Government policy designed to benefit corporations at the expense of everyone else? Who would have believed such a thing possible? I'm trying to figure out what elderly relatives should do and I'm thinking I'd have more success finding WMDs in Iraq. One more issue for the Dems if they want to play the populist card (ie, actually represent those of us who aren't corporations).
http://www.workingforchange.com/article.cfm?ItemID=20777<edit>
The Bush administration and many congressional Republicans couldn't be happier. For them, it's working exactly as designed. The drug and insurance companies that wrote this 2003 bill are laughing all the way to the bank. (And two of the people who helped the bill become law -- former Louisiana Republican Rep. Billy Tauzin, head of the committee that steered the bill through the House, and Thomas Scully, then head of the federal agency that runs Medicare -- were promptly rewarded with lucrative jobs as Big Pharma lobbyists.)
How lucrative is it? Amazingly, for a program that funnels more prescription drug purchases than any other in the world, Part D is prohibited by law from doing what every state program, insurance company, hospital, and pharmacy does: negotiate discounts with pharmaceutical companies based on quantity of purchase. Part D, by law, must pay Pharma full price, which is, as we know all too well, whatever the hell Pharma wants to charge. In theory, the individual insurance plans can negotiate discounts -- but not only does this lose the economy of scale, but there's no guarantee with the private companies that any cost savings will be passed on to consumers. Call it welfare for very rich people. Lots of welfare. For people who are now, thanks to this new program rapidly becoming very, very rich.
There are other major problems with Part D, too. I haven't even touched the infamous "doughnut hole," the gap that requires patients pay nearly $3,000 in out-of-pocket expenses with no coverage before benefits resume. Try that while living on your monthly $880 Social Security Disability check.
The upshot is that the Medicare prescription drug plan is ghastly expensive for taxpayers, doesn't cover a lot of what it needs to, isn't serving half the population it's supposed to serve -- and is therefore penalizing us -- and is confusing as hell for anyone who's tried to navigate it. Plus, it's checkbook politics at its worst. It's a disaster. Critics are pushing bills in Congress -- HR 585 and SB 1841 -- to extend the May 15 deadline to the end of 2006, thus giving more Americans a chance to initially enroll. They hope in that extra time to also persuade Congress to, at minimum, abolish the senior tax, fix the formulary loophole, allow Medicare to negotiate prices with drug companies, abolish the doughnut hole, and simplify the enrollment process.
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