What the Medicare Prescription Drug Plan Means for Kentucky

WHAT THE MEDICARE PRESCRIPTION DRUG PLAN MEANS FOR KENTUCKY

by Senator Jim Bunning

Mar 24, 2004 - Last year Congress passed the Medicare Prescription Drug, Improvement, and Modernization Act of 2003. The legislation was signed by President Bush and is now the law of the land. For the first time in history the bill will provide all 649,000 Kentuckians on Medicare access to a prescription drug benefit. The Medicare Prescription Drug plan is strictly voluntary, and seniors and people with disabilities will not be forced to join the Medicare drug program.

The main drug benefit goes into effect in January of 2006, and all 649,000 Medicare beneficiaries in Kentucky will be able to get prescription drug coverage through a Medicare-approved plan. In exchange for a monthly premium of about $35, and meeting a deductible of $250, seniors who are now paying the full retail price for prescription drugs will be able to cut their drug costs roughly in half. In many cases, they'll save more than 50 percent on what they pay for their prescription medicines. This is real progress for our seniors and those who are beneficiaries of Medicare.

With the main benefit starting in 2006, there is help on the way in June of this year. All Medicare beneficiaries (except those who receive medicines paid for by Medicaid) will soon be getting information about signing up for a Medicare-approved prescription drug discount card. The card will provide savings between 10 and 25 percent off the retail price of most drugs. Medicare recipients who sign up for the discount card will receive much needed relief in paying for prescription drugs.

As a member of the Senate Finance Committee I helped craft this bill to help our most needy seniors. As a result, 235,601 Kentuckians who have limited savings and low incomes, generally below 135 percent of the poverty level will be eligible for even more generous coverage. They will pay no premium for their prescription drug coverage, and they will be responsible for a nominal co-payment between $1 and $5 for prescription drugs. Plus eligible beneficiaries will receive $600 in immediate assistance through the Medicare-endorsed discount card starting in June.

In addition, 55,957 low-income Medicare beneficiaries in Kentucky with limited savings and incomes below 150 percent of the poverty level will be eligible for reduced premiums, a $50 deductible, 15 percent co-insurance, and no gaps in coverage.

We must protect our seniors who cannot afford the ever increasing prices of prescription drugs. Low-income seniors are at a higher risk of not taking care of themselves because of the costs of medicines. The Medicare Prescription Drug Bill will provide relief to those seniors who struggle everyday to buy the prescription drugs they need. With the immediate $600 assistance, seniors and disabled individuals who qualify will be able to go to their local pharmacy and buy medicines with their discount card.

The time for talk has finally come to an end and seniors and Medicare beneficiaries will start to see results. Starting in June they will see the first wave of benefits, and starting in 2006 they will be able to access the whole package. Of course with any new governmental program their will be some bumps in the road, but at least this time we have a road to travel on and not just talk about.