Story URL: http://news.medill.northwestern.edu/chicago/news.aspx?id=66541
Story Retrieval Date: 2/9/2010 8:18:57 PM CST
--Illinois Department of Aging Senior Help Line 1-800-252-8966
--http://www.mymedicarematters.org
--http://www.medicare.gov/
Compare 2007 Illinois Part D options to those offered in 2008:
2007: http://www.medicare.gov/MPDPF/Public/Include/DataSection/Results/ListPlanByState.asp#PDP
2008: http://www.medicare.gov/MPDPF/Public/Include/DataSection/Results/ListPlanByState.asp
Savings the sponsors say the proposal would achieve:
• Medicare-operated drug plan would save $42 billion in tax-payers' money
• $4.6 billion savings by eliminating “administrative business and bargaining costs” of private plans
Proponents key arguments for change:
• Drug prices offered by Veterans Affairs are 50% lower than those in the private plans; Medicare users should have comparable prices
• Private plan operators receive $1 billion annually in rebates that are not passed on to patients
Having a choice among more than 100 health and prescription drug plans should be a good thing, right?
Not necessarily, according to Illinois lawmakers Sen. Dick Durbin and Rep. Jan Schakowsky. On Tuesday, they joined another U.S. Representative to propose legislation that would give Medicare users the option of a Medicare-operated drug plan.
Currently, Medicare users can buy prescription drug insurance through a federally subsidized drug plan known as Medicare Part D. The program gives participants access to insurance from a number of private insurers. Participants pay monthly premiums and an annual deductible, which vary by plan.
The proposal would provide a nationally uniform premium and consistent coverage and prices. It would be available as an alternative to the existing program, not replace it.
The lawmakers said the varying private plans are a source of confusion, an expense to users and a bear to taxpayers.
“I would venture to say that every single member of Congress has experience being called upon by their constituents, who are absolutely in the dark about how they’re going to deal with this,” Schakowsky said.
According to a report released Tuesday by the Medicare Rights Center, more than 43 million Americans use Medicare. Health and Disability Advocates, an Illinois advocacy group, estimated 1.6 million Medicare users in Illinois in 2005.
Legislation made the drug plans private in 2003 and controversy has surrounded Part D since then. The open enrollment period for 2008 begins Nov. 15 and ends Dec. 31.
Advocates for seniors were thrilled to hear of the proposed legislation.
“The choice, complexity, and variations of the private plans are confounding Medicare beneficiaries,” said Judith Stein, executive director of the Center of Medicare Advocacy. “Offering an option for people to stay in the traditional Medicare program and get their prescription drug benefit there is exactly what [they] need.”
If the bill does not pass, “It would just help drive up those costs for everyone who is fortunate to have health insurance,” said Jim Duffett, executive director of the Campaign for Better Health Care, an Illinois advocacy group for accessible health care.
However, Medicare Part D has supporters with a strong lobbying presence.
“Legislative efforts to establish a government-run plan could restrict that important access to potentially life-saving drugs and limit the choices that are available to Medicare beneficiaries,” said Ken Johnson, senior vice president for a pharmaceutical lobbying group.
Johnson disputed that eliminating Part D would reduce costs for taxpayers.
“The nonpartisan Congressional Budget Office recently reduced its 10-year projection of the Medicare prescription drug program’s total cost by $387 billion, or 32 percent, as compared to its projection from a year earlier,” Johnson said.