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Graham-Miller-Kennedy Prescription Drug Benefit
Receives CBO Score
July 19, 2002
Washington (July 19, 2002) - The Congressional Budget office has scored
the Graham-Miller-Kennedy prescription drug benefit at $421 billion from 2005
through 2010, with a cost of an additional $173 billion if the program is
extended through 2012.
"A prescription drug benefit would be the largest expansion of the
Medicare program in history," said Senator Bob Graham, D-Florida. "That is why
after six years of program operation, we need to examine how well the benefit is
working and whether it is providing seniors the benefits they need. We can apply
these lessons learned to the future success of the program.
"While this program may seem costly, the truth is that we must put this
spending into context. Seniors today are paying 35 times the amount they paid in
1965 for prescription drugs. To spend any less than we have allocated, to
provide a more paltry benefit to seniors, would be a hollow promise."
The Graham-Miller-Kennedy plan gives seniors a $25 monthly premium, no
deductible, an easy $10 and $40 co-pay for prescriptions, and a maximum of
$4,000 per year in out of pocket expenses. Seniors with incomes below 135
percent of the poverty level would pay no premiums, and beneficiaries with
incomes between 135 and 150 percent of the poverty level would pay reduced
premiums.
The Graham-Miller-Kennedy legislation was introduced in the Senate
yesterday as an amendment to S. 812, the Greater Access to Affordable
Pharmaceuticals Act of 2001. A vote to waive the budget act on the amendment is
anticipated to occur on Tuesday, July 23.
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