Maine People's Alliance - Medicare Part D "Doughnut Hole" Press Release

Concerned citizens release troubling report on Medicare Part D “doughnut hole” gap in coverage

MPA urges Maine's senators and representatives to fix fundamental flaws in prescription drug program

BANGOR/LEWISTON/PORTLAND—The Maine People's Alliance and concerned citizens held press conferences in Bangor, Lewiston and Portland on Wednesday, July 19th, to release a troubling new report on the Medicare Part D coverage lapse known as “the doughnut hole” and to urge Maine’s Senators and Representatives to support legislation that fixes Medicare Part D.

“When Congress created the Part D prescription drug program in 2003 with the help of lobbyists, they designed the program to benefit the pharmaceutical industry and their other special interest campaign contributors, over the interests of American seniors and people with disabilities,” said Chelsea Cook in Portland.

Now, some 7 million Americans are expected to experience a lapse in coverage known as “the doughnut hole.” What is the Doughnut Hole? Under a typical Part D plan, there is no drug coverage for annual costs between $2,250 and $5,100. Seniors pay all their expenses out of pocket, even as they continue to pay monthly premiums to the drug plan. “There is no good reason for this doughnut hole lapse in coverage. The only winners here are the pharmaceutical companies,” added Michael Pearce.

The impact of the Doughnut Hole in Maine has been lessened by state leaders. A bipartisan effort, led by Governor Baldacci, anticipated the devastating impact of the Donut Hole on Maine seniors, and by pitching in with state dollars has found ways to lessen the impact of the “doughnut hole” for Maine’s lowest-income seniors when they reach the cut off.

Action is required at the federal level, however, to fix the fundamental flaws in the design of Part D. Legislation needs to be passed, such as the Tom Allen co-sponsored Medicare Prescription Drug Savings and Choice Act, that will create a prescription drug benefit directly under Medicare and allow Medicare to negotiate for lower drug prices. Savings realized could then be used to eliminate the doughnut hole gap in coverage.

Further discussion of the impact of Medicare Part D on Maine seniors will be heard at a July 26th Medicare Part D forum. The Maine People's Alliance, along with Maine Personal Assistance Services Association, the Maine Council of Senior Citizens, the National Committee to Preserve Social Security and Medicare, and Americans United, has invited seniors to share their experiences with Medicare Part D with Senators Snowe and Collins, Congressmen Allen and Michaud, and Governor Baldacci. The forum will begin at 2:00 p.m. and is being held at the Chateau Cushnoc Retirement Homes in Augusta. The media is invited to attend.