ADVISORY
FROM THE COMMITTEE ON WAYS AND MEANS

Thomas Announces a Hearing on Integrating
Prescription Drugs Into Medicare

 Congressman Bill Thomas (R-CA), Chairman of the Committee on Ways and Means, today announced that the Committee will hold a hearing on integrating coverage of prescription drugs into the Medicare program.  The hearing will take place on Wednesday, April 17, 2002, in the main Committee hearing room, 1100 Longworth Office Building, beginning at 9:00 a.m.

In view of the limited time available to hear witnesses, oral testimony at this hearing will be from invited witnesses only.  Witnesses will include Bush Administration officials and representatives of affected parties.  However, any individual or organization not scheduled for an oral appearance may submit a written statement for consideration by the Committee and for inclusion in the printed record of the hearing.

BACKGROUND:

When Medicare was enacted in 1965, most health plans did not cover prescription drugs.  Since that time, most health plans have fully integrated prescription drug coverage yet Medicare still does not cover most outpatient prescription drugs.  Prescription drugs are now as important to health care as hospitals and physician services were 37 years ago. 

Although seniors consume an escalating number of prescription drugs, they are more likely to be faced with high out-of-pocket costs and fewer options for private sector drug coverage.  The average senior consumes 20 prescriptions a year and the Congressional Budget Office (CBO) projects that the average beneficiary will spend $2,440 for these prescriptions in 2003.  Seniors comprise approximately 12 percent of the population; yet consume nearly 40 percent of all prescription drugs.  While about 75 percent of Medicare beneficiaries have some type of prescription drug coverage, those without coverage are often paying the highest prices.  Further, many employers through their company retirement benefit plans are paring back or dropping prescription drug coverage as costs continue to dramatically escalate.

As a result of increased utilization, new market entries and price increases prescription drug costs rose more than 17 percent last year, according to the National Institute for Health Care Management.  CBO projects double-digit annual prescription drug cost growth over the next decade.

In the last Congress, the U.S. House of Representatives passed a Medicare prescription drug bill (H.R. 4680), but the Senate failed to act on the issue.  The President included $190 billion over 10 years in the Fiscal Year 2003 budget, and last month the U.S. House of Representatives passed a budget resolution providing for $350 billion over 10 years for prescription drugs, Medicare modernization, and appropriate adjustments to provider payments.

“Nobody would create a seniors health care program today that excluded prescription drugs.  Yet Medicare’s lack of a prescription drug benefit epitomizes the most glaring reason why Medicare must be modernized.  I am committed to enacting a prescription drug benefit this year as we update other parts of the program as well,” stated Chairman Thomas.

FOCUS OF THE HEARING:

This hearing continues the Committee’s consideration of the many issues surrounding the development of an outpatient prescription drug benefit within the Medicare program.

DETAILS FOR SUBMISSION OF WRITTEN COMMENTS:

Please note: Due to the change in House mail policy, any person or organization wishing to submit a written statement for the printed record of the hearing should send it electronically to hearingclerks.waysandmeans@mail.house.gov, along with a fax copy to (202) 225-2610, by the close of business, Wednesday, May 1, 2002.  Those filing written statements who wish to have their statements distributed to the press and interested public at the hearing should deliver their 200 copies to the full Committee in room 1102 Longworth House Office Building, in an open and searchable package 48 hours before the hearing.  The U.S. Capitol Police will refuse sealed-packaged deliveries to all House Office Buildings.

FORMATTING REQUIREMENTS:

Each statement presented for printing to the Committee by a witness, any written statement or exhibit submitted for the printed record or any written comments in response to a request for written comments must conform to the guidelines listed below.  Any statement or exhibit not in compliance with these guidelines will not be printed, but will be maintained in the Committee files for review and use by the Committee.

1.   Due to the change in House mail policy, all statements and any accompanying exhibits for printing must be submitted electronically to hearingclerks.waysandmeans@mail.house.gov, along with a fax copy to (202) 225-2610, in Word Perfect or MS Word format and MUST NOT exceed a total of 10 pages including attachments.  Witnesses are advised that the Committee will rely on electronic submissions for printing the official hearing record. 

2.  Copies of whole documents submitted as exhibit material will not be accepted for printing.  Instead, exhibit material should be referenced and quoted or paraphrased.  All exhibit material not meeting these specifications will be maintained in the Committee files for review and use by the Committee.

3.  Any statements must include a list of all clients, persons, or organizations on whose behalf the witness appears.  A supplemental sheet must accompany each statement listing the name, company, address, telephone and fax numbers of each witness.

Note: All Committee advisories and news releases are available on the World Wide Web at http://waysandmeans.house.gov.

The Committee seeks to make its facilities accessible to persons with disabilities. If you are in need of special accommodations, please call 202-225-1721 or 202-226-3411 TTD/TTY in advance of the event (four business days notice is requested). Questions with regard to special accommodation needs in general (including availability of Committee materials in alternative formats) may be directed to the Committee as noted above.