Reps. Susie Lee, Yvette D. Clarke, Antonio Delgado Introduce Bill to Lower Out-of-Pocket Prescription Drug Costs
Washington, D.C. – U.S. Reps. Susie Lee (Nev.-03), Yvette D. Clarke (N.Y.-09), and Antonio Delgado (N.Y.-19) introduced the Enhancing Retirement Security for Medicare Beneficiaries Act of 2019, which would lower out-of-pocket costs for prescription drugs for seniors and individuals with disabilities under Medicare. This bill would exclude covered retirement accounts from counting as income for the purposes of determining eligibility under the Medicare Part D low-income subsidy (LIS) program.
"No group of Nevadans relies more on prescription drugs than our seniors," said Rep. Lee. "This bill expands eligibility for Medicare to more seniors, which lowers their out-of-pocket prescription drug costs. That's a good thing, and ultimately means that fewer seniors will have to choose between buying groceries and life-saving medication."
"We must protect our senior citizens—many of whom are on fixed incomes—from price-gouging prescription drug costs," said Rep. Clarke. "As a Member of Congress I have a duty in advancing legislation that cares for people at all life stages, which is why I am co-sponsoring the Enhancing Retirement Security for Medicare Beneficiaries Act, to protect our seniors' pocketbooks at such a critical time in their lives."
"Skyrocketing prescription drug costs are crushing our upstate seniors and holding back our local economies," said Rep. Delgado. "Saving for retirement shouldn't jeopardize low-income subsidies for Medicare Part-D beneficiaries. I am proud to join in leading introduction of the Enhancing Retirement Security for Medicare Beneficiaries Act of 2019, which will help low-income seniors remain eligible for subsidies toward prescription drug costs while accessing their hard-earned retirement savings. I will continue to work with my colleagues to crack down on big pharma, increase competition in the marketplace, and work to bring generic medications to market sooner to combat the skyrocketing cost of prescription drugs."
BACKGROUND: The LIS program (also called "Extra Help") covers some or all of the out-of-pocket costs under Medicare Part D for low-income Medicare beneficiaries. The subsidies under LIS reduce or cover Part D premiums, deductibles, and coinsurance, while also eliminating the coverage gap and waiving the penalty for late enrollment. In order to be eligible for LIS, applicants must meet income and asset requirements—married couples must have incomes of $25,365 or less. However, these income limits penalize seniors who have responsibly saved through retirement accounts like 401(k)s or IRAs by counting those disbursements as income for purposes of LIS eligibility.
This bill would help incentivize savings and provide more out-of-pocket protection for Medicare beneficiaries by excluding covered retirement accounts for the purposes of determining assets for LIS program eligibility, and would exclude disbursements from those accounts in income calculations for prescription drug plan years beginning 2022. Covered retirement accounts would include: individual retirement accounts, individual retirement annuities, certain qualified trusts, and annuities purchased by not-for-profit organizations or public schools.
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