Prescription Drugs Package

July, 2002

Improving healthcare for America’s seniors is a top priority for Congress and the President. Dramatic increases in federal funding for medical research and expanded access are making possible new and innovative treatments for diseases such as cancer, Alzheimer’s, and Parkinson’s, broadening the range of treatment options available to most patients, and improving the efficacy and convenience of high quality healthcare.

Late last month, the House passed a comprehensive Medicare prescription drug benefit to provide seniors with the assistance they need to meet rising prescription drug costs. Most importantly, under the House plan, all Medicare beneficiaries will be covered should they choose to sign up. This benefit will provide seniors with an invaluable helping hand in meeting the cost of the most advanced and effective prescription drug therapies.

The following are a few highlights from the House passed Medicare Modernization and Prescription Drug Act of 2002:

Affordable Access for All Seniors:

• Premium approximately $35 per month or $1 a day
• $250 deductible
• $251-$1,000: 80% coverage, 20% cost-sharing
• $1,000-$2,000: 50% coverage, 50% cost-sharing
• Catastrophic protection after $3,700 out-of-pocket: 100% of costs covered
• Medicare pays for the premium and nearly 100% reimbursement for the lowest-income seniors (under 150% of the poverty level)
• Lower premiums for those under 150% to 175% of the poverty level

Quality Healthcare for All Seniors:

• Use of new technology to minimize medical errors
• Improved processes to safeguard against adverse drug interactions
• Pharmacy therapy management for chronic conditions

I welcome your comments and look forward to hearing from you.