Rahall Report
By U.S. Rep. Nick Rahall (D-WV)

Congress missed an opportunity to do something historic for the seniors and disabled individuals of West Virginia and our great Nation.  We could have expanded prescription drug coverage for all Medicare beneficiaries, ensured that rural beneficiaries receive the same coverage as those in big cities, and allowed our Government to negotiate for the lowest drug prices for our seniors and disabled individuals.  I fought for all of these measures when the U.S. House of Representatives first took up this issue earlier this year.

But, instead of broadening the reach of a program championed by democrats for the life of the program, Republicans in Congress rammed through a terribly flawed bill that among other things will make people spend $4,000.00 to save $1,000.00 in drug benefits.  Do Republican leaders think they can finally privatize Medicare by filling 20% of a prescription bottle for seniors? 

In West Virginia the numbers are even scarier.  According to the Senate Health, Education, Labor, and Pensions Committee minority staff, 29,610 Medicare beneficiaries will lose their retiree health benefits and 44,900 Medicaid recipients will pay more for the prescription drugs they need.  In addition, 28,250 fewer West Virginia seniors will qualify for low-income protections under this bill.  The Republicans have cracked the foundation of Medicare, letting big insurance corporations grab profits, leaving our sickest and poorest seniors to pay more. 

But the problem with this unsound legislation does not stop here.  According to the Democratic staff of the House Ways and Means and Energy and Commerce Committees the Medicare bill Republicans pushed upon the American public would:

    ·       Keep drug prices high.   The proposed plan bows to drug industry pressure and prevents Medicare from negotiating better prices, and prevents access to lower-cost drugs available in other countries, allowing drug companies profits to skyrocket at the expense of patients.

    ·       Raise Medicare premiums for seniors who don't want to join an HMO. Millions of Medicare beneficiaries will be forced to pay more for Medicare if they don't give up their doctor and join an HMO.  Although Republicans say it will be limited, as many as 7 million seniors could be forced to participate.

    ·       Force more than 6 million low-income seniors to pay more for their medicine.  The plan prohibits Medicaid from filling in the gaps in the new Medicare drug benefit, as Medicaid does now.  As a result, this bill could actually raise costs for more than 6 million low-income seniors and people with disabilities. 

    ·       Leave millions of seniors without drug coverage for part of the year.   Rather than providing continuous coverage, the Medicare benefit has a $2800 gap in coverage that will leave millions of seniors without drug coverage for part of the year, even though they continue to pay full price on their premiums.

    ·       Erode retiree coverage for 2 to 3 million seniors.  More than 2 million seniors who have good drug coverage now through retiree health plans could lose it under the proposed plan.  This is because it discriminates against seniors with such coverage.  This debate was supposed to be about expanding coverage, not taking it away. 

    ·       Coerce seniors into joining an HMO.  The proposed plan would grossly overpay private HMOs and PPOs and includes a $12 billion slush fund to bribe plans to participate.  Better benefits and lower premiums would only be available through private plans - not currently an option for most rural seniors.  Worse, if HMOs do move into rural areas, it will actually undermine the guaranteed coverage that exists today for rural beneficiaries under Medicare.  Seniors who have access to HMOs will be forced to give up the choice of physician or their preferred hospital to get better benefits.

        This fatally flawed Medicare prescription drug legislation caters to the drug industry, HMOs, and the insurance industry - not West Virginia seniors and people with disabilities.  Congress needs to go back to where we started, help seniors with their prescriptions, period.

U.S. Rep. Nick Rahall (D-WV) represents West Virginia's 3rd District