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Senior drug discount plan not without critics
WASHINGTON (AP) -- The Bush administration is touting its revised plan to promote private drug discount cards as a much-needed step toward helping seniors save money on prescriptions. But critics say the proposal released Thursday is nothing more than a replica of a plan halted by a judge last year. Representatives of chain drug stores and community pharmacists, both party to a federal lawsuit over the plan, said they remained opposed. "It's really a false promise for consumers," said John Rector, a senior vice president for the National Community Pharmacists Association. "We ought to be working toward a sound Medicare pharmacy benefit for all Medicare beneficiaries that need it." Medicare administrator Tom Scully retorted, "Pharmacists are worried about pharmacists. We're worried about seniors first." The revised plan is "significantly improved" with a lot more details, Scully said. "This is not a drug benefit but it's a first step." The plan still encourages older Americans to buy the cards from private companies, by giving some cards what amounts to a government seal of approval. After paying a one-time enrollment fee -- not more than $25 -- senior citizens could get discounts of up to 15 percent on some medicines, White House officials said. The revised proposal has more details on the classes of drugs that can be discounted. There are now rules about what the agency will look for from a company before it gives its seal of approval. Details are also offered about the type of information senior citizens will get. But the plan refers to "substantial savings" without being more specific, complains Ron Pollack, executive director of the consumer group Families USA. "There's no standard, no minimal amount that is to be discounted," he said. Government officials also tried to address the issue of whether the Centers for Medicare and Medicaid Services have the legal authority to put such a plan into practice. They cite several statutes, including one that allows Medicare to educate beneficiaries. The issue is critical because of the fight in federal court. Drugstore chains sued after President Bush announced the plan in July, contending it did not clearly outline who must subsidize the lower prices. They also questioned whether federal officials had the power to promote the cards without congressional approval. U.S. District Judge Paul L. Friedman granted an injunction that prevented the program from starting because of the likelihood that the government did not have that authority. In November, he issued a stay to allow the government to submit a new proposal. "It's the same basic argument they made unsuccessfully," Rector said. "They can add as many bells and whistles as they like but the underlying authority that's necessary is lacking." S. Lawrence Kocot of the National Association of Chain Drug Stores agreed. "The only thing they're pointing to is the thing they pointed to before," Kocot said. The benefit of drug cards themselves also is in dispute. A federal report in July found that the cards offer only meager savings. Democrats repeatedly have said they are skeptical about the proposal. One-third of the 40 million seniors citizens and disabled people pay full price for medicines because they lack prescription drug coverage. Bush included $190 billion for a prescription drug benefit in the budget proposal for the upcoming year. FAIR USE NOTICE: This page contains copyrighted material the use of which has not been specifically authorized by the copyright owner. Global Action on Aging distributes this material without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. We believe this constitutes a fair use of any such copyrighted material as provided for in 17 U.S.C § 107. If you wish to use copyrighted material from this site for purposes of your own that go beyond fair use, you must obtain permission from the copyright owner.
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