WES CLARK'S NEW APPROACH TO MEDICARE PRESCRIPTION DRUGS

America's seniors need and deserve a comprehensive, meaningful, and affordable prescription drug benefit through Medicare. But the prescription drug bill passed by Congress fails on all three counts: it forces seniors into HMOs where they lose their choice of doctors; it increases prescription drug costs for many senior; and it prohibits seniors from purchasing low-cost prescription drugs from Canada. Wes Clark advocates a new approach to a Medicare prescription drug benefit grounded in the three basic principles: the benefit should be comprehensive for all seniors through Medicare; the benefit should provide meaningful help for all seniors; and it should make prescription drugs affordable for all seniors.

WES CLARK'S THREE PRINCIPLES FOR A PRESCRIPTION DRUG BENEFIT

1. Comprehensive: Covering all seniors through Medicare. All seniors should have access to the same prescription drug benefit provided through Medicare. They should not have to join HMOs or face large premium increases to get the prescription drug coverage they need. We can and should modernize Medicare as we provide a prescription drug benefit that is long overdue, but the program does not have to-and should not be-privatized to achieve this goal.

2. Meaningful: Providing real benefits our seniors deserve. All seniors deserve a meaningful benefit that provides the coverage they need and affordable premiums.

3. Affordable: Making prescription drugs affordable for all seniors. We should allow Americans to import less expensive medications from Canada, with the appropriate safety precautions. We should cut the corporate tax shelters and red tape that keep inexpensive generics from entering the market. And we should also allow Medicare to use the same purchasing tools that are available to the private sector, including the power to negotiate directly with drug companies for bulk discounts on popular drugs.

HOW THE REPUBLICAN'S PRESCRIPTION DRUG BILL FAILS SENIORS

The prescription drug bill passed by Congress costs $400 billion, but the money is used mainly to enrich HMOs and companies-not to provide a comprehensive, meaningful, and affordable prescription drug benefit for the elderly and disabled. Under the Republican Plan:

One quarter of Medicare beneficiaries pay more for prescription drugs

• 2 to 3 million seniors will be dropped from their current retiree drug plans

• The majority of the 6.4 million low-income elderly and disabled will pay more for prescription drugs than they are currently paying through Medicaid.

• Under the current plan low-income seniors will no longer be able to choose the best prescription drug for their condition.

Privatization forces seniors to choose between paying increased premiums or joining HMOs and losing their choice of doctors.

• Up to 7 million seniors would be forced to pay higher premiums or join an HMO and lose their choice of doctor.

The prescription drug benefit does not control the spiraling cost of prescription drugs.

• Seniors would be prohibited from purchasing U.S.-made drugs from Canada at lower prices.

• The legislation does not cut the corporate tax shelters and red tape that keep inexpensive generic drugs from entering the market.

• The legislation does not allow Medicare to use the same purchasing tools that are available to the private sector, including the power to negotiate directly with drug companies for bulk discounts on popular drugs.

The prescription drug "benefit" is skimpy for seniors but gives away billions of dollars to HMOs.

• Millions of seniors would go without drug coverage for parts of every year, even though they would be charged premiums year-round.

• The majority of seniors would see no net benefit from prescription drug benefit because they already get better benefits through their employer or Medicaid or because their prescription drug expenses are below $1,200 annually.

• Rural seniors would be forced to subsidize HMOs.

• The proposal would make it easier for Congress to raise premiums and payroll taxes or to cut Medicare benefits.

• The proposal includes a new tax shelter for the wealthy that threatens to undermine health insurance for older and sicker workers.