11/15/2005
HARKIN: NEW REPORT SHOWS THAT MEDICARE PRESCRIPTION DRUG PLAN IN TROUBLE BEFORE IT EVEN STARTED
WASHINGTON, D.C. –
Senator Tom Harkin (D-IA) today called the new Medicare prescription
drug plan a confusing mess, and called on Congress to fix the problem
by providing a simple, more effective benefit for Iowa seniors. Harkin
did not vote for the drug bill in 2003 because it created a confusing
plan that did not allow Medicare to negotiate lower drug prices
directly with drug manufacturers. A new report released today by
Families USA shows that predictions have come true and that there are
multiple barriers for seniors trying to navigate this confusing,
complicated program.
“While the new drug
benefit may help some seniors, particularly low-income seniors, it is a
long way away from being adequate. While seniors and people with
disabilities are struggling to understand this complicated plan, the
drug companies are celebrating,” said Harkin. “Instead of staying the
course with a plan that is a boon for Wall Street, we should be doing
everything we can to make it the best plan for those that live on Main
Street.”
According to Families
USA, some seniors, depending on where they live, must choose from 52
prescription drug plans. In Iowa alone, seniors have to wade through
over 40 plans to try to determine which one will provide the best
benefit — the average US worker has to choose from fewer than three
plans. Information on premiums, deductibles, and whether each plan
covers specific drugs is also very complicated. In addition to the
confusing plan, the Centers for Medicare and Medicaid services relies
very heavily on its prescription drug website as the main conduit for
information on these plans. However, only 28 percent of seniors
regularly use the internet.
Harkin called on
Congress to pass two different pieces of legislation he supports that
would make the benefit more cost effective and simpler for Iowa
seniors. The Medicare Prescription Drug Price Reduction Act would allow
Medicare to negotiate lower drug prices for the elderly and disable –
just like the Veterans Administration. The Medicare Informed Choice Act
to give seniors more time to sort through these confusing choices. The
bill gives them until the end of 2006 to make a choice – right now they
have to choose by May 15 of next year or face a penalty.
“A prescription drug plan
should address the heart of the problem and provide real relief to
seniors under Medicare,” said Harkin. “Unfortunately, that’s not what
seniors will be signing up for. We need to offer solutions that give
seniors what they really need: simplicity and low prices. They deserve
both.”
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