Press Releases
November 24, 2003
Conrad says he'll support Medicare drug benefit bill
Senator: bill is far from perfect, but still a good step
Washington – Although the Medicare prescription drug bill is far from perfect, Senator Kent Conrad said today that he would vote for the legislation because it still means overall better health care for North Dakotans.
The measure provides a generous prescription drug benefit for low-income seniors in North Dakota, provides substantial assistance to seniors who face catastrophic drug costs of more than $3,600 a year, and directs $25 billion to new Medicare payments to rural hospitals, home health care and doctors.
"We need to lock in a prescription drug benefit and the rural provisions right now," Senator Conrad said. "We will always have another opportunity to come back to fix the other areas of this bill that are a problem, but we may not have another opportunity to provide both the prescription drug benefit and support for rural hospitals."
By providing a prescription drug benefit, Senator Conrad said he believes the legislation would help modernize Medicare. He noted that medicine has changed significantly since Medicare was created in 1965, with prescription drugs now being an integral part of modern medicine.
The legislation also would provide a generous benefit for seniors with incomes below 150 percent of the federal poverty level. These seniors – an estimated 40 percent of seniors in North Dakota – would get the vast majority of their drugs covered, with minimal out-of-pocket costs.
"This is a very significant benefit for low-income seniors who, by definition, can least afford prescription drug coverage today," said Senator Conrad.
The bill also includes provisions, authored by Senator Conrad, to address the significant payment disparities that rural hospitals currently get under current law. Rural hospitals in North Dakota see about half as much as Medicare reimbursement as urban hospitals in other parts of the country for treating the same illnesses.
"This bill will go a long way toward eliminating those Medicare funding inequities, so fewer of our rural hospitals will be operating in the red. It puts our rural health care providers on the path to sound financial footing," said Senator Conrad. "There is no reason why the disparity is so great. It may be cheaper to do business in North Dakota, but it isn't 100 percent cheaper."
Senator Conrad added that it was important not to oversell the benefits of this drug benefit legislation and that the public should be aware of the legislation's deficiencies. Senator Conrad cited the following concerns: gaps in coverage, a flawed delivery mechanism, government subsidies for private companies to offer plans that cost taxpayers more than traditional Medicare to provide the same benefit, privatization demonstrations, and health savings accounts that primarily benefit the wealthiest seniors.
"This is not a Cadillac plan. This is not a Ford plan. It's a jalopy plan, but it's better than no plan at all. And although this bill is far from perfect, I have concluded that we should pass it," said Senator Conrad. "On balance, this bill is a step in the right direction."
