Thomas Daschle: “the amendment that is now pending before the Senate addresses a concern that many of us have with regard to the…”

“the amendment that is now pending before the Senate addresses a concern that many of us have with regard to the volatility of the premium. As everyone knows, currently, the Medicare Part B premium is $58.70. That is across the board, across the country. Regardless of where you live, regardless of the circumstances, a senior pays $58.70. We do not know what the premium for this prescription drug benefit will be. We are told the average cost is anticipated to be $35. But there is the average national weighted premium that is supposed to be about $100, which comprises both what the beneficiary pays and what the Government pays. If that is off by $10, if it is going to be $110 rather than $100, that $10 is going to be added to the $35, requiring a 30-percent increase in the cost of the premium for the beneficiary. So we are very concerned, first, about the unpredictability of the premium, and, secondly, about the volatility of the premium because we really do not know what the national weighted average is going to be. We also know because of utilization, there could be dramatic changes from region to region. Currently, in a Medicare+Choice program, including prescription drug benefits, a benefit package in Florida costs $16 and a package costs $99 in Connecticut. So you get a wide-ranging variance with regard to regions of the country.”