Four Step Fix For Medicare Part D

One: Mandate Medicare to negotiate for lower prescription drug prices.

Written more to drive excessive profits for private insurers than to benefit the consumer, the legislation that created Medicare Part D prevents Medicare from taking the cost cutting approach that the Veterans Administration has used for many years-- using its clout to negotiate lower prices. The difference between what veterans pay and Medicare part D enrollees pay is huge. Comparisons for the same drugs in the different programs vary as much as 300%, with a mean difference of 48%. Denied the right to negotiate on behalf of its beneficiaries, seniors and those with disabilities participating in the Medicare Part D program pay higher premiums, co-pays, deductibles, and other costs. Worse yet, most Medicare Part D plans have a huge coverage gap, often called a “donut hole.”

Two: Medicare should cover safely imported medicines from licensed pharmacies in Canada and the European Union.

Currently Medicare is prohibited from covering safely imported medicines from countries with prescription drug regulatory systems as strong or stronger than what we have in the United States. Substantial savings can be found through safe, regulated importation.

Three: Eliminate the donut hole.

Once a Medicare Part D participant’s annual drug costs exceed $2,510 in total, they have to pay 100% of their future drug costs until they qualify for catastrophic coverage. While enrollees are receiving no savings from their plans, they are still required to continue paying their monthly premiums. Only after an enrollee pays $4,050 out of pocket will their coverage resume. This coverage gap or “donut hole” can be eliminated by the savings created through negotiation and importing safe drugs from countries with prescription drug regulatory systems as strong or stronger than what we have in the United States.

Four: Give beneficiaries the choice to obtain prescription drug coverage directly from Medicare.

While Medicare is a program which has worked well for Americans, has contained costs effectively, has very low administrative costs, and enjoys huge public confidence, Part D abandons Medicare, and provides benefits only through a maze of private insurance companies. A real Medicare prescription drug benefit would be simple to understand and simple to sign up for. Virtually everyone who would benefit would be enrolled, just like Part A and Part B. It would also be simple to use-- just take your Medicare card to the drug store.