S. 1992 - Defense of Medicare and Real Medicare Prescription Drug Benefit Act
United States Senate
December 9, 2003
Statements on Introduced Bills and Joint Resolutions
(Page: S16127)
Mr. KENNEDY. Mr. President, today, along with Senator Bob Graham, I am introducing the “Defense of Medicare and Real Prescription Drug Benefit Act.” Congressman John Dingell is introducing companion legislation in the House of Representatives.
S. 1992. A bill to amend the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 to eliminate privatization of the medicare program, to improve the medicare prescription drug benefit, to repeal health savings accounts, and for other purposes; to the Committee on Finance.
Summary: Provisions of the Defense of Medicare and Real Medicare Prescription Drug Benefit Act
Title 1: Defense of Medicare
Repeals the premium support demonstration. Requires risk adjustment between private sector plans and Medicare. Medicare will pay private sector plans an amount reflecting Medicare’s cost for covering an individual, rather than paying HMOs a large markup as a result of failing to adjust for the better health of senior citizens who join HMOs.
Repeals PPO slush fund. Pays all private sector plans an amount equivalent to average Medicare costs, rather than paying an average of 109 percent of Medicare costs, as provided under the current legislation. Phased in over 5 years. Repeals Medicare spending cap.
Title II: Establishment of Real Medicare Prescription Drug benefit Eliminates coverage gap in 2006-2008, beneficiaries will pay 75 percent coinsurance in the coverage gap. In 2009-2011, they will pay 50 percent. In 2012 and subsequent years, they will pay the same 25 percent copayment as
under the initial coverage limit.
Eliminates discriminatory treatment of employer plans. Allows Medicaid wrap-around for dual eligibles. Eliminates assets test. Requires two stand-alone prescription drug plans to avoid federal fallback. Secretary defines classes and categories under any formula.
Repeals prohibition on Medigap coverage of prescription drugs. Modifies current Medigap policies covering drugs to wrap-around new benefit.
Phases out elimination of state “clawback.”
Title III: Reduction in Prescription Drug Prices
Allows reimportation from Canada with certification and inspection of Canadian exporters to assure safety of drugs. Repeals prohibition on government negotiating directly with drug companies for best prices and gives authority for such negotiations.
Title VI: Repeals Health Savings Accounts
http://thomas.loc.gov/cgi-bin/query/F?r108:1:./temp/~r108HTt6fm:e46026:
Sen. Kennedy’s press release:
http://www.senate.gov/~kennedy/statements/03/11/2003C10519.html
Comment: S.1992, the “Defense of Medicare and Real Medicare Prescription Drug Benefit Act,” would provide a bona fide prescription benefit for Medicare, and would protect Medicare as a program of social insurance. It would also repeal the health savings accounts (HSAs) which threaten all of us by reducing the affordability of care for those with the greatest health care needs.
This bill must be passed and signed. If the current Congress and President won’t do it, then we need to replace them with individuals who will.