Bush Signs Sweeping Medicare Bill That Includes Drug Benefit

President Bush signed legislation today that creates a prescription drug benefit for the elderly, launching the biggest changes to the Medicare system since its creation in 1965.

"For the first time, we're giving seniors peace of mind that they will not have to face unlimited expenses for their medicine," Mr. Bush said just before sitting down at a desk in Constitution Hall, near the White House, and signing the new law, surrounded by applauding supporters and an audience of several hundred people. Presidential bill signings typically are set at the White House, on smaller scale.

The bill, which the government estimates will cost $400 billion over 10 years, would remake Medicare in part by offering drug benefits to 40 million elderly and disabled people while giving insurance companies and private health plans a huge new role in Medicare. The legislation also allows the elderly to set up health accounts in which they can set aside money tax free to pay for future health care.

Mr. Bush hailed the legislation in a televised 20-minute warm-up speech today, offering case studies of elderly people in the audience who he said would be among those to benefit from the Medicare overhaul.

The Republican-controlled Congress gave final approval to the bill on Nov. 25 when the Senate, voting 54 to 44, passed the measure, handing the president a political victory on an issue that has historically worked to the advantage of Democrats.

Eleven Senate Democrats, most of them moderates, joined 42 Republicans and one independent in voting for the legislation; 9 Republicans and 35 Democrats voted against it.

Republicans hope to embrace the legislation as political leverage in the coming election year. Even though a majority of Democrats voted against it, Mr. Bush said that its passage with at least a modicum of Democratic support showed that old partisan differences had been overcome to fulfill a promise to the elderly.

The Medicare overhaul comes at a time when the older segment of the population is growing rapidly, meaning the number of older voters will also be increasing.

"I visited with seniors around the country and heard many of their stories," Mr. Bush said today. "I'm proud that this legislation will give them practical and much-needed help."

But the legislation is not without its critics. Opponents think it risks undermining traditional Medicare, and there have been complaints that the coverage will not be comprehensive.

Medicare beneficiaries will not be allowed to buy insurance to cover their share of prescription drug costs under the new Medicare bill. Health economists have long asserted that when beneficiaries are insulated from the costs, they tend to overuse medical services.

AARP, the largest organization of older Americans, backed the legislation over the objections of some of its members and traditional allies in the debate on the proper role of government and private markets in providing health care to the elderly.

"This bill helps those who need it the most people with low incomes, as well as those with high drug costs," said AARP's chief executive, William D. Novelli, whose endorsement of the bill was crucial to its passage.

The new benefit, covering about 75 percent of drug costs up to $2,250 a year, would begin in 2006. Next year, Medicare beneficiaries could buy Medicare-approved drug discount cards, which officials say could reduce pharmacy bills by 15 percent or more.

When the bill passed the Senate last month, several Democrats charged that it would enrich insurance and drug companies at the expense of the elderly, who, Democrats said, would would be angry when they learned details of the bill.

"This is lousy legislation," said Tom Daschle, Democrat of South Dakota, the Senate minority leader. "We may spend the rest of our careers repairing the flaws of this bill." Mr. Daschle later introduced legislation that would repeal some of the new legislation's more contentious provisions and allow Americans to import cheaper drugs from Canada and Western Europe.

Under the bill, a Medicare beneficiary would be responsible for the first $250 of drug costs, and insurance would then cover 75 percent of costs up to $2,250 a year. Coverage would then stop until the beneficiary had spent $3,600 out of pocket (for a total of $5,100 in prescription drugs). Medicare would pay 95 percent of the cost of each prescription beyond that.

A Medicare recipient could stay in traditional Medicare and get drug coverage by signing up for a stand-alone drug insurance policy. Or the person could join a private plan covering drugs along with doctors' services and hospital care.

Elderly people with low incomes would receive additional assistance enabling them to buy drugs for $1 to $5 a prescription. Premiums and deductibles for their drug coverage would be reduced or eliminated.

Medicare beneficiaries with incomes of more than $80,000 a year would, for the first time, have to pay higher premiums for the part of Medicare that covers doctors' care.

The bill would also increase Medicare payments to doctors and hospitals, speed the marketing of lower-cost generic drugs and offer tens of billions of dollars in subsidies to employers to encourage them to continue providing drug coverage to retirees. The bill also emphasizes preventive health care.

Millions of Medicare beneficiaries have bought private insurance to fill gaps in Medicare. But a provision of the legislation prohibits the sale of any Medigap policy that would help pay drug costs after Jan. 1, 2006, when the new Medicare drug benefit becomes available.

Presidency of George W. Bush -- the first 34 months

Banned Partial Birth Abortion
Reversed Clinton's move to strike Reagan's anti-abortion Mexico Policy

Killed the Kyoto Global Warming Treaty

Killed U.S. involvement in the International Criminal Court

Killed Clinton's CO2 rules that were choking off all of the electricity surplus to California.

Killed Clinton's "ergonomic" rules that OSHA was about to implement; rules that would have shut down every home business in America.

