BILL NUMBER: AJR 31	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Jones

                        JULY 2, 2007

   Relative to Medicare Part D.


	LEGISLATIVE COUNSEL'S DIGEST


   AJR 31, as introduced, Jones. Medicare Part D.
   This measure would urge the Congress and the President of the
United States to amend the Medicare Modernization Act of 2003 to
require that the federal government negotiate for the lowest
available prices for prescription drugs under the Medicare Part D
program, eliminate a specified gap in Medicare Part D coverage, and
reduce the "lifetime penalty" for late enrollment in the program.
This measure would also urge the Congress and the President of the
United States to ensure that California is fully reimbursed for the
costs of remedying problems with the implementation and operation of
the Medicare Part D program, and to also grant California greater
regulatory jurisdiction over Medicare Part D plans.
   Fiscal committee: no.



   WHEREAS, The federal government created the Medicare Part D
prescription drug program as part of the Medicare Modernization Act
of 2003; and
   WHEREAS, Over 4.3 million California seniors are eligible for the
Medicare Part D program, approximately one million of whom are also
eligible for California's Medi-Cal program and are therefore
considered dual eligibles; and
   WHEREAS, The Medicare Modernization Act of 2003 prohibits the
Secretary of Health and Human Services from negotiating lower drug
prices on behalf of Medicare beneficiaries; and
   WHEREAS, Medicare Part D participants frequently reach the
"doughnut hole," a coverage gap in which they must pay the full cost
of their prescription drugs; and
   WHEREAS, Medicare Part D participants face "lifetime penalties" if
they enroll in the program after their initial enrollment period;
and
   WHEREAS, Medicare Part D participants face a confusing choice
between 55 stand-alone private drug plans with varying premiums,
copayments, deductibles, and coverage; and
   WHEREAS, The Medicare Part D program does not provide adequate
information for participants to make decisions based on plan
performance, deficiencies, or consumer complaints; and
   WHEREAS, Dual eligibles frequently have many fewer prescription
drugs available to them and face dramatically higher copayments under
Medicare Part D than they did under Medi-Cal; and
   WHEREAS, California has already spent millions of dollars to
remedy problems with the implementation and operation of the Medicare
Part D program; and
   WHEREAS, California has limited regulatory power over the private
drug plans offering coverage to California seniors; now, therefore,
be it
   Resolved by the Assembly and the Senate of the State of
California, jointly, That the Legislature calls on the Congress and
the President of the United States to require that the federal
government negotiate for the lowest available prices for prescription
drugs under the Medicare Part D program; and be it further
   Resolved, That the Legislature calls on the Congress and the
President of the United States to eliminate the "doughnut hole" gap
in coverage in the Medicare Part D program; and be it further
   Resolved, That the Legislature calls on the Congress and the
President of the United States to reduce the "lifetime penalty" for
late enrollment in the Medicare Part D program; and be it further
   Resolved, That the Legislature calls on the Congress and the
President of the United States to ensure that California is fully
reimbursed for the costs of remedying problems with the
implementation and operation of the Medicare Part D program; and be
it further
   Resolved, That the Legislature calls on the Congress and the
President of the United States to give California greater regulatory
jurisdiction over Medicare Part D plans; and be it further
   Resolved, That the Chief Clerk of the Assembly transmit copies of
this resolution to the President and Vice President of the United
States, to the Speaker of the House of Representatives, and to each
Senator and Representative from California in the Congress of the
United States.