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Press Release Wednesday, May 10, 2000 |
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Washington, D.C. -- Adrienne Hahn, senior legislative counsel for
Consumers Union, made the following statement today in support of the
Medicare prescription drug bill introduced by Senator Tom Daschle of
South Dakota and other members of Congress:
"Prescription drugs are an increasingly important part of the
health care needs of people who receive Medicare. To get the
prescription drugs they need, many Medicare recipients have to pay
large out-of-pocket costs. For instance, the typical senior without
prescription drug coverage spends 34 percent of after-tax income on
health care. When you consider that 54 percent of Medicare
beneficiaries make less than $15,000 a year, it is obvious how
difficult and widespread this financial burden is.
"This bill subsidizes premiums and cost sharing for Medicare
recipients with incomes below 135 percent of the poverty level. By
doing so, it alleviates the enormous financial burden that
prescription drugs put on the majority of seniors with modest
incomes. It also offers a catastrophic benefit with a 'stop-loss'
provision that puts a limit on those costs.
"We know about the recent cases of Medicare beneficiaries in rural
and hard-to-serve areas who have lost their health coverage. The
bill ensures that rural beneficiaries would receive the same
prescription drug benefit as other beneficiaries guaranteed under
this bill. The Secretary of Health and Human Services would provide
bonus payments to rural pharmacies and the private entities serving
those areas to ensure rapid delivery of prescription drugs.
"Congress has an important opportunity to protect Medicare
recipients from exorbitant prescription drug costs. We urge Congress
to pass this bill as soon as possible."
Consumers Union, publisher of Consumer Reports magazine, is an independent, nonprofit testing and information-gathering organization, serving only the consumer. We are a comprehensive source of unbiased advice about products and services, personal finance, health, nutrition, and other consumer concerns. Since 1936, our mission has been to test products, inform the public, and protect consumers.
