Medicare Prescription Drug Law Needs Changes

Medicare Prescription Drug Law Needs Changes

Wednesday, August 04, 2004

Letters to the Editor, Marysville Globe

Dear Editor:

The Medicare prescription drug law needs major changes if seniors are going to get help with the rising costs of medications, price increases that force seniors to choose between food and medicine.

I am fighting for a real Medicare prescription drug benefit that would lower drug costs for seniors and people with disabilities by allowing the government to negotiate lower drug prices and guarantee equal coverage for everyone.

The current law is unacceptable because it fails to bring down drug prices, prohibits the government from negotiating lower prices and leaves seniors with high out-of-pocket costs and a huge gap in coverage.

The drug discount cards fail to lower prices for most seniors. Because prices increased significantly before discounting them, in many cases prices are no lower than they were before the law was passed. A study by AARP demonstrated that brand-name drug prices rose on average almost three times faster than the rate of inflation in the first three months of this year.

Retirees with private prescription drug coverage are in danger of losing it. The nonpartisan Congressional Budget Office estimated that up to one-fourth of all retirees could lose their employer-sponsored coverage.

We need to make two major changes in order to fix this flawed prescription drug program.

First, Medicare must be able to negotiate lower drug prices for seniors, just like the Department of Veterans Affairs (VA) and many states do. Studies show that by negotiating prices directly, the VA obtains prices significantly lower than private plans, often cutting prices by 50 percent.

Second, we must ensure that seniors can get their medicine through Medicare, no matter where they live. Under the law, most seniors will rely on private insurance companies to get their prescriptions. We need to ensure a Medicare plan in every part of the country so that all seniors can get their medications from the Medicare they know and trust.

I continue to make it a priority to end the inequity in Medicare reimbursements. Washington state receives some of the lowest Medicare reimbursement payments in the nation. This injustice means that doctors in Washington state receive lower rates than doctors in other states do. It means that our seniors pay the same taxes as seniors around the country but get less for their money due to an unfair system.

I am fighting to make sure our local seniors get the health care they need. Whether it's the need for safe and affordable medications or equal access to health care for seniors, Congress must act to ensure that older Americans have a good quality of life long after retirement.

Rick Larsen