27 Jan 2011

Lowering Rx Drug Costs by Ending Sweetheart Deals Between Generics and Brand Name Drug Companies

By Grassley Press

KOHL, GRASSLEY: STOPPING "PAY-FOR-DELAY" DEALS ESSENTIAL TO LOWERING RX DRUG COSTS

Bipartisan effort to speed less expensive generic prescription drugs to market

WASHINGTON, D.C. - U.S. Senators Herb Kohl and Chuck Grassley have reintroduced legislation limiting pay-for-delay settlements used to keep lower-cost generic drugs off pharmacy shelves.  Under these pay-off agreements, brand name drug companies settle patent disputes by paying the generic drug manufacturer in exchange for a promise that it will keep its generic version of the drug off the market. Kohl and Grassley's "Preserve Access to Affordable Generics Act" will stop this anti-consumer practice by presuming these deals illegal, and giving the FTC the authority to stop them.

"Generic drugs save consumers and the federal government money, to the tune of billions of dollars a year. But in order to freeze out competition and delay entry of low cost generic drugs for consumers, brand-name drug companies pay-off generic manufactures to keep their products off the market.  It is past time to put an end to these backroom deals and pass this bipartisan legislation," Kohl said.

"These agreements between generic and brand name pharmaceutical manufacturers are only serving to line the pockets of the companies.  When people across the country are having a hard time making ends meet, this wheeling and dealing simply delays the entry of lower priced medicines into the marketplace, leaving consumers on the short end of the stick," Grassley said.

A compromise version of this legislation passed the Judiciary Committee in late 2009 and was included in the Financial Services and General Government Appropriations bill reported out of the Senate Appropriations Committee last year. Final passage of the bill stalled when the House and Senate failed to agree on an Omnibus Appropriations package last month.

The Federal Trade Commission has estimated that stopping these types of settlement agreements would save consumers at least $35 billion over the next ten years, and provide significant cost savings in the amount of $12 billion over ten years for the federal government, which pays approximately one-third of all prescription drug costs. A recent CBO report estimates that the federal government could save $2.68 billion over ten years, should this bill become law

Despite the FTC's opposition to pay-for-delay patent settlements, two 2005 appellate court decisions have permitted these payoffs.  In the two years after these two decisions, the FTC has found nearly half of all patent settlements involved payments from the brand name from the generic manufacturer in return for an agreement by the generic to keep its drug off the market.  According to a study by Pharmaceutical Care Management Association (PCMA), health plans and consumers could save $26.4 billion over the next five years by using the generic versions of 14 popular drugs that are scheduled to lose their patent protections before 2010.

Brand-name drug companies and generic manufacturers routinely enter into settlement agreements to end drug patent litigation, but until 2005, none of them included pay-for-delay provisions. From 2000 to 2004, companies assumed such agreements violated antitrust law.  But in 2005, following three courts of appeals decisions that prevented the FTC from taking action on behalf of consumers, pay-for-delay settlements became commonplace. In the four years following these court decisions 63 out of 194 patent settlements had provisions in which the brand name drug company made payments to the generic manufacturer in exchange for the generic manufacturer agreeing to delay entry of generic competition.  In 2009, there were a record 19 pay-for-delay settlement agreements that kept generics off the market.

Last Congress, Kohl served as chairman of the Senate Judiciary Subcommittee on Antitrust, Competition Policy, and Consumer Rights. Grassley is the incoming Ranking Member of the Judiciary Committee.

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27 Jan 2011

Harkin Presses For Comprehensive Wellness Initiative To Fight Chronic Disease, Obesity And Reduce Health Care Costs

By Sen. Tom Harkin


WASHINGTON, D.C. ? January 26, 2011 - Senator Tom Harkin (D-IA) today reintroduced major legislation to create a healthier future for America by giving our citizens access to better preventive care and consumer information to encourage healthier lifestyles.  The Healthier Lifestyles and Prevention America Act, also known as the HeLP America Act, provides all sectors of our society - child care centers, schools, workplaces, health care providers and communities - with the incentives and tools they need to reach the goal of making America a healthier place.

