John Boehner, March 24, 2006

When Congress passed the Medicare Modernization Act of 2003, many of us knew we were taking a gamble. The prescription drug benefit constitutes the largest single change to the Medicare program since its creation forty years ago -- and anytime you rock the boat, you’re going to run into problems. The projected costs have been an ongoing issue and the free market reforms included in the bill were bound to draw criticism from those who believe "government always knows best."

But here we are, already a few months after the new benefit -- "Part D" -- first took effect. Despite some early bumps in the road, the results look promising.

The competition between private companies offering drug plans has already driven down costs for taxpayers and beneficiaries alike. The Center for Medicare & Medicaid Services (CMS) recently announced that the cost of the program is now expected to be 20 percent lower than previously estimated, reducing spending on Part D from an estimated $38.1 billion to $30.5 billion in 2006 alone.

Competition among plans has also been effective in driving down premiums to an average of $25 per month, down from prior estimates of $37 per month. In a poll conducted last week by Ayres, McHenry & Associates (a public opinion research firm), 6 out of 10 seniors voluntarily enrolled in the Medicare prescription drug program reported they are saving money on the program.

In Ohio, the average premium for a managed care plan (one that combines Medicare-covered health care and a prescription drug benefit) is just $23.12. 18 of the 60 such plans do not charge any additional premium for drug coverage.

A recent editorial in the Washington Times points out that the Medicare prescription drug benefit has gotten off to a remarkably successful start:

"Medicare's market-driven drug benefit has had the fastest start up a federal program in recent memory. More seniors were able to get coverage in three months than were able to obtain it after years under state Medicaid and prescription drug plans. Millions of poor seniors that were spending 30 percent of their income on drugs now pay nothing. As a result, they are in better health and the total cost of their care will go down."

According to the Department of Health & Human Services (HHS), more than 27 million Medicare beneficiaries are now getting coverage and saving money on their prescription drugs. 380,000 new beneficiaries are signing up each week.

Among Ohioans who are eligible for Medicare Part D, 68 percent now have some Medicare prescription drug coverage. That’s 1,200,004 beneficiaries out of a total of 1,755,985 who are eligible. 127,664 of those are right here in the 8th District: 33,697 in Butler, 5,848 in Darke, 4,042 in Mercer, 10,990 in Miami, 68,661 in Montgomery, and 4,426 in Preble County.

With this new program has come an unprecedented effort at educating American seniors about their options. Individuals and groups across the country have all made an effort to get information in the hands of seniors that can help them understand this new benefit. And it’s working.

A second survey by Ayres, McHenry found that 9 out of 10 seniors eligible for Medicaid and Medicare ("dual eligibles") reported having no problems using the new benefit. Eighty percent said the program covers the prescription drugs they need.

Despite frustration with early attempts to implement this new program, with 27 million seniors signed up it’s clear it is working. If you are eligible for this benefit and have yet to sign up, or if you’d simply like more information, my office is here to help. Please don’t hesitate to contact us toll-free at 1-800-582-1001. You can also visit the Medicare website at www.medicare.gov or call 1-800-MEDICARE.

Congressman John Boehner is the House Majority Leader. Boehner, a Republican, represents Ohio's Eighth Congressional District, which includes Miami, Butler, Preble, Darke, and Mercer Counties.