MoveOn.org Voter Fund | Title: "Poker"

Republican National Committee ^ | July 1, 2004

[RWR8189]

Rhetoric

NARRATOR:  “Welcome to George Bush’s Medicare prescription poker. There are more than 70 cards in the deck. You pick one today, your medication may be covered. You’re stuck with that card, but they can re-shuffle and raise the price on your prescription. The only sure winners are the drug companies. Other presidents gave us the New Deal and the Fair Deal. But George Bush is giving seniors the raw deal. We’re not being led, we’re being misled.

CHYRON:  LEADER; Paid for by MoveOn.org Voter Fund.

The Facts

Medicare Drug Discount Card Is Currently Helping

Millions Of Seniors Get Affordable Prescription Drugs

More Than Three Million Seniors Are Already Enrolled In Medicare Drug Discount Card Programs.  (“Fact Sheet: Medicare Drug Discount Cards Help Seniors Save On Prescription Drug Costs,” The White House, 6/14/04)

Discount Cards Can Save Beneficiaries Up To 18 Percent On Name Brand Drugs And 30-60 Percent On Generics.  “Seniors and people with disabilities can begin using their Medicare-approved drug discount cards to garner savings on prescription medicines. … Analysis by CMS shows that Medicare beneficiaries can expect discounts of up to 18 percent off the average retail prices for name brand drugs and discounts of between 30 and 60 percent on generic drugs. Mail order and Internet discounts through the cards offer savings of up to 24 percent from comparable services.” (U.S. Department Of Health And Human Services, “HHS Secretary Urges Seniors To Sign Up For Discount Cards,” Press Release, 6/1/04)  

ü      Low-Income Seniors Can Receive $1,200 Credit Over The Next 18 Months That Will Offer Savings Of 30 To 70 Percent On Their Prescription Expenses.  “On top of the discounts, low-income beneficiaries can qualify for a $600 credit this year to help pay for their prescription medicines and another $600 in 2005. Any money from the credit not spent this year will carry over into 2005. For millions of low-income beneficiaries, these savings translate to 30 to 70 percent or more reductions in their drug costs.”  (U.S. Department Of Health And Human Services, “HHS Secretary Urges Seniors To Sign Up For Discount Cards,” Press Release, 6/1/04)  

Prices Have Fallen Under Discount Card Program Because Of Competition Among Broad Range Of Card Sponsors.  Mark McClellan, Administrator of the Centers For Medicare and Medicaid Services (CMS), testified that “with the new transparency and competition, prices offered under card programs have fallen since CMS first began posting pricing data. As a result, beneficiaries who are struggling with drug costs can generally recoup the cost of enrollment within one or two months – and many cards have a low annual enrollment fee, or none at all, so that not signing up for a card means leaving money on the table.”  (Mark B. McClellan, Finance Committee, U.S. Senate, Testimony, 6/8/04)

Centers For Medicare And Medicaid Services Is Monitoring And Publicizing Pricing Activity Of Card Sponsors To Ensure That Any Changes Are Fair And Transparent.  “[W]e’re [CMS] monitoring it ourselves to see if there are any unusual increases in prices from any of the card sponsors, and, if and when we see that, we will follow up with the card sponsors. … [W]e have remedies available to us. … Most importantly, though, by making this information on pricing available, we will be letting seniors know, we will be letting the public know, advocate groups know, consumer organizations know about cards that engage in these behaviors, and they will not get beneficiaries back next week, and they will not get beneficiaries back for the drug benefits. So the combination of monitoring and vigilant enforcement, plus just making this information available so that beneficiaries can choose cards that give them consistently good deals, we’re going to stay on top of this issue.”  (Mark B. McClellan, Finance Committee, U.S. Senate, Hearing, 6/8/04)

