Lieberman Works to Fill Medicare Coverage Gap

Lieberman Works to Fill Medicare Coverage Gap
Senator sponsors legislation aimed at closing Part D ‘doughnut hole'

Senator Joe Lieberman (D-CT) today sponsored two bills aimed at closing the coverage gap in the Medicare Prescription Drug Plan. It is estimated that almost one-third of seniors will be affected by this coverage gap, often called the "doughnut hole," in which beneficiaries have to pay 100% of costs between $2250 and $5100, or a total of $3,600 for out-of-pocket costs.

"The so-called ‘doughnut hole' will cost America's seniors hundreds of millions of dollars and cause many to choose between paying for necessary prescription medication or for other necessities such as electricity and food," Lieberman said. "These bills are a good start toward fixing a big problem in a Medicare prescription drug plan full of holes."

Lieberman is cosponsoring the Medicare Prescription Drug Gap Reduction Act of 2006 with Senators Bill Nelson (D-FL) and Susan Collins (R-ME). The bill will allow the Secretary of HHS to negotiate on behalf of Medicare beneficiaries for lower drug prices and then apply the savings generated towards reducing the doughnut hole and providing more extensive drug coverage for beneficiaries.

Lieberman is also cosponsoring the Medicare Prescription Drug Lifeline Act of 2006 with Senators Ron Wyden (D-OR) and Olympia Snowe (R-ME). The bill would allow seniors to switch to a plan that does provide coverage through the doughnut hole. The measure would be valid through December 31, 2006. The legislation would also direct the Government Accountability Office to study how the coverage gap may be eliminated with and without increasing Federal spending, thereby finding a long-term solution to the problem.

In 2003, when Congress was debating the drug benefit, Lieberman cosponsored measures to minimize the negative impacts of the doughnut hole; however, the measures were defeated and he voted against the bill. However, there are now a growing numbers of seniors, who will be affected by the doughnut hole and it is important for legislators to fix the gap in the program.

http://lieberman.senate.gov/newsroom/release.cfm?id=259877&&