Medicare Drug Plan

The GOP’s Medicare Part D Prescription Drug plan has been nothing short of a disaster since it took effect January 1. Seniors have found themselves stunned by the new prescription drug law.

In its first weeks, six million poor, elderly and disabled patients were denied prescription drug coverage when the Bush Administration botched their conversion from Medicaid to Medicare, "seniors have found themselves stunned and confused". More than 20 states provided emergency coverage to their low-income seniors. Five states sued the federal government to recover their costs. Seniors, their caregivers and their pharmacists cannot get prescriptions filled quickly. Some cannot get them filled at all.

Rather than helping seniors, Part D has been a massive giveaway to HMO’s and drug companies. We can’t idly sit by and watch our parents continue to be "mugged" by Republican leaders and corporate America.

Tell your Congressman how disgusted you have been by the start of this program.

Sample Letter for Campaign

Subject: Fix Medicare Drug Plan

Dear [ Decision Maker ] ,

I have been absolutely appalled by the start of the Medicare Part D prescription drug plan. What was supposed to improve the quality of life for older Americans has been nothing more than a ploy to make more money for the HMOs and drug companies. I have seen family and friends devastated by the horrendous drug plan. Something must be done to help seniors who have been left out in the cold thanks to the horrendous Medicare drug plan.

I urge you to support legislation that would:

Extend the May 15, 2006 enrollment deadline Repeal the provision that prevents Medicare from negotiating lower drug prices Give seniors the option to Opt Out of the drug plan at their will. Fill in the coverage gap so seniors receive coverage for drug costs between $2,251 and $5,100. Prohibit drug plans from denying seniors coverage for the drugs they need.

It is time that you and your colleagues do what is right and stand up for older Americans in this country.

Sincerely,

Campaign Launched:
April 18, 2006

Background Information

What's Truly Alarming about Part D

1. Privatizes Medicare

For the first time in its 40-year-old history, Medicare will pay billions to private insurance companies and force beneficiaries into HMOs and private health plans for drug coverage.

(Source: Medicare Prescription Drug Improvement and Modernization Act)

2. Forbids Medicare from Negotiating Drug Discounts

Medicare is prohibited from using the buying power of 42 million beneficiaries to negotiate drug price discounts. Allowing price negotiation could potentially save the same amount needed to close the Part D coverage gap or doughnut hole.

(Sources: Medicare Prescription Drug Improvement and Modernization Act; "Doughnut Holes and Price Controls," Gerard F. Anderson, Ph.D, Dennis G. Shea, Ph.D., Peter Hussey et al. Health Affairs Web Exclusive (July 21, 2004): W4-396-404)

3. Seniors Will Pay More for Less

With Part D's monthly premiums, $250 deductible, co-insurance and co-payments, the average senior on Medicare will pay more out of pocket for Rx drugs than they do today without any drug coverage. Forty percent of Part D enrollees will fall into the coverage gap or doughnut hole where they are responsible for 100% of their drug costs.

(Source: Kaiser Family Foundation)

4. Part D Plan Costs Will Rise Over Time

Part D’s estimated average monthly premium will increase from $32 to $64 in eight years. In addition, the annual deductible is estimated to increase from $250 in 2006 to $437 in 2014 and the coverage gap will increase from $2,850 to $4,984 in the same period.

(Source: Kaiser Family Foundation)

5. Huge Cost to Taxpayers

Part D will cost taxpayers $720 billion over its first 10 years, with costs reaching $100 billion a year by the middle of the next decade.

(Source: Centers for Medicare and Medicaid Services)

6. Billion-Dollar Windfall for Drug and Insurance Companies

Drug companies are expected to gain $139 billion in profits from Part D. Medicare has already begun to pay insurance companies subsidies totaling at least $46 billion over 10 years.

(Sources: Alan Sagar, Ph.D. and Deborah Socolar, M.P.H., Health Reform Program at Boston University School of Public Health, October 31, 2003. Available at www.healthreformprogram.org; Office of Management and Budget)