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Committee on Ways and Means
For Immediate Release
Contact: Press Office 202-225-8933
July 30, 2002
Medicare Modernization and
Prescription Drug Act of 2002
House Legislation Fulfills Key Principles
Outlined by House Speaker Dennis Hastert
1) Lower the Costs of Prescription Drugs Now and in Future;
Provides immediate relief from high drug costs with Rx Drug Discount
Card and immediately implements a program to assist low-income
beneficiaries with their costs
Supplies significant front-end coverage of drug costs from government
(80% paid on the first $1,000)
Saves seniors more on their drug costs through negotiating power than
any other bill in Congress
Lowers pharmaceutical manufacturer drugs prices by $18 billion with
"Best Price" provision
Offers catastrophic protection -- 100% covered after $3,700 in drug
costs
Covers all costs, except nominal co-pays, for low income seniors (up
to 175% of poverty)
2) Guarantee All Senior Citizens Prescription Drug Coverage Under
Medicare;
Guarantees in law at least two choices of Prescription Drug Plans
CMS Office of the Actuary predicts 95% of seniors will voluntarily
participate
CBO estimates 96% of seniors will be covered by this plan
3) Improve Medicare with More Choices & More Savings; and,
Stabilizes and enhances Medicare + Choice
Seniors can save money when they choose more efficient plans
Provides free physical upon enrollment
Saves nearly $8 billion for seniors and taxpayers through competitive
bidding for durable medical equipment (e.g. wheel chairs, bed pans)
4) Strengthen Medicare for the Future.
Helps ensure that doctors will stay in the Medicare program and
continue to serve seniors
Strengthens rural health care for today and tomorrow
Puts patients before paperwork by eliminating duplicative and
burdensome regulation
Allows competitive forces to hold down costs to ensure Medicare is
available for future generations
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