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ARA: "Sham" Medicare Bill Enacted But Battle Is Not Over

November 26, 2003
"Many older Americans remember 'Black Tuesday' as the day the Stock Market crashed in 1929 but there is a new 'Black Tuesday' that will be remembered by future generations. It is Tuesday, November 25, 2003 - the day that the U. S. Senate voted to privatize Medicare," says George J. Kourpias, President of the Alliance for Retired Americans.

Kourpias, who called it a "sad day for America's seniors," says: "Older Americans will remember the lawmakers who voted to give billions of dollars in subsidies to private insurance companies and drug manufacturers while making it possible to dismantle the health care program on which 40 million elderly and disabled Americans depend. Their names will be added to a permanent 'Hall of Shame.'"

"Seniors will remember that, in 1989, when details of the infamous catastrophic bill were finally revealed, Congress was forced to repeal it. We can make that happen with this legislation. First, we have to educate older Americans and their families on exactly what this bill does and does not do. This bill is being hailed by Republicans as a landmark prescription drug bill but the truth is that it is nothing more than an all-out assault on the Medicare program."

"When seniors realize that they have been betrayed by the very lawmakers they helped elect, the public outcry will reach every corner of this country, and then we'll see how fast Members of Congress can act when their jobs are at stake," says Kourpias.

WINNERS

LOSERS

- Pharmaceutical industry will reap additional profits estimated at $139 billion over the next 10 years.

- Millions of seniors whose prescription drug bills are between $2,250 and $5,100 per year. They will have no coverage but must still pay monthly premiums.

- Private insurance companies will get $12 billion as an incentive to provide service in certain areas of the country.

- Millions of retirees whose employer-provided drug coverage is threatened.

- Doctors, hospitals and other care providers in rural areas will get a total of $25 billion over 10 years.

- More than six million "dual eligibles" - currently enrolled in both Medicaid and Medicare - who will be moved to Medicare but may lose essential drug coverage from Medicaid.

- Health maintenance organizations, hospitals and physicians will be paid more by the government for treating Medicare beneficiaries.

- Four million seniors who will not qualify for low-income protections because of a restrictive "assets" test.

- Businesses will reap $86 billion worth of payments and tax benefits ($70 billion in direct payments and $16 billion in new tax breaks).

WHY ALLIANCE OPPOSES NEW MEDICARE LAW

Executive Director Edward F. Coyle says, "The Alliance for Retired Americans continues to oppose the Medicare Prescription Drug and Medicare Modernization Act and will work to have it overturned before it ever goes into effect." Coyle cites the following objections to the bill:

  • Privatizes Medicare, which would leave seniors at the mercy of private insurers and allow HMOs or PPOs to set premiums and benefits. Private insurers do not guarantee premiums, can drop patients and change coverage.
  • Forces seniors to pay sharply increased premiums to stay in traditional Medicare if they do not move into an HMO or PPO.
  • Includes huge gaps in coverage that
  • coupled with the higher premiums
  • will increase financial hardships for seniors with multiple health issues who live on fixed incomes. The gaps in coverage will leave half of seniors without drug coverage for part of the year.
  • Does nothing to bring down the skyrocketing costs of prescription drugs. In fact, the bill prohibits the Medicare program from using its tremendous purchasing power to negotiate lower drug prices.
  • Continues the ban to reimport safe, affordable drugs from Canada unless the U.S. Department of Health and Human Services deems them safe
  • something HHS refuses to do.

To find out how you will fare under the new prescription drug benefit, visit www.unionvoice.org/ct/S71nNC713p3x/.

DEMOCRATS WHO SUPPORTED MEDICARE BILL

These 16 House Democrats voted for the Medicare bill: Cramer (AL), Dooley (CA), Boyd (FL), Marshall (GA), Scott (GA), Alexander (LA), John (LA), Peterson (MN), Pomeroy (ND), Carson (OK), Wu (OR), Davis (TN), Hall (TX), Stenholm (TX), Matheson (UT) and Boucher (VA).

These 11 Senate Democrats voted for the Medicare bill: Baucus (MT), Breaux (LA), Carper (DE), Conrad (ND), Dorgan (ND), Feinstein (CA), Landrieu (LA), Lincoln (AR), Miller (GA), Nelson (NE) and Wyden (OR).

REPUBLICANS WHO OPPOSED MEDICARE BILL

These 25 House Republicans voted against the Medicare bill: Flake (AZ), Shadegg (AZ), Musgrave (CO), Tancredo (CO), Feeney (FL), Miller (FL), Norwood (GA), Burton (IN), Hostettler (IN), Pence (IN), Moran (KS), Ryun (KS), Smith (MI), Gutknecht (MN), Akin (MO), Emerson (MO), Garrett (NJ), Jones (NC), Chabot (OH), Toomey (PA), Barrett (SC), DeMint (SC), Wamp (TN), Culberson (TX) and Paul (TX).

These nine Senate Republicans voted against the Medicare bill: Chafee (RI), Ensign (NV), Graham (SC), Gregg (NH), Hagel (NE), Lott (MS), McCain (AZ), Nickles (OK) and Sununu (NH).



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