Issue Statements
Medicare Part D - Prescription Drug Coverage
In 2003, Congress passed the historic Medicare Modernization Act, which included a provision to help seniors with their prescription drug costs. This provision, known as Medicare Part D, has helped millions of seniors gain access to affordable prescription drugs. Medicare prescription drug coverage is insurance that covers both brand-name and generic prescription drugs, which allows seniors choice in obtaining their medications.
In its present form, the Medicare Part D drug benefit average monthly premium is over 30% lower than it was projected to cost. Many seniors pay only $24 per month for their prescription drugs, which is an annual savings of more than $1200. The Medicare drug benefit is also costing the federal government $13 billion less than expected in its first year – 30% below the $43 billion budgeted for 2006. It is premature to make changes to the Part D program since it has demonstrated success in helping seniors lower their prescription drug costs.
The Democrats have proposed H.R. 4, the Medicare Prescription Drug Price Negotiation Act of 2007. It will take choices away from seniors and will not lower costs. According to independent experts at both the Congressional Budget Office and the Office of the Actuary at the Department of Health and Human Services (HHS), government interference in price negotiation will not cut costs for taxpayers and it may lead to substantial restrictions in access to drugs for seniors.
By restricting access to vital medications, H.R. 4 will have serious consequences for the elderly, disabled and others suffering from life-threatening illnesses. The current structure of the Medicare Part D drug benefit is made up of private drug plans, as provided for by the Medicare Modernization Act. Through competition, the private plans can offer lower prices while maintaining a wider variety of drugs. By law, the private drug plans must make a minimum of two drugs available per class; by contrast, proponents of government-negotiated prices have recently proposed plans offering seniors a maximum of two drugs in each class.
I am dedicated to health care reform that is meaningful and accessible to the beneficiaries who rely on it and that is fiscally sound and affordable to the taxpayers who pay for it. The Medicare prescription drug benefit offers seniors choice in purchasing the drugs they need and saves them money. Our goal should be to provide seniors with the best possible drugs at the lowest prices.
To learn more about Medicare Part D, please visit www.medicare.gov.