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WASHINGTON, Dec. 8, 2003 - The American Homeowners Grassroots Alliance
(AHGA) today applauded President Bush and Congress for their roles in
providing expanded prescription drug coverage for millions of older
homeowners. The bill is a historic accomplishment following years of
failed Congressional efforts to strengthen and expand health benefits that
are beyond the financial means of many older homeowners and other
citizens. The legislation is far from perfect and more remains to be done,
but at least it’s a significant improvement over current circumstances.
The new legislation provides substantial relief to those homeowners
with high drug costs and/or those with low incomes. Beginning next year,
seniors would save 10-25% off the cost of most medicines through a
Medicare-approved drug discount card, or about $300 per year on average
for a senior who does not have drug coverage. Beginning in 2006, seniors
without coverage would be able to join a Medicare-approved plan that would
cut their yearly drug costs roughly in half, in exchange for a $35 monthly
premium. All Americans can benefit from provisions in the bill that will
remove excessive restrictions on health savings accounts, which will give
individuals more control over the costs of their health care and give them
access to coverage that is affordable, flexible and portable.
AHGA is hopeful that financial incentives to employers to continue
retiree health benefits will result in continued support of these benefits
by the business community. The bill covers new Medicare preventive
services for all Medicare beneficiaries. It includes funding for research
to compare drug effectiveness and safety and for consumer education. A
test of “premium support," a structure requiring traditional
Medicare to compete against private plans, will begin in 2010 and enable
policymakers to gauge its benefits and weaknesses while exempting low
income beneficiaries, limiting premium increases and protecting
traditional Medicare benefits. Seniors can choose to stay in traditional
Medicare and still get prescription drug coverage.
The biggest challenge for seniors is likely to be understanding the
many new and sometimes confusing rules so they can make informed
decisions. Unfortunately the political and economic realities of the issue
prevented it from being a simple undertaking. In the end its better to
have the expanded benefits now and figure out how we can help seniors in
need of explanations and help best take advantage of the benefits when
they become available.
AHGA is a national bipartisan advocacy organization representing the
nation’s 70 million homeowners. The Alliance believes that policies that
encourage and protect home ownership are in our national best interest.
Those policies encourage and sustain the maintenance of a strong and broad
middle class, build a sense of community and responsibility, and
facilitate investment in homes, which are the largest, most universal
savings/equity-building vehicle for most Americans. AHGA’s positions and
more information about the organization are available at
www.AmericanHomeowners.org.
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