For the past few years, I have been telling seniors in the Second District about our efforts to modernize Medicare and add a prescription drug benefit. The past few years, we have approved legislation in the House of Representatives to accomplish this goal, but the bills always get held up on the way to becoming law.

This year, I believe we have the best opportunity to finish the process and send a bill to President Bush that he can sign into law. This past week in the House, we approved Medicare modernization legislation, the most sweeping improvements to the health care system that older Americans depend on since it was created in 1965. The Senate also passed a bill, and we are ready to start working out the differences.

Medicare must be modernized to keep pace with improvements in medicine, and it must be reformed so that rising costs don't bankrupt the program just when the retiring Baby Boom generation will need it the most. Our plan for Medicare enhances the program with an affordable and voluntary prescription drug benefit, strengthens rural health care and creates competition to keep costs down and offer more choices.

How will these changes affect Medicare benefits? Seniors who choose to add the drug benefit will pay a premium of about a dollar per day and, after a $250 deductible, will have 80 percent of their prescription costs covered by Medicare up to $2,000. For those with drug costs over $3,500, the remainder will be covered by Medicare so excessive drug costs don't bankrupt them.

Low-income Medicare recipients will have their premiums covered and will pay only a nominal co-payment on their prescriptions. If seniors already have private insurance that covers prescriptions, they can stay with their current coverage. If they don't need prescription coverage, they don't have to sign up for it.

Our legislation makes Medicare reimbursements for rural hospitals, doctors and home health agencies equal to reimbursements in urban areas. Small communities in the Second District depend on their local hospitals and doctors for care. If they are not receiving adequate funds for the Medicare patients they care for, they will not be able to continue to serve rural areas, see new patients or take care of Medicare patients. Seniors shouldn't have to worry about losing their doctors.

I was pleased to include a test project for covering medical adult day care under Medicare. Those already eligible for Medicare's home health benefit will also be eligible to try medical adult day care through the project. Some health care providers believe this will save money for Medicare and provide home health recipients with improved care.

In order for Medicare to remain a sound and successful health care program, it is going to have to reform to maintain its financial stability. Our legislation creates a process that allows private plans to compete to provide better health care at lower costs. As new plans under Medicare are created through competition, seniors will be able to select a health care plan that best fits their needs, whether that is traditional Medicare or enhanced preferred provider plans.

When Medicare was created, most health care expenses consisted of doctor visits and hospital care. Today, prescription medicine and preventive care have become more vital than in the past. Medicare is outdated and needs to be modernized to bring in more choices so beneficiaries can get the care best for them, not care dictated by a rigid and uncompetitive government pricing scheme. We can't afford to prevent Medicare from fulfilling its promise any longer, and this is quickly setting up to be year we help move Medicare into the future.

OR IMMEDIATE RELEASE CONTACT: KATHY REDING

JUNE 27, 2003 (202) 225-3501

House Approves Medicare Prescription Drug Benefit

Lewis Supports Reforms That Strengthen and Modernize Medicare

Washington, D.C. - U.S. Representative Ron Lewis voted in favor of H.R. 1, the Prescription Drug and Medicare Modernization Act that passed in the House of Representatives last night by a vote of 216-215.

The legislation adds affordable prescription drug coverage to Medicare, extra prescription premium assistance for low-income seniors, increased funding for rural health care providers and competitive reforms that will maintain financial stability and offer choice.

"These improvements will, for the first time, help Medicare recipients pay for their prescriptions so they don't have to struggle afford the medicines important to their health care," said Lewis. "The benefit is affordable for those without current drug coverage, and it is voluntary, so retirees who are happy with coverage they may have from their former employer or private insurance are not forced into a new plan."

Lewis said Medicare must be modernized to keep pace with improvements in medicine, and reformed so rising costs don't bankrupt the program in the future.

"We can't afford not to introduce more competition in Medicare," said Lewis. "Without competition, seniors have limited choices and there is little incentive to manage cost."

The legislation also makes Medicare reimbursements for rural hospitals, doctors and home health agencies equal to reimbursements in urban areas and contains Lewis' demonstration project that would allow Medicare patients who already qualify for and receive home health care benefits to receive their health care in a medical adult day care setting and continue have their health care covered by Medicare.

"If hospitals and doctors in Kentucky's small communities are not receiving adequate funds from Medicare, they will not be able to continue to serve our rural areas, so this fix is vital," said Lewis. "I'm pleased the medial adult day care provision was included so we can learn more about how this service could provide better care for those dependent on home health care at a lower cost to Medicare."

Summary of H.R. 1, the Medicare Prescription Drug and Modernization Act of 2003

Prescription Drug Benefit:

$250 deductible and $35 per month premium

80 percent of drug costs covered and all costs covered after $3,500 out-of-

Fully subsidized premium and cost-sharing up to 135% of poverty level

Low-income beneficiaries pay up to $2 per generic and $5 per brand name drug, per prescription

Quality Improvements to Enhance Seniors' Health

Protections against adverse drug interactions

Electronic prescribing to minimize medical errors

Pharmacy therapy and chronic care management for beneficiaries with chronic conditions

Long Overdue Modernizations

Covers an initial physical, cholesterol screening, and offers disease management

Rural relief package for underpaid rural hospitals, physicians, and home health

Revitalizes private plans in Medicare, followed by competitive bidding in which seniors can reduce their premiums

Competitive bidding for durable medical equipment

Reforms pricing for drugs administered by physicians, and adequately reimburses oncologists