President Obama Promises Doughnut Hole in Medicare
Drug Program Will Get Smaller
President says agreement has been worked out with
pharmaceutical industry for 50% discount
June 22, 2009 – President Barack Obama says he will
reduce the size of the infamous “doughnut hole” in Medicare Part D, the
Medicare prescription drug program, that has placed many senior citizens
in the position of not being able to buy prescribed medicines. He made
the announcement today and said an agreement had been reached over the
weekend with the pharmaceutical industry.
Senior citizens should not think the new plan will
leave Medicare and Medicaid untouched; Medicare Rights Center sees some
things it likes, and some it doesn't
By Tucker Sutherland, editor & publisher SeniorJournal.com
The President said, “… we reached an understanding
that will help close the notorious "doughnut hole" in Medicare Part D.
This is a significant breakthrough on the road to health care reform --
one that will make the difference in the lives of many older Americans.”
Obama said the change will be part of the health
care reform he expects Congress to enact this year. It will call for
Medicare beneficiaries, whose spending falls within this gap – the
doughnut hole, will now receive a discount on prescription drugs of at
least 50 percent from the negotiated price their plan pays.
“A discount of at least 50 percent in the coverage
gap will mean that more older adults and people with disabilities will
be able to continue taking their medicine as prescribed by their doctor
instead of choosing which drug they can ‘afford’ to take, a choice that
can endanger the lives of people with diabetes and heart ailments, and
other chronic conditions,” said a statement issued by Joe Baker,
president of the Medicare Rights Center.
“As always, the devil is in the details. We look
forward to working with President Obama and the Congress to making the
promised discount most useful.”
As the President explained, “The ‘doughnut hole’
refers to a gap in prescription drug coverage that makes it harder for
millions of Medicare beneficiaries to pay for the medication they need.
“The way the program is structured, Medicare covers
up to $2,700 in yearly prescription costs and then stops, and the
coverage starts back up when the costs exceed $6,100. Which means
between $2,700 and $6,100 folks are out of luck.
“And this gap in coverage has placing a crushing
burden on many older Americans who live on fixed incomes and can't
afford thousands of dollars in out-of-pocket expenses.”
The Medicare Rights Center believes the immediate
assistance provided by the discount complements the proposal to
completely phase out the Part D doughnut hole included in the health
reform legislation drafted by the chairmen of the three House
committees, according to the statement by Baker, president of the MRC.
“Full coverage of both brand-name and generic drugs
is the best way to ensure people with Medicare can afford the medicines
they need,” Baker added.
Obama said the agreement was reached this weekend
in meetings involving Senator Max Baucus (D-Mont.), Chairman, Senate Finance
Committee; members of the administration and representatives of the
pharmaceutical industry.
He complimented Chairman Baucus for “doing an
outstanding job leading the finance committee on this issue” and for
finding “a way to bring down costs of prescription drugs for America's
seniors.”
The President said as he traveled around the
country “seniors would constantly be coming up to us and saying, how do
we deal with this extraordinary burden? And as a consequence, you'd
have seniors who would be taking half their medication, even though the
doctor said that is not going to be as effective; you are putting your
life at risk. They had no other choice.”
The President concluded by commending the House for
the health care reform bill. “I might note,” he said, “that protects
seniors and has received the support of the AARP.”
He promised to continue to work closely with the
relevant chairs in the House and the Senate, and leaders like Senator
Chris Dodd and Senator Baucus, and with members of both parties “who are
willing to commit themselves to this critical task.”
Keep up with the latest news for senior citizens, baby
boomers
June 22, 2009 – President Barack Obama says he will
reduce the size of the infamous “doughnut hole” in Medicare Part D, the
Medicare prescription drug program, that has placed many senior citizens
in the position of not being able to buy prescribed medicines. He made
the announcement today and said an agreement had been reached over the
weekend with the pharmaceutical industry.