"The President's action adds real momentum to achieving a prescription drug benefit in Medicare," said William D. Novelli, Executive Director and CEO of AARP. "This is our top legislative priority, and we are encouraged that the President is placing it high on the nation's agenda. Bipartisanship coupled with balanced legislation will be essential to its success."

The pharmacy discount card for Medicare beneficiaries is a positive step toward such a benefit, but it is not a substitute. While, the prescription drug card can help to create the mechanisms needed to implement prescription drug insurance coverage in Medicare, AARP believes that this coverage will continue to be crucial.

We are redoubling our efforts to bring this about. AARP is declaring July 30 'Medicare Monday' to celebrate the 36th anniversary of Medicare and to call attention to the critical missing piece - a prescription drug benefit in Medicare. We are also holding a host of national grassroots events in the states, and have launched an aggressive online advocacy project. (http://www.aarp.org/prescriptiondrugs/).

"President Bush's proposed principles also create a unique opportunity to modernize Medicare," added Novelli. We applaud the improvements in preventive care coverage and the new protections for those who are facing serious illnesses or long hospitalizations. We are also pleased that the Administration has indicated that it will support broad protections for low-income beneficiaries against soaring medical and prescription drug costs. Congress and the Administration should now take this opportunity to standardize the special protections made available to low-income beneficiaries, making them more user-friendly and meaningful.

However, there are additional issues that must be addressed. It is important that all beneficiaries be able to purchase the Medicare prescription drug benefit, without regard to whether they choose to stay in the traditional Medicare fee-for-service program or move into a more modernized program.

Stable, reliable coverage is a hallmark of Medicare's history. It should remain the standard for the future of the program. Modernizing Medicare so that it can quickly adapt to advances in medicine and continue to provide quality health care coverage to beneficiaries will require adjustments in the Medicare program and for its beneficiaries. Yet, even as Medicare changes, quality medical care must continue to be affordable and available to every beneficiary. "Our 35 million members and the American public expect nothing less," stated Novelli.