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Democrats' Aim Bill at Major Changes in Medicare
Drug Program
No more 'doughnut hole' and benefits paid by
Medicare rather than insurance
March 2, 2006 – A bill addressing many of the
complains about Medicare drug program and putting the program under
Medicare rather than private insurance companies has been introduced by
Sens. Edward Kennedy (D-Mass.) and Debbie Stabenow (D-Mich.). It would
also eliminate the "doughnut hole," and allow Medicare to negotiate
better prices with the pharmaceutical companies, according to the daily
Medicare report by KaiserNet.org. Republicans at a committee hearing
continued to praise the new program.
 Medicare | Kennedy, Stabenow Propose Bill To
Overhaul Medicare Rx Benefit
Sens. Edward Kennedy (D-Mass.) and Debbie Stabenow
(D-Mich.) on Tuesday introduced a bill that would alter the Medicare
prescription drug benefit to allow Medicare beneficiaries to obtain drug
coverage directly from Medicare itself, the
Springfield Republican reports.
The legislation also would eliminate the so-called
"doughnut hole" coverage gap -- or the gap in coverage under which
Medicare beneficiaries are responsible for annual drug costs between
$2,250 and $5,100. -- and allow
HHS to negotiate drug prices with pharmaceutical companies.
Kennedy said the 2003 Medicare law "was a nightmare
of complexity and confusion." He said that during the launch of the drug
benefit, "[s]eniors across the country were denied the drugs they need
or were forced to pay exorbitant fees to fill their prescriptions."
Under the new bill, co-sponsored by Sens. Hillary
Rodham Clinton (D-N.Y.) and Frank Lautenberg (D-N.J.), Medicare
beneficiaries will no longer have to "rely on a bewildering array of
private plans to meet their need for drugs," Kennedy said, adding, "In
large cities and small rural areas, from Maine to California, to Alaska
and Hawaii, Medicare will be there for every senior who wants it."
Robert Hayes, president of the
Medicare Right Center, said lawmakers "could add 500 amendments
correcting the Medicare bill," but the "single solution" he will endorse
is the provision allowing beneficiaries to obtain coverage directly
through Medicare. "People will flock to that, and with good reason,"
Hayes said (Moriarty, Springfield Republican, 3/1).
Energy and Commerce Health Subcommittee Hearing
Meanwhile, House Republicans and Democrats on Wednesday continued to
review the first two months of the new drug benefit during a
House Energy and Commerce Health Subcommittee meeting,
CQ HealthBeat reports.
Republicans said the drug benefit has saved
beneficiaries "hundreds, even thousands" of dollars on medication costs,
CQ HealthBeat reports.
CMS Administrator Mark McClellan testified that enrollment in the
drug benefit is "off to a strong start," adding that more than 25
million beneficiaries have drug coverage, many more are enrolling each
week and costs are lower than expected.
Energy and Commerce Committee Chair Joe Barton (R-Texas) said, "That
sounds like a success to me, not a failure." Barton also pledged
"aggressive oversight" of the drug benefit (Carey, CQ HealthBeat, 3/1).
He said Democrats have been "scaring" beneficiaries away from the drug
benefit by criticizing the program (CongressDaily, 3/2).
Rep. John Dingell (D-Mich.) called for additional
hearings on the benefit to allow Democrats to call witnesses to speak
about the program. He added, "I believe we need to overhaul this
program, so that the 'D' [in Medicare Part D] comes to stand for
'dependable' -- just like the Medicare coverage seniors know and trust"
(CQ HealthBeat, 3/1).
Grassley Letter
In related news,
Senate Finance Committee Chair Chuck Grassley (R-Iowa) on Wednesday
sent a letter to Senate Minority Leader Harry Reid (D-Nev.) and House
Minority Leader Nancy Pelosi (D-Calif.) saying Democrats' were too
negative in comments about the drug benefit during recent
meetings with constituents, CongressDaily reports.
Grassley wrote, "I am perplexed that the Democratic
Leadership has chosen to sacrifice beneficiaries' well being and health
for its own political gain and again implore the Democratic Leadership
to reconsider its irresponsible approach" (CongressDaily, 3/2).
Maine Seeks Extension
Maine Gov. John Baldacci (D) on Tuesday sent a letter to HHS Secretary
Mike Leavitt requesting that the deadline for the federal government to
reimburse states for costs related to the drug benefit be extended to
March 31, the
Bangor Daily News reports.
The government initially said it would reimburse
states for such costs through mid-February and then extended the
deadline to March 8. Baldacci said more than 10,000 state residents who
are eligible for the most financial aid under the drug benefit still are
not properly enrolled in Medicare drug plans and "continue to have high
copays and ... deductibles."
He added that "much progress has been made" but
that there "remain many outstanding issues with identifying"
beneficiaries who are eligible for the subsidy (Bangor Daily News, 3/1).
"Reprinted with
permission from kaisernetwork.org You can view the entire
Kaiser Daily Health Policy Report, search the archives, and sign up
for email delivery at
www.kaisernetwork.org/dailyreports/healthpolicy. The Kaiser
Daily Health Policy Report is published for
kaisernetwork.org, a free service of The Henry J. Kaiser Family
Foundation. © 2006 Advisory Board Company and Kaiser Family Foundation.
All rights reserved.”
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