Card Sponsors Cannot Raise Prices Unless Cost Of Providing Drugs Increases Due To Manufacturer Price Hikes.  “Unless there’s a cost increase, [card sponsors] can’t just engage in bait-and-switch. They can’t just get people to sign up for their cards and then jack up the prices. They have to have a cost justification for any significant increase in price, and we’re monitoring for that.” (Mark B. McClellan, Finance Committee, U.S. Senate, Hearing, 6/8/04)

Kerry Promises To Repeal Medicare Law, After Missing Nearly Every Vote On Historic Legislation

Kerry: “If I’m President We’re Going To Repeal That Phony [Prescription Drug] Bill.”  (Sen. John Kerry, “Ending The Era Of Special Interests,” Remarks In Nashua, NH, 1/21/04)

Kerry Missed 36 Of 38 Votes On Medicare Bill, Including Final Passage Of Senate Version And Conference Report.  (H.R.1, CQ Vote #459: Prescription Drug Benefit - Conference Report, Passed 54-44: R 42-9; D 11-35; I 1-0, 11/25/03; S.1, CQ Vote #262: Prescription Drug Benefit - Passage, Passed 76-21: R 40-10; D 35-11; I 1-0, 6/27/03; S.1, CQ Vote #261: Prescription Drug Benefit - Means Test, Rejected 38-59: R 3-47; D 35-11; I 0-1, 6/26/03; S.1, CQ Vote #260: Prescription Drug Benefit - Alternative Plan, Rejected 21-75: R 20-29; D 1-45; I 0-1, 6/26/03; S.1, CQ Vote #259: Prescription Drug Benefit - Retiree Fallback Plan, Rejected 42-54: R 0-49; D 42-4; I 0-1, 6/26/03; S.1, CQ Vote #258: Prescription Drug Benefit - Medigap Policies, Rejected 43-55: R 1-50; D 42-4; I 0-1, 6/26/03; S.1, CQ Vote #257: Prescription Drug Benefit - Medicaid Coverage, Rejected 47-51: R 5-46; D 42-4; I 0-1, 6/26/03; S.1, CQ Vote #256: Prescription Drug Benefit - Immigrant Coverage, Rejected 33-65: R 32-19; D 1-45; I 0-1, 6/26/03; S.1, CQ Vote #255: Prescription Drug Benefit - Experimental Drug Coverage, Adopted 71-26: R 50-0; D 20-26; I 1-0, 6/26/03; S.1, CQ Vote #254: Prescription Drug Benefit - Premium Reduction, Rejected 39-59: R 0-51; D 39-7; I 0-1, 6/26/03; S.1, CQ Vote #253: Prescription Drug Benefit - Additional Disease Treatment, Agreed To 57-41: R 51-0; D 5-41; I 1-0, 6/26/03; S.1, CQ Vote #252: Prescription Drug Benefit - Alzheimer’s Subsidy, Adopted 98-0: R 51-0; D 46-0; I 1-0, 6/26/03; CQ Vote #251: Prescription Drug Benefit - Asset Test, Adopted 69-29: R 22-29; D 46-0; I 1-0, 6/26/03; S.1, CQ Vote #250: Prescription Drug Benefit - Cancer Patient Coverage, Agreed To 54-44: R 51-0; D 3-43; I 0-1, 6/26/03; S.1, CQ Vote #249: Prescription Drug Benefit - Cancer Care, Adopted 97-1: R 50-1; D 46-0; I 1-0, 6/26/03; S.1, CQ Vote #248: Prescription Drug Benefit - Drug Advertisements, Rejected 39-59: R 0-51; D 39-7; I 0-1, 6/26/03; S.1, CQ Vote #247: Prescription Drug Benefit - Disability Services, Agreed To 