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TIM HUTCHINSON UNITED STATES SENATOR  ARKANSAS | ||
Contact: D.J. O'Brien (202) 224-2353
July 16, 2002
Hutchinson Cosponsors Legislation to Provide a Permanent, Affordable Prescription Drug Benefit Under Medicare
Senator Tim Hutchinson (R-AR) has joined a diverse group of lawmakers in supporting a bill that would give seniors a permanent, affordable prescription drug benefit under Medicare. Hutchinson is an original cosponsor of the "21st Century Medicare Act," which was introduced yesterday by Senators Charles Grassley (R-IA), John Breaux (D-LA), and Jim Jeffords (I-VT).
"The time has come to put politics aside and give seniors a hand in coping with the rising costs of prescription drugs," said Hutchinson. "In the 37 years since Medicare was created, new medications have become an integral part of our health system by preventing and curing illnesses, reducing hospitalization, and ultimately reducing health costs. Yet, while private health plans have recognized the important role prescription drug coverage plays, Medicare has not been updated to reflect the needs of seniors today.
"The 21st Century Medicare Act offers the best chance to enact a meaningful and affordable prescription drug benefit this year. It is affordable for all Medicare beneficiaries, with just a $24 monthly premium for enrollees. It is estimated that the average senior will save more than $1,600 a year under this plan.
"The bill will particularly benefit states like Arkansas by providing extra assistance to low-income seniors. Beneficiaries with incomes below 135% of poverty will have 80 to 90 percent of their prescription drug costs covered without any premium. These seniors will be exempted from the deductible, and will pay an average coinsurance of just $1 to $2 for prescriptions.
"The 21st Century Medicare Act also provides catastrophic care to protect older Americans against extremely high out-of-pocket drug costs that exceed $3,700 a year.
"Unlike the alternative Democratic bill that terminates in 2010, this plan creates a fully-funded, permanent prescription drug benefit under Medicare. It also preserves access to local pharmacies and strengthens Medicare to guarantee every benefit already promised and deliver new benefits at a lower overall cost.
"There is no greater priority on our domestic agenda than providing seniors with a prescription drug benefit under Medicare. This bill offers the best chance to bring Medicare into the 21st Century and give older Americans the care they deserve. "
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