Medicare prescription drug law—countdown to 2006

By Evelyn Pringle
Online Journal Contributing Writer

June 25, 2005—As it stands right now, senior citizens will have a tough choice to make in 2006. Under the new Medicare Prescription Drug, Improvement, and Modernization Act of 2003, they can either come up with a $420 annual premium, a $250 deductible, 25 percent in co-payments on the first $2,250 of costs, and $2,850 to cover the gap in the benefit known as the doughnut hole, or they can quit taking their prescription medications, period.

In about six months, when the new law goes into full effect, it is estimated that the average senior will have about $3,100 in annual prescription costs and will end up having to pay 66 percent of that amount, or $2,080. After that, seniors will have to pay 100 percent of the costs from $2,251 to $5,100.

From: Online Journal

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From a Concerned Parent

I know it will not go anywhere because Mr. Bush refuses to change it, but a bill to contain the cost of this program was introduced in the Senate.

This is disgusting....do you imagine for a minute that GW calls up his mom and dad to grill them as to whether or not they are taking too many prescription drugs and "overusing medical services"?

I guess they're trying to solve that supposed pesky Social Security problem..."overusing medical services" has the undesirable effect of keeping the old codgers around longer so they can "canabalize their young" and "get freebies".

I agree with you. This program is also to expensive.

Here is the workink link to the bill that would contain the costs.

You're right....it is too expensive for what it provides. If we are going to lay out this amount then it should be providing greater benefits to more people. This could have been accomplished by setting up a program similar to that used by the VA....bargaining for cheapest prices with the drug companies.

Oh, what a nightmare! Thank you for posting this, CP. I've been trying to explain the 'doughnut hole' and even the pharmacists don't understand! Does anyone have any idea how this going to effect people? Two choices, homeless or don't take your medication.

The expense is why several Republicans voted No, including the author of the linked bill.

Well, it just isn't going to be much help at all to those who are already uninsured. I ran the costs for my mother the other day, and she is one of the few who would save any at all. She doesn't take many drugs, only spends about $1500/year so she could actually save about $400 per year with this plan...which, while nice, is hardly a huge bargain considering the cost.

I am not on medicare, but currently take about $5,000 in prescription drugs a year. I would hit that "donut hole". What is most alarming is that many companies will indeed use this as a way to default on prescribing drug coverage for their retirees. The VA is already trying to do this by adopting "user fees" for veterans in the hopes of pushing them over to the medicare plan.

Teresa - long time, no see!! Great seeing your thoughts, again!!