Medicare Reform Bill Signed Into Law:
Block Grant Provided for
Guam Prescription Drug Discount Program

FOR IMMEDIATE RELEASE – December 8, 2003 – Washington, D.C. – Earlier today, President Bush signed into law the Medicare Prescription Drug, Improvement, and Modernization Act of 2003. The legislation passed the House on November 22, 2003, by a vote of 220-215. This Act marks the largest overhaul of the Medicare program since its inception in 1965. The legislation provides a prescription drug benefit for seniors, with a specific allocation of $35 million annually for the territories.

Beginning January 1, 2006, a block grant of $28.125 million is provided to the territories for the remaining 9 months of FY 2006 to provide a low-income prescription drug subsidy. For FY 2007, a block grant of $37.5 million is provided. For following years, the Secretary of HHS shall increase the sum based upon the previous year’s increase in average per person aggregate expenses for covered prescription drugs. The transitional discount card program will run from April 1, 2004 through December 31, 2005, at which time the low-income prescription drug benefit will take effect.

A $35 million annual block grant is provided to Puerto Rico, the Virgin Islands, Guam and American Samoa to assist seniors purchasing prescription drugs during the period prior to the onset of the prescription drug benefit.

“Starting in 2006 the prescription drug bill establishes a fund that will enable the Government of Guam to create a prescription drug discount program for our Manamko. While the system allows for local control, I am disappointed that the bill does not address Guam’s larger health care needs such as removing the Medicaid cap. This is a great concern to me and the people of Guam. I will continue to work with my colleagues and fellow territorial delegates to address this issue,” Bordallo said.

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Contact: Neil Weare in Washington, D.C., at (202) 225-1188 or Joaquin Perez in Guam at (671) 477-4272.