Smith Lends His Support to Democrat's Medicare Improvement Package

Press Release

Smith Lends His Support to Democrat's Medicare Improvement Package

Senator Gordon H. Smith (R-OR) announced today that he will support the Democratic Medicare package aimed at fixing scheduled reductions in physician payments. Senator Smith's endorsement of the bill was driven by the inclusion of key provisions fought for by Smith to improve the Medicare program by increasing access to affordable prescription drugs for low-income seniors, parity in mental health co-payments and enhanced coverage for drugs critical to treating mental illnesses, cancer, HIV/AIDS, epilepsy, autoimmune diseases and transplant patients.

"After negotiating with my colleagues, I am pleased to lend my support to Chairman Baucus's proposal to improve Medicare for our seniors," said Senator Smith. "Our seniors deserve the best possible Medicare program and this bill brings us closest to that goal. I hope my colleagues join me in bridging the Republican/Democrat divide so we can deliver to our seniors a bill that improves access to doctors to administer care, mental health treatment, affordable drugs for low-income seniors and life-saving medication."

The Medicare bill will primarily limit cuts to physician payments due to the Sustained Growth Rate (SGR). The SGR requires the federal government to cut physician payments on the order of 10 percent in one year based on a flawed formula enacted into law in 1997. The bill instead provides a + .5 percent update in payments for 2009.

Senator Smith argued that while retaining doctors to treat Medicare patients, the package also needed to make key improvements to the program for seniors. Those improvements expected to be included in the Democratic package based on Senator Smith's legislation are:

Low-Income Subsidy (LIS) - The bill will eliminate barriers to low-income seniors' ability to qualify for additional help with the cost of their prescription drugs and remove late enrollment penalties. Senator Smith held a hearing last month in the Senate Aging Committee on the need for several provisions in his package of bills with Senator Jeff Bingaman (D-NM) to improve the LIS program be included in the Senate Medicare package. Bill includes language from Senator Smith's bill S. 1108.

Mental Health Parity - The bill will provide parity in co-payments under Medicare Part B for mental health treatments. This provision is based on a bill, S. 1715, by Senator Olympia J. Snowe (R-ME) and co-sponsored by Senator Smith.

Access to Life Saving Medication - The bill ensures that all Medicare prescription drug plans provide coverage for "all or substantially all" drugs in the six classes of drugs that are critical to treating mental illnesses, cancer, HIV/AIDS, epilepsy, autoimmune diseases such as Crohn's, and transplant patients. This provision is based on Senator Smith's legislation, S.1887, with Senator John Kerry (D-MA).

Senator Smith's support of the bill is expected to encourage support from additional Republicans in the Senate.

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