"Promoting healthy lifestyles and preventing chronic disease will not happen overnight.  While the prevention and wellness measures included in the new health reform law were an important step forward, much more needs to be done," said Harkin.

"We need to integrate health and wellness into all elements of American communities - from our schools and workplaces to our grocery store aisles and restaurants.  By providing people the information and resources they need to live longer, healthier lives, the HeLP America Act will empower people to take care of their health, boosting overall quality of life and lowering our spiraling health care costs."

Among other benefits, the HeLP America Act will:

·    Provide fresh fruits and vegetables to all low income elementary schools by expanding the Harkin Fresh Fruit and Vegetable Program
·    Create a healthier workforce by providing tax credits to businesses that offer comprehensive workplace wellness programs to their employees and allowing employers to deduct the cost of employees' athletic facility memberships
·    Reduce Americans' sodium consumption by developing two-year targets for sodium reduction in packaged and restaurant foods
·    Help Americans make informed choices about their food by establishing uniform FDA guidelines for the use of "healthy" symbols on the front of food packages
·   Ensure Individuals with Disabilities have access to community sports by creating competitive grants for the implementation of community-based sports and athletic programs for people with disabilities, including youth with disabilities.  

Chronic diseases such as heart disease, cancer, and diabetes are among the leading causes of death and disability in the United States, and the economic impact is staggering. More than seventy-five percent of the $2.5 trillion the United States spends on health care annually is due to chronic disease. Yet less than five percent of annual health care spending in the United States goes toward chronic disease prevention.

Harkin has promoted preventive healthcare initiatives throughout his career, including increased access to breast cancer screenings, the school fruit and vegetable pilot program, the Menu Education and Labeling Act (MEAL), and tobacco control.  Most recently, as Chairman of the Senate Health, Education, Labor and Pensions (HELP) Committee, Harkin championed the prevention and wellness measures that are included in the Affordable Care Act, which was signed into law last March.  The Prevention and Public Health title of health reform law creates incentives to prevent chronic disease and rein in costs across the full health care spectrum.  A full summary of the provisions is available here:  http://harkin.senate.gov/documents/pdf/4c2b8b9dc4e74.pdf

A full summary of the HeLP America Act is below:


Healthy Lifestyles and Prevention (HeLP) America Act of 2011


Healthier Kids & Schools
·    Nutrition and physical activity in child care quality improvement: Supports State efforts to provide resources to child care providers to help them meet high-quality physical activity and healthy eating standards.
·    Access to local foods and school gardens at preschools and child care centers: Enables child care providers to participate in the USDA's farm-to-school initiatives.
·   Fruit and vegetable program:  Expands the Harkin Fresh Fruit and Vegetable Program to all low income elementary schools nationwide.
·    Equal physical activity opportunities for students with disabilities: Directs the Department of Education to provide oversight, guidance, and technical assistance to ensure that schools provide equal opportunities for students with disabilities for PE and extracurricular athletics.

Healthier Communities
·   Joint use agreements: Directs the HHS, in coordination with Department of Education, to develop and disseminate guidelines and model joint use agreements to facilitate community access to spaces for physical activity.
·    Community Sports for Individuals with Disabilities: Competitive grants to public entities and nonprofit private entities to implement community-based sports and athletic programs for people with disabilities, including youth with disabilities.  
·    Community gardens: Grants from the USDA to establish, expand, or maintain community gardens.
·    Physical Activity Guidelines for Americans: Requires HHS to issue physical activity guidelines for preschool children and to update the guidelines for all ages every 5 years.
·    Tobacco Taxes Parity: Increases the excise tax on small cigarettes; equalizes excise taxes for pipe tobacco, roll-your-own tobacco, and smokeless tobacco; and clarifies the definition of small cigars.
·   Health in all policies: Requires HHS to conduct a health impact assessment of major non-health legislative proposals and to detail staff to other departments to assist them with consideration of health impacts of their activities.

