Drug Discount Card Simplification Act of 2004

Mr. President, my home State of New Mexico is currently facing the greatest threat to its prosperity that I have witnessed during my 31-year tenures as a United States Senator. The threat is one that we all too often take for granted: the availability of water.

I rise today to introduce a bill that would address New Mexico's most urgent water needs.

The water problems facing New Mexico are twofold. The State faces both water supply shortages and the contamination of the scarce water resources it does have. This has resulted in inadequate water supplies to meet our State's needs, causing great hardship to New Mexico communities.

New Mexico faces significant contamination of both surface and subsurface water stores. Nowhere is this more evident than in the centuries-old community of Chimayo. The 3,000 citizens of this unincorporated community rely on individual wells for their potable water and rely on largely deteriorated septic systems to dispose of waste water. Hydrologists have determined that, because of absence or deterioration of sewer and water infrastructure in the basin, an alarming 75 percent of well samples taken had significant contamination of both total coli form and fecal coli form. Their individual wells are further tainted by high levels of total dissolved solids. Because of the unreliability of the well water, many residents use water from irrigation ditches for drinking. This water, too, was found to have high levels of fecal coli form contamination.

The water contamination in Chimayo is so desperate that in 2001, then-Governor Gary Johnson declared the region an emergency area and had the National Guard bring in tanker trucks to provide potable water to the area every other day. Chimayo is still in ``emergency status'' and the tanker trucks still provide the only potable water to many of the citizens. This state of affairs is clearly unacceptable in the most technologically advanced and wealthy country on earth.

The bill I introduce today would provide emergency water treatment assistance to Chimayo so that its communities' citizens no longer have to rely on water tankers for their water. In addition, it would direct the Interior Secretary to perform an assessment of water resources in the area and to help the city of Chimayo to make good decisions about a regional water system.

Ever decreasing water supplies in Espanola, New Mexico have also reached critical levels and require immediate action.

The city of Espanola's current water system produced approximately 1,000 gallons per minute less than is needed to provide for its current population. This production shortfall has resulted in insufficient water pressure throughout the city. The chronic lack of pressure is prevalent especially in the portion of the city where the Espanola Hospital is located. The city has twice declared a state of emergency due to lack of adequate water and water pressure. As a result, the city has called on the National Guard to supply water to the hospital.

Further exacerbating the problem, the city has been unable to make good use of its water resources. Although it has been allocated 1,000 acre feet per annum of San-Juan Chama Project water by the Bureau of Reclamation, the city is unable to divert this water due to inadequate water infrastructure. Instead of making use of its available San Juan Chama water, the city has been depleting its limited groundwater, a resource which the city needs to save for years of reduced surface flows.

I commend the efforts of Espanola to secure funding for infrastructure necessary to make use of its San-Juan Chama Project water. To date, the city has secured funding for a necessary diversion project and has identified a site for the project. It has also raised from State, local and Federal sources nearly all the money required to build a water filtration facility to treat its San Juan Chama Project water.

The bill I introduce today would provide the sum of $3 million at a 25 percent Federal cost share to complete this critically necessary project.

These are two problems are representative of many we have just begun to address. There are no easy answers or solutions to the western state's water woes. New Mexico and much of the Western United States will face these and other problems for years to come. However, preserving the livelihood of my home state requires that we address these issues instantly and vigorously. I hope the Senate will give this bill its every consideration.

I ask unanimous consent that the text of the bill be printed in the Record.

Mr. President, today I am introducing the Drug Discount Card Simplification Act, which will take needed steps to improve the Medicare-approved drug discount card program.

The drug discount card program was designed to provide seniors with temporary relief from high drug costs until the full Medicare drug benefit starts in 2006. This program has the potential to give real help to low income seniors in particular, because it will give them up to $600 both this year and next year toward their prescription drug purchases.

Unfortunately, the way the program has been implemented is unnecessarily confusing. In talking to North Dakotans, I have heard repeatedly that seniors are finding it extremely difficult to figure out which card, if any, is right for them. And no wonder. The media are full of stories detailing how difficult it is to get accurate information about the program.

The 1-800-MEDICARE phone help line is continuously busy. When someone finally answers the phone, the operators often can't answer seniors' questions or, even worse, give incorrect information.

The web site is easier to access, but many seniors don't have access to the Internet. Those who do have Internet access have found that the pricing information is often incomplete or out-of-date, or pharmacy access information is incorrect.

The bottom line is that the program, as implemented, overwhelms seniors with too many choices. Don't get me wrong. I like choice. But when it comes to 60,000 different drugs purchased with 73 discount cards at over 50,000 pharmacies, the combinations seem endless for a senior with several different prescriptions to be filled. On top of that, the prices can change weekly.

Besides the number of cards, seniors also hesitate to purchase a card because they are concerned about the lack of reliability in coverage and available discounts.

Once seniors choose a card, they are locked into that card until the open enrollment period at the end of the year. During the time when they are locked in, the drug card program sponsor is allowed to reduce the discounts provided, drop coverage of a drug, or even drop its program altogether--leaving seniors without drug coverage and forcing them to go through the sign up procedure over again. I don't think this is fair for seniors or a wise policy for Medicare.

