THE WHITE HOUSE
Office of the Press Secretary


For Immediate Release April 26, 2000



PRESIDENT CLINTON AND THE DEMOCRATIC LEADERSHIP HIGHLIGHT NEW STUDY DOCUMENTING PRESCRIPTION DRUG PRICE INCREASES THAT DOUBLE INFLATION RATES
Families USA Report Validates the Need for a Medicare
Prescription Drug Benefit

President Clinton today, along with Senator Tom Daschle and House Democratic Leader Dick Gephardt, will join Families USA in releasing a new report on prescription drugs. The report shows that, on average, the price for the 50 drugs most commonly used by seniors increased at nearly twice the rate of inflation during 1999. The President will point out that this finding, combined with the recent HHS report showing that the price differential for older and disabled Americans with and without coverage has nearly doubled, underscores the need for a voluntary Medicare prescription drug benefit. While praising the House Republican leadership for endorsing the principle of the need for an affordable, optional prescription drug benefit available to all Medicare beneficiaries, the President will note that the policy advocated by the House Republicans does not achieve their stated goals. He will challenge the Republicans to move swiftly to amend their proposal to assure that all Medicare beneficiaries have access to an affordable prescription drug benefit option.

NEW ANALYSIS INDICATES THAT PRESCRIPTION DRUG PRICES WILL CONTINUE TO RISE. While senior citizens generally live on fixed incomes that are adjusted to keep up with the rate of inflation, a new report by Families USA entitled Still Rising demonstrates that prescription drug costs have risen at double that rate over the past six years -- and are expected to continue to rise. Key findings of the Families USA report include:

PRESIDENT CLINTON CHALLENGES THE REPUBLICAN LEADERSHIP TO MODIFY THEIR POLICY TO MATCH THEIR STATED GOALS. While praising the House Republican leadership for recognizing the need for an affordable, optional prescription drug benefit available to all Medicare beneficiaries, the President will note that the policy advocated by the House Republicans does not achieve their stated goals. Their current approach is underfunded, unlikely to be available to all beneficiaries, and would almost inevitably be unaffordable to millions of seniors and people with disabilities, even if it is available in some places. In addition, because of its lack of details, it raises more questions than it answers, including how much the premiums are, what the benefit would be, and how much it will cost. The President will challenge the Republicans to move swiftly to amend their proposal to assure that all Medicare beneficiaries have access to an affordable prescription drug benefit option. The House Republican proposal:

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