A Healthier Workforce
·    Healthy Workforce:  Provides tax credits to businesses that offer comprehensive workplace wellness programs to their employees to improve health and wellbeing.
·    Workforce Health Improvement:  Allows employers to deduct the cost of athletic facility memberships for their employees and exempts this benefit as taxable income for employees.
·    Workplace Breastfeeding Taskforce: Establishes a federal taskforce for the promotion of breastfeeding among working mothers.
·    Healthy Federal Workplaces: Requires menu labeling in federal food facilities, the development of nutritional guidelines for food procurement and vending machines on federal property, the development of guidelines for stair placement and signage, and bicycle parking in federal properties.

Responsible Marketing and Consumer Awareness
·    Reducing Sodium Consumption: Directs the FDA to develop two year targets for sodium reduction in packaged and restaurant foods.
·   Improved food labeling: Removes nutrition labeling exemption for foods sold exclusively to restaurants.
·    Healthy Symbols: Instructs the FDA to develop uniform guidelines for the use of nutrient labeling symbols or systems on the front of food packages.
·    Protect Kids from Unfair Junk Food Advertising: Restores the rulemaking authority of the Federal Trade Commission (FTC) to issue restrictions on unfair advertising with respect to children, and gives the FTC Administrative Procedure Act rulemaking authority.
·    Health Literacy:  Strengthens federal initiatives to improve the health literacy of consumers by making health information more understandable and health care systems easier to navigate through continued research and dissemination of effective interventions.
·    Tobacco Marketing:  Eliminates tax deductibility of tobacco advertising, and funds counter-advertising.
·    Incentives to reduce youth tobacco use: Requires HHS to carry out an annual youth tobacco use survey and creates a penalty for tobacco manufacturers if youth use of their tobacco products does not decrease.

Expanded Coverage of Preventive Services
·    Preventive Services in Medicaid:  Requires coverage of preventive services recommended by the U.S. Preventive Services Task Force (USPSTF) and the CDC without cost-sharing for Medicaid beneficiaries.
·    Preventive Services for Federal Employees:  Requires coverage of preventive services recommended by the USPSTF, CDC, the Health Resources and Services Administration (HRSA) for children, and workplace wellness program in the Federal Employee Health Benefits (FEHB) Program.
·   Health Professional Education on Health Eating:  Establishes a program administered by CDC and HRSA to train health professionals to better identify patients at-risk of and treat patients who are overweight, obese, or have an eating disorder.

Research and Surveillance
·    Grants for body mass index analysis: Provides grants to States to include BMI data in existing state-wide immunization databases.
·    National Assessment of Mental Health:  Requires the Administrator of the Substance Abuse and Mental Health Services Administration (SAMHSA) to build on existing or create new monitoring systems that assess mental and behavioral health status and risks.
27 Jan 2011

Governor Quinn Signs Landmark Medicaid Reform Legislation

By Kara Beach

Hails Bi-Partisan Effort To Preserve Health Care For Vulnerable Illinoisans And Will Save More Than $624 Million Over Five Years

CHICAGO - January 25, 2011. Governor Pat Quinn today signed legislation establishing comprehensive Medicaid reform in Illinois. House Bill 5420 was crafted by bi-partisan legislative committees and passed both houses of the General Assembly with bi-partisan support.

The law will enable the Department of Healthcare and Family Services (HFS) to improve efficiency and streamline services by: expanding coordinated care in Illinois, improving the efficiency of the prescription drug program, tightening the integrity of the eligibility process and increasing civil penalties for recipients who abuse the system. The reforms are expected to achieve savings of $624 million to $774 million over five years.

"Medicaid reform is one part of my plan to stabilize our budget. A priority of my administration is eliminating inefficiencies, so that we are saving money while delivering better services to those that most need them," said Governor Quinn. "I would like to thank HFS and the members of the Senate and House Special Committees on Medicaid Reform who worked closely in a bi-partisan spirit with my office to make this legislation possible."

