New prescription drug benefit touted

OLYMPIA – The federal human services secretary rolled through the Northwest on Monday on a bus tour aimed at drumming up business for the Medicare prescription drug coverage that will kick in on New Year’s Day.

Mike Leavitt, the former Utah governor who heads the U.S. Department of Health and Human Services, joined federal, state and regional health officials on a huge tour bus that serves as a rolling billboard.

Seattle, Olympia and Portland were on his itinerary as he went directly to senior citizen communities and met with government, tribal, business and nonprofit organization leaders who are working on the prescription drug program.

Leavitt described the new benefit as the most significant health-care advance since Lyndon B. Johnson signed the original Medicare program 40 years ago.

“This is some very good news,” Leavitt said.

Critics may debate whether the prescription drug benefit goes far enough – or whether it’s too expensive for the federal government – but for now, it’s time to work on getting the system off the ground, he said.

“The politics are over – it’s all about implementation now,” Leavitt said in an interview. “The important thing is to realize that we finally have a prescription drug benefit for 41 million Americans.”

The drug benefit, produced with strong support from majority Republicans in Congress, is getting a big push from the Bush Cabinet.

In Washington state, Leavitt was surrounded by top health officials in Democratic Gov. Christine Gregoire’s administration, including Robin Arnold-Williams, secretary of social and health services, and Mary Selecky, secretary of health.

AARP officials also were on the tour.

Arnold-Williams, who worked for Leavitt in Utah, called the new benefit “an amazing opportunity. This is long overdue.”

If some critics remain unconvinced, that doesn’t negate the positive step the program represents, she said in an interview.

“Even if you have concerns with it, it’s our job to make this work.”

During his Olympia-area visit, Leavitt and the state officials headed to Panorama City, one of the state’s best-known retirement villages. About 100 senior citizens ate a buffet lunch and then listened to Leavitt’s folksy and simple description of the program.

There were lots of questions and puzzled expressions, but Leavitt repeatedly assured his listeners that mailboxes and airwaves will be flooded with good information in the next few months.

“It will keep you healthy. It will save you money,” he said of the change.

Beginning Jan. 1, the prescription drug coverage will be available to everyone on Medicare, including people with disabilities. People also can stay on the prescription drug programs provided through their unions or through their employers’ retirement plans, with the government subsidizing some of the drug costs.

Senior citizens will have their choice of at least two plans, with private companies providing the drugs through local pharmacies or by mail. Brand-name and generic drugs are included, and the list of eligible drugs should cover virtually every consumer need, Leavitt said.

Most people will pay a monthly payment, with $37 being the estimated monthly average next year, and a copayment will be required when each prescription is filled. An annual deductible of $250 also will be required for most recipients.

The plan will pay an average of 75 percent of prescription costs up to $2,250 a year.

Medicare will cover about 95 percent of the cost after out-of-pocket expenses reach $3,600 a year. Leavitt said that feature should give people “peace of mind that prescription drugs won’t wipe out your life savings.”

About a third of all recipients will be charged less.

The average recipient will notice about $1,300 in help with out-of-pocket expenses, according to the federal government.