Durbin, Schakowsky Introduce Legislation To Increase Competition And Lower Costs In Medicare Part D

Press Release

During a week that marks both the 25th anniversary of the Americans with Disabilities Act and the 50th anniversary of Medicare, U.S. Senator Dick Durbin (D-IL) and U.S. Representative Jan Schakowsky (D-IL) are introducing legislation that would increase competition and help lower drug costs for seniors and persons with disabilities who are enrolled in the Medicare Part D prescription drug program.

"For fifty years, Medicare has been not just a safety net, but a lifeline for millions of Americans," Durbin said. "The bill I am introducing with Representative Schakowsky would build on that legacy by lowering costs for prescription drug plans under Medicare Part D. Introducing more competition for plans, and giving Medicare the authority to negotiate on behalf of its beneficiaries is the right prescription for real savings on drug prices for America's seniors."

"When I talk to families in my district and across the nation they often tell me they are struggling to pay for the prescription drugs they need," Schakowsky said. "Our legislation provides an alternative to the unchecked private prescription plans in Medicare Part D. Seniors and people with disabilities could choose a public plan offered by Medicare that would not only cost less, but would free them from having to deal with private plan changes during annual Part D enrollment time. This legislation has the potential for enormous savings to Medicare beneficiaries, and it would also reduce our country's deficit."

The Medicare Prescription Drug Savings and Choice Act would create one or more Medicare-administered prescription drug plans to compete with the expensive, privately administered prescription drug plans currently offered under Medicare Part D. The bill would also require the Secretary of Health and Human Services to negotiate lower drug prices.

The legislation would help protect seniors and individuals with disabilities by providing an alternative to the confusing private prescription drug plans, marketing practices, and formulary changes that have made deciphering among Part D plans very difficult. The prescription plan -- or plans -- administered by Medicare would not eliminate the private plans that are currently offered but, by providing competition, would put downward pressure on the drug costs in private plans as well.

Source