The groundbreaking, bi-partisan reform legislation was crafted under the direction of Governor Quinn and administration officials, working in concert with the Senate and House Special Medicaid Reform Committees. HB 5420 was sponsored by the co-chairs of the two committees: Sen. Heather Steans (D-Chicago) and Sen. Dale Righter (R-Mattoon), and Rep. Barbara Flynn Currie (D-Chicago) and Rep. Patricia Bellock (R-Hinsdale).

"This legislation is a result of bi-partisan commitment to protect patient health, while implementing much-needed reforms and saving taxpayers money," said HFS Director Julie Hamos. "Governor Quinn has directed this department to transform Medicaid in Illinois into a program that works to keep people healthy, rather than one that simply pays bill after they become sick. This measure grants us the authority to move forward with the Governor's directive."

Under the new law, HFS will improve the efficiency of the program by expanding coordinated care to cover at least 50 percent of recipients by 2015. It also authorizes the department to enhance the integrity of the eligibility process, subject to federal approval, by requiring proof of Illinois residency; tightening income verification by requiring a month's worth of income information, instead of a single paystub; and requiring annual redetermination of eligibility.

The law also will allow the department to save on prescription drug costs by maximizing co-payments, promoting 90-day maintenance prescriptions and controlling utilization, and reducing prompt payment interest rates for pharmacy bills from 2 percent to 1 percent.

Other major reforms include :

  • Enhancing restrictions and civil penalties for recipients who abuse the system.
  • Establishing a moratorium on eligibility expansions.
  • Limiting income of future All Kids enrollees to 300 percent of the federal poverty level.
  • Extending the sunset of All Kids from 2011 to 2016.
  • Phasing out the practice of allowing unpaid bills from one year to be paid in the next fiscal year.
  • Requiring HFS to study the impact of income limits and cost-sharing opportunities for medical programs available to children under the Public Aid Code where there is no parental-income threshold.
Illinois' Medicaid program, which is administered by HFS, provides health coverage to 2.8 million low-income individuals and families, people with disabilities and older adults.


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25 Jan 2011

American Red Cross issues call to all eligible donors to help replenish decreasing blood supply

By THERESA KUHLMANN

AMERICAN RED CROSS SAYS MOUNTING EFFECT OF SEVERE WINTER WEATHER CAUSES LOWEST JANUARY BLOOD SUPPLY IN A DECADE

PEORIA, Ill. (January 25, 2011) - Severe winter weather throughout much of the eastern half of the United States in recent weeks has caused the cancellation of more than 14,000 blood and platelet donations through the American Red Cross. The severity of the impact has stressed even the Red Cross' robust national inventory management system, which can move blood products to where they're needed most, such as when severe weather hits.

"We have not seen the January supply drop this dramatically in a decade and we need to reverse this now," said Shelly Heiden, CEO of the Heart of America Red Cross Blood Services region.   "You don't wait to refuel once you've run out of gas. Donating blood or platelets now helps ensure immediate and future patient needs will be met."

The Red Cross urges all eligible donors in unaffected areas to make an appointment to give blood or platelets in the coming days, and those in affected areas to donate as soon as travel is deemed safe, by calling 1-800-RED CROSS (1-800-733-2767) or by visiting redcrossblood.org. Donations will help replenish the Red Cross blood supply to ensure that blood products are readily available for patients with serious medical needs.

The need for blood is constant. Every two seconds a patient in the United States needs a blood transfusion. Blood is perishable and has no substitute. Red blood cells have a shelf life of only 42 days and platelets just 5 days - they must be replenished constantly.

Blood and platelets can be used for trauma victims - those who suffered due to accidents and burns - heart surgery patients, organ transplant recipients, premature babies and for patients receiving treatment for leukemia, cancer or other diseases, such as sickle cell disease.

All blood types are needed, especially type O negative, to ensure a reliable supply for patients. Individuals who are 17 years of age (16 with parental permission in some states), weigh at least 110 pounds and are in generally good health may be eligible to donate blood. High school students and other donors 18 years of age and younger also have to meet certain height and weight requirements.  Please bring your Red Cross blood donor card or other form of positive ID when you come to donate.

