Pallone Hosts Forum to Hear From Seniors About New Prescription Drug Plan
U.S. Rep. Frank Pallone, Jr. (D-NJ) today hosted a senior forum at the Edison Senior Center to provide seniors with information about the new prescription drug plan, and to hear firsthand from seniors what they think of the new plan. The New Jersey congressman gave the following opening statement before hearing from his constituents.
"I decided to hold this forum today to hear your opinions about the new prescription drug program, which took effect on January 1st. To date, out of 42 million eligible beneficiaries, only 3.6 million have signed up voluntarily because the new program is incredibly complex and difficult to understand.
"For those who have been enrolled, particularly the lowest-income seniors, this program has been a disaster. As many of you well know, beneficiaries have had a lot of trouble getting their medications under the new program. Many beneficiaries went to their local pharmacy expecting to get their prescription drugs. Unfortunately, when they got there, they were told that their enrollment could not be verified, or they were charged the wrong price for a drug, usually much higher than they could afford.
"These problems forced the state to step in and fill in the holes to ensure seniors are getting their medication. To date, the state has spent over $113 million to help cover seniors' drug costs. As a result, I joined Senator Frank Lautenberg in introducing legislation that would force the federal government to pay New Jersey back plus interest for these costs.
"A large part of the problem is the confusing design of the benefit. You have to go outside of the Medicare program to select a private Prescription Drug Plan (PDP). Here in New Jersey, you have to choose from 44 different plans offered by 19 different organizations. I'm sure many of you are overwhelmed by marketing materials promoting these plans, which vary immensely. Each plan has different cost sharing requirements and offers a different type of benefit. Some plans cover almost all the drugs a beneficiary is expected to need, while others have restricted formularies with burdensome policies that make it difficult for you to get your medications.
"It hasn't helped matters that the federal government has often provided beneficiaries with inaccurate or incomplete information, making it more difficult for them to make the best choice. I have heard from a number of seniors who have asked "why is the program so confusing"? They want to know why it can't be made simpler.
"The answer is because this drug benefit was not written for senior citizens -- it was written to benefit the drug companies and insurance industry. These special interests were given a seat at the negotiating table and were granted extraordinary access. They helped write the bill. Indeed, 13 former Republican Members of Congress and their staffers who wrote the prescription drug law now work for the drug industry.
"Democrats opposed the bill. We wanted to create a simpler benefit that looked more like Medicare Part B. Under our plan, you would have paid a $100 deductible, 20% co-insurance, and all of your drugs would have been covered directly by the Medicare program. Furthermore, we would have given the Secretary of Health and Human Services the authority to negotiate lower prices the same way we do with the Veteran's Administration.
"Republicans rejected our plan, claiming that it would stifle competition. As a result, you've been left with this confusing program. However, Democrats are still fighting to get seniors a meaningful drug benefit. Democrats support legislation that would:
- Extend the enrollment deadline for the new drug program from May 15 to December 31 - giving beneficiaries time to make an informed choice.
- Reduce the cost of prescription drugs by allowing Medicare to negotiate lower prices. This is what the VA does, and it works.
- Allow Medicare beneficiaries and other Americans to re-import safe, less expensive drugs from abroad.
- Ensure that no senior or person with a disability will leave the pharmacy without their prescription drugs.
- Prohibit private drug plans from taking drugs off the list of drugs they cover over the course of the year.
- Allow Medicare beneficiaries to obtain their prescription drug benefit directly from Medicare instead of a private insurance company.
"Again, I don't agree with the way the new program was designed and I will continue to fight to improve it. However, I wanted to hold this forum to provide you with the information you need if you want to sign up for the new program, and to hear your opinions about this new plan."