New Medicare Prescription Drug Benefit

Fact Sheet: New Medicare Prescription Drug Benefit to Include Low-Cost Options

Today's Presidential Action

Today, President Bush Announced New Low-Cost Options Under The Medicare Prescription Drug Benefit That Will Be Available Beginning In January 2006. Medicare beneficiaries will have choices for prescription drug coverage that will cost less and offer more benefits than originally expected. Competition is working to drive down prices, and the President encouraged seniors across the country to sign up for the new benefit.

Prescription Drug Plans Will Offer Low-Cost Alternatives For Medicare Beneficiaries. Medicare beneficiaries in almost every state will be able to choose plans that have a premium of less than $20 per month. In addition, some plans will have zero deductibles or deductibles lower than $250 annually, and other plans will provide additional benefits to help cover the gap in Medicare's standard coverage.

New Medicare Coverage Will Offer All Medicare Beneficiaries Better Choices

Reform Brought Medicare Into The 21st Century. Medicare was created 40 years ago to provide health care for seniors and people with disabilities, but it had not kept up with advances in medicine. For example, Medicare would pay $28,000 for ulcer surgery, but not $500 for prescription drugs to prevent ulcers. In addition, Medicare would pay for heart surgery, but not for drugs to prevent the heart surgery from being needed. Reform had been promised for years. The Medicare Modernization Act signed by President Bush got it done.

Millions Of Americans Are Already Taking Part In Medicare's Expanded Range Of Health Care Services. Medicare offers a variety of new programs, including: a prescription drug discount card; preventive care like the "Welcome to Medicare" physical; and cardiovascular and blood sugar screenings that can help identify and prevent high blood pressure, heart disease, diabetes, and obesity.

New Medicare Coverage Will Help All Medicare Beneficiaries Pay For Prescription Drugs. Starting in January, drug coverage will be available that will allow seniors with no drug coverage and average drug expenses to cut their drug costs by half or more. For catastrophic coverage, Medicare will also cover 95 percent of all prescription costs once beneficiaries spend $3,600 of their own money each year.

New Medicare Drug Benefits Offer Choice And Flexibility. Everyone on Medicare can pick the drug plan that fits his or her individual needs. Beneficiaries will be able to choose brand name drugs or generic drugs - and pick them up at local pharmacies or receive them by mail.

Seniors Can Get Support For Retiree Plans. Medicare will help pay for the costs of good retiree drug coverage from a former employer or union to help keep retiree coverage secure.

Medicare Advantage Plans Allow Seniors And Americans With Disabilities To Get Better Drug Benefits At A Lower Cost. Seniors and Americans with disabilities who choose to enroll in Medicare Advantage Plans can get additional coverage at a lower cost, saving an average of $100 per month compared to traditional Medicare.

Medicare Will Pay Nearly All Drug Bills For Seniors With Limited Means. About one-third of seniors will be eligible for a Medicare drug benefit with little or no premiums, low deductibles, and no gaps in coverage. Co-payments will amount to no more than $5 for most seniors with limited means, and more than 95 percent of their drug bills will be covered. No senior will ever again have to choose between paying for their drugs and paying for other basic necessities like food and rent.

President Bush Urged Seniors And Americans With Disabilities To Take Part In New Medicare Benefits

The Administration Is Conducting A National Outreach Effort. This effort is bringing medical, community, and local partners together with the Federal government to educate seniors and Americans with disabilities about the new prescription drug benefit. Those with questions can also call 1-800-MEDICARE or visit www.medicare.gov for answers.

Eligibility Forms For The Limited-Income Subsidy Are Available Now. Millions of current Medicaid beneficiaries with limited means will be automatically enrolled for extra help with drug costs, and subsidy applications have been mailed by the Social Security Administration to millions of other low-income seniors and Americans with disabilities who are likely to be eligible. Forms are also available at locations around the country, including over 30,000 pharmacies. No financial documents or complicated records are required. "When in doubt, fill it out." # # #

For Immediate Release, Office of the Press Secretary, August 29, 2005

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President, Hurricane Katrina, Iraqis Draft Constitution

President Discusses Hurricane Katrina, Congratulates Iraqis on Draft Constitution Prairie Chapel Ranch, Crawford, Texas, 11:31 A.M. CDT

President George W. Bush is handed a map by Deputy Chief of Staff Joe Hagin, center, during a video teleconference with federal and state emergency management organizations on Hurricane Katrina

from his Crawford, Texas ranch on Sunday August 28, 2005. White House photo by Paul Morse.

