[Congressional Record Volume 150, Number 57 (Thursday, April 29, 2004)]
[Senate]
[Page S4631]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                      MEDICARE PRESCRIPTION DRUGS

  Mr. THOMAS. Madam President, we also have issues at home about which 
we ought to be talking. One of them is health care, of course. We have 
great health care in this country, the best in the world. We have some 
limited access, however, because of the costs, and we need to address 
that issue.
  There are many reasons for the costs. One reason is liability and 
malpractice, which we do not seem to be able to deal with. Another 
reason, I suppose, is overutilization. There is a difference between 
health care and health. We have some responsibility to take care of 
ourselves as well. Modern equipment is the biggest cost increase. We 
all want the modern equipment. We have to find the system in which the 
costs can be reduced.
  In any event, what we are talking about today is the opportunity to 
make it much better for Medicare folks through a Medicare drug discount 
card in which seniors will soon be able to enroll. All Medicare 
beneficiaries, except those who have medication paid for by Medicaid, 
will be eligible. While seniors may enroll in only one Medicare-
approved discount card, they can keep the other discount cards if they 
have them, if they like. There are going to be 40 official discount 
cards available. It is surprising there has been that much involvement. 
It shows we are moving in the right direction and doing what needs to 
be done.
  This is the first time in Medicare's history that seniors will have a 
discount for pharmaceutical drugs. Quite frankly, it is the first thing 
in about 30 years we have done to bring Medicare more into the modern 
world and give some options to seniors. I want to emphasize what is 
going to happen. In 2006, there are going to be options for seniors. 
They can stay with what they now have. It is also the first time that 
low-income seniors will receive additional assistance from the Federal 
Government for the cost of their medications. It is a great step 
forward for seniors to deal with the high cost of drugs.
  This is more of a temporary program. When we put this together in the 
Finance Committee, of which I am a member, we knew changes were going 
to be difficult. We knew it would take some time to prepare for those 
changes, not only on the part of seniors but on the part of people who 
have a program. This program will be implemented and in place until 
2006, when there will be a broad system put into place. We need to take 
advantage of this card system as quickly as possible so we get the 
benefits from it.
  I commend the hard work of Secretary Tommy Thompson and CMS 
Administrator Mark McClellan. There has been an overwhelming response 
to this program. As I mentioned, 40 drug discount cards will be 
available from which seniors can choose. I believe there are an 
additional 33 that will be available on a regional basis. So there is a 
lot of interest for doing something in this area.
  Drug card sponsors are required to provide information to 
beneficiaries, the annual enrollment fee cannot be more than $30 per 
year, and the people who are putting out the cards will have to show 
what their discount prices will be. The transparency will give an 
opportunity for people to choose what will work best for them.
  We are trying to make this as simple as possible. Medicare's Web site 
will be the best opportunity for people to get an update on drug 
prices. The Web site is www.medicare.gov. The information will be 
there. In my home State of Wyoming, AARP is holding seminars to help 
people understand the benefits, what the options are, and how you can 
take advantage of them. It is very important for seniors in the next 
couple of weeks to take advantage of the informational efforts being 
put forth. The easiest one, of course, is for seniors to call 1-800-
Medicare, and a live person in this country will answer and help them 
figure out the card that meets their needs the best.
  CMS has already received a lot of calls. They received 112,000 calls 
on Monday, as a matter of fact--isn't that amazing?--and 94,000 on 
Tuesday from seniors seeking information. It is the right thing to do 
to call that 1-800-Medicare number.
  The average wait is only a very short 22 seconds, I believe. This is 
a huge accomplishment for a Federal bureaucracy to be able to put this 
into place to deal with that many people in that short a time.
  By mid-May, seniors should make a decision so they can receive a 
card, and the benefits are to begin on June 1. I think it is great to 
take advantage of this information. Our own offices in Wyoming will 
have the information as to where people can go to get the information 
and find out the choices that are available.
  Contrary to what some people have said on the other side of the 
aisle, this discount card will provide for significant savings. There 
was a study that was done which shows there will be an approximate 17-, 
18- to 25-percent reduction in the cost. The average beneficiary will 
probably spend $1,500. This is a significant amount of saving over 
where we are today.
  It is expected that the overall savings to seniors would be probably 
about a billion dollars over the next year, and that is very useful.
  The card provides immediate help to the most needy Medicare 
beneficiaries. Low-income seniors who do not currently have 
prescription drug coverage or do not qualify for Medicaid will be given 
additional help. Low-income beneficiaries will be helped by receiving 
$600 annually to help them buy the medicine right from the 
pharmaceutical companies.
  To qualify for that additional assistance, they must have an income 
of 135 percent of the Federal poverty level. That is about $12,000 per 
individual or $16,000 for couples. If they qualify for Medicaid, of 
course, they get their assistance there and will not get it from the 
card.
  Further, the Federal Government will pay the annual enrollment fees 
for low-income seniors. Major card companies have told HHS that they 
will continue to provide the drugs that are already given free or at a 
steeply discounted rate for those people who qualify for the $600 use. 
So low-income people will reap a great benefit from this.
  In Wyoming, of course, we know that our AARP chapter and the Senior 
Health Insurance Information Program have been working hard. I think 
that is the case in all States. So I guess the point we are trying to 
make today is, here is a program that has the potential to be 
beneficial to all Medicare recipients. It is a choice program. If they 
have other cards that are not in this official brand, they may keep 
those. They do not need to get into it if they choose not to, but it is 
beneficial, and they need to know what is required to get the 
information and then have an opportunity to make choices among several 
things that can indeed happen.
  So we want to urge everyone to take advantage of this potential new 
change and the opportunities available to reap some savings and to make 
pharmaceuticals even a stronger part of their health care program by 
making them less expensive through this program.
  I yield to my friend from Wyoming.
  The PRESIDING OFFICER. The Senator from Wyoming.

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