Perspective
Low-Income Drug Benefit Is Not the Answer
Citing "serious shortcomings" in the Medicare prescription drug proposals by Democrats and Republicans in Congress, a group of 18 moderate Democrats in the House of Representatives recently proposed a ten-year, $400 billion Medicare prescription drug benefit that would assist people with low-incomes and catastrophic drug expenses. But, the Medicare Rights Center, has warned Congress that a means-tested application process for a Medicare prescription drug benefit will create major enrollment barriers, preventing millions of low- and middle-income older and disabled Americans from getting any assistance to pay for their medications.
The consumer group pointed out that 98 percent of people eligible for Medicare are enrolled in the program, whereas more than 40 percent of eligible people with Medicare are not enrolled in Medicare low-income assistance programs. Under-enrollment in Medicare's low-income assistance programs is a strong predictor of how a complicated, eligibility determination process deters people from accessing their benefits. The Medicare Rights Center also noted that over 23 million people with Medicare who have annual incomes above $17,000 would not be eligible to get the low-income drug benefit. The group told Congress that like all Medicare benefits, a drug benefit should help everyone with Medicare in need.
The Medicare Rights Center also reported to Congress that the proposed $4,000 catastrophic prescription drug cap on out-of-pocket drug spending would:
- Help less than one in five people with Medicare;
- Require a costly and burdensome administrative process; and
- Discriminate against older and disabled Americans with high out-of-pocket expenses that are not related to prescription drugs.
According to Bob Hayes, president of the Medicare Rights Center, "The Medicare prescription drug debate, along with the tax cut debate, is a debate of values and morals. If indeed we value the lives of men and women of the 'Greatest Generation,' then no one with Medicare should have to choose between food and medications."
Click here to read MRC's policy brief.