| PRESS RELEASE | |
| Contact: Paul Hewitt | November 2, 2011 |
| paul.hewitt@cahc.net | |
| 202-559-0205 |
Imposing Medicaid’s Rebate Structure Would Reduce Access, Increase Out-of-Pocket Costs and Undercut Incentives for Competition
Washington, D.C. (November 2, 2011) – The Coalition for Affordable Health Coverage (CAHC) today joined with more than 200 leading patient, labor, business and health care organizations to urge Congress not to move forward with a proposal that would impose Medicaid’s rebate structure on the Medicare Part D program, which experts predict would likely reduce access to life-saving medicines and increase out-of-pocket costs for millions of seniors, veterans and disabled Americans.
"Part D has performed well above expectations due largely to the benefits of competition." the groups wrote in a letter to Senator Patty Murray and Representative Jeb Hensarling, co-chairs of the Joint Select Committee on Deficit Reduction. "Since its implementation, Part D has cost taxpayers 41 percent less than originally projected. Beneficiary premiums are 44 percent less than projected, and have been stable from year to year—a degree of restraint unheard of in this era of health cost growth. Most or all of these gains would be at risk under the rebate proposal, with some estimates pegging the premium increase for seniors at 20 to 40 percent. This is a population who can least afford such an increase"
Among the 200 organizations signing the letter: National Association of People With AIDS, National Patient Advocate Foundation, National Council for Community Behavioral Healthcare, National Hispanic Medical Association, Pharmaceutical Industry Labor Management Association, Veterans Health Council, Vietnam Veterans of America, National Association of Manufacturers, National Association of Health Underwriters, Small Business Entrepreneurship Council, U.S. Chamber of Commerce.
"There should be no mistaking that this so-called 'rebate' is a tax that will fall most heavily on seniors, veterans and people with disabilities." said CAHC Executive Director Joel White. "If the Super Committee is bent on increasing taxes, that’s fine; but there are fairer and less destructive ways to do it."

In addition to decreased access and the likelihood of higher out-of-pocket costs, the organizations cited the potential of the proposal to undercut incentives for competition and hinder funding available for research and development.
"Part D is working well for limited income seniors and low-income beneficiaries. While Medicare costs have been soaring, Part D premiums have held steady annually. Far from being a source of inefficiency and waste, Part D sets the standard for delivering better value at lower cost. We strongly believe that the Committee should reject any proposals that put these savings at risk. Clearly such a move would adversely impact the health and well being of millions of seniors, veterans and persons with disabilities," the groups concluded.
Part D has also proven to be an incredibly popular program. A recent poll by Medicare Today found that 88 percent of beneficiaries are satisfied with the program and 95 percent say they have greater peace of mind as a result of Part D coverage.
Click here to download the full letter.
The Coalition for Affordable Health Coverage (CAHC) is a broad-based alliance with a singular focus: bringing down the cost of health care for all Americans. Our membership reflects a broad range of interests—organizations representing small and large employers, manufacturers, retailers, insurers, brokers and agents, physician organizations and individual consumers.

