The Challenge: Affordable Prescriptions for Seniors
GOP Plan Falls Short
The Democratic Plan: Affordable, Comprehensive Coverage
Older Americans suffer under the burden of skyrocketing prices for prescription drugs. Seniors are the population most likely to need prescription drugs, yet they are the least likely of all insured groups to have prescription drug coverage. Prescription drug expenditures are the fastest-growing component of health care spending. Since 1995, national spending on prescription drugs has grown by over 10 percent every year, more than double the rate of growth for other health care services.
Seniors, who often live on fixed incomes, are especially hard hit by increases in drug prices. Not only do seniors use more prescriptions, they also rely on more costly medications: Drug expenditures for seniors constitute 42 percent of total drug expenditures. Despite their greater need, seniors are also the most likely population with health insurance to find themselves without coverage for prescription drugs. More than 10 million Medicare beneficiaries lack such coverage, and millions more have inadequate and unreliable coverage. Part of the solution to this mounting problem is the enactment of a meaningful drug benefit within the Medicare program.
Republicans have proposed a bill to address the problem that is inadequate. The Republican bill covers less than a quarter of medicare beneficiaries estimated drug costs over the next 10 years. The Republican bill covers a portion of seniors' prescription drug costs up to $2000 per year, but fails to cover any additional costs until a person incurs $5,600 worth of costs in a calendar year. Nearly half of all seniors spend over $2,000 on prescription drugs and will receive no drug coverage for part of the year.
The Republicans do not detail the terms of their drug benefit---they only offer a standard suggestion for what private plans might offer. In addition, their bill does not guarantee that seniors will have affordable drug coverage. Instead, seniors will be forced to choose between HMO’s and risky private drug-only insurance plans. Lastly, the Republican bill allows private plans to create strict rules that limit access to prescribed drugs; drugs not on the list are not covered.
I am committed to providing seniors with a comprehensive prescription drug benefit. The Democratic Plan that I support is affordable and dependable for all beneficiaries with no gaps or gimmicks in coverage. The Democratic Plan for Prescription Drug Coverage is designed to offer senior citizens and individuals with disabilities presrciption drug coverage on a par to what Members of Congress and other federal employees receive.
The House Democratic proposal expands Medicare to provide voluntary prescription drug coverage for all Medicare beneficiaries beginning in 2005. Our Democratic proposal authorizes Medicare contractors to obtain guaranteed reductions in prices, and the Secretary will have the authority to use the collective bargaining power of Medicare’s 40 million beneficiaries to negotiate lower prices on many drugs. The Secretary could also implement measures that will further reduce costs and improve quality for beneficiaries such as: encouraging use of generic drugs, lowering co-insurance for preferred drugs, disease management, and beneficiary and provider education. Medicare would also require contractors to check for adverse drug interactions and proper use of medications.
back to top
