Washington, D.C. - U.S. Congressman Kevin Brady (R- The Woodlands) was seated on stage just feet from the President as he signed the Medicare Prescription Drug Modernization Act into law, legislation that represents the greatest improvement to Medicare in a generation--prescription drug coverage.

"Today, Medicare refuses to pay $80 a month for medicine to prevent heart disease and strokes, but will pay $20,000 in hospital costs following a life-threatening emergency. That doesn’t make sense. We can invest a dime now to help seniors afford their medicine, or pay a dollar later when they end up in the hospital or face surgery that could have been prevented," said Brady who as a member of the Ways and Means Committee helped craft the legislation.

"As a fiscal conservative, I supported this bill and worked hard to see it pass because it translates into more choices, better plans and lower expenses for Medicare down the road. There are thoughtful new reforms that keep Medicare costs from ballooning out of control. And an exciting new savings account that gives every American, of any age, more freedom to determine their health care future," Brady a member of the whip team concluded.

Highlights of the Medicare Prescription Drug Modernization Act:

More Choices

The new Medicare plan offers seniors more choices. This plan is completely voluntary. Many seniors are pleased with their prescription drug coverage in their private plans -- they have the right to stay with a program that is best for them. For the first time in Medicare’s history, private plans will have the opportunity to provide competitive health coverage for our seniors.

Prescription Drug Discount Card

Seniors will receive a prescription drug discount card 6 months after the President signs the legislation into law. This will translate in an across the board immediate discount of 10-25 percent off the cost of their prescription drugs until the full prescription Drug program swings into action in 2006.

Facts and Figures

The prescription drug plan monthly premium for Medicare will be about $35, roughly a dollar a day. After a $250 dollar deductible Medicare will pay 75 percent of your prescription drug costs up to $2,250. To protect seniors from expensive catastrophic illness, Medicare will cover costs over $3,600 each year. There is extra help for the neediest seniors, they can expect to pay about $2 for a generic drug and $5 for a brand name drug and will see much of the premium cost waived.

Lower Drug Costs

Costs savings and tax incentives are included in this plan. This legislation makes huge strides in bringing generic drugs to the market faster. This reform will lower drugs costs for all Americans.

Health Savings Accounts

Health Savings Accounts will allow working age employees and retirees to allocate a share of pre tax dollars into a medical savings account. Interest earned on money invested in HSAs is tax-free. The balance in the account can be carried forward from year to year to pay for needed medical expenses.

Health Savings Accounts

Health Savings Accounts will allow working age employees and retirees to allocate a share of pre tax dollars into a medical savings account. Interest earned on money invested in HSAs is tax-free. The balance in the account can be carried forward from year to year to pay for needed medical expenses.

More Money for Hospitals and Doctors

Seniors deserve the best medical care possible. Unfortunately, because of low Medicare reimbursements, many Medicare beneficiaries are finding increasingly more difficult to find providers to treat them. This plan also includes funding to make sure doctors, hospitals, nursing homes and home health agencies continue to treat our Medicare seniors.

Encourages Employers to Continue Providing Health Plans for Retirees

The bill includes incentives to employers to that they will not drop their current plans. In fact, this bill makes it more likely that if you have coverage with your employers, that employer will continue to offer that benefit.

For a complete summary of the Medicare Prescription Drug Modernization Act link to: http://waysandmeans.house.gov/media/pdf/healthdocs/confagreement.pdf