[Weekly Compilation of Presidential Documents Volume 42, Number 7 (Monday, February 20, 2006)]
[Pages 231-232]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
The President's Radio Address

February 11, 2006

    Good morning. Today I want to talk to you about the new Medicare 
prescription drug coverage that went into effect on January 1st of this 
year.
    When I came into office, I found a Medicare system that was 
antiquated and not meeting the needs of America's seniors. The system 
would pay tens of thousands of dollars for a surgery but not a few 
hundred dollars for the prescription drugs that could have prevented the 
surgery in the first place. So working with Congress, we passed critical 
legislation that modernizes Medicare, provides seniors with more 
choices, and gives seniors better access to the prescription drugs they 
need.
    Since the program went into effect 6 weeks ago, more than 24 million 
people with Medicare now have prescription drug coverage, and hundreds 
of thousands more are enrolling each week. The competition in the 
prescription drug market has been stronger than expected and is lowering 
costs for taxpayers and seniors alike. This year, the Federal Government 
will spend 20 percent less overall on the Medicare drug benefit than 
projected just last July. The average premium that seniors pay is a 
third less than had been expected--just $25 per month instead of $37 per 
month. And the typical senior will end up spending about half of what 
they used to spend on prescription drugs each year.
    Last month in Oklahoma City, a senior named Dorothy Brown signed up 
for Medicare prescription drug coverage. Dorothy has six prescriptions, 
and previously she paid about $300 a month for her medicines. A Medicare 
enrollment counselor at a shopping mall helped Dorothy log on to the 
Medicare web site, where she typed the information on Dorothy's Medicare 
card and listed Dorothy's prescriptions. When the counselor was 
finished, the computer showed five different plans that fit Dorothy's 
needs. Dorothy chose the least-expensive plan, and now, instead of 
paying $300 a month, she will pay about $36 a month for her medicines. 
As a result, Dorothy will save more than $3,000 this year.
    For Dorothy and for the vast majority of our seniors, the new 
prescription drug program is working well. Still, when you make a big 
change in a program involving millions of people, there are bound to be 
some challenges, and this has been the case with the new drug coverage. 
Some people had trouble the first time they went to the pharmacy after 
enrolling. Information for some beneficiaries was not transferred 
smoothly between Medicare, drug plans, and the States. And in the early 
days of the drug coverage, waiting times were far too long for many 
customers and pharmacists who called Medicare or their drug plans to 
seek help.
    Secretary of Health and Human Services Mike Leavitt has traveled to 
18 States in the past 3 weeks to meet with Governors and make sure the 
prescription drug program is working for everyone, and we're making good 
progress. We're ensuring that drug plans have more up-to-date 
information on their beneficiaries, and we're improving data-sharing 
among Medicare, health plans, and the States. We have also extended the 
transition period from 30 days to 90 days, to guarantee that seniors do 
not go without the medicine they need as they switch to a new drug plan. 
We have also acted to ensure that phone calls to the Medicare help line 
are now answered with little or no waiting time, and we're working with 
insurers to help them do the same on their phone lines.
    Despite early challenges, the results so far are clear: The new 
Medicare prescription drug plan is a good deal for seniors. If you're a 
Medicare recipient and have not yet signed up for prescription drug 
coverage, I encourage you to review your options and choose the plan 
that is right for you. Americans who

[[Page 232]]

have parents on Medicare should encourage and help them to sign up. 
Citizen groups, faith-based organizations, health professionals, and 
pharmacies across America are working to help answer questions. Seniors 
can also get information 24 hours a day by calling 1-800-MEDICARE or by 
visiting the official Medicare web site at medicare.gov.
    Prescription drug coverage under Medicare has been available for 
just a few weeks, but its benefits will last for decades to come. I was 
proud to sign this Medicare reform into law. And because we acted, 
millions of American seniors are now saving money, getting the life-
saving drugs they need, and receiving the modern health care they 
deserve.
    Thank you for listening.

Note: The address was recorded at 7:10 a.m. on February 10 in the 
Cabinet Room at the White House for broadcast at 10:06 a.m. on February 
11. The transcript was made available by the Office of the Press 
Secretary on February 10 but was embargoed for release until the 
broadcast. The Office of the Press Secretary also released a Spanish 
language transcript of this address.