Kucinich: Private Medicare Drug Insurers Are Driving Costs Through the Roof

[babylonsister]

http://www.commondreams.org/news2007/1015-06.htm

FOR IMMEDIATE RELEASE
October 15, 2007
1:30 PM

CONTACT: Congressman Dennis Kucinich
Natalie Laber 202-225-5871

Kucinich: Private Medicare Drug Insurers Are Driving Costs Through the Roof

WASHINGTON, DC - October 15 – Congressman Dennis Kucinich (D-OH) said today’s report on the Medicare Part D drug program, released by the Oversight and Government Reform Committee, was further proof that insurance companies are driving up the cost of health care at the expense of seniors.

The new report states that the high administrative costs of the private Part D insurers, combined with their failure to negotiate significant drug savings, will cost taxpayers and seniors almost $15 billion this year. Kucinich requested the report along with several of his colleagues on the committee.

“Senior citizens deserve better than a drug plan that requires them to subsidize the counterproductive existence of a middleman, the insurance industry,” Kucinich said.

“This report is yet another confirmation of what we’ve known – the insurance industry is profiteering on the backs of seniors who are too often struggling to make ends meet. The insurance industry shouldn’t be in the Medicare drug benefit and they shouldn’t be in health care.

“HR 676, the Expanded and Improved Medicare for All act would get rid of the insurance industry and would save enough money to cover everyone in the United States with no copayments, no deductibles, and no premiums.”

The investigation by the House Oversight and Government Reform Committee is the first independent analysis to have access to proprietary data about drug plan costs and drug prices. Key findings include:

• High administrative expenses. The private Part D insurers report administrative expenses, sales costs, and profits of almost $5 billion in 2007 -- including $1 billion in profits alone. The administrative costs of the privatized Part D program are almost six times higher than the administrative costs of the traditional Medicare program.

• Small drug rebates. The drug price rebates negotiated by the Part D insurers reduce Medicare drug spending by just 8.1%. In contrast, rebates in the Medicaid program reduce drug spending by 26%, over three times as much. Because of the difference in the size of the rebates, the transfer of low-income seniors from Medicaid drug coverage to Medicare drug coverage will result in a $2.8 billion windfall for drug manufacturers in 2007. The Part D insurers receive no rebates or other manufacturer discounts for three-quarters of the drugs used by seniors.

• Failure to pass through rebates to seniors. When the insurers do obtain drug price rebates, they do not use the rebates to reduce pharmacy drug prices. This year alone, the private insurers will receive $1 billion in rebates on purchases that seniors in coverage gaps, such as the donut hole, pay for out of their own pockets.

“This report also confirms what I’ve been saying for years: Competition in health care doesn’t work. It has never been effective in lowering costs. Why would we expect it to work with a privatized Part D plan?” Kucinich said.

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[Richard Steele]

1. Yet another reason that Kucinich is the best candidate. K&R

[superkia]

5. I think he is the peoples best candidate too but why is it...

that so many people, even here on DU cant see it? My guess is they cant get past what the media puts in their head and Dennis Kucinich doesn't really exist to the media but most will disagree and say they aren't acting like sheeple. We are talking about one of our United States congressman and most just dismiss him like the media? Hell he was the ONLY candidate running that was brave enough to stand up for the people and say the war was about oil and there was no evidence. How do people ignore this point, the others saw the same evidence and made a vote that has cost thousands of lives and an insane amount of debt. Why do voters look past this? Are they stupid or what exactly is it that makes this very important point, invalid?

I am sick of the sheeple that keep making bad decisions for my children's future because they refuse to open their eyes, we need some people to stand up for our country now!

[Demit]

2. I heart Dennis Kucinich.

This report sets out in plain facts exactly what is wrong with the healthcare industry and exactly who is responsible. There once was a time when newspapers and nightly news programs would pick this up and inform the public. Wonder how far this will get.

[EST]

3. K&R Spot friggin on! n/t

[redqueen]

4. The private-insurance monopoly is partly responsible for jobs going overseas.

Too bad only one candidate is willing to fight for single-payer.