2004 -- S 3015

=======

LC03024

=======

STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2004

____________

J O I N T R E S O L U T I O N

RESPECTFULLY URGING THE UNITED STATES CONGRESS TO REVISE CERTAIN

PROVISIONS OF THE MEDICARE PRESCRIPTION DRUG, IMPROVEMENT AND

MODERNIZATION ACT OF 2003 (HR-1)

     Introduced By: Senator Maryellen Goodwin

     Date Introduced: April 01, 2004

     Referred To: Senate Constitutional & Gaming Issues

1-1

     WHEREAS, The Medicare Prescription Drug, Improvement and Modernization Act of

1-2

2003 (MMA) will result in significant savings for only a minority of beneficiaries with extremely

1-3

large drug bills and may cost some beneficiaries more in premiums, deductibles and co-pays than

1-4

they will get back in benefits; and

1-5

     WHEREAS, The Medicare Prescription Drug, Improvement and Modernization Act of

1-6

2003 (MMA) provides no substantive drug benefits until 2006 other than a discount card that will

1-7

provide minimal discounts on prescription drugs for most beneficiaries; and

1-8

     WHEREAS, The Medicare Prescription Drug, Improvement and Modernization Act of

1-9

2003 (MMA) creates a “doughnut hole” by suspending coverage for drug costs between $2,250

1-10

and $5,100 a year; and

1-11

     WHEREAS, The average beneficiary is projected to spend $3,155 on drugs when the

1-12

program starts, placing many of them within this large gap in prescription drug coverage caused

1-13

by the “doughnut hole”; and

1-14

     WHEREAS, The Medicare Prescription Drug, Improvement and Modernization Act of

1-15

2003 (MMA) specifically prohibits the federal government from directly negotiating with drug

1-16

manufacturers to obtain lower prices for covered drugs; and

1-17

     WHEREAS, Low-income Medicaid beneficiaries will lose protections and benefits they

1-18

currently enjoy under Medicaid and will be subject to higher co-payments and lose any wrap-

1-19

around coverage under Medicaid; and

2-1

     WHEREAS, The Medicare Prescription Drug, Improvement and Modernization Act of

2-2

2003 (MMA) requires non-Medicaid eligible low-income beneficiaries to be subject to a rigorous

2-3

assets test; and

2-4

     WHEREAS, While states are being relieved of their responsibility of offering drug

2-5

coverage to ‘dual eligibles,’ they will be required to reimburse the federal government for a

2-6

significant percent of the cost of drug benefits for these beneficiaries and states will also lose this

2-7

group in their own negotiating pool for Medicaid drugs; and

2-8

     WHEREAS, The deductible beneficiaries pay for drug coverage will be indexed to

2-9

growth in aggregate Part D (prescription drug) expenditures; and

2-10

     WHEREAS, The Medicare Prescription Drug, Improvement and Modernization Act of

2-11

2003 (MMA) reduces home health reimbursement rates by an estimated $6.5 billion over 10

2-12

years and these lower reimbursement rates threaten beneficiaries’ access to critical home health

2-13

services; now, therefore be it

2-14

     RESOLVED, That this General Assembly of the State of Rhode Island and Providence

2-15

Plantations hereby respectfully urges the United States Congress to amend the Medicare

2-16

Prescription Drug, Improvement and Modernization Act of 2003 (MMA) to address the serious

2-17

gaps and issues raised in this resolution including: eliminating the prohibition on the federal

2-18

government negotiating lower prices for drugs, narrowing the gap in the “doughnut hole,”

2-19

liberalizing the restrictive asset test for persons with low incomes, changing the index for

2-20

beneficiary contributions from drug price inflation to the consumer price index, and restoring

2-21

scheduled reductions in home care reimbursement; and be it further

2-22

     RESOLVED, That the Secretary of State be and he hereby is authorized and directed to

2-23

transmit duly certified copies of this resolution to the Honorable George W. Bush, President of

2-24

the United States, the President of the Senate, and the Speaker of the House of Representatives of

2-25

the Congress of the United States, and to each member of the Rhode Island Congressional

2-26

Delegation.

=======

LC03024

=======