AARP Applauds Medicare “Doughnut Hole” Closure

CEO Rand: Americans “will now have a new opportunity to lead a healthier life”

June 22, 2009 -- WASHINGTON—This morning, AARP CEO A. Barry Rand delivered the following remarks at the White House announcement of a new agreement to substantially fill the Medicare Part D coverage gap:

“Thank you Mr. President. AARP is proud to stand with you and Chairman Baucus and Senator Dodd to announce that the gap in Medicare’s drug coverage, known as the ‘doughnut hole,’ will be substantially filled for millions of middle income Americans as part of health reform.

“I want to applaud Chairman Baucus and Senator Dodd, who continue to be champions for this issue and have always fought for people struggling to make ends meet. We are honored to stand with you today.

“Senator Baucus, your strong leadership of the Senate Finance Committee coupled with your creativity is what led to the development of this unique solution. We also support your Finance Committee’s process and look forward with optimism to its next steps.

“Bottom line: without you, Chairman Baucus, we certainly would not be here today.

“When the President issued his clarion call for all parties to come together and address the issues of health care reform, AARP, representing over 40 million members, was proud to be one of the first to step forward.

“Today’s announcement will mean that struggling Americans who have been looking for help in their pocketbooks just to stay healthy, and who say that one of their single largest drivers of health care costs is prescription drugs—Americans in Medicare’s ‘doughnut hole’—will have their brand-name drug costs cut in half. That’s a 50 percent reduction in drug costs.

“Too many Americans who fall into the coverage gap stop taking their medications because they simply cannot afford them. They will now have a new opportunity to lead a healthier life.

“Mr. President, every American who is burdened by the high cost of health care or has inadequate access to our health care system—every business that is fighting to be competitive and save American jobs knows that health care reform cannot wait.

“This is an early win for reform and a major step forward. It is a signal the process is working and will work. But AARP is not done. We will continue to work with you, Mr. President, and the House and the Senate to protect the people who rely on Medicare, to further lower drug costs, and to have guaranteed access to coverage for all Americans.

“Together, we will complete the mission for comprehensive health care reform. Thank you for your leadership on this issue, Mr. President.”

For details on AARP’s health reform priorities, visit http://www.aarp.org/governmentwatch.

Source: AARP