Providing Prescription Drug Coverage
a Top Priority
When Medicare was created in 1965, the most common prescription seniors received from their doctors was "take two aspirin and call me in the morning." Today, medical research has brought us prescription drugs that are making real strides in the fights against cancer, heart disease, Alzheimer's, and other life threatening afflictions. Seniors today are living longer and healthier lives thanks to these drugs. Medicare, unfortunately, has not made such progress. It does not provide any sort of coverage for prescription drugs and is facing a dramatic increase in the number of retirees as the "baby boomers" near retirement.
The House approach to adding a prescription drug benefit to Medicare is based on three very simple principles - guaranteeing affordable coverage, protecting individual choice, and strengthening Medicare for the future. Under the House plan, seniors will receive immediate assistance through a prescription drug discount card. They will also receive front-end drug coverage with 80 percent of their costs being paid up to $2,000. This plan has a reasonable monthly premium of $35 and a low deductible of $250. Catastrophic, or 100%, coverage will kick in after a senior has $3500 worth of prescription drug expenses.
Many seniors already have prescription drug coverage through their own insurance or retirement plans. If they are happy with that coverage, we do not wish to force them into another one-size-fits-all plan. At least two alternatives will be available for seniors to choose from, some of which will be the same plans provided for federal employees and Members of Congress. Seniors need and deserve choices in a matter that so dramatically affects their daily lives.
Finally, the House plan ensures that Medicare will remain a viable system serving seniors now and in the future. By introducing competitive forces to bring down prices, we are ensuring Medicare is available well into the future. We have seen over the last three decades how critical Medicare has been to improving the lives of our seniors. We need to make sure it's there to improve lives for future generations.
