[Peach]

The evidence it cites is primarily correct, however, every single article I've seen written about the legislation also mentions that over $70 billion will be paid to companies currently providing retiree prescription benefits in order to encourage them NOT to drop their existing coverage. In other words, we are bribing companies to honor their existing retiree contracts.

It is widely believed the numbers crunchers will look at the $$ they receive from the government vs. the cost of their current coverage and will drop the coverage anyway.

MANY retirees have excellent prescription drug benefits, according to the articles, and they worry this benefit will actually cost them more $$ considering that Medicare coverage gets dropped after a certain level only to be picked up again after the individual pays thousands of dollars of out of pocket expenses.

[TomGuy]

$70 billion will be paid to companies currently providing retiree prescription benefits in order to encourage them NOT to drop their existing coverage.

I haven't gone back and re-read the legislation, but IIRC, the figure is closer to $140 billion handout to insurance companies. At least that was pre-budget that now says the initial bill will actually be about 1/3 higher than estimated in December when the bill was being debated and voted on.