Ways and Means Hearing Addresses
Medicare Drug Benefit
April 19, 2002 - The House Ways and Means Committee
April 17 held a hearing
to discuss various proposals for a Medicare prescription drug
benefit. Department of Health and Human Services (HHS) Secretary
Tommy Thompson testified that a comprehensive drug package
would take about 3 years to implement. In the interim, the
Bush Administration would utilize existing structures to offer
its Medicare-endorsed prescription drug card and a Transitional
Medicare Low-Income Drug Assistance Program for poor seniors.
The Administration would also encourage states to file for
a "Pharmacy Plus" program waiver that, among other
options, allows states to act as a pharmaceutical benefits
manager (PBM).
In his testimony, Secretary Thompson argued that enacting
a drug benefit would not be practical without modernization
of the entire Medicare program. However, he stated that any
modernization package "must be budget neutral in the
short and long term." Speaking on behalf of the General
Accounting Office (GAO), Comptroller General David Walker
agreed with Secretary Thompson and called for "programmatic
reforms so that we do not worsen Medicare's existing financial
imbalances."
AARP Executive Director William Novelli testified that prescription
drug coverage "is AARP's number one legislative priority
this year." Clearly stating that "our members will
not accept failure or delay," Novelli warned that "it
would be inappropriate to use Medicare or Social Security
surplus dollars to increase provider payments without first
ensuring that older Americans get the prescription drug coverage
they need."
Information:
Christiane Mitchell, Senior Legislative Affairs Manager
AAMC Government Relations
cmitchell@aamc.org
(202) 828-0526
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