The House took a major step forward in the fight to add a prescription drug benefit to Medicare when it passed H.R. 4954, the “Medicare Modernization and Prescription Drug Act of 2002,” in June. This legislation, which I co-authored, would create a new prescription drug benefit available to all Medicare beneficiaries. The new benefit would be voluntary, which means that seniors who are already happy with their prescription drug coverage would not be forced to change.

Given the federal government’s limited resources and the strain that the impending retirement of the Baby Boom generation will place on the Medicare program, a prescription drug benefit needs to be fiscally responsible and target those with the greatest need. H.R. 4954 accomplishes this by fully subsidizing the premiums and deductibles of seniors with incomes below 150% of poverty. These seniors will only be responsible for a minimal copayment ($2 for generic drugs, $5 for brand name drugs). In addition, seniors with out-of-pocket drug expenses above $3,700 in a given year will have all of their drug costs above this amount covered through their Medicare prescription drug plans.

This legislation would help all other seniors realize discounts in their prescription drug bills. For instance, the average senior spends $2,150 on prescription drugs. Under the House-passed plan, that senior would save 44% on the cost of their medications.

H.R. 4954 provides these price discounts to every Medicare beneficiary that enrolls in the program. Seniors would receive these savings because the legislation uses the same market principles for gaining discounts that the Department of Veterans Affairs utilizes to negotiate deep discounts in the price they pay for prescription drugs. Moreover, we do not establish an artificial government price control that would inevitably stifle innovation and decrease Medicare beneficiaries’ access to life-saving medicine.

As I write this, the Senate has failed to act on its own version of a Medicare prescription drug benefit. Because of this, some people are trying to shift the spotlight to other issues, such as the high cost of many prescription medications. While I have and will continue to use my position as Chairman of the Energy and Commerce Health Subcommittee to investigate ways to lower drug prices, I believe that the best way to ensure that seniors have access to the lowest price medicines, not to mention the peace of mind associated with full protection against a catastrophic illness, is through the enactment of a comprehensive prescription drug benefit under Medicare. I am proud that the House passed a prescription drug benefit bill, and while I am disappointed that the Senate could not follow suit, you can rest assured that I will continue fighting until every senior citizen in America has access to a comprehensive Medicare prescription drug benefit.

September 2002