How Will the Medicare / Prescription Drug Bill Benefit the 4th District
By: U.S. Congressman Lincoln Davis

The Medicare Prescription Drug, Improvement and Modernization Act of 2003 will directly impact each of the four hundred thirty five congressional districts in a unique way. The 2004 Almanac of American Politics recently rated the Fourth District of Tennessee as the fourth most rural district in Congress. If I represented an urban district chances are I would have considered voting against this bill. However, since I represent an extremely rural district the provisions that directly impact my rural constituency were too good to vote against. In my mind if I voted against it, considering my district, I would have voted against my constituents, and I was elected to protect them. This bill, as is the case with most legislation had its pluses and minuses. I will briefly attempt to explain my positions.

My support of the bill means an increased investment in the Fourth District's rural hospitals, which is badly needed to keep their doors open. Hospitals in the district will receive roughly one hundred eighteen million dollars over the span of ten years. By keeping these rural hospitals open and operational it will save many individuals a long trip to an urban medical center. Furthermore, it will give medical practitioners the cutting edge tools that are so greatly needed to adequately attend to their patients needs. Every day, the millions of men and women who staff our nation's hospitals work hard to restore and improve the communities they serve. This money will help them fulfill that mission. Through the influx of new money greater access to vital health care services will be made available to some of our most vulnerable citizens.

The Fourth District has a little over twenty seven thousand elderly individuals with an income one hundred fifty percent of the federal poverty level. This legislation will be directly assisting them in scaling down the cost of medicine. As a result this will provide much needed assistance for low income individuals.

One of the biggest concerns and misconceptions seniors have relates to the retiree health coverage benefit. They are worried they will lose their employer-sponsored retiree health benefits after this benefit is implemented. First, let me assure you that it's not the intention of Medicare to force any employer to drop seniors from their health benefits program. Unfortunately, many companies are already looking for ways to cut expenses, including eliminating retiree benefits. Between 1988 and 2002, the percentage of large employers offering retiree benefits dropped from sixty-six percent to thirty-four percent. In this bill, we have included significant subsidies to encourage employers to continue offering retiree health benefits. The Congressional Budget Office (CBO) and private companies predict this use of tax subsidies will encourage employers to continue providing retiree benefits, slowing the current trend toward reduced benefits. Moreover, with a new drug benefit in place, those who may be dropped will have an alternative coverage for prescription drugs which did not exist before.

Though far from perfect, the bill represents a breakthrough and important milestone in the nation's commitment to strengthen and expand health security for current beneficiaries and future generations. However, while this bill does deliver for my district there is room for improvement. Certain provisions that I feel are critical to the long-term stability of the Medicare program were left out. Language allowing the Secretary of Health and Human Services to negotiate for cheaper drug prices was omitted from the bill. Congressional action is already being taken to amend it. I have recently co-sponsored legislation, which gives the Secretary authority similar to that of other federal entities that purchase prescription drugs in bulk to negotiate contracts with manufacturers for cheaper drugs.

I am very pleased that rural hospitals in the district will have money to keep their doors open so they may continue to provide services critical to the health of a community. This legislation is far from being perfect, and I assure you I will be working with my colleagues to strengthen some of the benefits and add others that were left out. It will not be easy, but as your congressman I am ready for the fight.