THE WHITE HOUSE AT WORK
Tuesday, June 13,
2000
PRESIDENT CLINTON:
ADDRESSING THE CHALLENGES FACING RURAL
SENIORS
WHO NEED PRESCRIPTION DRUGS
"Today's report on the special needs of rural seniors makes it
clear that we need a benefit that's available for all older Americans."
President Bill Clinton
Tuesday, June 13, 2000
Today, at the White House, President Clinton released a new report
on the special challenges faced by the over 9 million Medicare beneficiaries in
rural communities who need life-saving prescription drugs. The report shows
that rural beneficiaries tend to have a greater need for prescription drug
coverage but have fewer coverage options. Their incomes are lower, access to
pharmacies is more limited, out-of-pocket spending is higher, and the available
private prescription drug coverage options are severely limited and extremely
expensive. The President expressed concern about the Republican proposal that
builds on the flawed Medigap plan, and urged Congress to work with him to
design a meaningful Medicare prescription drug benefit that provides an
affordable, dependable, coverage option available to all beneficiaries.
Highlighting the Greater Need For Prescription Drug Coverage By
Rural Beneficiaries. Rural Medicare beneficiaries, who represent nearly
one-fourth of the Medicare population, have lower incomes, more limited access
to pharmacies, and higher out-of-pocket expenditures than their urban
counterparts. Key findings of today's report by the Domestic Policy Council and
the National Economic Council include:
- Rural beneficiaries pay more for prescription drugs than urban
beneficiaries, and are more likely to go without needed medication because of
cost concerns;
- Rural elderly are more likely to have high out-of-pocket spending
than urban seniors, even among the chronically ill;
- Rural Medicare beneficiaries are 50 percent less likely to have
any prescription drug coverage;
- In rural America, most beneficiaries who lack prescription drug
coverage are middle income – they would not qualify for direct premium
assistance in plans that subsidize low-income beneficiaries, but do not have
enough income to afford private insurance;
- Rural beneficiaries are about one-third less likely to have
retiree health insurance;
- Less than 1 percent of rural beneficiaries are enrolled in
Medicare managed care with a prescription drug benefit;
- Due to lack of alternatives and the critical need for drug
coverage, rural seniors disproportionately purchase Medigap; and
- Premiums for Medigap for rural beneficiaries are high and
increase with age.
Urging Congress to Pass a Meaningful Medicare Drug Benefit.
The President raised concerns about the Republican proposal to use a flawed
Medigap-like model that would not work for all Medicare beneficiaries. Instead,
he called on Congress to work with him on a plan that is designed to cover
people – not provide political cover – and provides meaningful drug
coverage for Medicare beneficiaries. The President's plan is:
- Voluntary;
- Accessible to all beneficiaries;
- Designed to give beneficiaries meaningful protection and
bargaining power;
- Affordable to all beneficiaries and the program; and
- Consistent with a larger plan to strengthen and modernize
Medicare.
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