| WASHINGTON, D.C. – U.S. Representative Marion Berry (D-AR, 1st) joined several leading senior advocacy groups today to unveil a new report highlighting the Part D Prescription Drug Benefit's devastating lapse in coverage known as the "doughnut hole". The report estimates that nearly 7 million of the 11.8 million seniors registered for a drug plan with a coverage gap will fall into this hole, forcing them to pay all drug costs out-of-pocket that fall between $2,250 and $5,100 in addition to their monthly premium.
"The dust has not settled on the Administration's prescription drug benefit. We are still dealing with the nightmare of implementation, and now have millions of seniors who are about to fall into the doughnut hole," said Congressman Berry. "America deserves a better benefit crafted around the needs of seniors and not the pockets of pharmaceutical and insurance lobbyists."
Congressman Berry has been a vocal critic of the "doughnut hole" provision in the Medicare Modernization Act calling it a "handout" for pharmaceutical and insurance companies. According to the report released today by Campaign for America's Future and Americans United, nearly 7 million individuals will hit the doughnut hole this year in addition to the 4.2 million seniors who did not register for the benefit because it was either too expensive or confusing. The report also estimates that the average senior enrolled in a stand-alone Part D plan will hit the doughnut hole by September 22, 2006.
Once seniors enter the doughnut hole, it is costly to get out. Many seniors cannot afford to pay the $3,600 out-of-pocket for their prescription drug coverage and will either have to cut-back or stop taking their medications until the end of the year. The report estimates that 55% of seniors, or 3.8 million Americans, will find themselves trapped in the doughnut hole until the clock resets at the beginning of 2007.
"The doughnut hole will create a dangerous ripple effect on the health of America's seniors," said Congressman Berry. "Seniors will have to scale back on critical medications which could endanger their health and increase health care costs over the long-run. This is the result of a broken benefit that defies commonsense. "
The simple solution to this devastating lack of coverage is to allow the federal government to negotiate prices like the Veterans Administration does on behalf of all the veterans enrolled in its prescription drug program. Congressman Berry and his colleagues Jan Schakowsky (D-IL) and Tom Allen (D-ME) have introduced legislation that would establish a Medicare-Administered prescription drug plan with negotiated prices. Experts estimate that this bill could save taxpayers as much as $40 billion a year in lower drug costs – completely eliminating the need for a doughnut hole in coverage.
Click here to read the full report.
Read the Medicare Prescription Drug Savings and Choice Act of 2005. |
