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News Release

Secretary Thompson Applauds Final Passage of Medicare Bill

"We finally delivered for seniors," Secretary says

HHS Secretary Tommy G. Thompson on Tuesday commended the U.S. Senate for sending President Bush landmark legislation to provide seniors and people living with disabilities with a prescription drug benefit, more choices and better benefits under Medicare, the most significant improvement to senior health care in nearly 40 years. The House passed the measure Saturday.

"We finally delivered for seniors," Secretary Thompson said. "Thanks to President Bush's bold leadership and an historic, bipartisan vote in Congress, we delivered the most significant improvement in health care for seniors in nearly 40 years. Seniors will now have access to modern medicine delivered in a modern way."

Seniors and people living with disabilities in each state will benefit from the legislation passed Tuesday through a new prescription drug benefit and a Medicare system that adapts to modern medicine - particularly in rural areas.

Beginning in 2006, all Medicare beneficiaries will have access to a prescription drug benefit for the first time in the history of the program that will mean significant savings for seniors and people living with disabilities. For example, seniors currently without drug coverage and monthly drug spending of $800 would see their spending cut by 61 percent, or $5,868. Seniors who spend $400 a month would save 50 percent, or $2,404.

While HHS is working to implement the drug benefit, seniors will get a discount drug card providing 10 to 25 percent savings on purchases. Low-income seniors would get an additional $600 credit on this card. HHS is currently working to have this card available in the spring.

Additionally, this legislation creates equity in the way rural areas are funded under Medicare to improve reliable access physicians, hospitals, ambulance companies, labs, hospices and home health agencies in rural America.

"At HHS, we're rolling up our sleeves and getting to work for America's seniors," Secretary Thompson said. "There is a lot to be done to create a modern Medicare, and this vote is the first step in delivering a prescription drug benefit, more choices and better benefits."

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Note: All HHS press releases, fact sheets and other press materials are available at http://www.hhs.gov/news.

Last Revised: November 25, 2003