FOR IMMEDIATE RELEASE |
Media Contact: Gem Daus |
On Monday, December 8, 2003, President Bush is expected to sign the Medicare Prescription Drug, Improvement and Modernization Act of 2003 (H.R. 1) into law. This legislation promises to significantly undermine Medicare for all Americans—but not because of generous prescription drug benefits. The legislation makes changes beyond Medicare that are likely to double insurance premiums for employer-based private plans. The most significant changes to Medicare will take effect after 2010, just as the baby boomer generation turns 65. Poor and disabled seniors on Medicare now will soon lose benefits. And public programs that discriminate based on immigration status will continue to do so. APIAHF is extremely disappointed, to say the least, that the elderly, poor and disabled are so mistreated, legally.
ASIAN AMERICANS, PACIFIC ISLANDERS AND MEDICARE
A large number of Asian Americans and Pacific Islanders (AAPI), age 65 and older, rely on Medicare and Medicaid to keep themselves healthy. In fact, two-thirds of elderly AAPI are on Medicare. Most of the rest have no insurance. Immigrants who have been in the country less than 5 years cannot buy into Medicare, nor are they eligible for Medicaid. And they usually cannot get private insurance because the elderly as a rule are high risk (which is why a public program such as Medicare is necessary in the first place).
Census 2000 revealed that 12.3% of elderly AAPI are living below the Federal poverty line. However there are large regional differences; for example, 1 in 4 elderly Asian Americans in New York City live in poverty compared to 18% of the general elderly population. There are also extreme differences by ethnic population: 34% of Hmong and 25% of Cambodian elders in California live in poverty. Asian households where the householder is 65 years or older are more likely than the general population to be earning less than $10,000 (19.4% vs. 15%).
Depending on ethnicity, 44% to 77% of AAPI are limited English proficient.
MEDICARE PRESCRIPTION DRUG, IMPROVEMENT AND MODERNIZATION ACT
This act offers a small prescription drug benefit with no guarantee of cost containment for beneficiaries or for the Medicare program itself. Thus the cost of health care will rise for all Americans for generations to come.
- The cost of prescription drugs is the leading cause of the rise in health care costs. However, this act prohibits the government from using its superior purchasing power to negotiate drug prices for Medicare beneficiaries that are lower than private plans. The Department of Veterans Affairs and Medicaid can and do negotiate better prices for its beneficiaries.
- Private plans that contract with the Medicare program will provide the new prescription drug benefit. However, private plans will be able to charge different premiums, different co-payments, and will not have to cover all drugs. Benefits will vary by region.
- Extremely poor or disabled seniors are eligible for both Medicare and Medicaid ( dual-eligible ). For these 6 million people, Medicaid pays for services and benefits for dual-eligibles that aren't provided by Medicare including medication (this is called a " wrap-around " benefit). This will no longer be the case. States will now be prohibited from using Medicaid funds to pay for medications and other costs that aren't provided by Medicare. This leaves the poorest and sickest seniors worse off than before.
- This act creates a new class of tax-free Health Savings Accounts. Healthier, more affluent workers will have a strong incentive to choose these accounts over their employer's more comprehensive health insurance plans. As a result, the pool of people left in the comprehensive plans will be older and sicker thereby driving up insurance premiums in the long run.
- This act denies health care benefits to legal immigrant pregnant women and children . The Senate Medicare bill would have lifted the 5-year waiting period for immigrants. By refusing to keep this provision, the Medicare bill denies 155,000 children and 60,000 pregnant women health coverage. Legal immigrants pay taxes, serve in the military, and have the same social obligations as United States citizens. However, unlike other American families, when basic medical care is needed, legal immigrants are forced to forgo such coverage and risk adverse health outcomes.
Founded in 1986, the Asian and Pacific Islander American Health Forum is a national policy advocacy organization that promotes the health and well-being of Asian American and Pacific Islander communities. Through policy intervention, community capacity building, and information dissemination, APIAHF advocates for equitable access to health care.
