Statement By AARP Advocacy Director Chris Hansen On The House Medicare Prescription Drug Plan

6/28/2002

From: Nancy Thompson or Marty Davis, 202-434-2560, both of AARP

WASHINGTON, June 28 -- Following is a statement by AARP Advocacy Director Chris Hansen On The House Medicare Prescription Drug Plan:

AARP members want a prescription drug benefit signed into law this year. The vote in the U.S. House of Representatives to make a voluntary prescription drug benefit a permanent part of Medicare is a step towards that goal. However, improvements are needed in the funding adequacy, structure, and benefit viability of this plan.

The blueprint for success is affordability and value. AARP research shows that beneficiaries assess the value of a prescription drug benefit by adding up the premium, coinsurance and deductible to determine if it is a good buy. The large gap in coverage that exists in the House bill is a disincentive to enrollment. More funds are needed to close this gap and ensure the viability of the program.

AARP members need this coverage now. They cannot wait any longer for protection against the increasing cost of prescription drugs. The passage of prescription drug legislation by the House of Representatives moves the Medicare program one step closer to providing millions of older and disabled Americans with some help against the rising costs of prescription drugs. Now it is time for the Senate to act and improve upon the House bill.

Throughout the July 4th Congressional recess and the rest of the summer, voters will be calling on their Senators to urge them to work together to resolve these issues and bring a bill to conference that provides real value to Medicare beneficiaries.