AMENDED IN SENIOR SENATE OCTOBER 16, 2006

SENIOR SENATE FEDERAL PROPOSAL NO. 9

INTRODUCED BY SENIOR SENATOR FAUSTMAN

LEGISLATIVE COUNSEL’S DIGEST

SFP 9: MEDICARE: PRESCRIPTION DRUG BENEFITS.

UNDER EXISTING LAW, THE MEDICARE PROGRAM PROVIDES HEALTH CARE BENEFITS, INCLUDING PRESCRIPTION DRUG BENEFITS, TO PERSONS WHO ARE DISABLED OR 65 YEARS OF AGE OR OLDER. UNDER THE EXISTING MEDICARE PRESCRIPTION DRUG PROGRAM, BENEFICIARIES RECEIVE THESE DRUG BENEFITS BY ENROLLING IN A DRUG PLAN OFFERED BY VARIOUS PRIVATE ENTITIES. UNDER EXISTING LAW, THE FORMULARIES AND DRUG BENEFITS OFFERED BY EACH DRUG PLAN MAY VARY.

THIS MEASURE WOULD MEMORIALIZE THE CONGRESS AND THE PRESIDENT TO ENACT LEGISLATION THAT WOULD REPLACE THE CURRENT MEDICARE PRESCRIPTION DRUG PROGRAM WITH A SINGLE-PAYER PRESCRIPTION DRUG PROGRAM, SUCH AS THE VETERANS ADMINISTRATIONS DRUG PLAN, IN WHICH A FEDERAL GOVERNMENTAL ENTITY NEGOTIATES DRUG PRICES WITH MANUFACTURERS AND PROVIDES THOSE DRUGS TO SENIORS WITH LOW COPAYMENTS AND NO BENEFIT LIMITS FOR MEDICALLY NECESSARY DRUGS.

VOTE: MAJORITY.

SFP 9: RELATING TO PRESCRIPTION DRUGS

WHEREAS, THE MEDICARE PART D PRESCRIPTION DRUG BENEFIT HAS CHANGED THE MEDICARE PROGRAM IN A WAY THAT HAS MISLED SENIORS AND PREVENTED THEM FROM OBTAINING NEEDED DRUGS; AND

WHEREAS, UNDER THE PART D PROGRAM, SENIORS ARE PAYING HIGHER COPAYMENTS FOR THEIR DRUGS THAN THEY WOULD OTHERWISE PAY, AND THOSE COPAYMENTS ARE RISING ALONG WITH THE COST OF DRUGS; AND

WHEREAS, THESE INCREASED COSTS RESULT IN THE INABILITY OF SOME SENIORS TO OBTAIN NEEDED DRUGS, CAUSING THEM TO USE EMERGENCY CARE MORE OFTEN AND ELIMINATING ANY SAVINGS FROM THE PART D PROGRAM; AND

WHEREAS, MANY SENIORS WHO CHOSE A DRUG PLAN BECAUSE OF THE SPECIFIC DRUGS IT COVERED HAVE FOUND THAT THE PLAN CHANGED TO ELIMINATE COVERAGE FOR THOSE DRUGS. THOSE SENIORS, IN MANY CASES, HAVE HAD TO FOREGO USING THOSE DRUGS BECAUSE OF THEIR EXPENSE AND BECAUSE THE SENIORS WERE NOT ALLOWED TO CHOOSE A NEW PLAN; AND

WHEREAS, MANY PART D PLANS IMPOSE CAPS ON DRUG BENEFITS, WHICH REQUIRE SENIORS TO PAY FOR THEIR OWN DRUGS WHILE CONTINUING TO PAY PREMIUMS FOR THEIR DRUG PLAN. IN ADDITION, SENIORS HAVE NOT BEEN PERMITTED TO OBTAIN CHEAPER DRUGS FROM OTHER COUNTRIES. THESE FACTS HAVE CAUSED MANY SENIORS TO USE LESS OF THE DRUGS THAT THEY NEED, THEREBY JEOPARDIZING THEIR HEALTH; AND

WHEREAS, THE PART D PROGRAM BENEFITS DRUG MANUFACTURERS AND INSURANCE COMPANIES MORE THAN SENIORS; NOW, THEREFORE, BE IT

RESOLVED, BY THE SENIOR SENATE AND THE SENIOR ASSEMBLY, JOINTLY, THAT THE SENIOR LEGISLATURE OF THE STATE OF CALIFORNIA AT ITS 2006 REGULAR SESSION, A MAJORITY OF THE MEMBERS VOTING THEREFOR, HEREBY PROPOSES THAT THE CURRENT MEDICARE PART D PRESCRIPTION DRUG BENEFIT BE REPLACED WITH A SINGLE-PAYER PRESCRIPTION DRUG PROGRAM, SUCH AS THE VETERANS ADMINISTRATIONS DRUG PLAN, IN WHICH A FEDERAL GOVERNMENTAL ENTITY NEGOTIATES DRUG PRICES WITH MANUFACTURERS AND PROVIDES THOSE DRUGS TO SENIORS WITH LOW COPAYMENTS AND NO BENEFIT LIMITS FOR MEDICALLY NECESSARY DRUGS; AND BE IT FURTHER

RESOLVED, THAT THE SENIOR LEGISLATURE OF THE STATE OF CALIFORNIA RESPECTFULLY MEMORIALIZES THE CONGRESS AND THE PRESIDENT TO ENACT APPROPRIATE LEGISLATION THAT WOULD ADDRESS THE CONCERNS SET FORTH IN THIS MEASURE; AND BE IT FURTHER

RESOLVED, THAT A COPY OF THIS MEASURE BE TRANSMITTED TO THE PRESIDENT AND VICE PRESIDENT, THE SPEAKER OF THE HOUSE OF REPRESENTATIVES, THE CHAIRPERSONS OF THE HOUSE AND SENATE COMMITTEES ON AGING, AND TO EACH SENATOR AND REPRESENTATIVE FROM CALIFORNIA IN THE CONGRESS OF THE UNITED STATES.

RN20061896907

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