ADVOCACY ALERT 11-18-03
By Anna Spinella
Medicare Prescription Drug Conference Report 
A Report That Goes Far Beyond Rx Prices To Threaten The Basic Principles Of Medicare

The Congressional negotiators have announced an agreement “in principle” on a bill to provide prescription drugs under the Medicare program.

In addition to providing a drug benefit to beneficiaries, the bill would make substantial fundamental changes to the financial structuring and benefit delivery of the Medicare program itself.

A formal conference report is expected to be released to Congress or the general public very quickly.

The Conference Committee is expected to vote on the report immediately and then to adjourn for the Thanksgiving Holiday.  Members will have almost no time to review the massive conference report before the report is brought to both floors for a final vote.

Major Provisions of Concern:

The prescription drug benefit structure proposed is not what most seniors expect and is somewhat “disguised.” 

Private insurers will deliver the benefit.  This means that private insurers will have the ability to establish the amount of premiums, the benefit structure, and where beneficiaries would go to receive prescription drugs.

A primary principle for a prescription drug plan is that the benefit should not reduce access to other Medicare benefits.  Numerous provisions contained in the compromise, as currently outlined, put traditional Medicare at serious risk.

For example, there is:

1.  A  “premium support” 6-year demonstration program that could result in premium variance of over $100 a month for beneficiaries in the same state.  With healthier individuals opting for the less costly private plans, adverse selection will prevail in the traditional fee-for-service program, resulting in significantly increased premiums for sicker, older individuals who wish to remain in fee-for-service.

2.  An indexing of Part B premiums to income of the beneficiary – this will create a dangerous precedent that puts at risk the concept of a universal defined benefit for all eligible individuals.

3.  A provision that would allow Congress to set an arbitrary cap on Medicare spending and threaten the entitlement nature of the program, with no significant provisions to control the rising costs of drugs.

IMMEDIATE ACTION NEEDED:  IF YOU BELIEVE THIS IS NOT A GOOD Rx BENEFIT PLAN, CONTACT YOUR MEMBERS OF CONGRESS TODAY AND ASK THEM TO OPPOSE THE MEDICARE PRESCRIPTION DRUG CONFERENCE REPORT.

ALSO – CONTACT AARP AND ASK THEM TO OPPOSE THE PASSAGE OF THE BENEFIT, AS PRESENTLY OUTLINED.

TO REGISTER OPPOSITION OR SUPPORT FOR THIS (OR OTHER) LEGISLATION:
 
1-800-424-3410
 
IF YOU WISH TO CONTACT FLORIDA FOLKS:
 
BENTLEY LIPSCOMB - EXECUTIVE DIRECTOR OF FLORIDA AARP:  
Telephone:  727-571-2277
E MAIL -- [email protected]
fax - 727-571-2278
 
LYN BODIFORD - AARP FLORIDA LEGISLATIVE REPRESENTATIVE
Telephone 850-222-7344
E MAIL -  [email protected]
fax: 850/222-8968