The bill, which passed the House yesterday evening by a vote of 217-214 and awaits Senate action, would lower drug costs by giving seniors the advantage of group bargaining power through private insurance companies. The legislation relies on public-private partnerships that allow Medicare and its beneficiaries to tap into insurance companies’ power to negotiate substantial discounts for prescription drugs. Seniors will be able to gain discounts that could be as high as 40% on their prescriptions.

“When Medicare began, prescriptions were only a small part of our health care system,” noted Ryan. “Now, with advances in medical technology and breakthrough medications, prescription drugs are a very costly part of our health care needs. No senior should have to choose between purchasing prescription drugs and paying rent or buying food. This legislation isn’t perfect, but it is an important step in the right direction.”

In addition to offering benefits through group bargaining power, H.R. 4680 provides full premium and cost-sharing subsidies for low-income beneficiaries. The bill also ensures catastrophic coverage for those with the highest prescription drug costs.

“The plan the House approved yesterday will provide greater choice to seniors,” noted Ryan. “Those happy with their current prescription drug coverage need not change, while those who choose coverage through the Medicare prescription drug benefit will be offered a choice of plans. They can select the one that best suits their needs.”

Improving Medicare + Choice
“Another key reason why I supported H.R. 4680 is that it will help correct some of the problems that Wisconsin residents and health care providers have experienced with Medicare + Choice,” said Ryan. “Because of low reimbursement rates, southern Wisconsin’s seniors enrolled in Medicare + Choice plans often do not share the same level of benefits as seniors in other states.”

“Yesterday’s legislation includes a provision I have been fighting for that averages the reimbursement rate system throughout the country starting in 2002. This would help make the Medicare reimbursement rate system fairer for Wisconsin seniors. Meanwhile, we need to keep our eyes on the horizon and work towards comprehensive Medicare reform,” Ryan added.

The legislation contains H.R. 406, the Medicare Fair Payment Act, which equalizes the Medicare + Choice payment system. “This bill gives Wisconsin seniors more equity by giving us a much fairer Medicare payment system relative to the rest of the country,” said Ryan.

“I also believe the plan the House approved yesterday is much better than the alternative proposal – a one-size-fits-all government solution that would have given more power to Washington bureaucracy and less choice to seniors,” said Ryan. “In addition, the plan Democrats presented on the floor last night would have delayed catastrophic coverage until 2006. With the plan we approved last night, catastrophic coverage takes effect in 2003. Unlike the alternative, H.R. 4680, works with the market and will not inhibit the research and development that has helped put this country on the cutting edge of medical advances,” Ryan remarked.