HD Blog

It ain't cheap. The total bill is $400 Billion, though it is spread over 10 years. The reality is that it will end up costing more than that. Even so, while it doesn't help, it won't destroy the government's multi-trillion dollar annual budget.

Unfortunately, in a classic example of the "chicken in every pot" campaign promise...this bill started with giving drug benefits to ALL of the elderly - even the billionaires. In the end the bill starts to phase out the benefit for those making over $80,000/yr. If spending was cut any more, the bill wasn't going to get passed.

What many people don't realize is that the elderly are the wealthiest demographic group in America. Only 5% have problems paying for their medications and many of those qualify for Medicaid coverage. The smartest thing would have been to effectively cover that 5%, but...there aren't enough votes in Congress for that option to have passed. So more only more expensive options had a real chance.

Catastrophy #2 - Some seniors have to pay more for the same benefits!

Frankly, that's a good thing. Why should the poor pay more taxes so that those who have more money don't have to pay for their medications? This isn't a catastropy folks!

Catastrophy #3 - Those with Medicaid drug benefits will have to pay more for their medications.

Generally this won't be true...those below the poverty line will not have to pay for the drug benefit. It is possible that a few with higher incomes may have to pay a little more. The flip side is that with the federal government picking up the drugs costs in these cases this will free up state Medicaid money that will go toward more medical services for the poor. In addition more money is being allocated to hospitals that treat higher levels of Medicaid patients.

Catastrophy #4 - This bill will destroy Medicare.

So you're wondering how can adding $400 billion to Medicare destroy it? Good question. Those who are making those claims are referring to the privatization pilot program. Starting in the year 2010, for just a few years and in only six cities they are going to give seniors the option of purchasing the benefits from private companies instead of the government. Folks...get a grip, that ain't going to spell the end of Medicare.

Catastrophy #5 - It's a giveway to corporate interests.

This is referring to not allowing drug reimportation and some money that is going to the privatization test. There is also some money to encourage businesses to keep drug benefits for retired employees.

If the drug reimportation ban was overturned, this would have meant less money for drug research. This would be very bad for the HD community. The other items are a bit overstated and are offset somewhat by lowering governmental costs. It could have been done better, but it's not as bad as it has been made out to be.

Catastrophy #6 - Cancer patients will suffer.

This suprises many people as this issue really didn't really make headlines during the debate on this bill. What they are referring to is a change in how doctors were reimbursed for spending on cancer drugs. The previous formula was terrible with the government often paying much more than market price for the medications. The new formula will more closely match market prices. This will cut into the revenue of some cancer clinics. Overall, this is a good change.

That's the main scare stories out there now... We'll know in a few years how many will come true. I doubt many will.