 

24 Jan 2011

Chilly Outdoors Can Offer Fitness Fun, Says TOPS

By Kimberly Greene

MILWAUKEE, WI - During this time of year it's a natural instinct for our bodies to tell us to stay indoors and load up on calories to keep warm and cozy all winter long. But this sort of lifestyle may cause one to pack on the pounds and can lead to a range of health-related concerns.

While some prefer to head to the gym to keep up their fitness routine, Amy Goldwater, M.S., educator, former body-building champion, and physical fitness expert for TOPS Club, Inc. (Take Off Pounds Sensibly), the nonprofit weight-loss support organization, recommends a list of creative outdoor activities to enjoy with family and friends.

"Fun activities like snowball fights, making snow angels, and building a snowman count as exercise and burn calories," Goldwater notes. "For example, a 150 pound person burns an average of 285 calories per hour building a snowman, 319 calories per hour during that snowball fight, and 214 calories burned per hour making snow angels."

Other winter "fitness" activities to consider include :
• Building a snow fort or igloo;
• Playing chase, tag, or hide and seek;
• Having a scavenger hunt for winter nature items, such as animal tracks, pinecones, or bird nests;
• Shoveling a path in the yard like a maze;
• Setting up an obstacle course in the yard with jumps, tunnels, and other challenges;
• Playing Frisbee/disc golf on a local course or at home.

All of these activities burn significant calories during participation. In fact, an hour of snow shoveling can burn 340 calories.

Traditional outdoor winter activities also are excellent fitness opportunities, according to Goldwater. Ice-skating, hiking in the snow, snowshoeing, and cross-country skiing, offer great cardiovascular workouts. Remember to dress warmly and in layers; stay hydrated; keep hands, feet, and head warm with outerwear; and keep an eye on the weather forecast for snow and wind chill warnings.

Eat a light snack an hour or two before working out, to add energy and prevent distracting hunger pangs. Ideal snack options should be low-fat and include fruit smoothies; a few handfuls of nuts; hard-boiled eggs; and fast-digesting, high-glycemic fresh fruit like watermelon, grapes, pineapple, and bananas.

"Sunblock is important in the winter, too," Goldwater says. "Using an SPF of 15 or higher will help protect your skin from sunburn that can occur when exercising in snow or high altitudes. Also, don't forget to wear a lip balm that contains sunscreen."

TOPS Club Inc. (Take Off Pounds Sensibly), the original, nonprofit weight-loss support and wellness education organization, was established more than 63 years ago to champion weight-loss support and success. Founded and headquartered in Milwaukee, Wisconsin, TOPS promotes successful, affordable weight management with a philosophy that combines healthy eating, regular exercise, wellness information, and support from others at weekly chapter meetings. TOPS has about 170,000 members in nearly 10,000 chapters throughout the United States and Canada.

Visitors are welcome to attend their first TOPS meeting free of charge. To find a local chapter, view www.tops.org or call (800) 932-8677.

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24 Jan 2011

Statement from Governor Quinn in Support of Affordable Care Act

By Andrew Mason

CHICAGO - January 19, 2011. Governor Pat Quinn today released a statement in support of the federal Affordable Care Act:

"The Affordable Care Act has already provided Illinois with many of the tools and resources needed to ensure that more of our families and employers have access to important health care benefits and consumer protections.

Through Illinois' federally-funded high risk pool, we have secured health coverage and financial security for more than 1,000 people who were denied coverage by health insurance companies because of pre-existing conditions. We are currently expanding that program to ensure access to affordable and comprehensive health coverage for even more individuals who have been denied private coverage.

We have seen 121,000 Illinois seniors receive $250 rebate checks to help cover the costs of prescription drugs. And health insurance companies must now cover immunizations, mammograms and other important preventative care procedures without charging the high deductibles and co-payments that once deterred consumers from routine checkups.

Thanks to the Affordable Care Act, more students graduating from college in Illinois can remain covered under their parents' health insurance policies. And children in Illinois can no longer be denied health coverage because of a pre-existing condition.

