Pallone Refutes Rosy Scenario Secretary Leavitt Paints of New Prescription Drug Plan

PALLONE REFUTES ROSY SCENARIO SECRETARY LEAVITT PAINTS OF NEW PRESCRIPTION DRUG PLAN

U.S. Rep. Frank Pallone, Jr. (D-NJ), a senior member of the House Energy and Commerce Committee, issued the following statement today to refute the rosy scenario U.S. Secretary of Health and Human Services (HHS) Michael Leavitt painted during a visit with seniors in Brick.

"The Bush administration's prescription drug spin campaign must end. This confusing and complicated drug plan was created outside of Medicare to benefit the pharmaceutical and insurance companies not the seniors Secretary Leavitt is claiming to help.

"New Jersey seniors must navigate through 45 different private plans in order to choose the one they think is best for them. Then, the administration's drug plan creates even more confusion by allowing drug plans to routinely change the prices seniors are forced to pay and which drugs are actually covered. It's no wonder that only a small number, 4.9 million nationwide, have voluntarily signed up for a plan.

"And now the Bush administration is pressuring seniors to choose a plan before May 15th, otherwise they will be forced to pay a Bush prescription drug tax that will stay with them for the rest of their lives. Every month seniors wait to sign up after the May 15th deadline, they will be forced to pay an additional one-percent in premiums every month. New Jersey seniors simply should not be penalized for taking the time to understand this complicated plan.

"I would hope Secretary Leavitt warned seniors that they will be left out on their own once their drug costs hit $2,250. That's when the so-called donut hole hits when seniors no longer receive any drug coverage from their plans, but are still forced to pay their monthly premiums.

"Throughout the confusing rollout of the new prescription drug plan, New Jersey stepped up and did its part to ensure seniors received the medications they were promised. But now, as New Jersey struggles to close a budget shortfall, it's simply unacceptable for the Bush administration to drag its feet in repaying the states for bailing them out.

"Three years ago Washington had the golden opportunity to alleviate some of the sticker shock seniors face every time they go to fill their prescription drugs. Instead of creating a simplified system within Medicare that would allow the HHS Secretary to negotiate on behalf of over 40 million seniors to substantially reduce prices, the Bush administration favored a complex plan that forces seniors to make tough decisions that may not always be in their best interest.

"Secretary Leavitt can tout this plan all he wants, but sooner or later seniors are going to see this plan for what it is, and are going to demand a real benefit without all the confusion, penalties and donut holes."

http://www.house.gov/apps/list/press/nj06_pallone/pr_apr11_leavitt.html