Barbara B. Kennelly, President and CEO
Max Richtman, Executive Vice President
Robert Mahaffey, Executive Director, Communications

FOR IMMEDIATE RELEASE: June 12, 2002

CONTACT: LEE GOLDBERG 202/216-8376

SENIORS' GROUP ENDORSES SENATE RX BILL Proposal Offers Comprehensive, Affordable, and Guaranteed Benefit Washington, DC -- The National Committee to Preserve Social Security and Medicare today announced its support for new legislation that would create a comprehensive and affordable drug benefit for 39 million Medicare beneficiaries. "This is the type of legislation that seniors were promised by congressional candidates two years ago. It would provide significant relief to the millions of seniors who are struggling with the financial burden of prescription drugs," Barbara B. Kennelly, President and Chief Executive Officer of the National Committee to Preserve Social Security and Medicare. "We support this legislation because it provides a drug benefit as part of the traditional Medicare program, not through private insurance carriers. Seniors want some measure of certainty when it comes to prescription drugs, both in terms of cost-sharing and actual benefits. The only way to do that is to provide a benefit that is part of the Medicare program," Mrs. Kennelly said. Seniors would have the option of paying a $10, $40 or $60 copayment for each prescription, depending on whether the beneficiary is using a generic drug, a branded drug that is part of a formulary or a branded drug that is off-formulary. Out-of-pocket costs above $4,000 would be completely covered by Medicare. The premium is only $25 per month and there is no deductible. The lead sponsors of the bill are Senators Bob Graham (D-FL), Zell Miller (D-GA) and Ted Kennedy (D-MA). The bill does not means-testing the benefit or the premium. "This bill offers seniors the same type of coverage that protects members of Congress and most working Americans. This is legislation seniors can get excited about!" Mrs. Kennelly said. ###

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