The Hiram-Based Georgia chapter of Americans for Prosperity
(AFP-GA), the nation’s premier free market grassroots organization, sent
a letter to the Georgia delegation of the U.S. Congress opposing
Medicaid Part D rebate proposals. AFP-GA urges federal lawmakers from
Georgia to oppose President Obama’s attempt to raid Medicare Part D in order to pay for higher levels of federal stimulus spending.
“The President's proposal isn’t a ‘rebate’ at all; it’s a tax on drug companies. And they will make up these losses by shifting them to consumers by raising the price of prescription drugs.” said AFP-GA Director Virginia Galloway. “Raising health care costs and supporting stimulus spending is not why people send their elected officials to Washington, but that's exactly what the President's plan would do.”
Created in 2006, Medicare Part D provides prescription drug coverage for Medicare beneficiaries. The program has successfully used market mechanisms, such as competition and choice, to improve access and control costs, making it an anomaly among government programs. Beginning with his State of the Union in January, President Obama is promoting a proposal that taxes the Medicare Part D programs in order to pay for higher levels of spending in other areas of government.
“This plan will end up being a tax hike on seniors, in Georgia and in other states.” continued Galloway. “Over 50,000 AFP activists live in Georgia. They will be closely watching to see how their federal lawmakers act on this important issue. Elected officials from Georgia should oppose this misguided plan.”
Currently, there is legislation sitting in Congress that carries out the President’s proposal, the Medicare Drug Savings Act of 2013 (S. 740, H.R.1588), sponsored by Senator Jay Rockefeller (D-WV) and Representative Henry Waxman (D-CA).