New Medicare Law: Not What Seniors Ordered

Last year, the new Medicare Law was passed by a “slim margin” through the use of questionable tactics. First, the Senate approved the Medicare prescription drug bill by a vote of 54 to 44. Then in an unprecedented move, House Republicans held the vote open for three-hours (instead of the normal 15 to 20 minutes) so they could gather the votes needed to pass the bill. The House vote finally took place at 6 a.m.

The public and lawmakers were told the new Medicare Law would cost $400 billion over ten years. Just three months later, that amount had increased by roughly 33 percent to $534 billion. In addition, the Bush Administration undertook a huge $12.6 million advertising blitz at taxpayers’ expense.

How well do those most affected understand and support the new
law? According to a Kaiser Family Foundation Health Poll Report Survey conducted in February, when asked how well they understand the new Medicare Law, 60 percent of senior citizens (age 65 and older) said not well, and 55 percent said they have an unfavorable impression of the new Medicare Law. Only 17 percent of those surveyed have a favorable impression. Further in a March USA Today/CNN/Gallup poll, 48 percent of Americans 65 or older oppose the new law.

The following are just two of the many “Reasons Why the 2003 Medicare Law Fails Seniors” according to the Alliance for Retired Americans:

“The prescription drug benefit will be unaffordable for most seniors, particularly in future years.

Background: The Congressional Budget Office projects that after one year, the $250 deductible and the $2,250-5,100 gap both will jump 10 percent. By 2013, the eighth year of the program, the deductible and gap are projected to grow by 78 percent; seniors will pay a $445 deductible and those with the largest drug bills will be entirely responsible for more than $5,000 in drug costs.

The law does nothing to control prescription drug price inflation.

Background: The legislation explicitly prohibits the federal government from using its purchasing power on behalf of 40 million beneficiaries to bargain with drug companies …Thus, Medicare must pay whatever drug companies want to charge. The law would also continue the ban on reimporting safe, affordable drugs from countries such as Canada…”

To learn more about the new Medicare Law and what it means for you or a family member, log on to www.retiredamericans.org.