Medicare Part D saves dollars and lives
A government program that exceeds customer expectations while generating cost savings is rare indeed. The Medicare prescription drug benefit, or Part D, is one of those programs. Last January, Medicare began offering a prescription drug insurance program, and over 22 million seniors, including over two million Texans, have enrolled in Medicare Part D. Many of these enrollees previously did not have prescription drug benefits, but now 90 percent of Medicare recipients do have prescription drug coverage.
Private research and development by the pharmaceutical industry is revolutionizing medical care, as ailments are increasingly treated with medications instead of operations. By investing millions of dollars in the development of new medicines and therapies, manufacturers continue to introduce breakthrough treatments. Competing market forces keep the costs of these products down, and consequently, millions of Americans benefit from disease prevention and reduced recovery periods.
It is imperative for those who rely on Medicare to have access to affordable prescription drugs. When Congress first passed the law creating the drug benefit, estimates projected that seniors would pay an average monthly premium of $37. Instead, the average premium is $24, and there is no expected change for 2007. Statistics show en-
rollees have saved an average of $1,200 this year on their prescription drug costs. Not surprisingly, a survey of current enrollees revealed that more than 80 percent are satisfied with their plans.
The program is also costing the government much less than originally estimated. Medicare recently reported a $200 billion reduction in projected outlays over the next decade. Allowing insurance companies that offer prescription drug plans to negotiate with drug manufacturers provides significant savings - nearly $7 billion this year alone. Lower-than-expected drug price growth has resulted in an additional $3.7 billion in savings. With lower prices for consumers, the program is an example of a successful partnership between the public and private sector.
Currently, Medicare Part D has a window for enrolling in or changing plans this year. Open enrollment is available until December 31, which provides an opportunity for new Medicare beneficiaries to take advantage of this valuable benefit and avoid paying a penalty in the future, or for current beneficiaries to change to a new plan to fit their needs. Those satisfied with their coverage do not have to do anything to maintain their current plan. Everyone with Medicare is eligible for this coverage, regardless of income and resources, health status, or current prescription expenses. Competition among private
insurers also leads to comprehensive prescription drug plans for beneficiaries. For those looking to switch plans, there are additional choices for coverage in 2007. In Texas, Medicare recipients can now choose from 60 prescription drug plans, up from 47 in 2006. More plans are also offering coverage for the period between a drug plan's standard level of coverage and the catastrophic coverage level, also known as the doughnut hole. In 2006 most seniors participating in Part D had the opportunity to choose from six plans offering full or partial coverage of the gap. The number of plans offering gap coverage in 2007 has increased to 17.
Prices for prescription drugs are also declining - especially for generics. Several retail chains have recently introduced $4 monthly generic prescriptions for over 300 drugs in their pharmacies across the United States.
I will continue working with my colleagues in the Senate to improve the Medicare program for all seniors and, most importantly, educating them on how to utilize the benefits it offers. With lower prices for brand-name drugs, proliferation of generic drugs, and more competition between private drug plans, benefits are enjoyed by both customers and taxpayers.
Please consult the website www.medicare.gov or call 1- 800-MEDICARE for more information about the program