Faced with this complexity, seniors are simply choosing not to sign up. So far, of the 15 million seniors estimated to be eligible for the drug card program, fewer than 500,000 have signed up voluntarily. Another 2.4 million have been signed up automatically by their HMO.

If seniors want anything, it's simplicity, consistency, and reliability. That's why I am introducing the Drug Discount Card Simplification Act. My bill has three provisions.

First, my bill would require the Secretary to select the best three discount cards in each region. The Secretary would choose among the existing approved cards and base his decision on the following three factors: (1) which cards give the deepest discounts; (2) which cards cover the widest range of drugs; and (3) which cards make it easiest for seniors to get their drugs by having the widest network of participating pharmacies.

Second, my legislation would prohibit drug card sponsors from offering discounts that are less than the discounts seniors are promised during the sign-up period.

Finally, the bill I introduce today will protect seniors' access to drugs by requiring discount drug card sponsors to continue offering coverage of a drug throughout the duration of the program.

By simplifying the program, my bill will increase participation, ensuring that seniors can benefit from the discounts that are being provided. And it will help smooth the path for successful implementation of the drug benefit itself in 2006.

Now, some may argue that my bill will eliminate competition. I disagree. My bill will increase competition by encouraging sponsors to offer the best discounts available in order to be approved as one of the three cards. In addition, my idea is not new; in fact it is consistent with the Administration's proposal to limit the PPO options in the Medicare Modernization Act MA to just three per region.

I believe my legislation will provide better discount drug cards for seniors and make it easier for them to sign up for these benefits. I urge my colleagues to support this legislation.

Mr. President, today I am introducing the Drug Discount Card Simplification Act, which will take needed steps to improve the Medicare-approved drug discount card program.

The drug discount card program was designed to provide seniors with temporary relief from high drug costs until the full Medicare drug benefit starts in 2006. This program has the potential to give real help to low income seniors in particular, because it will give them up to $600 both this year and next year toward their prescription drug purchases.

Unfortunately, the way the program has been implemented is unnecessarily confusing. In talking to North Dakotans, I have heard repeatedly that seniors are finding it extremely difficult to figure out which card, if any, is right for them. And no wonder. The media are full of stories detailing how difficult it is to get accurate information about the program.

The 1-800-MEDICARE phone help line is continuously busy. When someone finally answers the phone, the operators often can't answer seniors' questions or, even worse, give incorrect information.

The web site is easier to access, but many seniors don't have access to the Internet. Those who do have Internet access have found that the pricing information is often incomplete or out-of-date, or pharmacy access information is incorrect.

The bottom line is that the program, as implemented, overwhelms seniors with too many choices. Don't get me wrong. I like choice. But when it comes to 60,000 different drugs purchased with 73 discount cards at over 50,000 pharmacies, the combinations seem endless for a senior with several different prescriptions to be filled. On top of that, the prices can change weekly.

Besides the number of cards, seniors also hesitate to purchase a card because they are concerned about the lack of reliability in coverage and available discounts.

Once seniors choose a card, they are locked into that card until the open enrollment period at the end of the year. During the time when they are locked in, the drug card program sponsor is allowed to reduce the discounts provided, drop coverage of a drug, or even drop its program altogether--leaving seniors without drug coverage and forcing them to go through the sign up procedure over again. I don't think this is fair for seniors or a wise policy for Medicare.

Faced with this complexity, seniors are simply choosing not to sign up. So far, of the 15 million seniors estimated to be eligible for the drug card program, fewer than 500,000 have signed up voluntarily. Another 2.4 million have been signed up automatically by their HMO.

If seniors want anything, it's simplicity, consistency, and reliability. That's why I am introducing the Drug Discount Card Simplification Act. My bill has three provisions.

First, my bill would require the Secretary to select the best three discount cards in each region. The Secretary would choose among the existing approved cards and base his decision on the following three factors: (1) which cards give the deepest discounts; (2) which cards cover the widest range of drugs; and (3) which cards make it easiest for seniors to get their drugs by having the widest network of participating pharmacies.

Second, my legislation would prohibit drug card sponsors from offering discounts that are less than the discounts seniors are promised during the sign-up period.

Finally, the bill I introduce today will protect seniors' access to drugs by requiring discount drug card sponsors to continue offering coverage of a drug throughout the duration of the program.

By simplifying the program, my bill will increase participation, ensuring that seniors can benefit from the discounts that are being provided. And it will help smooth the path for successful implementation of the drug benefit itself in 2006.

Now, some may argue that my bill will eliminate competition. I disagree. My bill will increase competition by encouraging sponsors to offer the best discounts available in order to be approved as one of the three cards. In addition, my idea is not new; in fact it is consistent with the Administration's proposal to limit the PPO options in the Medicare Modernization Act MA to just three per region.

I believe my legislation will provide better discount drug cards for seniors and make it easier for them to sign up for these benefits. I urge my colleagues to support this legislation.