50-48: R 48-3; D 2-44; I 0-1, 6/26/03; S.1, CQ Vote #246: Prescription Drug Benefit - Cost-Effectiveness Studies, Rejected 43-52: R 0-48; D 43-3; I 0-1, 6/25/03; S.1, CQ Vote #245: Prescription Drug Benefit - Durbin Substitute, Rejected 39-56: R 0-48; D 39-7; I 0-1, 6/25/03; S.1, CQ Vote #244: Prescription Drug Benefit - Premium Reduction, Rejected 39-56: R 0-49; D 39-6; I 0-1, 6/25/03; S.1, CQ Vote #243: Prescription Drug Benefit - Drug Advertisements, Rejected 26-69: R 0-49; D 26-19; I 0-1, 6/25/03; S.1, CQ Vote #242: Prescription Drug Benefit - Health Centers, Adopted 94-1: R 48-1; D 45-0; I 1-0, 6/25/03; S.1, CQ Vote #241: Prescription Drug Benefit - Employer Compensation, Rejected 41-55: R 0-50; D 41-4; I 0-1, 6/24/03; S.1, CQ Vote #240: Prescription Drug Benefit - Drug Cost Coverage, Rejected 41-54: R 0-49; D 41-4; I 0-1, 6/24/03; S.1, CQ Vote #239: Prescription Drug Benefit - Benefit Availability, Rejected 41-54: R 1-48; D 40-5; I 0-1, 6/24/03; S.1, CQ Vote #238: Prescription Drug Benefit - Two-Year Fallback Plan, Agreed To 51-45: R 48-2; D 2-43; I 1-0, 6/24/03; S.1, CQ Vote #237: Prescription Drug Benefit - Congressional Coverage, Adopted 93-3: R 50-0; D 42-3; I 1-0, 6/24/03; S.1, CQ Vote #236: Prescription Drug Benefit - Cost Sharing Extension, Agreed To 54-42: R 50-0; D 3-42; I 1-0, 6/24/03; S.1, CQ Vote #235: Prescription Drug Benefit - Canadian Price Equity, Agreed To 66-31: R 51-0; D 14-31; I 1-0, 6/24/03; S.1, CQ Vote #234: Prescription Drug Benefit - Open Enrollment Period, Agreed To 55-42: R 51-0; D 3-42; I 1-0, 6/24/03; S.1, CQ Vote #233: Prescription Drug Benefit - Third-Party Coverage, Agreed To 52-43: R 49-0; D 3-42; I 0-1, 6/24/03; S.1, CQ Vote #232: Prescription Drug Benefit - Drug Importation, Adopted 62-28: R 21-25; D 40-3; I 1-06/20/03; S.1, CQ Vote #230: Prescription Drug Benefit - Drug Patents, Adopted 94-1: R 50-1; D 43-0; I 1-0, 6/19/03; S.1, CQ Vote #229: Prescription Drug Benefit - Premium Cap, Rejected 39-56: R 0-51; D 39-4; I 0-1, 6/19/03; S.1, CQ Vote #228: Prescription Drug Benefit - Drug Cost Disclosure, Adopted 95-0: R 51-0; D 43-0; I 1-0, 6/19/03; S.1, CQ Vote #227: Prescription Drug Benefit - Benefit Within Medicare, Rejected 37-58: R 0-51; D 37-6; I 0-1, 6/18/03; H.R.1, CQ Vote #458: Motion Agreed To 61-39: R 49-2; D 11-37; I 1-0, 11/24/03, Kerry Voted Nay; H.R.1, CQ Vote #457: Motion Agreed To 70-29: R 47-3; D 22-26; I 1-0, 11/24/03, Kerry Voted Nay)

ü      Kerry Was One Of Only Two Senators To Miss Final Vote On Conference Report. Kerry chose to hit campaign trail instead because he felt that voting “was not going to make a difference.”  (Sam Hananel, “Kerry, Lieberman Skip Final Medicare Vote To Return To Campaign Trail,” The Associated Press, 11/25/03)

