WASHINGTON, D.C. - U.S. Senator Olympia J. Snowe (R-Maine) today joined aTripartisan group of Senators in introducing the 21st Century Medicare Act, which will create acomprehensive new prescription drug benefit for seniors and strengthen Medicare.
The legislation, introduced at a Capitol Hill News Conference Monday, is being introducedby Snowe and Senators Chuck Grassley (R-Iowa), John Breaux (D-La.), Jim Jeffords (I-Vt.), andOrrin Hatch (R-Utah). The bill is expected to save the average senior more than $1,600 per year,with anticipated savings of 33 to 98 percent in out-of-pocket expenses for an affordable monthlypremium of $24.
Snowe said she hopes the Tripartisan approach will help pass a prescription drug benefit thisyear, instead of being undermined by partisan differences. "We undertook this effort a year agowhen partisan differences threatened to undermine any chance to enact a prescription drug benefit,and believed - then as now - that since seniors can not put off their illnesses, we must not put offa solution. So we crossed the political divide to develop an innovative plan that can serve as thebasis for action," said Snowe, a member of the Senate Finance Committee, which oversees Medicare.
"Unfortunately, partisanship today jeopardizes any chance of sending Medicare prescriptiondrug legislation to the President. We’re trying to break the partisan logjam, and are calling for amarkup of prescription drug legislation in the Finance Committee this week, and a full and honestfloor debate to follow. How can we do less when one-third of our nation’s seniors have no coveragefor prescription drugs?" she said.
"Our plan is a fully-funded, permanent part of Medicare. We don’t resort to budgetgimmicks or artificial sunset requirements that obscure the cost of our proposal. Seniors deservebetter than the false hope of a drug benefit that expires after seven years, with no guarantee of furthercoverage," she said.
Snowe said the legislation is designed to build on "three fundamental pillars of Medicarereform: that the benefit be affordable, comprehensive, and available to all seniors; that it provide themaximum benefit possible for lower-income seniors and those without drug coverage; and that it bea fully-funded, permanent part of the Medicare program that does not threaten the stability ofMedicare for future generations."
The 21st Century Medicare Act will create a voluntary prescription drug program that seniorscan choose whether they remain in the existing Medicare benefit, or in a new, enhanced Medicarepackage. The legislation will make changes to significantly modernize Medicare, and will revampthe Medicare+ Choice program to provide better benefits and services, and eliminate a bureaucraticpricing scheme. Snowe said the bill focuses on several core principles:
• Affordable, Comprehensive, and Available to all seniors: "Our plan is universal, becausePriority One for seniors is ensuring that any new benefit is available in every region of the country- urban and rural - at the lowest monthly cost possible. So we guarantee seniors will have a choiceof at least two plans, no matter where they live," she said.
• Complete Drug coverage - "Our plan is comprehensive, providing coverage for everytherapeutic drug class - from generics to the most innovative, advanced therapies, with significantrelief from high drug costs," she said.
• Maximum Benefits for lower-income seniors and those without drug coverage - "Our planis targeted, with seniors between 135 and 150 percent of poverty - about 18,000 for an elderly couple- receiving coverage for about $12 a month or less, and those 135 percent of poverty - about $16,000for a couple - receiving the benefit at no cost and with no required premium and no deductible," shesaid.
• Real savings for seniors - ""Our plan will save seniors real money - anywhere from 33 to95 percent in out of pocket expenses, with the average senior saving more than $1,600 per year," shesaid.
Under the Tripartisan plan, the drug benefit will be offered by private drug plans that acceptpart of the risk for managing prescription drug costs, with the federal government assuming mostof the risk. "Seniors will have a choice of plans, so they can use their purchasing clout to ‘vote withtheir feet’ if their private plan will not keep prices down, or provide a high-quality benefit," she said.She said the Tripartisan proposals uses private insurers because they are likely to be a toughernegotiator than the federal government, "because their profit margin is on the line." Snowe said theCongressional Budget Office anticipates that 99 percent of seniors will opt to participate in theproposal, with just one percent of higher-income seniors who choose not to take advantage ofcoverage for their prescription drug costs.
