Donut of Doom

This story goes back three years ago, when Bush and the Congress decided to deliver on their promise of a Medicare prescription drug benefit.
According to the National Review, the Medicare program already has an unfunded liability of $13 trillion. So these geniuses add a program expected to cost $40 billion a year. “That’s a bit like a family that can’t pay their mortgage deciding that they should build a new swimming pool.”
Where do Republicans go to get the bill written? To the pharmaceutical and health insurance lobbyists of course. These folks cook up a scheme that prohibits the government from negotiating drug prices and instead offers seniors a bewildering menu of private prescription drug policies. This bill has something for everybody, premiums, deductibles, co-pays; low cost users (under $1,000/year) could save 37%, high cost users (over $10,000) could save 65%. But golly, how to pay for it all?
Here’s where the donut hole comes in. When you reach $2,250 in drug expenses, the system stops paying and the next $2,850 is on you. If you reach $5,100 in expenses, coverage resumes at 95%. That is, if you survive.
The House wouldn’t pass the bill, so the leadership kept the vote open through the middle of the night while Tom DeLay bribed and threatened members to change their votes. For this he was rebuked by the Ethics Committee, and rewarded by the pharmaceutical industry. (Note; resigned congressman DeLay and his family will be getting taxpayer funded healthcare for the rest of their lives.)
So, between now and election day, an estimated 7 million senior citizens will be falling into this hole, choosing between medicine and groceries, and figuring out who the beneficiaries of this program really are.
In 2002, seniors made up 25% of the electorate.
Go Granny go!