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Committee on Ways and Means
  

For Immediate Release
Contact: Press Office 202-225-8933
July 30, 2002

Senate’s Compromise Rx Drug Proposal Leaves Many Seniors without Drug Coverage, says Chairman Johnson

WASHINGTON -- Today, Chairman Nancy Johnson (R-CT) of the Ways and Means Health Subcommittee commented on the newest Medicare prescription drug proposal by Senator Bob Graham (D-FL).

“I am baffled why the proposed compromise would spend significantly more money yet help significantly fewer people than the legislation I sponsored and the House approved,” said Chairman Johnson. “This compromise bill does almost nothing to help the 75 percent of seniors who have drug costs below $4,000 and does less for low-income seniors than the House bill.”

“Democrats have attacked the House-passed bill and similar bipartisan legislation in the Senate because of a gap in coverage for those with modest drug costs,” Johnson said. “Now they eliminate all coverage for those with modest costs and expect to be taken seriously?”

The Medicare Modernization and Prescription Drug Act (H.R. 4954) sponsored by Representative Nancy Johnson passed the House on June 28, 2002.

Provision

H.R. 4954 – House-Passed Medicare Drug Bill

Senator Graham’s Proposed Compromise

Cost

$320 billion

$400 billion

Front-end benefit

After $250 deductible:

  • 80% coverage of first $1,000
  • 50% coverage of $1,000-$2,000

5% subsidy for costs up to $4,000

Catastrophic Coverage

100% of costs after $3,700 out-of-pocket

Most, but not all, costs covered at $4,000

Low-Income Assistance

Comprehensive assistance for individuals up to 175% of poverty

Comprehensive assistance for individuals up to 150% of poverty

 

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