Kerry Twice Voted To Kill Bipartisan Medicare Prescription Drug Bill.  Kerry voted against the motion to invoke cloture on the conference report and the motion to waive the Budget Act on budgetary points of order against the conference report.  (H.R.1, CQ Vote #457: Motion Agreed To 70-29: R 47-3; D 22-26; I 1-0, 11/24/03, Kerry Voted Nay; H.R.1, CQ Vote #458: Motion Agreed To 61-39: R 49-2; D 11-37; I 1-0, 11/24/03, Kerry Voted Nay)  

Kerry Also Voted Against Bipartisan Medicare Prescription Drug Proposal In The Senate Finance Committee.  (S.1, Vote #5: Passed 16-5: R 9-2; D 6-3; I 1-0, 6/12/03, Kerry Voted Nay)

Kerry’s Proposals Will Not Significantly Lower Cost Of Prescription Drugs

Kerry Says He Will “Fight” For Medicare Price Negotiation And Drug Reimportation.  “JOHN KERRY: CHOOSING SENIORS OVER PHARMACEUTICAL PROFITS. John Kerry will fight to allow Medicare to negotiate better prescription prices for seniors and will fight to pass reimportation so seniors can get safe quality affordable prescriptions. Kerry will strengthen drug coverage for those who have it – not make it worse.”  (John Kerry For President, “Bush’s Broken Promises: Social Security And Medicare,” Press Release, 3/7/04)

But In 2000, Kerry Co-Sponsored Democrat Legislation That Prohibited Medicare From Negotiating Drug Prices.  The bill, which was introduced by Senator Daschle and co-sponsored by Senator Kerry, included this provision: “NONINTERFERENCE.--In administering the prescription drug benefit program established under this part, the Secretary may not-- (1) require a particular formulary or institute a price structure for benefits; (2) interfere in any way with negotiations between private entities and drug manufacturers, or wholesalers; or (3) otherwise interfere with the competitive nature of providing a prescription drug benefit through private entities.”  (S.2541, Introduced 3/10/00; S.2541, Thomas Bill Summary, Introduced 5/10/00; Julie Rovner, “GOP, Dems Spar Over Negotiating Language In Drug Law,” National Journal’s CongressDaily, 2/10/04)

ü      According To Nonpartisan Congressional Budget Office, Government Negotiation Would Not Reduce Costs; Under New Medicare Law, Private Plans Will Negotiate “Substantial Savings.”  “CBO has examined the effect of striking the ‘noninterference’ provision (section 1860D-11(i) of the Social Security Act) as added by P. L. 108-173, the Medicare Prescription Drug, Improvement, and Modernization Act of 2003. That section bars the Secretary of Health and Human Services from interfering with the negotiations between drug manufacturers and pharmacies and sponsors of prescription drug plans, or from requiring a particular formulary or price structure for covered Part D drugs. We estimate that striking that provision would have a negligible effect on federal spending because CBO estimates that substantial savings will be obtained by the private plans and that the Secretary would not be able to negotiate prices that further reduce federal spending to a significant degree. Because they will be at substantial financial risk, private plans will have strong incentives to negotiate price discounts, both to control their own costs in providing the drug benefit and to attract enrollees with low premiums and cost-sharing requirements.”  (Douglas Holtz-Eakin, Director, Congressional Budget Office, Letter To Senate Majority Leader Bill Frist, 1/23/04)

ü      Nonpartisan Congressional Budget Office Concluded That Importation Would Produce Only A Small Reduction In Prescription Drug Spending.  “On the basis of its evaluation of proposals to date, CBO has concluded that permitting the importation of foreign-distributed prescription drugs would produce at most a modest reduction in prescription drug spending in the United States. H.R. 2427, for example, which would have permitted importation from a broad set of industrialized countries, was estimated to reduce total drug spending by $40 billion over 10 years, or by about 1 percent. Permitting importation only from Canada would produce a negligible reduction in drug spending.”  (Colin Baker, Anna Cook, and Margaret Nowak, “Would Prescription Drug Importation Reduce U.S. Drug Spending?” Issue Brief, Congressional Budget Office, 4/29/04)

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