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| Wilson Lunches with Seniors; Talks Prescription Drugs |
November 24, 2003 |
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| Washington, DC — Congresswoman Heather Wilson today joined seniors in Albuquerque and answered questions about the voluntary prescription plan that will help seniors pay for medicine.
About 94,000 lower-income New Mexico seniors will pay no premiums for prescription drug coverage once the bipartisan Medicare plan fully takes effect in 2006. The historic plan was approved by the U.S. House of Representatives early Saturday.
“Many New Mexico seniors with lower incomes will qualify for coverage without a premium,” Wilson said. “Seniors need a prescription drug plan now. It’s time. Prescriptions are expensive, and this is a plan that will make a difference for seniors and especially for people with lower or fixed incomes.”
Another 17,000 lower-income seniors will also be eligible for reduced premiums. A combined total of 45 percent of New Mexico seniors, more than 110,000, will pay reduced premiums or none at all.
Under the plan passed late Friday by the U.S. House of Representatives, 40 million Medicare beneficiaries nationwide and 250,000 seniors in New Mexico would be guaranteed access to a voluntary prescription drug benefit beginning in 2006. The drug coverage is projected to save seniors an average of 50% off the cost of their prescriptions. Everyone in the Medicare plan will also see immediate assistance with the cost of prescription drugs through prescription drug discount cards.
“Seniors will receive discounts between 15% to 25% off the retail price of their prescription drugs starting in April 2004,” said Wilson. “This will improve their quality of life.”
The Medicare prescription drug discount cards will be available beginning in April 2004. The cards will offer discounts between 15% and 25% off the retail price of their prescription drugs. Seniors earning less than $12,123 per person and $16,362 per couple will receive $600 of additional assistance per year for 2004 and 2005.
“Fifty thousand of New Mexico’s seniors will qualify for this additional $600 subsidy,” said Wilson. “This program means significant savings to all seniors, but low-income seniors fair exceptionally well. Some of these seniors are splitting pills to get by or are doing without.”
What the Bipartisan Agreement Means for New Mexico
Impact of Prescription Drug Provisions of the Bipartisan Agreement for New Mexico Medicare Beneficiaries:
The Bipartisan Agreement provides all of the 249,744 beneficiaries in New Mexico with access to a Medicare prescription drug benefit – for the first time in the history of the Medicare program – beginning in January 2006.
Beginning in 2006, the Bipartisan Agreement will give 55,605 Medicare beneficiaries in New Mexico access to drug coverage they would not otherwise have and will improve coverage for many more.
Within six months after the bill is signed, New Mexico residents will be eligible for Medicare-approved prescription drug discount cards, which will provide them with savings of between 10 and 25 percent 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 get up to $600 in annual assistance to help them afford their medicines, along with the discount card. That’s a total of $58,917,644 in additional help for 49,098 New Mexico residents in 2004 and 2005.
Beginning in 2006, all 249,744 Medicare beneficiaries living in New Mexico will be eligible to get 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.
94,051 beneficiaries in New Mexico 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).
17,337 additional low-income beneficiaries in New Mexico 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 35,203 New Mexico beneficiaries who are eligible for both Medicare and Medicaid. This will save New Mexico $62 million over 8 years on prescription drug coverage for its Medicaid population.
Estimated payment increases to NM physicians: $44 million
Estimated payment increases to NM hospitals: $107 million ($72 million Medicaid DSH, $35 million other) |
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