Washington, D.C. - U.S. Rep. Maurice Hinchey (NY-22) harshly criticized the massive Medicare reform bill passed after an all-night session in the House, calling the legislation a shameful attempt to privatize Medicare that fails to provide a substantive prescription drug benefit for seniors.

 

"This is a major defeat for today's Medicare beneficiaries and for future generations of seniors and the disabled, many of whom will actually pay more for prescription drugs, not less. However, it is a major victory for the drug and private insurance industries," Hinchey said. "Without a doubt, this legislation was designed to accomplish the Republican goal of decimating Medicare, turning it over to health insurance companies and denying any meaningful break in prescription drug prices for people who desperately need it."

 

The Republican bill, which is scheduled to take effect in 2006, prohibits Medicare from negotiating lower drug prices and blocks re-importation of drugs from other countries at lower prices. In addition, 2.7 million seniors will lose the prescription drug benefits they now receive from former employers, as many as 6.4 million of the lowest-income beneficiaries will get less drug coverage than they have now, and millions of seniors will see their Medicare premiums rise if they refuse to join an HMO. Most dangerously, it sets Medicare on the path to privatization, a long-held goal of the Republican majority.

 

"This bill was passed under the cover of darkness for a reason. Seniors will have to wait two years to get any benefit. Then -- at most -- they will see 22 percent of their drug costs covered. We could have achieved larger discounts on drug prices for seniors by allowing the safe re-importation of American-manufactured drugs from Canada or by allowing Medicare to negotiate fair prices on their behalf. We could have done that without a $400 billion package, two-thirds of which will not be spent on prescription drugs. But time and again the Republican leadership and this Administration refuse to stand up to their friends in the pharmaceutical and insurance industries." 

 

The House initially defeated the Medicare package by a vote of 216 to 218, but Republican leaders held the vote open for nearly three hours while they negotiated for more votes. Debate began just before midnight and the vote was called at 3 a.m. The bill ultimately passed by a vote of 220 to 215 at 5:53 a.m. Shortly thereafter, the House adjourned until early December when it is expected to return to pass an omnibus appropriations package to fund federal agencies for the remainder of the 2004 fiscal year. The Senate is expected to vote on the Medicare bill this weekend.