The Medicare program provides important medical and hospital benefits to beneficiaries across Kentucky and the country. In fact, there are about 40 million seniors and disabled individuals enrolled in the Medicare program. This number is only expected to grow as baby boomers begin retiring.
In 2003, Congress and President Bush took a major step to strengthen the Medicare program and added a prescription drug benefit for our seniors. As a member of the Senate Finance Committee, which has jurisdiction over Medicare, I worked hard with my fellow Senate colleagues to create the best benefit possible for Medicare beneficiaries. I was supportive of this legislation as it moved through Congress and was proud to vote for it. Too many seniors struggled to afford their prescription drugs, and it was time for Congress to finally create this benefit.
Under this bill, Medicare will begin offering a voluntary prescription drug benefit to beneficiaries in 2006. Low-income beneficiaries will receive additional assistance with their drug costs. For 2004 and 2005, seniors will also have access to a drug discount card that will provide average savings of 10% to 25% on prescription drugs. Low-income beneficiaries get immediate assistance with their drug expenses through a $600 subsidy in both 2004 and 2005.
Seniors will also have more choices in receiving Medicare. Seniors can choose to stay in traditional fee-for-service Medicare and enroll in a stand-alone drug plan, or they can choose to enroll in a preferred provider organization (PPO) or health maintenance organization (HMO) for Medicare beneficiaries.
There are many other elements in this bill, including provisions to get generic drugs to the market faster, add new preventative benefits to Medicare, provide more fair reimbursement of rural health care providers, add tax-free Health Savings Accounts. This new law strengthens Medicare and brings it fully into the 21st Century with a much promised and needed prescription drug benefit.
I am pleased that Congress was able to create this benefit, and I will continue working to make sure Medicare remains viable for both current retirees and future generations. |
