Medicare Reform and the Prescription Drug Benefit-Just the Facts

Medicare Reform and the Prescription Drug Benefit-Just the Facts

Here are the facts about the Medicare Reform and Prescription Drug Benefit legislation that was passed and signed into law.

The plan provides a prescription drug benefit package that will help more Americans get the prescription drugs they need at a price they can afford. Additional reforms designed to modernize Medicare will preserve, protect, strengthen and simplify the program. For these reasons, and others, AARP endorsed the landmark legislation.

The plan is voluntary. Seniors can choose to participate if they want or opt to remain with their current coverage. Seniors, you're in charge. If seniors want to keep their Medicare the way it is, along with the new prescription benefit, that is their right.

Seniors will have more choices. The legislation assures that seniors have the right to choose the healthcare provider, healthcare plan and prescription drug benefit that is best for them. Every senior needs to know if they don't want to change their current coverage, they don't have to change.

Medicare reform will reduce healthcare costs. This year, seniors will start receiving their Medicare prescription drug discount cards. The Medicare prescription discount card will help more Americans get the prescription drugs they need at prices they can afford.

Seniors with the greatest needs will receive the greatest help under the modernized Medicare system. The new law offers the most help to one-third of senior Americans with low incomes (couples with annual incomes of $18,000). Low-income seniors will pay little or no premium for full drug coverage. Their deductible will be no higher than $50 per year, and their co-payment will be no more than $5 per prescription.

Catastrophic coverage means that Medicare pays 95% of drug costs over $3,600 per year. That cap on out of pocket expenditures for prescription drugs guarantees that seniors will be able to obtain the medications they need when they need them and that those medicines will never jeopardize a lifetime of savings.

President Bush said, "Medicare is a great achievement of a compassionate government and it is a basic trust we honor. Medicare has spared millions of seniors from needless hardship. Each generation benefits from Medicare. Each generation
has a duty to strengthen Medicare. And this generation is fulfilling our duty."

Healthcare, especially prescription drugs, has been at the center of the national debate for over a decade and it is exciting to be part of the U.S. Congress that was able to Modernize Medicare and provide a prescription drug benefit for American seniors. We have succeeded in creating a prescription drug plan that gives seniors the coverage they need. This plan is flexible for seniors, completely voluntary, offers complete coverage for those who need it most and provides significant savings for all seniors.