[Congressional Record Volume 149, Number 40 (Wednesday, March 12, 2003)]
[Extensions of Remarks]
[Page E433]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


     INTRODUCTION OF THE MEDICARE Rx DRUG BENEFIT AND DISCOUNT ACT

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                        HON. FORTNEY PETE STARK

                             of california

                    in the house of representatives

                        Tuesday, March 11, 2003

  Mr. STARK. Mr. Speaker, today, House Democrats answer the public's 
call for a real Medicare prescription drug benefit.
  The Medicare Prescription Drug Benefit and Discount Act is an 
entitlement that will guarantee affordable, comprehensive prescription 
drug coverage to all senior citizens and individuals with disabilities 
who are on Medicare.
  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 pay 20 percent co-insurance up to a $2000 out-of-
pocket limit. After a beneficiary spends $2000, Medicare pays for all 
other needed prescription drugs. Under this legislation, a beneficiary 
will never pay more than $2000 for prescription drugs in a year, and 
most beneficiaries will pay far less.
  This legislation provides additional assistance to those with lower 
incomes. 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 poverty will receive premium subsidies on a sliding 
scale basis and pay no cost-sharing. Unlike the House-passed Republican 
bill from last year, there is no hidden hatchet to deny benefits to 
low-income seniors who have modest assets.
  These Medicare benefits will be guaranteed for everyone on Medicare, 
regardless of where they live and regardless of whether they are in the 
traditional Medicare program or a private plan. No senior will be 
forced to leave Medicare for a private plan in order to receive 
meaningful prescription drug coverage.
  This legislation also tackles one of the biggest problems facing 
seniors, the uninsured, and all Americans: astronomical prescription 
drug prices. This bill will reduce Medicare prescription drug costs by 
using the market clout of 40 million Medicare beneficiaries to 
negotiate lower prices. It will also reduce prescription drug costs for 
all Americans by closing loopholes in current law that allow 
pharmaceutical companies to game the patent system and prevent 
competition from equally effective, but lower cost, generic drugs.
  The Medicare Prescription Drug Benefit and Discount Act will 
guarantee the choices that matter. Under our plan, Medicare will pay 
toward the cost of every prescription drug, not just those for which a 
private insurance company cut a special deal with a drug maker. Seniors 
will be covered for any drug their doctor prescribes. And, under our 
plan, every pharmacy that is willing to play by the rules will be 
welcome to participate. Seniors will be able to go to the pharmacy of 
their choice.
  And, importantly, unlike the President's plan and the Congressional 
Republicans' plan, our plan will never force elderly or disabled 
Americans to give up traditional Medicare in order to get a 
prescription drug benefit. Beneficiaries will be free to choose between 
the traditional Medicare program and private plans. But it will be a 
real choice, not coerced through the lure of a more generous 
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. They like to talk about 
choices, but in the end their proposals all boll down to one choice for 
seniors--choose either the doctor you know and trust or the medicines 
you know you need. This is not a choice that anyone should have to 
make.
  The Administration claims to offer seniors the same choices that 
Members of Congress and federal employees get through the Federal 
Employees Health Benefits Program (FEHBP). Again, this is nothing more 
than hyperbole. Almost all Members of Congress, and most federal 
employees, are in the Blue Cross Standard Option plan in FEHBP. That 
plan offers a drug benefit with no deductible, a 25 percent copayment, 
and a $4000 cap on all medical spending per year. No Republican has 
come forth with a comparable Medicare prescription drug benefit. Our 
bill does just that.
  The Republicans' goal is simple: they are using the promise of a 
prescription drug benefit to attempt to privatize Medicare. No matter 
how you measure it, beneficiaries will pay more and get less under the 
Republican plan. At the same time, they are doling out hundreds of 
billions of dollars in federal tax dollar giveaways to their friends in 
the insurance and pharmaceutical industries.
  Our legislation will not be cheap. But none of us question 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.
  The President has committed $400 billion to a Medicare drug benefit 
and so-called Medicare reform. On top of that, he's committed $726 
billion to an economic stimulus plan that includes dividend cuts and 
speeding up tax breaks for the very richest among us. No one believes 
that this tax cut will provide real economic stimulus. If he would 
simply reduce its size, we could rededicate those funds to improving 
Medicare. That is a much more important priority for our nation than 
more tax cuts for those who need them least.
  Unfortunately, it is not the goal of Republicans to create an 
affordable, meaningful prescription drug benefit in Medicare that works 
for all our Medicare beneficiaries of today and tomorrow. Instead, 
their prescription drug proposals are designed simply to provide 
political cover for the President and Republican Members of Congress--
and to allow them to privatize Medicare so that the federal 
government's expenses are protected rather than protecting the expenses 
of seniors and people 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. This is the drug benefit America's seniors and people with 
disabilities need and deserve. I urge my colleagues to join us in 
support of a real Medicare drug benefit by pushing for passage of the 
Medicare Rx Drug Benefit and Discount Act this year.

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