Obama praises agreement to cut drug costs for senior citizens
WASHINGTON (CNN) - President Barack Obama strongly praised a decision by the nation's pharmaceutical industry to agree to a deal cutting drug costs for elderly Americans on Monday, calling it an example of the kind of compromise required for successful national health care reform.
The agreement discounts medications for Medicare beneficiaries currently facing high out-of-pocket expenses when their benefits reach a gap in coverage.
"Real health care reform ... will require these kinds of commitments," Obama said during an appearance at the White House.
"Today marks a major step forward, but it will only be meaningful if we complete the journey. ... We are going to get this done."
The nation's top drug manufacturers agreed over the weekend to at least a 50 percent discount for most beneficiaries for brand-name medicines purchased in the so-called "doughnut hole" gap in coverage, Obama noted.
The gap involves medication costs of senior citizens between roughly $2,700 and $6,100 a year that are not covered by the Medicare part D plan.
The deal is expected to amount to an $80 billion reduction in Medicare drug costs for senior citizens over the next 10 years, according to Senate Finance Committee Chairman Max Baucus, D-Montana, who helped negotiate the agreement.
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I agree this is a good thing.
Mark B'ham, Al: You did a great job in raising your son. If only others would take responsibility for their health care insurance, then we wouldn't have this problem of 48 million uninsured.
I wonder how many of those 48 million are currently pregnant-knowing they can't afford their own insurance but willing to add to the public welfare lines.
Wouldnt it be better to direct Seniors to the generics. Now that would be good savings for seniors. But then the companies wouldnt be making the same amount of money. Of course, they could just work harder to find better solutions, but that makes too much sense.
I'm all for taking care of children, vets, and the elderly.
What I'm against is paying for a lazy, underachiever's healthcare.
This is a great step forward for medicare recipients. Now let's get on with the rest of healthcare reform and get everyone covered.
working together for a better america, what an idea. way to go President Obama-lets also stop them from canceling policies like when someone gets cancer and they can find that person had a leg cramp 30 years ago so they cancel their policy when it is needed.
Obama is a TOTAL loser, doesn't know what the truth is, 2012 he will be nothing but a bad memory, along with all his props, Pe"lose"i, B Frank, Dodd, Biden etc....., so long losers, and the crowd cheers.
@Ted: June 22nd, 2009 12:51 pm ET
One has to wonder why the Bush administration signed into law the Medicare Part D with the 'donut hole' gap in the first place.
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Ever ask yourself why the huge influx of drug related commericals these past few years? Drug companies made a killing off what was supposed to help our seniors, and all the "savings" of the Medicare Part D Bush made law went to the drug companies profits.
This is good news for the prospect of improved healthcare in the US but we need to be skeptical. We need a "law" not promises from drug and insurance companies. Like the banks and Wall Street they see no farther than their own profit margin. But they fear one thing more than anything else – Nationalised Health Care or a "single payer system" – which they know they cannot compete with and which, in spite of their propaganda to the contrary, they know would be better for all Americans. So, although they know that change is coming, they will do, at first, token bits to postpone the inevitable. There will be more token attmepts like this but Americans will have to pressure thier representives to pass significant laws that will guarantee a good health care system. I am willing to pay in taxes what my employer and I now pay in profits to insurance and drug companies to a government agency that will be controlled by law not by the whims of the marketplace.
We know who will make up for the difference. The rest of America including the working class who have insurance, because the drug companies still need to make a profit to stay in business, just as Americans are paying to cover the rest of the socialist countries low drug cost.
This is a step in the right direction. However, the $2700 gap starting point is still a little too high for most seniors I know.
Wouldn't it be nice if we had the ability to import medicine from Canadian (providing it is FDA approved). I bet then you would see the $2700 become $1500. That would certainly make things even easier for our seniors.
This is NOT the change I voted for.
I just hope that this doesn't mean that drug prices for everyone else go up to make up the difference.
How does this deal reduce Medicare costs? When you are in the Bush engineered hole you pay out of your own pocket ($3,400).
This is no saving, just a discount for seniors who may very well not purchase as much of the drugs as they need, thus leading to a fallin profits for the drug companies.
Republican senior wrote: "No, no no, I don't want it!"
Now it's nice to see a Conservative who is true to his principles: who refuses to accept one dime from Social Security or Medicare. All elderly Conservatives should follow the lead of this person. After all, why should MY tax money go to support him?
Duh!
This is not enough to help with the costs. I know for fact because when I reach that gap of $4,200, I don't have the money to pay for my prescriptions period. So i go the rest of the year not able to buy my meds. What about us people who are on a limited income? I guess they just want us to dry up and die so we won't be a burden to anyone.
I'm not a big Obama fan, but this is a great piece of work. This is the type of change that can make a difference in health care costs.
With this ,,,,,maybe people will not have to choose between meds/food/cutting a needed pill in-two to go further........things like this. Just maybe .........those most in need.....may be able to survive a little longer.
Thank you Mr. President! Keep moving forward.
I take care of my mom's Medicare part D coverage and this WILL NOT change the amout the seniors have to pay. the "donut hole" is based on what the seniors actually pay for their medicine out of pocket. I know this because it is a strange fact is that when a senior has a policy that has a $250 deductible, this $250 is applied to the out of pocket expense in the donut hole, but a (typically $20/month) more costly policy without a deductible is not applied (the cost of the insurance is not included in the donut hole).
Unless congress changes the law for Medicare part D, this will just mean that seniors will need to buy 2X more meds (at 50% discount) before they reach the end of their donut hole
LET's GO Congress (and the news media to report what this REALLY means!
Great Job Mr President.
AARP struck the deal, not the Prez. He was just there for the photo OP.
I think the drug companies, insurance companies are going to do many things to please the public just so Obama and his thug gang wont have control over their industry.
I guess we will have to hear the Great Mr. Gibbs say "WE WON"
Wonder if he will be saying that when N. Korea is threateing us, Al Queda and who knows who else that has realize that Obama is weak.
by the way why isnt CNN showign the latest Rasmussen poll where your GREAT LEADER is dropping in points. Guess you better go mix some more Kool-Aid and take your Valium, all you Libs.
And they're doing this out of the goodness of their tiny little hearts! Sure they are!
Would we be seeing any effort to cut costs if they weren't so afraid of Obama's public option for health care? I don't understand what the problem is with this. If you don't want the public option (i.e., socialism or just plain common sense!) then go ahead and pay a lot more for your health insurance. Morons!
And Hey Max Baucaus:
As you well know, the donut hole is $3800 out of pocket. this just means the seniors will be able to buy 2X the amount of medicine before they reach $6100 in expenses, (2700 for their insurance payments and 3400 for them? how about lowering that to 1700 for the donut hole! Or do you think seniors should spend more on generics out of pocket???