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Committee on Ways and Means For Immediate Release Democrats' New Math:
10% is WASHINGTON -- Some Democrats may need a refresher course on basic math before launching further attacks on the value of prescription drug discount cards for seniors. On December 5, 2001, the General Accounting Office (GAO) released a study stating that card holders typically receive retail savings of about 11.4 percent on prescription drugs purchased through drug discount cards. Democrats, who requested the study, claim this is a paltry sum that would have no value to seniors struggling to pay for their medicine. Ironically, the legislation offered by Democrats, provided a smaller discount of only 10 percent on drug prices, according to the non-partisan Congressional Budget Office (CBO). "Considering the GAO study says seniors get greater discounts from the prescription drug cards than the Democrat’s own prescription drug legislation, it’s surprising that some Democrats oppose these cards. Perhaps, they don't understand that 11.4 % is greater than 10%," Ways and Means Committee Chairman Bill Thomas said. "Drug discount cards are not a substitute for a comprehensive drug benefit, but a comprehensive benefit ought to save seniors and taxpayers more money than what is currently available in the market. My approach would save seniors nearly three times more than the Democrats' approach or discount cards," Thomas added. CBO estimated the bipartisan bill authored by Chairman Thomas and passed by the House in the 106th Congress would save seniors almost 30 percent. CBO estimated the Democrat alternative would only save seniors 10 percent, while the GAO estimates the discount cards would save seniors 11.4 percent. “11.4 percent may not sound like much to some, but it could mean the difference between buying medicine or food for some of our seniors," said Chair Nancy Johnson of the Health Subcommittee. “If the discount card is coupled with a new drug benefit provided through Medicare, seniors will see even greater relief from the high cost of prescription drugs." Moreover, the GAO study only analyzed current discount cards and did not assess the size of discounts that seniors could obtain under a Medicare-endorsed program, which would allow seniors to benefit from savings negotiated from pharmaceutical manufacturers, instead of just pharmacies. This fact suggests that the savings could be even higher than 11.4 percent. |