I am concerned about Team Obama wanting to change Medicare’s Prescription Drug Program known as Medicare Part D. One of the rare entitlement programs that is structured to embrace free market principles, Part D successfully serves seniors – including the truly needy. Yet after more than a decade of operation costs, Part D costs 45% less than was projected when it was enacted. Average monthly premiums paid by seniors have remained well below projection and have remained stable for a number of years. That’s an amazing record for ANY federal program!
I know that many of our Liberty Group members have benefited from Medicare Part D. When my Mother-in-Law was in her last years it really helped with her medications. Part D’s free market model is simple. Competing insurance companies have designed a variety of plans from which seniors can choose. Each plan offers different benefits at different price points and with different co-pays. Seniors have real choice and can select a plan that serves their individual needs.
Each plan has an incentive to offer good quality and a fair price to seniors. If they do not, seniors will choose another company. The insurance companies in turn have an economic incentive to drive the best bargain they can with the drug manufacturers, thus holding down the cost of prescription drugs.This free-market structure has been extremely effective.
But proponents of big government say – we cannot have that – we have to get government more involved. That’s why the Obama Administration wants to interfere in the free market negotiations between plans and drug manufacturers which we know will undermine the program. Likewise, proposals to impose “rebates,” which are essentially tax increases, threaten Part D’s success.
We need to defend the free market principles in Medicare Part D. I am asking you and members of your group to join me, and other conservatives around the country, in keeping the Obama Administration from messing with Medicare Part D. If you use Medicare Part D, or have a parent or other relative that does, and want to help me defend it please click on this link to find out what you can do to help. I would greatly appreciate it!
You can find out more about this issues at these links:
• The Heartland Institute has setup this webpage
• Heritage Institute provided this report