Let's Keep Our Promises on Medicare
For Immediate Release - July 21, 2003

"Our neighbors who rely on Medicare desperately need help covering the cost of their prescription drugs. Medicare currently offers no assistance with drug costs for seniors, which will total nearly $2 trillion over the next ten years. Medicare legislation recently passed in both houses of Congress, but neither the House nor the Senate bill does what disabled and retired Americans expected of their representatives. Unless we all take action now, the prospect of a real prescription drug benefit may disappear.

"Rather than offering a simple, affordable plan accessible to everyone, the rubber-stamp, Republican-controlled Congress is currently considering a controversial and complicated plan that would privatize Medicare, provide no guaranteed prescription drug coverage, leave a gap in coverage, and fail to lower drug prices. A plan that should have been designed to help retired and disabled Americans with their high drug costs was instead written to protect the profits of big business. What Congress is calling choice is really throwing Medicare beneficiaries to the wolves of the insurance and pharmaceutical industries.

"We must stay true to the promise of high-quality, affordable health care we have made to senior and disabled Americans.

"First, keep the benefit public and available through traditional Medicare. The latest Republican plan is to provide drug benefits through private health insurance companies. In their bill, the Republicans have private plans competing with traditional Medicare, with beneficiaries paying the difference. We know already that private plans do their best to insure only younger, healthier seniors. The older and sicker beneficiaries will stay in Medicare, and this will drive up their premiums.

"Republicans have tried for many years to shift Medicare away from a program of defined benefits. But keeping the prescription drug benefit in Medicare makes sense. The U.S. government and 40 million seniors nationwide would be in a position to negotiate real drug discounts. Savings could be passed on directly to seniors. The GOP version of the bill in the House prohibits the Secretary of Health and Human Services from negotiating lower drug prices for beneficiaries. This is outrageous.

"Second, ensure that a benefit provides consistent and affordable coverage. Meaningful coverage must be predictable from month to month, and avoid unreasonable limitations on what drugs are covered. A plan that does not ensure access in every region of the country, at any pharmacy willing to participate, is a sham.

"Unfortunately, the Republican plan allows private insurers to change terms every year. By relying on private companies whose first loyalty is to the bottom line, any non-Medicare plan invites insurers to limit coverage as much as possible. The Democrats' plan for prescription drug coverage would provide comprehensive and clear-cut coverage. The Democrats' proposal includes 80% coverage for all prescription costs, a low out-of-pocket limit, and a provision that Medicare would always pay costs of any prescribed drug.

"It is a shame that right now many of our seniors face the choice between food and medicine. We must call on President Bush and the Republicans to keep their promises by providing a REAL prescription drug benefit to our seniors."