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Portland, OR-- Today Congressman David Wu announced his plan to improve the Medicare prescription drug program and to help Oregon receive a fairer reimbursement rate from Medicare. Today's announcement took place at a press conference with representatives of United Seniors of Oregon and Tuality Healthcare.
“Today too many Americans have to make the unthinkable choice between paying the rent, buying groceries or paying for prescription drugs. Who among us would want our loved ones faced with that terrible dilemma?” asked Congressman David Wu.
The Medicare prescription drug bill, which was signed into law in December 2003, provides a prescription drug benefit for the first time since Medicare’s creation in 1965. The law assists low-income Medicare recipients through the elimination of or reduction of premiums, deductibles and co-pays. For seniors who participate and have prescription drug costs up to $2250, approximately one-half of that cost is covered. The bill also helps those Medicare recipients whose prescription drug spending exceeds the catastrophic limit of $5,100 per year. Medicare will pay for all of those costs.
“There is more to be done. That is why today I am announcing my legislation to improve on this first effort," commented Wu.
Congressman Wu’s legislation, the Medicare Prescription Drug Improvement Act will do three things: allow for the legal reimportation of safe, lower-cost prescription drugs; allow the federal government to directly negotiate better drug prices; and close the gap or “doughnut hole” in prescription drug coverage between the initial coverage and the catastrophic limit.
“Today Americans often pay up to 60 percent more for the same brand name drugs as a person in Canada, France or Germany. That’s not right. Americans should not have to pay a disproportionate amount of the costs of research and development or for the advertising of a new drug.”
The Medicare Prescription Drug Improvement Act will also allow the federal government to directly negotiate with drug manufacturers and pharmacies in order to reduce the cost of prescription drugs for Medicare recipients. Currently the Secretary of Health and Human Services is barred from interfering with negotiations between drug manufacturers and prescription drug sponsors.
Congressman Wu also announced his plan to help Oregon receive its fair share of Medicare reimbursement. The Medicare Equity and Fairness in Fee for Service Reimbursement Act addresses the issue of fairness in Medicare reimbursement. Oregon has one of the worst Medicare reimbursement rates in the nation. The National reimbursement average is $5,490 per patient. The District of Columbia receives $10,373 per patient. Oregon receives only $3,829 per patient.
The inequality between states occurs because a formula was developed that rewards inefficient practices. States with the highest medical costs - often those that are least efficient - are rewarded with higher reimbursements. Since Oregon has been on the cutting edge of efficiency, it is punished in its reimbursement.
This inequity means Oregon struggles with an inadequate amount of money to reimburse for services. While Floridians are able to get coverage for eyeglasses, prescription drugs, and even gym memberships, Oregonians do not.
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