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Contact: Patrick Creamer (202) 225-4301

Rep. Boozman Cosponsors Prescription Drug Legislation

HHS study supports House Republican bill that creates permanent Medicare prescription drug benefit

June 19, 2002

WASHINGTON, DC - Representative John Boozman (R-AR), a member of Speaker Hastert's Prescription Drug Action Team, today cosponsored legislation that will help seniors pay for the rising costs of prescription drugs. The "Medicare Modernization and Prescription Drug Act of 2002" will strengthen and improve Medicare by providing a voluntary lifetime prescription drug benefit to every senior citizen in America.

Boozman also attended a press conference earlier today where Department of Health and Human Services Secretary Tommy Thompson unveiled a study revealing that the House Republican plan will provide "real relief for seniors and disabled Americans: those who now pay full retail prices would typically see the costs of each prescription cut by 60-85 percent, and their overall out-of-pocket drug costs would fall by as much as 70 percent."

"Everyone here on Capitol Hill can recall the stories they've heard back home of seniors choosing between food and medicine," said Boozman. "Nearly one-third of America's seniors, approximately 12 million, don't have prescription drug coverage at all. These seniors are parents and grandparents, family and friends. We can't afford to have them play those sort of games with their lives."

The bill follows-up on the $350 billion commitment the House of Representatives made when they passed the budget resolution in April. It is predicted that 95% of seniors will voluntarily sign up for the program, which unlike other proposals, would create a permanent Medicare prescription drug benefit.

With a low $250 deductible and $35 monthly premium, the cost to seniors would be about one dollar a day for a voluntary program that would guarantee seniors the ability to chose among plans to find what best fits their personal needs. Through this program, seniors will see immediate savings in their prescription drug costs through Medicare's better negotiating power. Beneficiaries will then save 80% of the costs up to the first $1,000 and 50% of costs are covered between $1,000 and $2,000.

The bill also provides catastrophic coverage with 100% drug costs covered above $3,800. Full coverage without a premium or deductible is provided for seniors living up to 150% of poverty - currently $13,290 for singles and $17,910 for couples.

"The added protection for low-income seniors is very beneficial for Arkansas," continued Boozman. "Currently, 23% of Arkansas's seniors live below the poverty line. This bill would provide these seniors and those living barely over that threshold with medications that they would not otherwise be able to afford."

The legislation was based on principles supported by the Speaker's Prescription Drug Action Team, a group of 44 members appointed by Speaker Dennis Hastert to address the need to establish a Medicare prescription drug benefit.

The Speaker's Prescription Drug Action Team's goal is to work with House Leadership to pass a prescription drug benefit based on the following principles:

· Lower the Costs of Prescription Drugs Now
· Guarantee All Senior Citizens Prescription Drug Coverage
· Improve Medicare with More Choices & More Savings
· Strengthen Medicare for the Future

Boozman added, "We have worked hard to create a fiscally responsible benefit that results in immediate savings for America's seniors. The HHS study backs this up while pointing out that the Democrat's plan does not help seniors until 2005. I look forward to the swift passage of this bill in the House so that we can give seniors peace of mind that their health care needs will be met now, not sometime in the distant future."