AMY KLOBUCHAR VISITS SENIOR CENTER, PROPOSES PLAN TO CLOSE MEDICARE PART D DOUGHNUT HOLE

09/27/2006

U.S. Senate candidate and County Attorney Amy Klobuchar presented her plan to close the Medicare Part D coverage gap, known commonly as the “doughnut hole,” today at the Sunrise Assisted Living Senior Center in Hennepin County. Klobuchar served coffee and doughnut holes to a group of 20 seniors as she explained how her plan would close the prescription drug coverage gap that potentially affects up to seven million seniors.

“It makes no sense that we have this gap in coverage,” Klobuchar said. “This is not a startling proposal, I think it is something that makes sense.  It’s an example of fixing priorities in Washington so that we are putting people first.”

One senior attending Klobuchar’s event said that he worried about how policy is currently made in Washington. “You’re letting the insurance companies call the shots, you’re letting the pharmaceutical companies call the shots,” he said. “We’ve got to get back to where our legislators are calling the shots on behalf of the people.”

Klobuchar’s plan would pay to close the gap by eliminating the current provisions that allow drug companies to write off their advertising and marketing costs. Healthcare analysts estimate the value of these tax giveaways could be anywhere from $13 to $15 billion in 2007.  Klobuchar’s plan estimates the cost of closing the doughnut hole to be between $12 to $16 billion during the first year. Klobuchar has proposed a comprehensive package of healthcare and Medicare reforms, including negotiated prices for prescription drugs, re-importation, and a fair reimbursement system for Minnesota.