The agreement between Senator Grassley (R-IA) and Senator Baucus (D-MT) will not deliver an affordable, reliable and quality prescription drug benefit to the American people. In fact, the Grassley-Baucus approach would lead to more employers dropping retiree prescription drug coverage, making an already bad situation worse.

It is a disappointment to see the debate on prescription drugs start out from a weak position that could actually do more harm than good.

The Grassley-Baucus plan uses a definition of out-of-pocket cost that unfairly negates the payments employers make for retiree health care. The Congressional Budget Office estimated it would lead to 3 million retirees losing the coverage they have now. And the Grassley-Baucus approach would leave rural retirees empty handed under a system that forces them to rely on private HMOs that do not exist in their communities.

The Grassley approach puts HMOs and insurers in charge of whether to offer drug coverage at all in a given area, what drugs to cover, and how much beneficiaries would have to pay out of pocket. Under the Grassley plan, seniors have more questions than answers about their drug coverage.

Contact: Kathy Roeder (202) 637-5018