Letter to DEMOCRATIC MEMBERS OF CONGRESS, sent JULY 25, 2001 regarding:
Prescription Drug Benefit Under Medicare

Dear Democratic Colleague:

The American people want a strong prescription drug benefit under Medicare. We know that the Republicans will never support that. What we should also know, however, is that we will never be successful in creating the kind of program we want unless we first lower the outrageously high cost of prescription drugs in this country. As a recent article in the New York Times (“Despite High Hopes, Drug Plan May Be Disappointing to Elderly,” July 22, 2001) makes very clear, the currently favored Democratic Medicare prescription drug program, advocated by Senator Bob Graham, (D-FL), is woefully inadequate because it does not address that issue.

As profiled in the article below the Graham proposal would start in 2004 and will feature a $53 monthly premium, a $250 deductible, and a 50% co-pay on all drugs up to an out-of-pocket limit of $3,500. Is this a proposal that you really want to defend back home? We don’t think so.

Let’s do the math for an average senior citizen. That person in 2004 will spend about $2,270 a year on prescription drugs. Under the Graham proposal, he/she will pay premiums of $636, a deductible of $250 and co-payments that equal $1,010. In other words, that senior will spend a total of $1,896 for $2,270 in prescription drugs. Under this proposal the federal government spends approximately $30 billion dollars a year and an American senior receives a mere 16.5% discount.

The situation is even worse for seniors who spend less per year, but who would enter the program because they fear large prescription drug costs. For example, if a senior only spends $1,200 a year on prescription drugs, the Graham plan costs them MORE than no coverage at all. This senior would spend $636 on premiums, a $250 deductible, and co-payments of $475 for a total of $1,361. That’s $136 more than this senior spends now!!!! In fact, any senior who spends $1,500 or less a year on prescription drugs in 2004 will PAY MORE under the plan put forward by Sen. Graham than they would without any coverage at all. All this from a program that will cost the taxpayers $300 billion over the next 10 years!!!

Meanwhile, today, seniors and others can drive into Canada and Mexico and get a 40-50 percent discount - without spending one cent of taxpayer money. Seniors need a strong Medicare prescription drug benefit with generous coverage. Unless we substantially lower the price of drugs in this country we will not be able to provide that benefit - 80/20 coverage- without spending a prohibitive amount of money. In other words, there can be no strong prescription drug benefit under Medicare unless we are prepared to take on the pharmaceutical industry and demand that they charge Americans the same prices that they charge people throughout the world.

We look forward to working with you in fighting for legislation that will lower the cost of drugs so that we can pass a prescription drug benefit under Medicare that we can all be proud of.

Sincerely,

Bernard Sanders (I-VT)
Peter DeFazio (D-OR)
Barbara Lee (D-CA)
Dennis Kucinich (D-OH)

For More Information:
Visit the PRESCRIPTIONS section.