Most people don’t have to be told that we’re stuck with a broken health care system that costs too much and wastes too much. Now, we have an opportunity to do something about it. As a national organization, we have been listening very carefully to what our members have been telling us about their health care experiences and needs. In response, we’ve developed six specific priorities for health reform – fair and common-sense solutions that will lower costs, improve quality and give all Americans affordable health care choices.
- Close the Medicare Part D coverage gap or “doughnut hole.”
Nearly one out of every five Medicare Part D beneficiaries has either delayed, or has not filled a prescription because of its high cost – the biggest percentage for any insurance group. That’s why we must lower out-of-pocket costs by closing the Part D coverage gap -- what we have come to know as that wretched “doughnut hole.”
In 2007, of the Medicare beneficiaries in Alaska age 65 and older, 28% lived close enough to the poverty line to make them eligible for the Medicare Part D Low-Income Subsidy. Of those not eligible for the subsidy, 26% fell into the “doughnut hole,” and had to pay the full cost of their prescriptions. The number of Alaskans who are falling into the “doughnut hole” is increasing.
- Guarantee access to affordable health care coverage for Americans age 50 to 64.
Nearly half of AARP’s members fall between the ages of 50 to 64 and therefore are not eligible for Medicare. People 50 to 64 are more likely to be uninsured -- even if they’re working -- either because they work for employers that don’t offer insurance, work part time, or are self-employed. More than 7 million people in this age group were uninsured in 2007, a 36 percent increase over 2000.
Too young for Medicare, but old enough to face higher insurance premiums, many 50 to 64 years olds have difficulty accessing affordable health care coverage. In 2007, there were 22,723 or 17% of 50 to 64 year olds in Alaska who were uninsured and many with insurance were under-insured due to the high cost of coverage for this age group.
AARP believes health reform must ensure that Americans ages 50 to 64 who aren’t covered through an employer have a real choice of affordable health care plans. That’s why AARP will fight to make sure insurers can no longer deny coverage and charge higher rates based on age or health status.
- Prevent costly hospital readmission by creating a Medicare follow up care benefit to help people transition home after a hospital stay.
One in five people on Medicare who are discharged from the hospital have to go back within 30 days because of poor follow-up care.
In 2005, Medicare spent $12 billion for unnecessary or potentially preventable hospital readmissions. In 2004, 16% of Alaska Medicare beneficiaries discharged from hospitals were readmitted within 30 days. Providing a follow up benefit for Medicare beneficiaries could save billions and improve outcomes for patients.
By providing a “transitional benefit” to Medicare which will help patients during their hospital stays and after they leave so they won’t have to come back, taxpayers will save billions.
Not only would this keep people healthier, it would eliminate extra $1,000 hospitalization co-pays for patients, reduce overall health care costs, and help people recover at home -- where they’d rather be.
- Create a pathway for the approval of generic versions of biologic drugs to reduce the price of these costly treatments that fight serious diseases.
We must try to make drugs affordable for all generations. Today, half of all Americans say someone in their family has skipped pills, or has postponed or cut back on needed medical care because it cost too much. That’s a choice nobody should have to make.
We can start by ending the drug companies’ monopoly on brand name drugs, especially those used to treat serious diseases such as cancer and multiple sclerosis that can cost up to $10,000 per month.
In 2007, Americans filled an average of 10 prescriptions at an average cost of $53 per prescription. While Alaskans filled fewer prescriptions – just six prescriptions per year, the cost per prescription was higher, at an average cost of $67 per prescription.
In 2005, the majority (54%) of Medicaid prescriptions in Alaska were filled with name brand drugs instead of generics. If generic equivalents of biologic treatments were also available, Alaska residents could save millions of dollars each year.
- Improve programs that help low income Americans in Medicare afford the health care and prescription drugs they need.
AARP believes we must improve Medicare. In today’s economy, when millions of Medicare beneficiaries have seen their retirement savings shrink, they are spending, on average, 30 percent of their income on out-of-pocket health costs – including premiums for supplemental coverage. Their costs are six times more than for people who have employer coverage.
We will fight to protect patients’ access to their doctors, and to crack down on the wasteful spending, medical errors, and poor care that are driving up health care costs for everybody.
In 2008, there were 59,435 Medicare beneficiaries in Alaska. In 2004, 81% of Alaska Medicare beneficiaries were age 65 and older and 19% were eligible due to disabilities.
- Increase federal funding and eligibility for home and community based services through Medicaid so older Americans can remain in their homes and avoid more costly institutions as they age.
Let’s talk about independence and choice as we age. Eighty-nine percent older Americans want to remain in their own homes and receive care right there if they need it. They should not be forced to get more costly care in a nursing home.
AARP believes health reform should make it possible for individuals to choose to receive care at home if they wish. In order to do this, we need to change federal law to make it easier for states to provide older Americans and people with disabilities with access to home and community based services. We must also give states financial incentives to allow more people to receive care at home.
Alaska spends about half of the state’s Medicaid funds on institutional care. Many older people and those with multiple chronic conditions and long-term care needs rely on Medicaid. Even though people prefer to remain at home, the state still spends 49% of its Medicaid long-term care dollars for older people and adults with physical disabilities on nursing home care.
Please join AARP in this opportunity to make a difference. We need the support of AARP Alaska’s 97,000 members to call on the Alaska Congressional delegation.
Please call Sen. Lisa Murkowski, Sen. Mark Begich and Rep. Don Young and encourage them to work together in a bipartisan basis to pass health care reform legislation this year.
assets.aarp.org/www.aarp.org_/cs/misc/alaska_health_care_brief_2009.pdf
