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President Clinton Urges Congress to Reject Pharmaceutical Industry's Private Insurance Drug Proposal

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The Briefing Room
 PRESIDENT CLINTON URGES THE CONGRESS TO REJECT PHARMACEUTICAL INDUSTRY?S
 PRIAVTE INSURANCE DRUG PROPOSAL AND ACT NOW TO PASS A MEANINGFUL MEDICARE
                         PRESCRIPTION DRUG BENEFIT
                               July 8, 2000

Today, in his weekly radio address, President Clinton will urge the
Congress to recommit itself to passing an affordable Medicare prescription
drug benefit option for all Medicare beneficiaries as it returns from the
July 4th recess.  The President will criticize the pharmaceutical industry
for unleashing a multi-million dollar lobbying and ad campaign designed to
thwart the desires of the vast majority of Americans to pass a meaningful
Medicare prescription drug benefit option.  In so doing, he will cite a
report released just today that documents how an approach similar to the
pharmaceutical industry supported, House Republican private insurance
approach is not working.  The President will call on the Congress to reject
the narrow special interest campaign and act together on a bipartisan basis
to respond to the public interest.  He will reiterate his commitment to
work in good faith to that end, citing his recent proposed compromise to
sign into law marriage penalty relief provisions if the Congress also sends
him a voluntary Medicare prescription drug benefit that is affordable and
available to all seniors and eligible people with disabilities.

MILLIONS OF MEDICARE BENEFICIARIES HAVE NO OR UNDEPENDABLE PRESCRIPTION
DRUG COVERAGE.   Over 13 million Medicare beneficiaries have no drug
coverage, and over three in five beneficiaries have undependable drug
coverage.  Medigap and managed care prescription drug coverage is either
expensive, extremely limited, and / or unavailable.  Moreover, over half of
the Medicare beneficiaries who lack drug coverage altogether have incomes
greater than 150 percent of poverty ($12,525 for a single, nearly $17,000
for a couple).  Seniors and people with disabilities on Medicare without
drug coverage fill 30 percent fewer prescriptions than those with coverage,
but pay 83 percent more out-of-pocket for drugs.  Today, the President
will:

CRITICIZE IRRESPONSIBLE LOBBYING CAMPAIGN AGAINST A TRUE MEDICARE
PRESCRIPTION DRUG BENEFIT.  Recent reports indicate that the drug industry
has spent over $236 million and hired almost 300 lobbyists ? more than one
for every two Members of Congress.  One industry-funded group, Citizens for
Better Medicare, dedicated up to $65 million for ads and other lobbying
efforts designed to defeat a prescription drug benefit that is available
and affordable for all Medicare beneficiaries.

CITE EVIDENCE INDICATING THAT THE PRIVATE INSURANCE DRUG BENEFIT PROPOSED
BY THE HOUSE REPUBLICANS WILL NOT WORK.  News reports released today
indicate that a private prescription drug benefit, similar to the plan
passed by the House Republicans and supported by the pharmaceutical
industry, has not worked in real practice.  The state of Nevada, which has
implemented a such a plan, reported that they have not been able to find
one qualified insurer to participate.  This new information supports the
longstanding position of the insurance industry that a private insurance
benefit will not work and provides an empty promise to seniors.



                                -- more --


URGE CONGRESS TO REJECT SPECIAL INTEREST GROUPS LOBBYING AGAINST AN
AFFORDABLE MEDICARE BENEFIT OPTION.   President Clinton will call on the
Congress to place Medicare beneficiaries? interests over those of the
special interests and craft a bipartisan bill that is affordable and
available to all beneficiaries.

CALL ON THE CONGRESS TO ACT IN A BIPARTISAN FASHION AND CRAFT A MEANINGFUL
MEDICARE PRESCRIPTION BENEFIT.  With only 40 days left in the legislative
session, President Clinton will urge the Congress to act now to design a
meaningful and accessible prescription drug benefit option for all Medicare
beneficiaries.  To that end, the President has proposed a voluntary
Medicare prescription drug benefit that would begin in 2002 and, in return
for a $25 premium, provide prescription drug coverage that would have a
zero deductible and cover half of all prescription drug costs up to $5,000
when fully phased in as well as limiting all out-of-pocket medication costs
to $4,000.  This optional benefit would also provide negotiated discounts
that would ensure that Medicare beneficiaries no longer pay the highest
prices in the marketplace.  The President?s proposal is part of a broader
set of reforms that would take the Medicare Trust Fund off budget,
extending its life to at least 2030, make the program more efficient and
competitive, and dedicate $40 billion over 10 years to improve health care
provider payment rates.

REITERATE HIS OFFER TO THE REPUBLICAN LEADERSHIP TO WORK TOGETHER ON
TARGETED TAX RELIEF IN CONJUNCTION WITH PROGRESS ON PRESCRIPTION DRUGS.
Today, the President will reiterate his offer to the Republican leadership
to move forward on priorities for American families in a fiscally
responsible manner.  The President?s offer builds on bipartisan consensus
on three issues:  first, the Congress should agree to the Vice President?s
proposal to lock away Social Security and Medicare surpluses for debt
reduction, and to help extend the life of the Trust Fund; second, American
families should have marriage penalty tax relief; and third, seniors and
people with disabilities on Medicare need an affordable Medicare
prescription drug benefit.  The President will repeat his offer that if the
Congressional leadership agrees to an overall framework of fiscal
discipline that takes Medicare off-budget, he would be willing to sign
broader marriage penalty relief legislation if the Congress will pass his
prescription drug plan.

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