NEWS RELEASE

Committee on Energy and Commerce
Rep. John D. Dingell, Chairman

Dingell Blasts Discriminatory Health Insurance Pricing System

Under “Tier 4,” Sickest Americans Face Highest Costs

Washington, D.C. – Rep. John D. Dingell (D-MI), Chairman of the Committee on Energy and Commerce, released the following statement today following a New York Times report, which outlined the disproportionate costs seriously ill patients must pay for drugs therapies under a new health insurance pricing system known as “Tier 4.” The system started in Medicare drug plans and is now incorporated into most private insurance plans.

“The Tier 4 pricing system is discriminatory and sticks the sickest among us with an unfair share of prescription drug costs. It’s outrageous that private insurance companies are reaping large profits at the expense of beneficiaries who are most in need of life-saving and life-sustaining drugs.

“Too many people can not afford the soaring cost of prescription drugs. It’s a problem we predicted when Medicare was overhauled in 2003, but we were assured CMS would protect sick beneficiaries from discriminatory practices. Clearly, CMS is not meeting this responsibility. This is yet another example of the Administration’s lax oversight of private insurance plans in Medicare. I will continue working to ensure that beneficiaries are treated fairly and provided greater access to the drug therapies they desperately need.”

The New York Times article can be viewed at: http://www.nytimes.com/2008/04/14/us/14drug.html?scp=1&sq=Co-payments&st=nyt

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