Congressman Mica, what are your thoughts on Medicare?

     Medicare is our Nation's most important health care provider to millions of our senior citizens.  It faces several crises today.  First is the funding challenge, and second is the need to provide affordable prescription drugs.

What are your views on prescription drug coverage for seniors?

     Like many Americans, I have been concerned about the rising costs of prescription drugs. While the majority of senior citizens in my Congressional District have prescription drug plans, unfortunately many have been stung by escalating drug prices and some lack coverage or access to affordable medical care and prescription drugs. What I have supported in Congress are measures to correct these problems without destroying participation in current plans or bankrupting our national treasury.

     The House of Representatives passed H.R. 1, the Medicare Prescription Drug and Modernization Act on June 27, 2003. The Senate passed its own version on July 7, 2003, and the two bills were reconciled in a conference committee and the Medicare Prescription Drug, Improvement, and Modernization Act was signed by President Bush on December 8, 2003. The Medicare bill provides prescription drug benefits for seniors who need coverage. Those seniors would be covered for 75% of their yearly drug costs up to $2,250 after paying a $35 monthly premium and a $250 deductible. Seniors would also be provided catastrophic protection, or 95% of all drug costs beyond $3,600.

     Unfortunately, some organizations attempted to scare seniors and claim that the Medicare plan would somehow force them, regardless of any existing coverage they may already have, into a new program. Let me assure you these rumors are completely false. The plan passed by the House of Representatives is completely voluntary, and would allow beneficiaries to receive their prescription drugs from any pharmacy of their choice.

     These same groups attempted to subvert the truth and convince seniors that they would be forced out of the traditional Medicare fee-for-service plan and into a private plan. The President made very clear his intent to model the current system after the Federal Employees Health Benefit Program, which provides health coverage to Members of Congress and other federal employees.

     The compromise plan that I supported would begin testing a proposal in 2010 which would allow private plans to compete with traditional Medicare in six designated Metropolitan Statistical Areas (MSAs).  Under this plan, the decision-making process would be taken out of the hands of the federal government and put in the hands of the beneficiaries. Seniors in these designated areas would be allowed to choose between the traditional Medicare system and a private insurance plan, such as a preferred provider organization network (PPO). Allow me to be perfectly clear: no senior will be forced to give up their traditional Medicare coverage. They will be provided a choice, which should both spur competition among healthcare providers and lead to lower costs for everyone.

     For additional information on assistance programs for seniors, please visit my Prescription Drugs page.

What are your views on prescription drug price negotiation as proposed in the 110th Congress (HR 4)?

     Seniors should receive the highest quality of healthcare at the lowest price possible. In Congress I have voted repeatedly in support of legislation that provides competition to ensure seniors receive the prescription drugs they want at a price they can afford. Unfortunately the new Democrat Majority in the House denied any opportunity to offer amendments to HR 4 or allow consideration of proposals through the normal committee process. Instead, they forced a stand alone vote on legislation that could in fact limit seniors' choices and raise prices for our veterans prescription drugs. Seniors would be denied their choice of prescription medicine and veterans' drug prices could also be negatively impacted.

     The nonpartisan Congressional Budget Office has determined that forcing the government to negotiate drug prices will significantly reduce the number of medicines available to seniors. Pharmaceuticals that agree to discount some drug prices will raise the prices of other drugs to recoup their losses; some may choose to withdraw altogether. The net impact is that some medicines offered by these companies would no longer be available to seniors through the Medicare program.

     In contrast, our current system fosters competition between drug companies who must compete against each other. The number of covered prescription drugs available to seniors has increased by 16% from 2006 alone. Premiums for basic benefits has dropped 42% below projections, with average premiums at $22 this year. On average, seniors saved nearly $1,200 on their prescription drugs last year. Just as importantly, elderly people are able to obtain the specific drugs they need to live better, healthier lives and save money at the same time.

     While many advocates of government negotiations tout the success of the Veterans Administration (VA) drug program, they fail to consider that the VA restricts access to many drugs that treat cancer, Parkinson's and Alzheimer's disease. In fact the VA drug program has been restricted to approximately 1,300 prescription medicines while the current Medicare Drug program will cover 4,300 drugs in 2007. Understandably, almost 40% of veterans with VA benefits have chosen to join the Medicare Prescription drug program in order to gain access to the medicine they require.

     My only option to assist seniors during debate on H.R. 4 was to vote in favor of a "Motion to Recommit" to prohibit negotiations that will limit access to drugs currently covered under the Medicare program, restrict pharmacy choices for seniors or increase drug prices for our veterans. While the stand alone bill passed the U.S. House without these measures, I am hopeful the Senate will consider language that further protects our seniors.

     The way we can best help reduce healthcare costs in the U.S. is by increasing competition and limiting fraud and abuse in the healthcare system. Since coming to Congress, I have supported curbing lawsuit abuse, allowing prescription drug importation and removing caps on healthcare services for seniors. Please know that I will continue to support these measures in the Congress as I work with my colleagues to make certain that all Americans have greater access to affordable healthcare services and treatments.