AARP Executive Vice President Nancy LeaMond released the following statement on the Association’s support of the Community Living Assistance Services and Supports (CLASS) Act provisions included in the Senate Health, Education, Labor, and Pensions Committee’s health reform bill:
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AARP President: House Bill Makes “Substantial Progress” Toward Health Care Reform
This set of State Health Care Briefs provides a one-page overview of facts on health care data for each of the 50 states and the District of Columbia. Information is provided about each state’s older population, the uninsured, Medicare beneficiaries including those who fall into the “doughnut hole,” hospital re-admissions among Medicare beneficiaries, the distribution of Medicaid long-term care funds, and prescription drug spending.
http://www.aarp.org/research/health/carefinancing/state_hcb_09.html
AARP Launches Money-Saving Prescription Drug Resource
Online tool helps people avoid dreaded “doughnut hole”
AARP Thanks President, Senate Leaders for Helping to Close the “Doughnut Hole”
CEO Rand: Americans “will now have a new opportunity to lead a healthier life”
This morning, AARP CEO A. Barry Rand delivered the following remarks at the White House announcement of a new agreement to substantially fill the Medicare Part D coverage gap:
“Thank you Mr. President. AARP is proud to stand with you and Chairman Baucus and Senator Dodd to announce that the gap in Medicare’s drug coverage, known as the ‘doughnut hole,’ will be substantially filled for millions of middle income Americans as part of health reform.
“I want to applaud Chairman Baucus and Senator Dodd, who continue to be champions for this issue and have always fought for people struggling to make ends meet. We are honored to stand with you today.
“Senator Baucus, your strong leadership of the Senate Finance Committee coupled with your creativity is what led to the development of this unique solution. We also support your Finance Committee’s process and look forward with optimism to its next steps.
“Bottom line: without you, Chairman Baucus, we certainly would not be here today.
“When the President issued his clarion call for all parties to come together and address the issues of health care reform, AARP, representing over 40 million members, was proud to be one of the first to step forward.
“Today’s announcement will mean that struggling Americans who have been looking for help in their pocketbooks just to stay healthy, and who say that one of their single largest drivers of health care costs is prescription drugs—Americans in Medicare’s ‘doughnut hole’—will have their brand-name drug costs cut in half. That’s a 50 percent reduction in drug costs.
“Too many Americans who fall into the coverage gap stop taking their medications because they simply cannot afford them. They will now have a new opportunity to lead a healthier life.
“Mr. President, every American who is burdened by the high cost of health care or has inadequate access to our health care system—every business that is fighting to be competitive and save American jobs knows that health care reform cannot wait.
“This is an early win for reform and a major step forward. It is a signal the process is working and will work. But AARP is not done. We will continue to work with you, Mr. President, and the House and the Senate to protect the people who rely on Medicare, to further lower drug costs, and to have guaranteed access to coverage for all Americans.
“Together, we will complete the mission for comprehensive health care reform. Thank you for your leadership on this issue, Mr. President.”
For details on AARP’s health reform priorities, visit http://www.aarp.org/governmentwatch.
AARP: Shaheen-Collins Bill Will Keep Americans Healthier and Out of the Hospital
Legislation adds follow-up care benefit for people in Medicare
AARP today proudly endorsed the bipartisan “Medicare Transitional Care Act,” being introduced this week by Senators Jeanne Shaheen (D-NH) and Susan Collins (R-ME). This critical legislation adds a follow-up care benefit to Medicare to ensure that people who leave the hospital get the care they need to stay healthy and avoid being readmitted. Such a benefit can help save some of the estimated $17 billion Medicare spends each year on preventable hospital readmissions.
