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On
Nov. 25, Congress enacted historic Medicare Prescription Drug legislation and
sent it to President Bush who is eager to sign it into law. The Senate passed
it on a 54-44 vote on last Tuesday, just days after the House narrowly approved
it 220 to 215 after a three-hour roll call. This legislation represents the largest
expansion of Medicare since its creation in 1965 and under this legislation Medicare
will for the first time offer seniors a universal, voluntary prescription drug
benefit. The bill would also provide about $25 billion to help even out disparities
in the amount rural areas are reimbursed for treating Medicare patients. The White
House released the following list of "Prescription Drug Savings for Seniors":
- For the
first time in Medicare's history, a prescription drug benefit will be offered
to all 40 million seniors and disabled Americans on Medicare to help them afford
the cost of their medicines.
-
Beginning next year, seniors would save 10-25% off the cost of most medicines
through a Medicare-approved drug discount card. Seniors would be able to take
the card to their local pharmacy and receive the discount. Since the typical senior
spends $1,285 annually on his or her medicines, the card could save a senior who
lacks drug coverage as much as $300 annually. The card would provide savings until
the full drug benefit goes into effect.
-
Beginning in 2006, seniors without coverage would be able to join a Medicare-approved
plan that would cut their yearly drug costs roughly in half, in exchange for a
$35 monthly premium. In many cases, the savings will be even greater.
-
Seniors with no drug coverage and monthly drug costs of $200 would save more than
$1,700 on drug costs each year.
-
Seniors with no drug coverage and monthly drug costs of $800 would save nearly
$5,900 on drug costs each year.
-
Seniors would be protected again high out-of-pocket costs with Medicare covering
95% of drug costs over $3,600 per year.
-
Low-income seniors will receive additional help paying for their medicines.
-
A $600 annual subsidy would be added to their drug discount card.
-
There would be no additional premium, no deductible and low co-payments ($2 for
generic or $5 for brand-name drugs) for seniors with limited savings and incomes
at or below 135% of poverty (individuals with yearly incomes under $12,123 and
senior couples under $16,362).
-
There would be reduced premium, a $50 deductible, and 15% co-insurance (85% of
their drug costs would be covered) for seniors with limited savings and incomes
between 135% and 150% of the federal poverty level (individuals with yearly incomes
under $13, 470 and senior couples under $18,180).
-
All seniors will save from steps to bring safe, lower cost generic drugs to market
sooner. The President took steps earlier this year to bring generic versions of
drugs to market sooner, and this legislation will strengthen those efforts that
are estimated to save American consumers about $35 billion over the next 10 years.
For more
information the White House provides please click
here. National
Grange has been a long-time supporter for establishing a universal, affordable
prescription drug benefit under Medicare especially for rural seniors and the
passage of Medicare Prescription Drug legislation is a victory of all Grangers
who have supported it. 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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Hill. |
