Congressman Sandy Levin

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For Immediate Release
June 27, 2006
 
 
A REAL PRESCRIPTION DRUG PLAN FOR SENIORS
Levin Calls on Congress to Adopt Democratic Plan to Address Serious Flaws in Medicare Drug Program
 

(Washington D.C.)- U.S. Rep. Sander Levin (D-Royal Oak), a senior member of the House Ways and Means Committee, today joined his Democratic colleagues in endorsing the Democratic Prescription for Change - the Democrats' plan to improve the flawed Prescription drug plan. The Democratic plan will make key improvements to the program so that beneficiaries get an affordable, simple, and reliable prescription drug benefit they earned by paying into Medicare while they were working. It would also allow millions of seniors who were unable to choose a plan by the May 15th deadline are now locked out until January 2007 to get coverage this year.

"Seniors need real, comprehensive drug benefits - not a ban on Medicare negotiating drug prices and a confusing menu of private plans, nearly all of which have gaps in coverage that will force seniors to spend months paying premiums without receiving any help buying medicines," said U.S. Rep. Levin. "Democrats want seniors to have the simple, reliable, and affordable drug coverage they earned, and our Prescription for Change will ensure that they get it."

The Democratic Prescription for Change:

Affordability: Reduce the Cost of Prescription Drugs:
-- Require Medicare to leverage its bargaining power and negotiate lower prices with drug companies so seniors get a better deal.
-- Help close the "doughnut hole" by dedicating the costs savings from price negotiation towards ending the coverage gap.
Simplicity: Offer a Simple and Efficient Option Directly Through Medicare:
-- Allow seniors to choose a plan directly through Medicare that efficiently guarantees a simple and secure benefit that will reduce drug costs and ensure comprehensive coverage.
-- Extend the enrollment deadline to December 31st without penalty, so that individuals are not locked out of drug coverage for the rest of the year.
Reliability: Ensure Access to Prescription Drugs:
-- Stop drug plans from increasing co-payments and creating burdensome administrative hurdles during the year, when beneficiaries are not allowed to change plans.
-- Ensure moderate-income Medicare beneficiaries get the drug coverage assistance they need by eliminating complex barriers.

Those seniors who missed the enrollment deadline are blocked from drug coverage until January of 2007 and now must pay a lifetime of higher premiums when they do sign up. The Bush Administration strongly opposed extending the deadline for enrollment, which passed last month, and House Republican leaders have so far refused to bring up legislation to allow more seniors to enroll.

"It has now been over a month since Republicans in Congress stood by and watched millions of seniors become locked out of drug coverage because the Bush Medicare drug program is so confusing," said Levin.  "Unfortunately, the Bush Administration seems more interested in manipulating statistics to claim the program is a success than in addressing the real problems that have arisen for seniors and disabled workers who depend on Medicare for health care."

Last week, Democrats unveiled their "New Direction for America," an agenda for working families of all kinds: it would increase the minimum wage to $7.25 an hour from $5.15; grant authority to the secretary of Health and Human Services to negotiate lower prescription drug prices with pharmaceutical companies for those in Medicare?s prescription drug program; cut student-loan interest rates in half; eliminate about $18 billion in tax breaks and subsidies for oil companies and instead invests this savings in developing alternative fuels; and enact the 9/11 recommendations to keep families safe. Earlier this year, Democrats released their national security plan - "Real Security" and their government reform plan, "Honest Leadership and Open Government Act." 
 

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