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FOR IMMEDIATE RELEASE: June 16, 2009
CONTACT: Jim Dau, AARP DC Press Office, 202-224-4159
WASHINGTON, D.C. – Senators John Kerry (D-Mass.), Debbie Stabenow (D-Mich.), and Bill Nelson (D-Fla.), all members of the Finance Committee, today called on Chairman Max Baucus (D-Mont.) and Ranking Member Chuck Grassley (R-IA) to protect seniors from skyrocketing out-of-pocket prescription drug costs as part of the committee’s health reform initiative.
Current gaps in Medicare’s prescription drug program force 3.4 million seniors to pay more in out-of-pocket expenses than those with employer-provided health care coverage.
“The doughnut hole invited disaster from the day the Republicans conceived it and to this day it continues to create pain for our seniors,” said Sen. Kerry. “Now is our chance to close the gap. If we don’t, the most well-intentioned health reform will leave them with worse drug coverage than anyone in the system.”
“Seniors in Michigan and around the country continue to fall into Medicare’s donut hole- a gap in coverage that has them scrambling to pay thousands of dollars for prescriptions they thought would be covered,” said Sen. Stabenow. “As we continue to work on a health care reform package in the Finance Committee, it is time we also take the necessary steps to give seniors the prescription drug benefit they deserve.”
“Look, seniors have to pay premiums for their Medicare prescription drugs. But they still don’t get full coverage,” said Sen. Nelson. “So, while we’re working on a program to fix the broader health-care system, we ought to include a fix for the so-called Medicare donut hole. It makes sense – and, it’s the right thing to do for seniors.”
The full text of the senators’ letter is below:
June 16, 2009
The Honorable Max Baucus The Honorable Chuck Grassley
Chairman Ranking Member
Senate Finance Committee Senate Finance Committee
United States Senate United States Senate
Washington, DC 20510 Washington, DC 20510
Dear Chairman Baucus and Ranking Member Grassley:
We are writing to express our support for addressing the gap in Medicare’s Part D prescription benefit, better known as the “doughnut hole,” in the upcoming health care reform package.
Today, Medicare beneficiaries currently face out-of-pocket costs that are, on average, six times the costs incurred by those with employer-sponsored coverage. Out-of-pocket expenses are even higher for beneficiaries who are among the 3.4 million (and growing) Americans who fall into Part D’s “doughnut hole” each year.
Prescription drugs play a vital role in managing or curing diseases and improving the quality of life for people of all ages. Unfortunately, the “doughnut hole” results in such high costs that too many of our seniors cannot afford their prescription drugs. Currently, 26 percent of Part D beneficiaries fall into the “doughnut hole” but only 5% reach the catastrophic threshold. Those stuck in the “doughnut hole” are required to continue to pay their Part D premiums.
The “doughnut hole” is getting worse each year because the gap is tied to health care costs which increase at a much higher rate than inflation or other indexes. In fact, costs for people in the “doughnut hole” are projected to more than double from $2,850 in 2006 to over $6,000 in 2016. This situation is untenable and leaves many of our seniors without a meaningful prescription drug benefit.
Eliminating the “doughnut hole” in Part D could save Medicare beneficiaries thousands of dollars in drug costs and increase their quality of life by ensuring they can afford their medications. Since the cost of closing the “doughnut hole” grows every year, it is essential that we begin to rectify this situation as soon as possible. Even if it is not financially practicable to close the “doughnut hole” in a single action, there are several concrete and pragmatic ways to begin to eliminate it.
One option is to reduce the catastrophic limit, or the top end of the “doughnut hole.” This would give more immediate relief to those with catastrophic needs and over time the “doughnut hole” would close entirely. The catastrophic limit could be reduced by linking it to the Consumer Price Index, freezing it at its current level, or by gradually reducing it by a certain percentage each year.
We cannot leave seniors in an ever-worsening situation as we act to fix the other ills of our current health care system. We are committed to closing the “doughnut hole” as a part of health care reform, and we look forward to working closely with you to identify the best way to do so and to include it in the final health care reform package.
Thank you in advance for your consideration of this request.
Sincerely,
John F. Kerry Debbie Stabenow
Bill Nelson
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