WASHINGTON, June 27 (UPI) -- Top House Democrats laid out their plans for reforming the Medicare Part D prescription drug benefit at a news conference Tuesday, vowing to make it simpler and more affordable.
House Minority Leader Nancy Pelosi, D - Calif., Rep. Charles Rangel, D-N.Y., ranking Democrat on the House Ways and Means Committee, and others introduced the Democratic Prescription for Change, a series of proposed changes to the current Part D set-up that would address some of the loudest criticism of the program.
The announcement was also another move in the battle for control of Congress in upcoming elections, where Democrats have indicated they plan to make the Bush administration's handling of Part D a campaign issue.
"This plan was brought to you by the same people who want to privatize Social Security," Pelosi said. "This is all part of the same assault on America's seniors and people with disabilities."
The amended benefit would change the rules to allow a Medicare-administered benefit to exist alongside the current privately-operated drug plans, give the Secretary of Health and Human Services the power to negotiate drug prices directly with drug manufacturers and eliminate a current subsidy for Medicare Advantage managed care plans.
The savings from those changes would then be used to eliminate the so-called donut hole -- a gap in coverage included in many existing plans during which seniors still pay premiums but are responsible for 100 percent of their drug expenses. Additional language would be added to limit private plans' ability to impose higher co-payments and impose administrative barriers like prior-authorization and step therapy.
Finally, the plan would extend the enrollment deadline so that seniors are not forced to pay a penalty for joining late.
"Democrats have proposed a new direction for America -- new priorities that will build a stronger country for all Americans. Central to our new direction is expanding access to quality healthcare for Americans," Pelosi said. "We will begin by making prescription drugs more affordable for our seniors. We will also ensure a dignified retirement and protect the guaranteed benefit of Social Security from any attempts at privatization."
She then highlighted the case of a man named Andre Lewis from Lanham, Md., who said he is currently experiencing the donut hole coverage gap.
Rangel called the benefit a giveaway to prescription drug companies, and said that reigning them in could provide the funds necessary to eliminate the donut hole.
"The government is saying 'We're staying with you as far as we can, you're on your own,'" he said. "This is absolutely ridiculous. What is the real reason they don't have the money? (Republicans) gave it to the pharmaceutical industry."
Rep. Hilda Solis, whose district includes East Los Angeles, pointed out the difficulties that Latinos and other minority groups have had accessing the benefit, saying the House Hispanic Caucus was in support of the proposed plan.
Reps. Jan Schakowsky and Rahm Emanuel, both of Illinois, emphasized Medicare's good track-record, especially in light of the post-Hurricane Katrina fraud and waste now coming to light.
"Medicare works. It is simple and reliable," Schakowsky said. "It is a shining example of how a publicly-financed and publicly-accountable system can promote and protect the common good."
Though the launch was beset by technical difficulties, by the end of the enrollment period on May 15, the Bush administration declared Part D a success, pointing out that only about six million of the 40 million eligible seniors chose not to enroll and the average premium came in lower than estimated.
Meanwhile, Robert Goldberg, vice president of the Center for Medicine in the Public Interest, said Democrats were overblowing the problems with Part D, and pointed out that seniors like Andre Lewis have the option of paying extra for drug plans that do not have a coverage gap.
Also, he said if Lewis has an income of less than $15,000 per year, he qualifies for subsidized coverage with no donut hole.
"Pelosi completely neglects to mention that Lewis could have easily bridged the donut hole under the current system," Goldberg said. "In fact, there are seven plans in Maryland that provide either total or partial coverage in the donut hole. Her supposed victim could have received donut hole coverage for an additional $24 per month."
