Saturday, November 22, 2003 Contact: Sean Oblack (202) 225-4176 Schiff: Medicare Bill Wrong For California Seniors Bill Bill Fails to Lower Drug Costs, Contains Large Gap in Coverage and Weakens Medicare Program   WASHINGTON, DC - U.S. Representative Adam Schiff (D-CA) voted against the final version of the Medicare Prescription Drug and Modernization Act of 2003, legislation which fails to lower drug costs, contains a large coverage gap and weakens the Medicare program. Rep. Schiff issued the following statement in opposition to the bill: “It is imperative that we add a meaningful prescription drug benefit under Medicare.  Too many seniors cannot afford the enormous cost of life-saving medicines.  Unfortunately, the bill before us fails to fulfill the promise we made to our nation’s seniors by providing an inadequate prescription drug benefit, containing a large coverage gap and weakening the Medicare system.   “First, this bill does little to help lower the cost of prescription drugs.  It explicitly prohibits the Secretary of Health and Human Services from negotiating lower drug prices on behalf of America’s 40 million Medicare beneficiaries. Nor does it include a provision I fought for to reduce drug prices by allowing drug re-importation from other countries.  “Second, the drug benefit provided in the legislation is too small to be meaningful.  The average senior’s drug costs total approximately $1,350 a year.  Under this bill, the average senior would still have to pay $946 in out-of-pocket expenses - that’s 70% of their prescription drug costs.   We can do better than that.  The legislation also contains a large coverage gap for seniors who spend more than $2250 a year - or $187 per month - on medications. The seniors that fall in the gap would be required to pay 100% of drug costs from $2250-$5100 before the federal government would step in again.  That’s $2850 in out of pocket spending for seniors.   “Third, the bill weakens the Medicare system by putting it on the road towards privatization.  This is a serious mistake, one that will ultimately create less choice and higher premium costs for seniors.  Under the legislation, seniors will only be eligible for drug coverage through private insurance companies that will have wide latitude in setting premiums and deductibles. Private insurance companies will also be able to make decisions about which drugs are covered, as well as which pharmacies seniors can use.  “More than 185 senior advocacy groups oppose this bill, including the National Committee to Preserve Social Security and Medicare, Center for Medicare Advocacy, Alliance for Retired Americans, Medicare Rights Center and Center for Medicare Advocacy.   “I am committed to providing seniors with a defined, guaranteed, affordable prescription drug benefit under Medicare. This bill does not accomplish this goal and therefore, I was compelled to vote against it. This legislation should go back to the drawing board so we can deliver a real benefit that maintains Medicare’s promise to senior citizens.” Rep. Schiff represents California’s 29th Congressional District, including the communities of Alhambra, Altadena, Burbank, East Pasadena, East San Gabriel, Glendale, Monterey Park, Pasadena, San Gabriel, South Pasadena and Temple City.