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OPINION

Editorial: Closing drug doughnut hole could offset stagnant checks

Friday, September 4, 2009
(Updated 3:00 am)

 

Try convincing elderly Americans who are barely squeaking by on Social Security that the cost of living has flat-lined and they don't deserve a raise.

Government statistics, however, indicate that, for the first time in 30 years, that's precisely what's happening.

As a result, an estimated 50 million retired and disabled people won't see an increase next year. In fact, those who have Medicare Part B coverage deducted may see a few dollars less each month in their checks.

The bad news for next year and possibly 2011 comes after Social Security beneficiaries received a 5.8 percent increase in January, the largest since 1982, and one-time $250 stimulus checks in the spring.

In a sputtering economy marred by job losses and faltering consumer confidence, seniors should reasonably expect to also feel the pinch.

At least in theory, they stand to benefit as much as their children and grandchildren from stable prices and consumer-oriented, stimulus-generated programs such as Cash for Clunkers.

In reality, they incur more medical and drug expenses than younger Americans and those prices continue rising at an inflation rate much higher than for the rest of the economy.

There is a hopeful sign: Many senior citizens could realize substantial savings if Congress stays on track and addresses the infamous doughnut hole for prescription drugs.

In June, the Obama administration and pharmaceuticals agreed to close the gap 50 percent by reducing the cost of brand-name drugs. For the 25 percent of Medicare drug plan participants who end up in the costly hole each year, that could mean savings of several thousand dollars each.

But it's not a done deal. The plan was earmarked to be part of the health care reform package being debated. Senior citizens and their advocates need to be vigilant that this welcome fix isn't sidetracked in the political shuffle.

Comments

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Panacea

September 4, 2009 - 8:40 am EDT

The donut hole would evaporate if they would just stay on track and create the public option.

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