The Medicare Bill – A Trojan Horse for Special Interests
	The Medicare bill recently passed by the US House of Representatives is a Trojan Horse bearing goodies for lobbyists and special interests.  This Republican-drafted bill includes many provisions that will not be helpful for New York.     I voted against the Republicans’ plan because it will not do enough to control the rising costs of prescription drugs, will privatize Medicare and will result in 2.7 million retirees losing their existing health care coverage.   Once again the Republican leadership dishonors the House of Representatives and the American people with their flagrant disregard for basic principles of democracy.  When the Republican Medicare bill was brought to the House floor, Democrats won the vote 218-216, but for a record three hours Republicans refused to officially end it.  Republicans thwarted the democratic process while attempting to persuade their Members to change their votes in favor of the bill.  The House Republican leaders twisted arms, made back room deals for special interests and finally changed votes.    A vote against this bill was a vote for lower drug prices, a vote for preserving the Medicare program, and a vote to ensure that millions of retirees keep their health care.  Instead of providing a guaranteed, defined prescription drug benefit for all under Medicare, in the middle of the night Republicans put the interests of HMOs and big drug companies before the interests of seniors and the disabled.   This bill, which is scheduled to take effect in 2006, prohibits Medicare from negotiating lower drug prices and blocks re-importation of drugs from other countries at lower prices.  In addition, 2.7 million seniors will lose their employer-provided retiree prescription drug coverage; up to 6.4 million of the poorest Medicare beneficiaries will get less drug coverage than they have now; and millions of seniors will see their Medicare premiums rise if they refuse to give up their doctors and join HMOs.   The Republican plan fails millions of America’s seniors.  Even though the bill requires seniors to pay premiums year-round, its $2,850 gap in coverage hurts the middle class and leaves many seniors without coverage for part of the year.  It will add to the number of uninsured by spending $6.7 billion on ineffective health savings accounts for the wealthy, while six million low-income seniors who get additional assistance from Medicaid will pay more for their prescriptions.  Unfortunately for the more than 40 million seniors who have known and trusted Medicare for nearly 40 years, this debate was not about adding a prescription drug benefit under Medicare, it was a debate to save Medicare altogether.   New Yorkers will undoubtedly pay higher premiums than the advertised average of $35 per month per beneficiary.  At the same time their benefits from the plan will be modest, probably only 30% lower costs.  In addition, the State’s EPIC program that has provided support for seniors for their drug costs will have to be dismantled and restructured.  This bill will force the EPIC program to give up its open formulary and thus restrict access for drugs for New York seniors.  It will also limit which pharmacies seniors now benefiting from EPIC can use.  Most New York seniors now enrolled in EPIC will see their access to drugs and choices of pharmacies limited.  Furthermore their benefits will decline under the proposed plan unless EPIC is converted to be a “wrap around” supplemental policy to cover the beneficiaries share.    In addition, while the bill includes some restoration for payments to hospitals for additional costs of medical education, it leaves New York hospitals millions of dollars short to be able to sustain services for New Yorkers.  The State and its cities and counties will save only a minimal amount from the Federal takeover of the pharmaceutical benefits for those elderly who are dually eligible for Medicare and Medicare.  They will have to give back 75% of what is saved.   This Medicare bill is not a real solution for the problems facing America’s seniors.  Our seniors deserve better.                                                                                                                                                                                                  phone 202 225-4361 -- fax 202 225-6001                     email: jserrano@mail.house.gov -- web address: http://www.house.gov/serrano

November 25, 2003