REP. STARK OPPOSES SHAM "DISCOUNT" CARD PROGRAM AND RENEWS CALL FOR MEDICARE PRESCRIPTION DRUG BENEFIT

August 30, 2002

Courts have already blocked Bush Administration proposal and are expected to do so again

WASHINGTON - Today, the Centers for Medicare & Medicaid Services announced that it has finalized regulations for a new program that will offer private drug discount cards endorsed by Medicare. The Bush Administration touts this program as an attempt to address the high drug costs seniors face. But, the regulation provides no guarantee that Medicare beneficiaries would see any savings. And the Federal courts have already ruled that the Bush Administration does not have the Congressional approval it needs to implement the program.

Rep. Pete Stark made the following statement:

“The Bush Administration continues to waste the taxpayers’ money in attempting to establish this new program. These so-called ‘discount’ cards will not provide meaningful assistance to Medicare beneficiaries facing exorbitant prescription drug costs. The courts have already blocked this sham program once and I expect they will do it again.

“The Bush Administration is once again displaying its preference for securing advantages for its corporate friends – this time, the prescription drug industry – at the expense of Americans in need of assistance. Medicare beneficiaries face a real crisis as prescription drug costs continue to shoot through the roof. They need real help in the form of a true Medicare drug benefit, not a sham card that fails to guarantee any discounts to beneficiaries.

“U.S. District Court Judge Paul Friedman has already determined that the Bush Administration acted without authority when it tried before to implement this program. The Administration cites that same inadequate authority in issuing this rule, so I am confident that the Court will reach the same conclusion and once again block the Administration from its shameless attempts to give a new marketing tool to pharmaceutical companies at Medicare beneficiaries’ expense.

“The pharmaceutical industry has spent millions of dollars fighting a real Medicare prescription drug benefit. Yet they are strong supporters of the President’s prescription card program. Perhaps this is because, under this program, Medicare would provide free marketing for these private discount cards without requiring drug companies to pass on any actual discounts to seniors and people with disabilities.

“The Administration plan also threatens Medicare beneficiaries’ privacy by giving pharmaceutical companies unprecedented access to information about their medications. This is a good deal for pharmaceutical companies, to be sure, but it does not help Medicare beneficiaries.

“It is time for the Bush Administration to stop wasting time and money on what is really an advertising gimmick for the big drug companies.”

CONTACT: Lindsey Capps (202) 225-5065