2002.06.19:HHS Urges Congress to Act This Year on Medicare Plan

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FOR IMMEDIATE RELEASE
Wednesday, June 19, 2002

Contact:

HHS Press Office
(202) 690-6343

HHS URGES CONGRESS TO ACT THIS YEAR ON MEDICARE PLAN

HHS Secretary Tommy G. Thompson today called new Medicare prescription drug legislation from House Republicans "an important step" and urged Congress to work together to enact meaningful relief for millions of senior citizens and disabled Americans this year.

"This new plan is a strong, effective approach that should serve as a catalyst for enacting legislation this year that will provide seniors with needed savings on their prescription drugs," Secretary Thompson said. "Seniors should not have to wait any longer. Congress must work together to pass a bill this year that the President can sign that strengthens Medicare, including a prescription drug provision."

Secretary Thompson also released an analysis of congressional Medicare prescription drug plans that shows, under the House Republicans' plan, millions of senior citizens and disabled Americans would see their out-of-pocket drug costs fall by as much as 70 percent. Experts estimate that virtually all Medicare beneficiaries would opt for the coverage.

Medicare beneficiaries who today pay full retail price for their prescription drugs would typically see their out-of-pocket payments for each prescription reduced by 60 to 85 percent under the House Republican plan, the analysis concludes. Beneficiaries who choose to enroll in the program would pay an affordable premium estimated to start at $34 per month.

The House plan provides even greater relief to an estimated 17 million low-income seniors, who would not have to pay the premiums or would pay reduced premiums and would only have to pay $2 to $5 per prescription, the analysis shows. The plan also provides generous catastrophic protection for all seniors who have high out-of-pocket drug expenses -- targeting this help to those who need it most.

"It's time to enact meaningful legislation to help seniors reduce the high costs of prescription drugs," Secretary Thompson said. "President Bush and I will work with both parties in Congress to get meaningful, affordable Medicare drug coverage enacted into law this year. The House is moving forward on a bold plan that takes us toward this goal."

The analysis is available at aspe.hhs.gov/health/PrescriptionDrugCosts.htm.

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