Burlington, VT - Senator Peter Welch, candidate for U.S. Congress, renewed his call for Medicare Part D reforms in a press conference with U.S. Senator Patrick Leahy in Burlington today.

While speaking with seniors at Burlington's Champlain Senior Center, Welch outlined his position that the program's language prohibiting fair price negotiations be amended to explicitly require the federal government to negotiate drug prices.

Welch also advocated for eliminating the "donut hole," where the plan's drug coverage stops for seniors. This gap in coverage will require seniors to bear the full cost of $2,850 worth of prescription drugs, costs incurred in the program,s gap in coverage between $2,250 and $5,100 [Greenwich Post, 8.10.06].

"Because price negotiations were prohibited in the legislation, taxpayers pay 80 percent more for drugs. After taxpayers are finished footing the unnecessarily burdensome bill, our seniors are forced to pay out of pocket for $2,850 worth of overpriced drugs. It is wrong," said Welch.

It is estimated that a significant number of beneficiaries will reach the coverage gap at the end of September and will impact an estimated 7 million seniors [Arkansas News Bureau, 7.19.06].

"This program fails on the two most critical issues to Vermonters: simplicity and cost," said Welch, citing the burdensome nature of 44 plans in Vermont and inability of the federal government to negotiate fair prices.

Approximately 98,000 seniors statewide are eligible to participate in the drug program.

Senator Leahy said that "Peter's common sense ideas for reform transform the current Bush program into a real prescription drug plan, one that benefits our seniors and taxpayers, not the drug industry. It will provide real help so Vermont seniors can afford the prescription drugs they need."

Leahy has been a consistent advocate for reforming the misguided legislation. Welch, in his campaign for Congress, has consistently argued since last year that the program must be reformed to save money for taxpayers and seniors and reduce the program,s burdensome complexity.

With Leahy at his side, Welch renewed his call for the following Congressional actions, adding a fifth today, eliminating the gap in coverage:

1. Waiving the 1 percent enrollment penalty on premiums and extending the enrollment deadline for all participants to January 2007;
2. Allowing seniors who made a mistake in their choice of plans the ability to switch plans without penalty through January 2007;
3. Replacing the provision prohibiting the government from negotiating fair drug prices with language explicitly requiring these negotiations;
4. Revising the program to be consumer oriented by simplifying the program options; and
5. Eliminating the "donut hole's" $2,850 gap in coverage.

"The Bush Congress created a program that enriches drug companies, bewilders our seniors, and burdens taxpayers," said Welch.

Drug prices offered by Medicare drug plans are over 80 percent higher than prices negotiated for federal agencies and the Department of Veterans Affairs. The program has ballooned to cost taxpayers more than $720 billion over the next 10 years, a cost that could be significantly reduced had Congress required negotiations for lower drug prices, explained Welch.

For example, the average cost of the heartburn medication Protinix for Part D is $113 per month, compared to $21 when negotiated by the federal government. Prices under Medicare plans average 84 percent higher than federally-negotiated prices.

See a drug cost comparison here: http://www.welchforcongress.com/RxCostComparison.