Congresswoman Grace F. Napolitano (D-Norwalk) today announced her enthusiastic endorsement of a Democratic plan to create a prescription drug benefit in Medicare following the unveiling today of rival Democratic and Republican proposals. The Democratic plan, unlike the Republican proposal, provides a comprehensive benefit that is affordable and dependable for all beneficiaries with no gaps in coverage.

“I have spoken to countless seniors in my community who face great financial hardship due to the high costs of prescription drugs. Many are forced to chose between buying essential medicine and paying for food or rent. I have long advocated for a Medicare prescription drug benefit to help alleviate this burden, and after years of talk, I am pleased to finally see action being taken on this issue,” said Congresswoman Napolitano.

The Democratic proposal, crafted primarily by leaders of the Energy and Commerce Committee

and the Ways and Means Committee, offers voluntary prescription drug coverage for all Medicare beneficiaries beginning in 2005. Seniors who chose to participate would pay a $25 monthly premium, $100 annual deductible, and 20% of all of their prescription drug costs, up to $2000 per year. Beneficiaries with incomes up to 150% of the federal poverty limit (which, for a family of 4 is $18,100) pay no premium or cost-sharing. Beneficiaries with income between 150 - 175% of poverty will pay on a sliding scale.

“Unfortunately, the proposal offered by the Republican leadership does not guarantee that seniors will have affordable drug coverage. Their proposal covers less than a quarter of Medicare beneficiaries’ estimated drug costs over the next 10 years. The Republican bill pays nothing for drug costs between $2,000 and $5,600. Nearly half of all seniors have drug spending over $2,000 and will remain uncovered until their costs reach $5,600. The Republican bill could potentially cost seniors $3600 per year in out-of-pocket expenses for prescription drugs. It would also create strict formularies, limiting access to prescription drugs,” said Congresswoman Napolitano, in response to the majority’s proposal. She continued, “All seniors, regardless of their financial means, must have affordable access to the newest and most effective drugs, and I will oppose any attempts to limit their access.”

Several Senators are also crafting their own proposals. Debate and a vote on the House measures are expected to occur before the July 4 recess.

Representative Grace F. Napolitano, 38th District of California

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