President's Radio Address
THE PRESIDENT: Good morning. This week Congress made significant progress toward improving the lives of America's senior citizens. The House of Representatives passed legislation that would bring prescription drug coverage to Medicare and lead to health care choices for our seniors. This legislation, if also passed by the Senate, would represent the greatest improvement in senior health care since Medicare was enacted in 1965.
When these reforms take full effect, our seniors would see real savings in their health care costs. Within six months, seniors would be eligible for a drug discount card that would save them between 10 and 25 percent off the retail price of most drugs. When the full drug benefit arrives in 2006, all seniors become eligible for drug coverage for a monthly premium of about $35. For most seniors without coverage today, the Medicare drug plan would cut their annual drug bills roughly in half.
Seniors with the highest drug bills would save the most, and seniors with the greatest need would get the most help. Low-income seniors would pay a reduced premium, or no premium at all, for the new drug coverage. And low-income seniors would also have lower co-payments for their medicines.
Here is an example of how this benefit would work. A senior taking drugs to treat arthritis, high cholesterol, and migraines has a typical drug bill of about $250 a month, or $3,000 a year. With this legislation, this retiree would save $1,680, after paying her insurance premiums -- more than half her current drug costs.
Under the new reforms, seniors would have more choices of health care coverage. Should seniors want to stay in traditional Medicare and receive a prescription drug benefit, they would be able to do so. Some seniors may want expanded coverage for extended hospital stays, or protection against high out-of-pocket medical expenses. Or they may want the coverage that comes with managed care plans. Under the new law, all those choices would be available. With choice, seniors would have more control over their health care options and health plans would compete for the business with better coverage.
We're on the verge of success because of bipartisan leadership, and because of the support of many advocates for seniors, including the AARP. Throughout many months of discussion and debate, we've remained focused on the clear objective -- to modernize and strengthen the Medicare system. And by working together, we're close to meeting that goal.
In the nearly 40 years since Medicare was launched, this is the most significant opportunity for any Congress to improve health coverage for our seniors. Now we're down to the final stages. This Congress will decide whether or not seniors will have prescription drug coverage under Medicare, and this Congress will decide whether America's seniors will have better health care choices.
I urge all members of Congress to remember what is at stake, and to remember the promise we have made to America's seniors. The quality of their health care, and the future strength of Medicare depends on the passage of this much needed legislation.
Thank you for listening.
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