Medicare Needs a Voluntary Prescription Drug Benefit
For several years, Congress has failed to act on one of the pressing problems facing seniors: helping them afford prescription drugs. Now that it is an election year, the majority party in Congress seems willing to at least acknowledge the significance of this problem. Hopefully Congress will do more than create false hopes and endlessly debate options that never become law and actually meet this important need.
We need leadership and we need it now. Statistics demonstrate that seniors on fixed incomes are tremendously vulnerable to skyrocketing drug prices and the need for prescription medications. That’s why I support establishing a voluntary prescription drug benefit within Medicare.
If we use the budget surplus to preserve Medicare, as I believe we must, a portion of the funds can be used to cover these costs.
Congress, in administering health care policy, has not kept up with changes in health care delivery. Medicare was designed to protect seniors from high costs of surgery and hospital stays. Over time, the prominence of prescription drugs in patient care has increased tremendously and moved the cost burden away from hospital care and toward day-to-day drug costs.
Drugs that lower cholesterol, regulate blood pressure or treat cancer, heart disease, arthritis or osteoporosis, for example, had not been invented in 1965 when Medicare was being created. These drugs are making great improvements in life expectancy rates, as well as quality of life. However, the cost is burdensome.
Consider these facts:
* Of the 39 million Americans enrolled in Medicare, one-third to one-half must pay for prescription drugs completely on their own.
* The prices of the 50 prescription drugs most commonly used by older Americans increased by twice the rate of inflation for each of the previous five years.
* Prescription drug prices for those without insurance coverage--largely older Americans and those with disabilities--are typically 15% higher than prices paid on behalf of people with coverage.
* On average, an American older than 64 uses 18 prescription drugs a year.
* Prices for prescription drugs in the U.S. are, on average, 205% higher than prices in Canada.
Why use Medicare? There are several compelling reasons. Medicare would allow us to cover the most seniors. The scope of Medicare would give the strongest possible position to negotiate with drug companies. Seniors are the least likely to receive the benefit of discounts on prescription drugs provided to bulk purchasers, such as health plans covering younger citizens. This means that the cost of the same drug, when purchased by a senior citizen paying out of pocket, is 15% more than the cost paid by an insurance company on behalf of a policyholder.
As with every political issue these days, you must follow the money. The pharmaceutical industry spends more on lobbying and campaign contributions than any other industry in this country. Perhaps that’s why so many in Congress rely on rhetoric when discussing this issue.
Establishing a voluntary prescription drug benefit within Medicare is the right thing to do, both in the short term and long term. We cannot wait any longer. People deserve more than mere rhetoric. They deserve action from Congress now.
