Consumers Union strongly supports making prescription drugs more affordable to seniors and people with disabilities. However, for the reasons outlined below, we believe that the legislation currently under consideration, H.R. 4680, the Medicare RX2000 Act, fails to assure affordable, comprehensive prescription drug coverage for Medicare beneficiaries, and we urge you to vote against it in its current form. Insurers are allowed to vary the benefit offered.
Insurance companies profit from underwriting risks - and marketing to the healthy.
They have even told Congress that the proposed structure is unworkable and that they would be reluctant to offer coverage as proposed by this bill. However, we believe that it would take a substantial enforcement effort to actually prevent insurance companies from following their natural incentive to increase earnings. Insurers' basic incentives will conflict with the intent of the legislation. This inherent conflict will create an enforcement nightmare. In sum, H.R. 4680 fails to assure affordable, comprehensive prescription drug coverage for all Medicare beneficiaries.