Prescription Drug Benefit Cost Understated by $324 Billion!

Feb 24
22:51

2005

Ian Mason

Ian Mason

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When the legislation was passed for Bush’s prescription drug benefit in 2003, costs were said to be approximately $400 billion over the next decade. In great contradiction with this estimate, the centers for Medicaid and Medicare have admitted that costs will actually be around $724 billion.

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Considering the Bush administration’s history of saying one thing and doing another,Prescription Drug Benefit Cost Understated by $324 Billion! Articles this understatement of cost comes at no surprise. The supposedly helpful benefit will, in most cases, only provide savings for people on the lowest income level; while those on mid-level incomes who spend between $2250 and $5100 on medications will pay at least a $37/month premium and a $250 deductible, with no additional savings.

The plan was designed with a “hole” in its coverage, so that people spending between $2250 and $5100 on medications each year will receive no additional compensation or savings: They are still saving just $1500. After the $5100 line is crossed, Medicare compensates patients for 95% of their spending on drugs.

Besides the “hole” in prescription drug coverage, this plan offers far fewer benefits than those of many private employers. As a result, those employers could easily lower their standards.

I don’t claim to know much at all about this administration’s prescription drug benefit plan, but as a normal citizen just like yourself, I am not pleased with what I see.