Killed the U.S. - CCCP ABM Treaty that was preventing the U.S. from deploying our ABM defenses

Has CONSTRUCTION in process on the first ten ABM silos in Alaska so that America has a defense against North Korean nukes

Pushed through THREE raises for our military.

Increased Defense Dept funding which had deteriorated during the previous 8 years

Stopped foreign aid that would be used to fund abortions.

Supported and upheld the ban on abortions at military hospitals

Signed E.O. reversing Clinton's policy of not requiring parental consent for abortions under the Medical Privacy Act

Signed TWO bills into law that arm our pilots with handguns in the cockpit

Currently pushing for full immunity from lawsuits for our national gun manufacturers

Ordered Attorney-General Ashcroft to formally notify the Supreme Court that the OFFICIAL U.S. government position on the 2nd Amendment is that it supports INDIVIDUAL rights to own firearms, NOT a leftist-imagined *collective* right

Told the United Nations we weren't interested in their plans for gun control (i.e. the International Ban on Small Arms Trafficking Treaty)

Successfully executed 2 wars: Afghanistan and Iraq. 50 million people who had lived under tyrannical regimes now live in freedom

Executed a WAR ON TERROR by getting world-wide cooperation to track funds/terrorists (has cut off much of the terrorist's funding and captured or killed many key leaders of the al Qaeda network)

Brought back our EP-3 intel plane and crew from China without any bribes or bloodshed

Started withdrawing our troops from Bosnia and has announced withdrawal of our troops from Germany and the Korean DMZ.

Signed the LARGEST nuclear arms reduction in world history with Russia

Initiated comprehensive review of our military, which was completed just prior to 9/11/01, accurately reported that ASYMMETRICAL WARFARE was critical.

Changed the tone in the White House, restoring HONOR and DIGNITY to the Presidency

Reorganized bureaucracy...after 9/11, condensed 20+ overlapping agencies and their intelligence sectors into one agency: the Department of Homeland Security.

Initiated discussion on privatizing Social Security and individual investment accounts.

Improving govt. efficiency with .8 million jobs put up for bid...weakening unions and cutting undeserved pay raises. Wants merit based promotions/raises only.

Orchestrated Republican control of the White House, the House AND the Senate.

Killed the liberal ABA's role in vetting federal judges for Congress.

GWB signed an executive order enforcing the Supreme Court's Beck decision (re: union dues being used for political campaigns against individual's wishes)

Turned around an inherited economy that was in recession.

Passed tough new laws to hold corporate criminals to account as a result of corporate scandals.

Signed 2 income tax cuts ---- 1 of which was the largest Dollar value tax cut in world history

Reduced taxes on dividends and capital gains

In process of eliminating IRS marriage penalty.

Increased small business incentives to expand and to hire new people

Signed into law the No Child Left Behind legislation delivering the most dramatic education reforms in a generation (challenging the soft bigotry of low expectations)

Reorganized the INS in an attempt to safeguard the borders and ports of America and to eliminate bureaucratic redundancies and lack of accountability.

Signed trade promotion authority

Committed US funds to purchase medicine for millions of men and women and children now suffering with AIDS in Africa

Passed Medicare Reform (authorized $39.5 Billion per year for preventive medicine such as drugs and doctor visits as well as included a ten year Privatization option)

Urging federal liability reform to eliminate frivolous lawsuits

Supports class action reform bill which limits lawyer fees so that more settlement money goes to victims

Submitted comprehensive Energy Plan--awaits Congressional action (works to develop cleaner technology, produce more natural gas here at home, make America less dependent on foreign sources of energy, improve national grid, etc.)

Endorses and promotes The Responsibility Era ("In a compassionate society, people respect one another and take responsibility for the decisions they make in life. My hope is to change the culture from one that has said, if it feels good, do it; if you've got a problem, blame somebody else -- to one in which every single American understands that he or she are responsible for the decisions that you make; you're responsible for loving your children with all your heart and all your soul; you're responsible for being involved with the quality of the education of your children; you're responsible for making sure the community in which you live is safe; you're responsible for loving your neighbor, just like you would like to be loved yourself. " -----this quote was too good to leave out)

Started the USA Freedom Corps

Initiated review of all federal agencies with a goal to eliminate federal jobs (completed September 2003) in an effort to reduce the size of federal gov while increasing private sector jobs.

Part of coalition (Russia, Israel, EU, Palestine, USA) for Israeli/Palestinian "Roadmap to Peace"

Challenged the United Nations to live up to their responsibilities and not become The League of Nations ( in other words, completely irrelevant)

Nominated strong, conservative judges to the judiciary.

Changed parts of the Forestry Management Act to allow necessary clean-up of the national forests in order to reduce fire danger.

As part of the national forests clean-up, the President restricted judicial challenges (based on the Endangered Species Act and other challenges) and removed the need for an EIS (Environmental Impact Statement) before removing fuels/logging to reduce fire danger.

Significantly eased field-testing controls of genetically engineered crops.

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Thank you, Senator Chuck Grassley!