David Thomas: “I will comment on the amendment, the no premium on the donut amendment. First, let me say that I wish we did not have a…”

“I will comment on the amendment, the no premium on the donut amendment. First, let me say that I wish we did not have a gap in coverage. Unfortunately, eliminating the gap in coverage could add as much as $200 billion to the cost of this proposal. As we all know, we are working within a budget of $400 billion and this bill targets those funds to those who need it most. Most seniors, however, will not be affected by the gap in coverage at all. This is because their drug spending will not reach limit, or because they qualify for the additional assistance in the low-income benefit, or because they have additional coverage from a retiree health plan, or coverage they have purchased themselves. Most seniors will not have drug spending in a year that exceeds the benefit limit. According to the Congressional Budget Office, 80 percent of seniors will not even have prescription drug spending that exceeds the $4,500 benefit limit. That means that right off the bat only one senior in five would even have drug spending high enough to be affected by the gap in coverage at all. Now, the drug benefit package for lower income seniors does not have a gap in coverage. In drafting this bill we have targeted resources to those who need it most. We made it a priority not to have any gap in coverage for lower income seniors. This means that beneficiaries with incomes below about $15,000 and couples with incomes below about $20,000 in 2006 will have no gap in coverage.”