FOR IMMEDIATE RELEASE June 13, 2002

CONTACT: Jennifer Laudano Kati Anderson (202) 628-3030

HOUSE DEMOCRATIC DRUG BILL PROVIDES GUARANTEED, SUBSTANTIAL RELIEF FOR AMERICA'S SENIORS

The following is a statement released by Ron Pollack, executive director of Families USA, about the House Democratic prescription drug plan that was announced today.

"The House Democratic prescription drug bill is an effective and reliable cure to the drug affordability crisis afflicting America's seniors. It will provide real and substantial relief from skyrocketing prescription drug costs that are making needed medicines more and more unaffordable.

"Unlike the apparent plan being developed by House Republicans, the House Democratic bill provides a clearly defined and guaranteed benefit that will be available to all seniors, irrespective of where they live. This is because the Democratic bill guarantees coverage through the Medicare program - rather than relying on private insurance companies that don't want to offer such coverage, as the House Republican proposal does.

"In sharp contrast to the House Republican plan that leaves a gaping hole in coverage, the House Democratic bill provides substantial and continuous coverage. The differences in premiums, cost-sharing, amount of coverage, and catastrophic coverage between the two proposals are enormous, and, as a result, seniors' pocketbooks will be far better protected under the Democratic plan.

"The House Democratic bill is designed to eliminate pharmaceutical companies' abusive and anticompetitive practices that prevent generic drugs from coming to market. This will enable seniors to get better and quicker access to much cheaper but equally effective medicines. This, too, is very different from the Republican proposal - which, not surprisingly, is endorsed by the pharmaceutical lobby.

"The House Democratic bill also provides the most generous and realistic drug cost relief for low-income seniors of all other proposals to date or in development. This means that medicines will be affordable even for seniors with the most meager resources. For all of these reasons, we enthusiastically support the House Democratic drug proposal."

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Families USA is the national organization for health care consumers. It is nonprofit and nonpartisan and advocates for high-quality, affordable health and long-term care for all Americans.