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

FOR IMMEDIATE RELEASE: July 24, 2002

CONTACT: LEE GOLDBERG 202/216-8376

Senate Vote Stalls Progress on Rx Proposal Compromise Possible, Seniors Advocate Concerned About Lack of Defined Benefit Washington, D.C. -- The Senate yesterday rejected legislation that would have created a comprehensive, low-cost Medicare prescription drug benefit. The failure to pass the legislation sponsored by Senators Bob Graham (D-FL), Zell Miller (D-GA) and Ted Kennedy (D-MA) was a blow to the millions of seniors who had been promised a meaningful prescription drug benefit by congressional and presidential candidates during the last election cycle. "Today's vote is a lost opportunity. The Graham-Miller-Kennedy bill offered a guaranteed prescription drug benefit that moved Medicare into the 21st century without threatening the essential structure of a social insurance program," Barbara B. Kennelly, President and Chief Executive Officer of the National Committee to Preserve Social Security and Medicare said today. The Graham-Miller-Kennedy bill received 52 votes, 8 votes shy of the 60 needed to pass the legislation. An alternate proposal put forward by Senators Charles Grassley (R-IA), Olympia Snowe (R-ME), John Breaux (D-LA) and Jim Jeffords (I-VT) also failed to get the necessary 60 votes required under the budget rules. The National Committee opposed the so-called tripartisan legislation, which in many respects mirrors the poorly conceived legislation passed by the House last month, Mrs. Kennelly said. At least part of the proposal would rely on private, for-profit insurance carriers to define the prescription drug benefit available. Other aspects of the proposal resemble the premium support proposals put forward last Congress. "We remain convinced that the Graham-Miller-Kennedy legislation is a good drug benefit that is affordable for taxpayers as well as beneficiaries," she said. Backers of both bills have discussed a possible compromise and Mrs. Kennelly urged members of the Senate to use the Graham-Miller-Kennedy bill as the basis for negotiations. "We are open to new ideas, but seniors need a defined benefit that guarantees seniors coverage regardless of where they live. Proposals that lack a defined benefit don't address the emergency," Mrs. Kennelly said. The National Committee, a nonprofit, nonpartisan organization, acts in the interests of its membership through advocacy, education, services, grassroots efforts and the leadership of the Board of Directors and professional staff. The work of the National Committee is directed toward developing better-informed citizens and voters.