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On Thursday, June 12, the Senate Finance Committee approved S. 1, "The Prescription
Drug and Medicare Improvement Act of 2003," and now the bill is being debated
on the Senate Floor.
(Click
here to view the bill) - Please
contact your U.S. Senators and Senate Leadership and urge them to pass S. 1!
"The
Biggest Improvement to Medicare"
After three years of legislative
stalemate, recently it is becoming more likely for Congress to approve a Medicare
prescription drug benefit legislation with the Senate beginning floor debate on
its bill and the House starting committee action on its bill. Last
Thursday, after a marathon 11-hour mark up, the Senate Finance Committee passed
16-5 prescription drug benefit legislation entitled, "The Prescription Drug and
Medicare Improvement Act of 2003." Committee Chairman and bill crafter Sen. Charles
E. Grassley called it, "the biggest improvement to Medicare in the program's history."
Further, the Senate opened debate on the prescription drug bill on Monday, June
16, and the debate is expected to last approximately two weeks. What
Would S. 1 Do?
The legislation would cost about $400 billion over
10 years. It would offer Medicare beneficiaries a stand-alone prescription drug
benefit delivered through private insurance companies. Seniors would be charged
a $35 monthly premium and a $275 yearly deductible before the government subsidy
began. The government would then cover half a person's drug costs up to a maximum
of $4,500 a year. After that, coverage would stop and not resume until a patient's
costs exceed $5,800 a year, at which point the government would pay for 90 percent
of further drug costs. Low-income seniors would receive government subsidies,
with the precise level determined by income.
The measure would also provide for a new managed care option for Medicare beneficiaries,
along the lines of Preferred Provider Organizations (PPOs) that are in widespread
use in private industry. These plans would include prescription drug coverage
and are expected to offer preventive health care and protection against catastrophic
health care costs -- neither of which is currently available from traditional
Medicare. President Bush has pushed hard for the creation of the new PPOs, touting
them as a way of transforming Medicare into a modern health care system while
strengthening its finances for the long term. The legislation would provide for
equal prescription drug benefits regardless of whether seniors choose traditional
Medicare or enroll in a PPO. National
Grange's Efforts
Prescription Drug issue has been one of our first
legislative priorities. Last year, in particular, some of our state legislative
leaders signed on the Roll Call ad to urge Congress to pass the prescription drug
benefit legislation. (Click Rural America
Says "Wake Up!" to see the ad. Also, review our press release on 06/27/02,
Grange Members Get
Attention of Congressional Leaders With Ad in Roll Call on Need for Rx Coverage).
And on June 26,
2002, we co-hosted Capitol Hill Rally and a press conference in support of Medicare
prescription drug coverage for seniors. Our Legislative Director, Leroy Watson
made remark at the press conference that rural seniors are in poorer health, have
lower incomes yet have a higher need for prescription medications. He urged Congress
to enact responsible Medicare prescription drug coverage that can adapt to the
special market conditions found in the rural communities. (Read more detail in
our action alert on 06/27/02, Medicare Prescription
Drug Coverage Legislation is Needed for Rural Seniors) The
National Grange's position on this issue is expressed in the policy book:
The National Grange supports
legislation to make prescriptions and over-the-counter drugs more affordable by
considering full or partial prescription coverage. We urge Congress to establish
a universal, affordable prescription drug benefit into Medicare coverage including
self-injected medicines. Action
Plan --- Please contact your U.S. Senator and Senate Leadership to urge them
to pass S. 1! Senators
| Senate
Ledearship If
you have any questions or comments please contact Legislative Research Analyst
Chil-Sook Hwang by fax: 202-347-1091
or by phone: 1-888-4GRANGE, ext 109. Thank you for your grassroots participation
in the National Grange Legislative program. Want
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