We intend to implement the Affordable Care Act so that our families and employers have appropriate health care options and much-needed financial security. Everyone in Illinois deserves access to meaningful and affordable health care.

I urge the 112th Congress to move this country forward in positive, constructive debate focused on affordable health care for all Americans, rather than re-visiting the politics of the past."

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24 Jan 2011

Harkin: Repeal Would Deny Coverage to Millions of Americans with Preexisting Conditions

By Sen. Tom Harkin
WASHINGTON - January 18, 2011 - Senate Health, Education, Labor and Pensions (HELP) Committee Chairman Tom Harkin (D-IA) released the following statement after the Department of Health and Human Services released a new report showing that, without the Affordable Care Act, up to 129 million Americans under the age of 65 who have a pre-existing health condition would be at risk of losing health insurance when they need it most, or be denied coverage:  

"The report released today by the Department of Health and Human Services reconfirms the vital importance of the Affordable Care Act's broad consumer protections.  The Department's analysis shows that up to 129 million Americans under the age of 65 have a preexisting condition, and millions more are likely to develop such a condition in the next eight years.  If Congressional Republicans had their way, these Americans would face denial or restriction of health benefits.  This report makes clear that we can't afford to deprive half of Americans under the age of 65 of this vital protection."

The HHS report comes on the same day of a new Associated Press-GfK poll that shows opposition to the Affordable Care Act diminishing among Americans.  

Last week, Harkin announced that the HELP Committee will hold a series of hearings to examine how the Affordable Care Act is benefiting Americans.  The first hearing will be held on January 27.
11 Jan 2011

Statement from Governor Pat Quinn On the Legislative Passage of Major Medicaid Reform

By Andrew Mason

SPRINGFIELD - January 6, 2011. Governor Pat Quinn today issued a statement on the General Assembly's passage of Medicaid reform legislation.

"Today is an important day for our state. For too long we have simply talked about Medicaid reform; today we are following through with legislation that will help stabilize our budget and rebuild the foundations of our economy. This bill will streamline services and eliminate inefficiencies, saving the state hundreds of millions of dollars. In addition, it will improve efficiency in the program to ensure that Medicaid patients in Illinois are receiving the highest quality of care.

"This bill reflects a truly bipartisan effort by our General Assembly. I would like to thank the Medicaid reform committees, as well as bill sponsors Representative Barbara Flynn Currie, Representative Patti Bellock, Senator Heather Steans and Senator Dale Righter for their dedication; their support was critical in my administration's drive to pass this legislation. Thanks also to my healthcare advisor Michael Gelder and Healthcare and Family Services Director Julie Hamos for their tremendous work in crafting and helping pass this bill.

"This is a powerful example of the reforms Illinois needs to stabilize its budget, and the kind of legislation I will continue to work with the General Assembly to pass. I look forward to receiving this bill from the legislature and acting on it soon."

 

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03 Jan 2011

MAKING TIME FOR 2011 RESOLUTIONS

By Laurie Johns

I've been mulling over something a very smart co-worker said to me this week: time is relative.  It moves faster or slower depending on your age, your work load and enjoyment of whatever you're doing at the moment.

If you are my approximate age and grew up on a farm, you probably remember how long summers used to last when you spent day after sweaty day walking beans or de-tasseling corn.  The start of school (and an end to the 12-hour chore days) seemed to take forever.

For proof of the "relativity of time" theory, look no further than your children.  Every mother thinks time stands still when faced with a colicky infant, sleep deprivation and potty training.   But what about when they're teenagers?  Every time I look at my daughter (now 13 and taller than me), I'm convinced she should still be five, holding my hand to cross a parking lot and totally in love with her parents (sigh).

According to psychologist Philip Zimbardo, it's not just 13-year-olds who need to sloooooow down; it's us (http://freakonomics.blogs.nytimes.com/2010/06/09/time-is-relative/?emc=eta1). We probably don't need some psychologist brainiac to tell us all that we eat too fast, work too long, worry too much.  We spend too little time sitting down to dinner together.  We sacrifice our friends, our family and our sleep in order to "get ahead" in our jobs.  According to the latest statistics, only 20 percent of households sit down and have dinner together.

