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For Immediate Release:
July 30, 2004

"New and Improved" Medicare Celebrates 39 years

by Senator Larry Craig

I'm always amused to see an old product labeled as "New and Improved." Sometimes I ask myself, "Does new and improved mean that I'm getting less than before, or is it REALLY new and improved?" When it comes to Medicare, which turned 39 years old on July 30, I'm glad to say that it truly is better than it was before � Medicare is now literally "New and Improved!" More importantly, seniors will see even more improvements to Medicare in the coming years.

On July 30, 1965, Medicare was signed into law. Since that time seniors have lived longer and better lives, and much of the credit belongs to the health care and peace of mind that Medicare has brought. Of course not all the credit belongs to government. Many people are taking control of their health by eating better, getting more exercise, and taking care of their bodies.

Those simple changes have had a stunning impact. A child born in 1900 was expected to live to the ripe old age of 48. Now a child born can expect to live to approximately 80 years, and some researchers believe that a child born today has a 50 percent chance of living to be 100 years of age. (There are now 77,000 centenarians in the United States - an all time high - up from 15,000 centenarians twenty years ago.)

But what of the new and improved Medicare system?

In 1969 a federal task force presented a proposal to add prescription drug coverage to Medicare. It took Congress over 30 years, but under President Bush's leadership, last year we finally brought Medicare into the 21st Century by adding a much-needed drug benefit for senior citizens in need.

Just two months ago the temporary Medicare-approved drug discount card program went into effect. The new cards are now in the pockets of over four million American seniors and saving them anywhere from 11 to 18 percent on brand-name drugs and 35 to 65 percent on generic medications � which are just as effective as brand-name pharmaceuticals.

The new change to Medicare also means that low-income seniors who sign up for the drug discount cards are also getting $1,200 in prescription drug purchasing help � $600 in help this year and $600 next year. In addition, eight major pharmaceutical companies have pledged to help seniors once that money runs out by offering them drugs for free, or at dramatically reduced prices. Each day 25,000 seniors are signing up for the discount cards � if you are a senior and haven't signed up yet, call 1-800-MEDICARE to get the information you need.

But that's just the beginning.

In 2006, when the temporary drug discount program is replaced by the full Medicare drug benefit, more than one in three - about 35 percent - of all Medicare beneficiaries will qualify for substantial income-based drug coverage and will have no gap in their coverage. For about 70 percent of those seniors, there will be zero premiums for their medications, zero deductibles, and out-of-pocket costs of just a few dollars � no more than $5 per prescription.

And for those seniors who currently have drug coverage through their past employers � the new Medicare legislation also provides almost $90 billion to encourage companies to keep retirees in their programs.

Other positive changes are on the way.

Beginning in 2005, all newly enrolled Medicare beneficiaries will be covered for an initial physical examination, and all beneficiaries will be covered for cardiovascular screening blood tests. Those at risk will also be covered for a diabetes screening test in order to increase early detection and treatment of this life-threatening condition.

Thanks to changes in the Medicare law in 1997 and again in 2000, other preventative measures are already covered, including mammograms, pap smears, colorectal and prostate screenings.

The recent changes we have made to Medicare haven't made it perfect yet, but we can legitimately say that it truly has earned the label "New and Improved." Happy Birthday, Medicare.

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