Confusion increases about
Part D Medicare Drug Card...will it be put on hold? Compounding
problems, costs to government, drug costs to seniors further
illustrate Canadian option still best
Some Republicans
Recommend Delay in Medicare Drug Benefit, Other Cuts To Offset Cost
of Hurricane Recovery Effort...A report of newspaper, media coverage
on possible delay on Drug Card launch
Publisher's Note: We are
printing this wrap-up from the Kaiser Foundation as a public service
to America's Seniors as yet another example illustrating that the
Canadian prescription drug option is still best for the elderly.
Earlier articles have shown how seniors can save money by using
Canadian pharmacies even if they pay a $20 monthly premium for a
Medicare plan and don't use it! Now, there are concerns about
fraud, and most recently, a realization that the excessive costs
caused by the virtually guaranteed profits for drug companies and
insurance companies and pharmacy managers, are a terrible strain
upon the budget even in the best of times. Add the tremendous
costs of natural disasters (Katrina, Rita), and an increasing move
is afoot to delay Part D implementation--a move opposed by the drug
companies and plan administrators and insurance companies.
At the same time, the Republican
Study Committee is suggesting putting additional burdens upon
America's Seniors with recommendations for higher Medicare costs and
cuts in service.
It will be advisable for American seniors to watch closely to see
what cuts are made and who will be forced to share the burden of the
budget crisis...seniors who will pay the costs through increases in
Medicare premiums and for services such as home care...or the drug
companies, insurance companies and pharmacy managers who will profit
from Part D when the Plan could be delayed and American seniors
being urged to turn to licensed, registered Canadian pharmacies
thereby saving money for themselves while gaining access to safe,
low-cost prescription drugs. The report follows:
September 22, 2005
The
110-member
Republican Study Committee on Wednesday released a 23-page list
of proposed spending reductions to offset hurricane recovery costs
that includes a proposal to delay by one year the launch of the new
Medicare prescription drug benefit, the
South
Florida Sun-Sentinelreports (Lytle,
South Florida Sun-Sentinel, 9/22). Operation Offset is
a list of suggested budget cuts intended to make up for the
estimated $200 billion cost of recovery efforts from Hurricane
Katrina (Dennis/Higa, CQ Today,
9/21). The cuts recommended on Wednesday would result in savings of
$139 billion this year and $544 billion over five years (South
Florida Sun-Sentinel, 9/22). Many of the suggestions
previously have been made by fiscally conservative members of
Congress, but they have been rejected by the Bush administration or
failed in Congress (Gordon,
Long Island
Newsday,
9/22). "The biggest-ticket item" proposed by the RSC is the delay in
the Medicare prescription drug benefit, which is estimated to save
about $30.8 billion, the
Los
Angeles Timesreports (Hook/Havemann,
Los Angeles Times,
9/22). "Now is the time to begin to make the tough choices
necessary," RSC Chair Mike Pence (R-Ind.) said. Senate Majority
Leader Bill Frist (R-Tenn.) also said Congress might have to revisit
the Medicare prescription drug benefit (Stone,
USA
Today, 9/22).
Other RSC
Proposals
RSC also suggested increasing premiums for Medicare outpatient
services by 20% and requiring beneficiaries to pay 10% of the cost
of home health services. The two actions would save $45.3 billion
over five years. In addition, the RSC recommended implementing
Medicaid copayments of up to $5 per office visit or prescription to
save another $2 billion over five years (South
Florida Sun-Sentinel, 9/22).
Reaction to
Medicare Proposal
White House press secretary Scott McClellan rejected the proposal to
delay the Medicare drug benefit, and House Majority Leader Tom DeLay
(R-Texas) called the proposal a "nonstarter" (Los
Angeles Times, 9/22). White House deputy press
secretary Trent Duffy said, "Seniors are going to get the
prescription drug benefit on time and on the current schedule,
because the president believes it is important to keep his
commitment to senior citizens" (Koffler,
CongressDaily, 9/21).
In "what is likely to be a sign of things to come," the
U.S. Chamber of Commerce is planning to send a letter to
congressional leaders stating its case for opposing a delay in the
Medicare prescription drug benefit,
The Hill reports. The
chamber says that the government and a number of organizations have
invested heavily in promoting the new benefit, and employers have
factored the changes to Medicare into their business plans for next
year. John Rother, director of policy and strategy at
AARP, said delaying the benefit "would throw things into mass
confusion," adding that the group will "mobilize very aggressively"
against such an action if the proposal goes forward."
Ken
Johnson, senior vice president at the
Pharmaceutical and Research Manufacturers of America, said,
"Postponing the start of the Medicare prescription drug program
would create mass confusion for seniors." Neil Trautwein, a lobbyist
for the
National Association of Manufacturers, said a delay would be
"catastrophic," adding, "We are so far down the road toward
implementation" (Young, The
Hill, 9/22).
Other
Recommendations
Another option under consideration by House and Senate Republican
leaders is an expansion of pending legislation that would cut
spending in Medicaid and other benefit programs, the
Times reports.
However,
Senate Budget Committee Chair Judd Gregg (R-N.H.) said it is
"unrealistic" to expect more cuts unless the effort is part of a
larger bipartisan federal budget deficit-reduction package that
includes both tax increases and spending cuts. Many Republican
leaders are discussing an "across-the-board cut" in programs, the
Times reports.
However,
Senate Finance Committee Chair Chuck Grassley (R-Iowa) said such
a move would be "politically difficult" (Los
Angeles Times, 9/22). Grassley also said that although
the finance committee will examine offsets in the future, "we're
going to take care of people in need first" (CQ
Today, 9/21).