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AARP President: House Bill Makes "Substantial Progress" Toward Health Care Reform, USA

AARP President Jennie Chin Hansen is testifying before the House Committee on Ways and Means during its hearing on "Health Reform in the 21st Century." In her remarks, Hansen discusses the health care needs of older Americans, including affordable coverage for 50- to 64-year-olds and prescription drugs for people in Medicare. Excerpts from Hansen"s statement follow: "Enacting legislation to give all Americans quality, affordable health coverage options is AARP"s top priority this year. "The draft Tri-Committee legislation marks substantial progress toward this goal. "Today I am proud to represent nearly 40 million members of AARP- half over age 65 and therefore in Medicare, and half under 65. "Both age groups face serious problems in today"s health care system, and AARP commends the Tri-Committee for including critical reforms in its draft that will help AARP members of all ages." "To make insurance affordable for Americans age 50-64, AARP believes these individuals should be charged no more than twice what someone under 50 is required to pay for quality health coverage. Why? "Because older may mean wiser but it doesn"t mean richer. In fact, the income of uninsured adults age 18-24 is a little over $28,000 and for those 50-64 it is $30,000." "One of the greatest difficulties faced by our older members is the extraordinary out-of-pocket cost of health care. In fact, Medicare beneficiaries spend 30 percent of their income on health care costs and they face costs that are six times costs faced by those of us with employer-sponsored coverage. This is a particularly stark reality for the nearly half of all Medicare beneficiaries who have incomes of less than $22,000 per year. "Prescription drugs are, of course, a big piece of Medicare beneficiaries" out-of-pocket expenses, which is why AARP has made closing the doughnut hole and improving low income assistance programs top priorities in health care reform. The Tri-Committee has lead the way on both of these vital issues, including the closure of the doughnut hole as well as important improvements to Medicare low-income supports in its draft legislation.." AARP


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