The White House Health Care Reform Today February 16, 1994 * Today, the President and First Lady will travel to Edison, New Jersey where he President will speak to more than 2,000 older Americans at the Middlesex County College Physical Education Center. Co-hosted by the AARP and the Edison Township Division of Senior Citizens, the speech will focus on the benefits of the President's approach to health care reform as it pertains to older Americans. * Much of the discussion in the coming weeks will be concerning Medicare. Below are points on Medicare to consider as you talk about the President's approach to health care reform: * Preserves and Strengthens Medicare Under the Health Security Act, older Americans will see little difference in where, how or from whom they receive their health care. And although every health reform proposal before the Congress calls for significant savings from Medicare, the President's plan is the only one that reinvests the savings in two new benefits for older Americans: prescription drugs and a new federal/state program providing home- and community- based long-term care. * Provides Prescription Drug Coverage Medicare beneficiaries will have 80 percent coverage for their medications after they reach a $250 deductible. A $1,000 annual cap will be placed on out-of-pocket prescription drug costs, with costs above this amount fully covered. Patients will receive counseling from their pharmacist on what medications are most appropriate. * Increases Choice for Medicare Beneficiaries For Medicare beneficiaries reform will mean more choices among health plans, and the ability to choose a plan which may offer lower copays and deductibles than traditional Medicare coverage offers today. * Protects Seniors Against Fraud and Overcharges The Health Security Act calls for new penalties to pursue and prosecute those who order unnecessary tests and procedures to defraud Medicare and senior citizens. In addition, the Health Security Act controls rising costs in both the private sector and Medicare. * Lowers Medigap Premiums For those who currently buy a Medigap policy to cover prescription drugs and overcharges, the Health Security Act could mean significantly lower costs. The plan stops doctors or hospitals from charging more than Medicare covers. And it prohibits insurance companies from using pre-existing conditions to exclude people from Medigap coverage.