come. And that's never been more important than it is right now.

Because the fact is, over the next 30 years the number of Medicare beneficiaries will double. And, unless we act now, the impact of this human tidal wave could put the promise of Medicare at risk.

That's why it's so disappointing that rather than join with us to craft sensible solutions, the Republican leadership in Congress has called for a tax cut so large it would tie our hands - in effect adding to the problem.

Woodie Guthrie once sang that some men will rob you with a six gun, while others will rob you with a fountain pen. Well, if passed, this tax cut will rob America's families of the opportunity to have a modern, efficient Medicare system strong enough to meet the challenges of the 21st Century.

But the huge tax cut that's been proposed won't only jeopardize our efforts to strengthen Medicare, it will have a devastating effect on the public services America's families depend on. And perhaps even more importantly, it could derail our economic recovery.

Today, America is at a crossroad. We could follow the path of enormous, budget busting tax cuts. But America has already been down that road and it leads only to dead-ends and deficits. Or, we could stand up and say that the best way to honor Medicare today is to strengthen and modernize it to meet the challenges of tomorrow.

Thank you.

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