[Congressional Record Volume 148, Number 88 (Thursday, June 27, 2002)]
[Extensions of Remarks]
[Page E1163]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               MEDICARE RX DRUG BENEFIT AND DISCOUNT ACT

                                 ______
                                 

                        HON. FORTNEY PETE STARK

                             of california

                    in the house of representatives

                        Wednesday, June 26, 2002

  Mr. STARK. Mr. Speaker, today, House Democrats keep our promise to 
introduce legislation creating a real Medicare prescription drug 
benefit.
  The Medicare Prescription Drug Benefit and Discount Act is an 
entitlement that would guarantee affordable, comprehensive prescription 
drug coverage to all senior citizens and individuals with disabilities 
who are on Medicare. It also includes provider payment increases and 
reforms that meet or exceed, in selected areas, those included in the 
Republican-written Medicare Modernization and Prescription Drug Act. 
But this debate is not about provider payments. It's about providing 
beneficiaries with needed prescription drug coverage.
  The benefit in this legislation is simple. It has no gaps, and no 
gimmicks. Beneficiaries will pay a $25 monthly premium, have a $100 per 
year deductible, and 20% co-insurance up to a $2000 out-of-pocket 
limit. After a beneficiary spends $2000, the government pays for all 
other needed prescription drugs. Under this legislation, a beneficiary 
will never pay more than $2000 in a year, and most beneficiaries will 
pay far less. Beneficiaries whose incomes are under 150 percent of 
poverty will pay no premiums and no cost-sharing. Those with incomes 
between 150-175 percent of the poverty level will receive premium 
subsidies on a sliding scale basis and pay no cost-sharing.
  These benefits will be guaranteed for every beneficiary, regardless 
of where they live. This legislation will reduce costs by using the 
market clout of 40 million beneficiaries to negotiate lower prices. It 
will also reduce costs for all Americans by closing loopholes in 
current law that allow pharmaceutical companies to game the patent 
system by preventing competition from equally effective, but lower 
cost, generic drugs.
  The Medicare Prescription Drug Benefit and Discount Act guarantees 
the choices that matter. Under our plan, Medicare will pay toward the 
cost of every drug, not just those on which the private insurance 
company cut a special deal. And, under our plan, every pharmacy that is 
willing to play by the rules will be welcome to participate.
  And, importantly, unlike the Republican plan, our plan will never 
force the elderly or disabled into an HMO or similar private plan in 
order to get a prescription drug benefit.
  The prescription drug coverage in the Democratic bill will seem just 
like any other Medicare benefit, because it is a Medicare benefit.
  Don't be fooled by Republican rhetoric. The motto of the Republican 
bill ought to be ``caveat emptor''--let the buyer beware.
  Their bill is little more than an attempt to privatize Medicare, 
while doling out hundreds of billions of dollars in Federal tax dollar 
give-aways to their friends in the insurance and pharmaceutical 
industries.
  And, no matter which measure you use, beneficiaries will pay more and 
get less under the Republican plan.
  Our legislation will not be cheap. But we don't think twice about the 
cost of covering doctor visits and hospital stays under Medicare today. 
I would argue that prescription drug coverage is as essential to good 
health care in the 21st century as physician and hospital care was in 
the 20th century when Medicare was created.
  Make no mistake: The Republican bill is designed simply to provide 
political cover for Republican members, not prescription drug coverage 
for senior citizens and individuals with disabilities.
  Our bill meets the needs of the 40 million Americans who depend on 
Medicare. That's why the leading beneficiary organizations support this 
legislation. I look forward to the debate. I urge my colleagues to join 
us in support of a real Medicare drug benefit. Vote ``yes'' on the 
Medicare Rx Drug Benefit and Discount Act.

                          ____________________