One thing is for certain: as fast as time goes by at our age (mine anyway), there IS no going back.  So, as we look ahead to 2011, how about making a couple resolutions to help us all make time a little more meaningfully.  Here's my short list of 2011 Resolutions:

1)      I resolve to do everything slower: walking, talking, breathing, praying; you know, the Big Stuff.

2)      I resolve to tell my family members every day that I love them.  Let me just say that anyone with a surly teenager at home knows this can sometimes be harder than it sounds (sigh).

3)      I resolve to let my dog take his time to check out evvvverrrything on our morning walks.  At least once a week, anyway (sorry, Spot).

4)      I resolve to chew my food.  Slowly.  No more burgers wolfed down at my desk while I "work through lunch".  Sure, it's not practical every day, but a recent dinner with friends at a new French restaurant in Des Moines (http://tinyurl.com/2wuojrj) convinced me that there is beauty in planning and enjoying a slowly and carefully-prepared meal.  I need to take time to actually taste and enjoy my food!

5)      And finally, I resolve to share even more stories of Iowans who DO take their time doing what's right in the name of putting food on ALL our tables: farmers.  Farmers, more than anyone else, understand the theory of "relative time."  Their technology has evolved faster than our nation's space program, yet the raw materials at their disposal remain unchanged: soil, water, work ethic.  Technology can shorten a growing season, increase yields or improve the nutrition of a chicken egg, but it can't change values.  Values of good farmers don't change.  Let's hope we all resolve to remember that in 2011.  Happy New Year!

 

Laurie Johns is Public Relations Manager for the Iowa Farm Bureau.                        12/31/2010

30 Dec 2010

Harkin: America Rings in the New Year with New Health Reform Benefits

By Sen. Tom Harkin

WASHINGTON, D.C. - As Americans across the country prepare to welcome the New Year, Senate Health, Education, Labor and Pensions Committee Chairman Tom Harkin (D-IA) today highlighted new health care benefits that will take effect on New Year's Day.  These new provisions, established by the Affordable Care Act, will require insurance companies to give Americans better value for their premium dollars and provide seniors with discounts on prescription drugs and free preventive care.   

"What many Americans may not know is that as they're ringing in the New Year, they're also ringing in important new health care benefits created by the Affordable Care Act," said Chairman Harkin.  "Starting Saturday, insurance companies will be required to dedicate at least 80 percent of health care premiums to actual health care services rather than profits or executive salaries - and if they don't comply, their customers will get a refund.  Meanwhile, our senior citizens will be able to get big discounts on their prescriptions and free preventive care to keep them healthy."       

The Affordable Care Act was signed on March 23, 2010 by President Obama.  Harkin, as Chairman of the Senate Health, Education, Labor and Pensions Committee, played a pivotal role in the bill's passage and was on hand for the bill signing.

Among other new protections taking effect on January 1, the health care law will:

  • Give Americans Better Value for Their Premium Dollars - Insurance companies will now be required to spend 85 percent of all premium dollars collected for large employer plans on health care and improving quality of care.  For plans sold to individuals and small employers, at least 80 percent of the premium must be spent on benefits and quality improvement.  If insurance companies do not meet these goals because their administrative costs or profits are too high, they must provide rebates to consumers.
  • Offer Prescription Drug Discounts to Seniors - Seniors who reach the Medicare coverage gap known as the "donut hole" will receive a 50 percent discount on prescription drugs covered by Medicare Part D.
  • Provide Free Preventive Care to Seniors - Seniors on Medicare will now be offered free preventive services, such as annual wellness visits and personalized prevention plans.

For a full list of provisions taking effect on January 1, please visit Healthcare.gov: http://www.healthcare.gov/law/timeline/index.html and for more information on the Affordable Care Act, please visit http://www.healthcare.gov/, http://www.whitehouse.gov/HealthReform or http://harkin.senate.gov/.

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