I figured it out. At first, I thought it was all a matter of electioneering - trying to buy the votes of elderly and disabled voters who receive medicare, but I now believe it is for a different, more logical reason.
At the current time, Medicare pays for no drug costs. Many thousands of people on medicare rely on pharmaceutical companies to provide free medications through various Patient Assistance Programs. The meds are usually provided at three month intervals, with a new prescription and statement of income needed for each approval. Note, the meds are free.
The bill that has been floating around, in its current incarnation would provide the following:
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Under the new structure of benefits, Medicare recipients would have to pay premiums averaging $35 a month and a $275 deductible for drug coverage.
The beneficiary would pay 25 percent of drug costs from $275 to $2,200 a year. Medicare would pay the other 75 percent. The program would then pay nothing until the beneficiary had spent a total of $3,600 out of pocket.
That gap in coverage, sometimes called a doughnut hole, exists mainly because Congress decided that it did not have enough money to finance a more complete benefit.
After spending $3,600, the beneficiary would pay 5 percent of the cost of each prescription or a nominal co-payment, perhaps $5 or $10 for each prescription.
Note the following:
Medicare recipients would have another $35 added per month to their premiums.
There is a $275 deductible (medication payments that the pharmaceutical companies would get)
Then, the individual would pay 25% of the cost of meds to $2,200 in cost total.
25% adds up to a lot of money for many that rely upon numerous, expensive medications.
My bet is that the patient assistance programs will be gutted, and people will end up paying many hundreds of dollars that they can not afford for medications. The drug companies get richer and medicare recipients basically get screwed.
Am I right? This seems like typical Repub logic to me.
http://story.news.yahoo.com/news?tmpl=story&cid=68&ncid=68&e=3&u=/nyt/20031023/ts_nyt/congressstrikesatentativedealondrugbenefits