THE PRESIDENT: This morning I spoke with FEMA Undersecretary Mike Brown and emergency management teams not only at the federal level but at the state level about the -- Hurricane Katrina. I've also spoken to Governor Blanco of Louisiana, Governor Barbour of Mississippi, Governor Bush of Florida, and Governor Riley of Alabama. I want to thank all the folks at the federal level and the state level and the local level who have taken this storm seriously. I appreciate the efforts of the governors to prepare their citizenry for this upcoming storm.

Yesterday, I signed a disaster declaration for the state of Louisiana, and this morning I signed a disaster declaration for the state of Mississippi. These declarations will allow federal agencies to coordinate all disaster relief efforts with state and local officials. We will do everything in our power to help the people in the communities affected by this storm.

Hurricane Katrina is now designated a category five hurricane. We cannot stress enough the danger this hurricane poses to Gulf Coast communities. I urge all citizens to put their own safety and the safety of their families first by moving to safe ground. Please listen carefully to instructions provided by state and local officials.

On another matter, today Iraqi political leaders completed the process for drafting a permanent constitution. Their example is an inspiration to all who share the universal values of freedom, democracy, and the rule of law. The negotiators and drafters of this document braved the intimidation of terrorists and they mourn the cowardly assassination of friends and colleagues involved in the process of drafting the constitution.

Their efforts follow the bravery of the Iraqis who voted by the millions to elect a transitional government in January. The example of those voters remains a humbling testament to the power of free people to shape and define their own destiny. We honor their courage and sacrifice, and we are determined to see the Iraqis fully secure their democratic gains.

The Iraqi people have once again demonstrated to the world that they are up to the historic challenges before them. The document they have produced contains far-reaching protections for fundamental human freedoms, including religion, assembly, conscience and expression. It vests sovereignty in the people to be expressed by secret ballot and regular elections. It declares that all Iraqis are equal before the law without regard to gender, ethnicity and religion. This is a document of which the Iraqis and the rest of the world can be proud.

The local process now advances to another important stage for a new and free Iraq. In coming months, Iraqis will discuss and debate the draft constitution. On October the 15th, they will vote for a national referendum to decide whether to ratify the constitution and set the foundation for a permanent Iraqi government. If the referendum succeeds, Iraqis will elect a new government to serve under the new constitution on December the 15th, and that government will take office before the end of the year.

This course is going to be difficult largely because the terrorists have chosen to wage war against a future of freedom. They are waging war against peace in Iraq. As democracy in Iraq takes root, the enemies of freedom, the terrorists, will become more desperate, more despicable, and more vicious.

Just last week, the terrorists called for the death of anyone, including women and the elderly, who supports the democratic process in Iraq. They have deliberately targeted children receiving candy from soldiers. They have targeted election workers registering Iraqis to vote. They have targeted hospital workers who are caring for the wounded. We can expect such atrocities to increase in the coming months because the enemy knows that its greatest defeat lies in the expression of free people, and freely enacted laws, and at the ballot box.

We will stand with the Iraqi people. It's in our interest to stand with the Iraqi people. It's in our interest to lay the foundation of peace. We'll help them confront this barbarism, and we will triumph over the terrorist's dark ideology of hatred and fear.

There have been disagreements amongst the Iraqis about this particular constitution. Of course there's disagreements. We're watching a political process unfold, a process that has encouraged debate and compromise; a constitution that was written in a -- in a society in which people recognize that -- that there had to be give and take.

I want our folks to remember our own constitution was not unanimously received. Some delegates at the Philadelphia Convention in 1787 refused to sign it, and the draft was vigorously debated in every state, and the outcome was not assured until all the votes were counted.

We recognize that there's a split amongst the Sunnis, for example, in Iraq. And I suspect that when you get down to it, you'll find a Shiia who disagrees with the constitution and Shiia who support the constitution, and perhaps some Kurds who are concerned about the constitution. In other words, we're watching a political process unfold. Some Sunnis have expressed reservations about various provisions of the constitution, and that's their right as free individuals living in a free society. There are strong beliefs among other Sunnis that this constitution is good for all Iraqis and that it adequately reflects compromises suitable to all groups.

It's important that all Iraqis now actively engage in the constitutional process by debating the merits of this important document and making an informed decision on October the 15th.

On behalf of the American people, I congratulate the people of Iraq on completing the next step in their transition from dictatorship to democracy. And I want to remind the American people, as the democracy unfolds in Iraq, not only will it help make America more secure, but it will affect the broader Middle East. Democracies don't war with their neighbors; democracies don't become safe haven for terrorists who want to destroy innocent life. We have hard work ahead of us, but we're on the -- we're making good progress toward making sure this world of ours is more peaceful for generations to come.

Thank you very much.

END 11:39 A.M. CDT For Immediate Release, Office of the Press Secretary, August 28, 2005

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