Chamber, Business Leaders Back Medicare Reform

Washington, D.C. — The United States Chamber of Commerce joined with other companies and associations representing employer interests in support of efforts to enact comprehensive legislation that would modernize the 37-year-old Medicare program, cover prescription drugs, and ensure the program's viability for current and future generations.

"The Employers' Coalition on Medicare represents employers who support access to quality health care and prescription drugs for Medicare beneficiaries," said Kate Sullivan, Chamber director of health care policy and a co-chair of the newly formed coalition. "Changes in the program are long overdue, and we are committed to working with Congressional leaders and the Administration to get the job done this year."

In a letter to President Bush, Senate Majority Leader Frist, and House Speaker Hastert, the Coalition wrote that it seeks improvements to the Medicare program that establish a drug benefit in the context of comprehensive reform, make all Medicare beneficiaries eligible for drug coverage and allow employers and beneficiaries the option to supplement Medicare coverage.

Sullivan noted employers' experience in meeting the health care and prescription drug needs of more than 12 million Medicare beneficiaries. "Employers have gained valuable technical expertise and practical knowledge over the years that will be of enormous benefit to lawmakers tasked with designing Medicare improvements for several times as many seniors and the disabled," she said.

Employers and employees already pay a 2.9% payroll tax on all earned income, and an additional 6% of general tax revenues finance the bulk of Medicare expenditures. "Medicare 'reform' is about much more than just offering seniors a drug benefit," Sullivan said. "The program must be structurally sound and vested in improving the quality of care to some of our nation's most vulnerable citizens."

The U.S. Chamber of Commerce is the world's largest business federation representing more than three million businesses and organizations of every size, sector and region.

# # #

03-27