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New Analysis Documents More Costs for Seniors Under Republican Medicare Plan

May 19, 2011

NJ Seniors Would Lose Preventive Care, Keep 'Donut Hole' Expenses

Washington, D. C. - A new analysis of the Medicare plan already approved by the House of Representatives last month refutes the Republicans' claim that their plan wouldn't have any effects on those 65 or older by documenting the immediate harm to current Medicare participants, U. S. Rep. Frank Pallone, Jr. said on Thursday.

By failing to close the prescription drug "donut hole" and doing away with the requirement that seniors receive preventive care with no co-pays, Medicare patients would be forced to pay more or receive less, Pallone noted.

"They want to 'save' Medicare by destroying it," Pallone said. "Now we have more proof that their claim that only those age 55 and under will be impacted is not true. The harm starts on Day One for current Medicare recipients."

The 142,834 New Jersey seniors now "in the donut hole" - a coverage gap for prescription drugs - would be forced to continue paying a total of $80 million to "plug the gap" in 2012. The cost would add up to $1.6 billion over the next 10 years.

By abolishing the requirement that just took effect that seniors can receive preventive care without co-payments, 29,858 seniors in New Jersey would have to pay a total of $3.1 billion.

Every study done has shown that preventive care saves lives and saves money through early intervention and prevention.

Nationally, 3.9 million seniors in the donut hole would pay an extra $2.2 billion next year and $44 billion over 10 years. More than one million would pay close to $111 billion for preventive care.

"We closed the donut hole for 3.9 million good reasons and we required free preventive care for one million good reasons," Pallone said. "But there are no good reasons for backtracking on the real reforms that improve the quality and affordability of health care."

The plan to end Medicare as we know it - and to gut Medicaid - was approved by the Republican-controlled House with all Democrats voting against it.

Background:

Under the Republican Plan, Nearly Four Million Seniors Will Be Forced to Pay $2.2 Billion More for Prescription Drugs in 2012. The Republican budget would “reopen” the prescription drug donut hole and cost the average senior who falls into the coverage gap approximately $9,300 between 2012 and 2020. Over that time, the Republican budget will cost seniors an estimated $44 billion in prescription drug costs, including $2.2 billion next year alone. [HHS, 11/4/10; CBO, 3/18/11]

Under The Republican Plan, At Least One Million Seniors and People With Disabilities Will Pay Over $110 Million More For Their Annual Wellness Visits In 2012. At least 1,000,000 seniors are expected to see their physician for an annual wellness visit in 2012. These visits are critical to positive health outcomes for seniors across the country. As a result of the Republican plan, these seniors would each pay an additional $160 for the first visit and $105 for a subsequent visit. [HHS, 3/16/11; Kaiser State Health Facts, accessed on 5/5/11]

All Seniors Enrolled In Medicare Will Be Forced to Pay More for Health Care Services Under the Republican Plan. The Republican plan will require that seniors pay deductibles, co-insurance, and copayments for many preventive services currently covered by Medicare; including cancer screenings such as mammograms and colonoscopies as well as annual wellness visits. Seniors could be forced to pay for many other health services that Medicare currently covers free of charge to the patient, including mammograms; colorectal, cervical and prostate cancer screening; cholesterol and other cardiovascular screenings; diabetes screening and flu shots. [HHS, 11/4/10]

State-by-state analysis from the U.S. Senate.