Committee on Ways and Means

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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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