STARK STATEMENT REGARDING DEMOCRATIC LEGISLATION TO PROVIDE A MEDICARE PRESCRIPTION DRUG BENEFIT

June 13, 2002

WASHINGTON, DC - Today, Rep. Pete Stark joined with Democratic colleagues and representatives of many senior citizen and consumer organizations to announce the Democratic proposal to add a prescription drug benefit to Medicare.

The Medicare Rx Benefit and Discount Act will make prescription drugs a covered benefit in Medicare and will guarantee better prices on prescription drugs. It will do so by requiring Medicare to utilize its market strength of 40 million beneficiaries to negotiate better drug prices on behalf of seniors and people with disabilities.

Rep. Stark made the following statement:

I am pleased to join with my Democratic colleagues and representatives of senior citizen organizations to announce our proposal for adding a prescription drug benefit to Medicare. Our bill is simple and straightforward. It makes prescription drugs a covered benefit under Medicare, just as doctors’ visits and hospitalizations are covered today. This is what Medicare beneficiaries have asked for and we have listened.

Under our bill, a beneficiary would pay a $25 a month premium, a small annual deductible of $100, 20% co-insurance, $25 monthly premium, and would never spend more than $2000 a year on prescription drugs. Our bill assures better prices on prescription drugs by requiring the Secretary of HHS to negotiate discounted drug prices for Medicare beneficiaries, just as he did for Cipro during the anthrax scare last year.

Unlike the bill our House Republican colleagues will soon unveil, our proposal contains no gaps or gimmicks.

No beneficiaries will have to pay for 100% of their drug costs between $2000 and $5600 worth of prescriptions as the Republican proposal would require them to do.
Private drug-only HMOs won’t be allowed to increase the costs of premiums, refuse to cover a prescribed drug, or prohibit seniors from going to their neighborhood pharmacy.
And, most importantly, Democrats do not use the allure of a drug benefit to privatize Medicare for the future -- as is the real goal of the House Republicans.

While protecting Medicare as we know it, our bill makes the reform Medicare needs: adding a prescription drug benefit.

Republicans will say our bill is too expensive. Cost doesn’t matter to Republicans when they are cutting taxes for their wealthy contributors. In the past few months alone, the House of Representatives has passed tax cuts totaling trillions of dollars. Costs only matter to Republicans when it comes to limiting government expenditures for domestic programs on which people’s lives depend. It is simply a matter of priorities. I stand with Medicare beneficiaries and families nationwide in saying that a real Medicare prescription drug benefit is needed now. This proposal achieves that goal.

CONTACT: Lindsey Capps (202) 225-5065

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