Why We Need Prescription Drug Coverage

The rising costs of prescription drugs threaten the health and financial well-being of many NEA-Retired members and seniors nationwide. Some of our members spend hundreds of dollars per month from their modest pensions on the drugs they need to stay healthy. Others have crossed the borders into Canada or Mexico in pursuit of cheaper drugs. Some ration their pills or forgo treatment altogether.

No retiree should be forced to make health decisions based only on the affordability of prescription drugs. Almost one-half of seniors have incomes less than twice the poverty level. Yet, presently, Medicare does not cover most outpatient prescription drugs. Consequently, seniors must too often pay for prescription drugs at the expense of food or other necessities.

Therefore, NEA supports the creation of a universal, comprehensive, affordable, and accessible prescription drug benefit for all Medicare beneficiaries, which includes cost protections for senior and other low-income beneficiaries. Several members of Congress have introduced prescription drug proposals--including the use of discount cards; creation of government-subsidized private health insurance plans; and addition of a prescription drug benefit to Medicare.

NEA supports legislation like the Medicare Reform Act introduced last year by Senators Bob Graham of Florida and Zell Miller of Georgia. Highlights of last year's Graham-Miller plan include: $25 per month prescription drug coverage premium with no deductible; government funding for at least 50 percent of prescription drug costs; $4,000 annual limit on out-of-pocket expenses, and reduced or no premiums for incomes near the poverty line. NEA is working to support a similar bill this year.

Any drug plan should be standardized and reliable and should offer Medicare beneficiaries comparable benefits regardless of where they live. Relying only on private insurers and allowing market forces to determine coverage would likely result in spotty, inconsistent plans that would not provide seniors the benefits they urgently need.

Congress' budget resolution proposes $266.3 billion in Fiscal Year 2004 for Medicare--an increase of $17.8 billion over last year's level. Importantly, it supports an allocation of $400 billion over 10 years for a Medicare prescription drug benefit, which is a small step in the right direction.

NEA is pushing hard for the passage of a meaningful comprehensive Medicare prescription drug plan and is working closely with key members of Congress to make this happen as soon as possible.

--Alfred Campos
NEA Government Relations

What You Can Do

Stay Informed
For NEA's position on particular prescription drug legislation that may be introduced this Congress, make sure to check the NEA's Legislative Action Center at www.nea.org/lac/fedupdat.html

Alert the Media
Write a letter to the editor of your local newspaper or call your local radio talk show to explain the importance of the prescription drug issue and what must be done about it. Talk about your personal hardships trying to deal with rising drug costs.