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July/August 2001

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what's mr. bush going to do?
aarp.org links: prescription drug coverage

Illustration: Elwood Smith


What's Mr. Bush Going to Do?

by Barry Yeoman

In February, President Bush outlined his fiscal year 2003 federal budget, which included several provisions that would make it easier for older adults to obtain prescription medications at a reasonable cost. The President stopped short of providing details for how Medicare could be expanded to include drug benefits. But he did call for a few first steps:

  • Creating a Drug Card program to help older adults get lower prices at the pharmacy. These cards would not be issued by the government, but rather by private companies with the Medicare program's seal of approval.

  • Permitting states to provide drug-only coverage to low-income Medicare beneficiaries. This would be accomplished through the Medicaid program or by existing state prescription drug programs.

  • Authorizing two new private Medigap plans with prescription drug benefits and catastrophic protection. Currently, only three of the 10 standardized Medigap plans cover medication, and the White House admits that these plans are "prohibitively expensive." Nothing, however, would require private insurers to actually offer the new plans.

Bush's proposal is only the starting point for the debate over prescription drug coverage. This spring and summer, various members of Congress will be unveiling their own proposals, many of them with a higher level of funding than the President's plan. For instance, AARP has called on Congress to pass a $350 billion drug benefit (plus a $400 billion reserve fund).

Although the specifics of each plan were not known at press time, most plans will fall into one of two categories. Some will call for the expansion of Medicare to cover prescription drugs, with the government administering the benefit. Others will call for the drug benefit to be administered through the private sector. Several consumer groups are wary of any measure that would privatize prescription drug benefits. "The reason Medicare was created was because the private market does not serve seniors," says Ben Peck, a lobbyist for the watchdog group Public Citizen.

How to stay informed
Public Citizen and AARP update their Web sites regularly with information about Medicare legislation. Both sites permit you to register for periodic e-mail updates, and AARP allows you to write to President Bush and members of Congress. Also check out a recent three-part AARP Bulletin series on prescription drugs (the May issue examines the money drug companies spend on lawsuits and lobbying).

You can also call the White House directly at (202) 456-1414 and your senators and representatives at (202) 224-3121. Tell them you support legislation to make affordable prescription drug coverage available to everyone with Medicare.

 


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