Undoubtedly, this is a complicated issue and the Medicare bill is far from perfect, yet we now have a measure that will dramatically improve the health and quality of life for our seniors nationwide. I do have concerns about the long term costs of this legislation and it is important to keep those costs in mind as the program becomes fully operational in 2006. I am pleased that Congress and the President capitalized on this historic opportunity to take the first steps toward bringing Medicare in line with modern medical practices.

As a member of the Senate Finance Committee which retains jurisdiction over this critical issue, I plan to monitor the implementation of the new Medicare Advantage plans (PPOs) to ensure rural seniors have access to the same types of prescription drug options as urban seniors.

The following highlights outline the impact this prescription drug provision will have on Wyoming Medicare beneficiaries:

The Bipartisan Agreement provides all of the 68,626 Wyoming beneficiaries access to a Medicare prescription drug benefit beginning in January 2006.

Beginning in 2006, the measure will give 20,253 Medicare beneficiaries in Wyoming access to drug coverage they would not otherwise have and will improve coverage for many more.

Wyoming residents are now eligible for Medicare-approved prescription drug discount cards, which will provide approximately 10 to 25 percent savings off the retail price of most drugs.

Beneficiaries with incomes of less than $12,123 ($16,362 for couples) who lack prescription drug coverage (including drug coverage under Medicaid) will receive up to $600 in annual assistance to help them afford their medications, along with the discount card. That is a total of $18,855,581 in additional help for 15,713 Wyoming residents in 2004 and 2005.

Beginning in 2006, all 68,626 Medicare beneficiaries living in Wyoming will be eligible to receive prescription drug coverage through a Medicare-approved plan. In exchange for a monthly premium of about $35, seniors who are now paying the full retail price for prescription drugs will be able to cut their drug costs roughly in half. In many cases, they’ll save more than 50 percent on what they pay for their prescription medicines.

23,058 beneficiaries in Wyoming who have limited savings and low incomes (generally below $12,123 for individuals and $16,232 for couples) will qualify for even more generous coverage. They will pay no premium for their prescription drug coverage, and they will be responsible for a nominal co-payment (no more than $2 for generic drugs or $5 for brand name drugs).

6,557 additional low-income beneficiaries in Wyoming with limited savings and incomes below $13,470 for individuals and $18,180 for couples will qualify for reduced premiums, lower deductibles and coinsurance, and no gaps in coverage.

Additionally, Medicare, instead of Medicaid, will now assume the prescription drug costs of 6,944 Wyoming beneficiaries who are eligible for both Medicare and Medicaid. This will save Wyoming $25 million over 8 years on prescription drug coverage for its Medicaid population.

Additional key provisions outlined in the Medicare Reform bill include:

The prescription drug plans and the integrated private plan options under Medicare Advantage are completely voluntary.

Seniors can remain in traditional Medicare if they wish.

If seniors currently have good retiree benefits they can keep them.

Low-income seniors will achieve additional assistance and have no gap in their coverage.

Rural providers will receive $25 billion in increased payments to address the current disparities in reimbursement compared to urban providers.