For the lowest-income seniors, hardest hit by high drug costs, the Tripartisan plan providesadditional support. The 11.7 million lower-income beneficiaries with incomes below 150 percentof the federal poverty level are exempt from the benefit limit of $3,450. Those between 135 and 150percent of federal poverty level will also receive more generous federal subsidies that will, onaverage, lower their monthly premiums on a sliding scale to between zero and $24 a month. The 10million beneficiaries with incomes below 135% of poverty will have 80 to 98% of their prescriptiondrug costs covered without any premium at all. These seniors will be exempted from the deductible,and will pay an average coinsurance of just $1-2 for prescriptions.
All other enrollees under the Tripartisan plan will pay premiums of about $24 a month withaccess to discounted prescription costs. Benefits kick in after a $250 deductible, with thegovernment paying 50 percent of costs up to a benefit limit of $3,450 per year. The legislation alsoprovides a level of catastrophic care to protect seniors against extremely high out-of-pocket drugcosts that exceed $3.700 per year.
Snowe noted that the legislation will also "bring Medicare into the 21st Century", creatinga new, voluntary Enhanced Medicare Benefit that will "save seniors hundreds of dollars inout-of-pocket costs, while providing them with greater health security," she said. -------------------------------
The 21st Century Medicare Act of 2002 Statement of Senator James M. Jeffords July 15, 2002
Over the next several days we in the Senate will have a historic opportunity to debate andenact the most significant expansion of Medicare in over 35 years.
Today, we are here to introduce what many have come to call the "Tripartisan Medicare" bill.But that's a bit of a misnomer, because it's not about being "tripartisan" or even "non-partisan." That's because this proposal isn't about about politics-it's about older Americans and it's about providing them with the health care they need and best Medicare program we can afford.I am very proud to join my colleagues here today to introduce the 21st Century Medicare Act.This measure guarantees the promises of the original Medicare program of yesterday whiledelivering the strengthened and improved benefits of tomorrow.
I believe our bill is the best opportunity we have to enact a modernized and strengthened Medicare program that will for first time provide a meaningful and affordable prescription drug benefit for all of our seniors that rely on Medicare. This is why.
First, our legislation preserves the traditional Medicare program for today's and tomorrow'sseniors. Our bill does not weaken traditional Medicare, make it more expensive or less available.If the traditional Medicare program is what seniors want, then it should be there for them,guaranteed.
Second, we create an all new voluntary enhanced fee-for-service part to the Medicareprogram that provides new benefits-and it includes all of the services available under traditionalMedicare.
Our enhanced Medicare program protects sickest seniors from the high costs of repeatedhospitalizations that Medicare doesn't now pay for. Today, seniors must pay a $812 deductible foreach spell of illness; and then $203 per day for hospitalizations over 60 days; and, $406 per day forstays lasting more than 90 days.
That may have been basic coverage in 1965, but it's not very good coverage today. Ourenhanced Medicare would establish a single, $300 deductible that will save seniors hundreds ofdollars in high hospitalization costs.
In addition to better benefits for our sickest seniors, our enhanced Medicare plan providesbetter disease prevention benefits so our healthy seniors can remain healthy. These benefits, whichare not now provided under traditional Medicare, include:
! tests to detect breast, prostrate and other cancer early when they are most treatable;
! adult vaccines that prevent a host of diseases;
! tests to predict the loss of bone mass before people break their hips and other bones; and,
! medical nutritional therapy to make sure seniors are getting the nutrition they need to keepthem healthy.
Third, and of great importance, the 21st Century Medicare Act ensures that seniors will haveprescription drug coverage.
I know my colleagues will spend more time describing the prescription drug benefit but Iwant to be straight to the point; our plan is comprehensive, affordable and sustainable into the future.Over the next couple of weeks there will be detailed descriptions of competing ideas andproposals debated in the Finance Committee and on the Senate floor. We should have-and I lookforward to-that debate. I've examined the proposals that are out there and this is what I found thatis unique about our 21st Century Medicare Act.
It strengthens Medicare by building on programs that allows patients and their doctors tochoose the best course of treatment, and it ensures that a better Medicare for seniors, today and inthe future.
It improves Medicare by providing a comprehensive prescription drug benefit and newvoluntary disease-prevention benefits that will help seniors live longer, healthy lives.And, it guarantees that the benefits of today will be there for seniors tomorrow.
I look forward to working with all of my colleagues-in a non-partisan way-to help enact thisquality health care program for our seniors.
