U.S. Representative Nancy L. Johnson (R-Ct) Holds a Hearing On Medicare Drug Benefit Implementation

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U.S. Representative Nancy L. Johnson (R-Ct) Holds a Hearing On Medicare Drug Benefit Implementation

HOUSE COMMITTEE ON WAYS AND MEANS: SUBCOMMITTEE ON HEALTH HOLDS A HEARING ON MEDICARE DRUG BENEFIT IMPLEMENTATION

MAY 3, 2006

SPEAKERS: U.S. REPRESENTATIVE NANCY L. JOHNSON (R-CT) CHAIRWOMAN U.S. REPRESENTATIVE JIM MCCRERY (R-LA) U.S. REPRESENTATIVE SAM JOHNSON (R-TX) U.S. REPRESENTATIVE DAVE CAMP (R-MI) U.S. REPRESENTATIVE JIM RAMSTAD (R-MN) U.S. REPRESENTATIVE PHIL ENGLISH (R-PA) U.S. REPRESENTATIVE J.D. HAYWORTH (R-AZ) U.S. REPRESENTATIVE KENNY C. HULSHOF (R-MO) U.S. REPRESENTATIVE WILLIAM M. THOMAS (R-CA) EX OFFICIO

U.S. REPRESENTATIVE FORTNEY PETE STARK (D-CA) RANKING MEMBER U.S. REPRESENTATIVE JOHN LEWIS (D-GA) U.S. REPRESENTATIVE LLOYD DOGGETT (D-TX) U.S. REPRESENTATIVE MIKE THOMPSON (D-CA) U.S. REPRESENTATIVE RAHM EMANUEL (D-IL) U.S. REPRESENTATIVE CHARLES B. RANGEL (D-NY) EX OFFICIO

U.S. REPRESENTATIVE WALLY HERGER (R-CA) U.S. REPRESENTATIVE XAVIER BECERRA (D-CA)

WITNESSES: MARK MCCLELLAN, M.D., PH.D., ADMINISTRATOR, CENTERS FOR MEDICARE AND MEDICAID SERVICES, U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES

BEATRICE DISMAN, CHAIRMAN, MEDICARE PLANNING AND IMPLEMENTATION TASK FORCE, SOCIAL SECURITY ADMINISTRATION

SUSAN EVERETT, NORTH CAROLINA REGIONAL COORDINATOR, MEDICARE TODAY, RALEIGH, NC

HEATH SCHIESSER, PRESIDENT, PRESCRIPTION DRUG PLAN, WELLCARE HEALTH PLANS, INCORPORATED TAMPA, FL

ROBERT M. HAYES, PRESIDENT, MEDICARE RIGHTS CENTER

BILL WOLFE, VICE PRESIDENT, MANAGED CARE, RITE AID CORPORATION, HARRISBURG, PA

PAM GRISNIK, OWNER, RX EXPRESS, GROVE CITY, PA

[*] N. JOHNSON: Good afternoon, everyone. The hearing will come to order.

Today I am pleased to chair this hearing on the Medicare drug benefit which is so dramatically changing the lives of our seniors. Today, more seniors and disabled people than ever before have prescription drug coverage, and it is because of the Medicare drug benefit.

This is a momentous time in Medicare's impressive history. The largest expansion of the program is improving seniors' access to prescription drugs and thereby fundamentally improving their health and their financial security.

The Medicare momentum we're witnessing is undeniable. Last year, the administration set a goal of having 30 million Medicare beneficiaries enrolled in the drug benefit. Last month, they topped 27 million, and hundreds of thousands are signing up weekly. In fact, just today, 27,382 new enrollees have entered the Medicare drug plan.

Of the remaining seniors, there are another nine million that already have drug coverage -- for example, those over 65 who are active employees in the public or private sector, members of Tricare or participants in other programs.

Seniors and the disabled are filing more than 93 million prescription drug prescriptions a month, an average of three million a day. More importantly, once enrolled, seniors are happy -- happy -- with the benefits provided.

The AARP, the largest organization representing seniors, found that eight of 10 seniors enrolled in the program said that it met or exceeded their expectations. A Kaiser Foundation poll finds that three out of four seniors enrolled in the Medicare drug plan are satisfied with their plan and are not having trouble getting the drugs they need.

Seniors are giving this benefit their stamp of approval. This is the largest benefit expansion in Medicare's history, so it's not surprising that there have been some implementation pitfalls along the way.

What is commendable, however, is how quickly CMS has taken ownership of the problem and addressed the issues within the first two months of the program's functioning through close, collaborative, consultive action with plans, pharmacists, states and other stakeholders.

As the program matures, it will need continued refinement, but enrollment numbers and survey after survey show undeniable momentum. The real story is how seniors across the country are signing up and saving money.

It's misleading to focus on only the refinements, however, when seniors like Gail Glazuski (ph) from Cheshire, Connecticut is saving $2,000 a year. That's the real story that the Medicare prescription drug benefit is telling across the country. I ran into a senior in my district recently who said to me, "You know, Part D is the difference between my staying in my home and my not being able to stay in my home."

And I...

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