Washington, D.C. – Citizens Against Government Waste (CAGW) today announced its support of President Bush’s proposed seven principles to modernize Medicare. 

“We have long supported a market-based plan to improve Medicare and bring it into the 21^st century,” said Elizabeth Wright, Health and Science Director at CAGW.   “Seniors should be given the same kind of options in healthcare that Congress and nine million federal employees and their dependents enjoy today.  We are pleased that one of the president’s core principles is for Medicare to be restructured like the Federal Employees Health Benefit Plan (FEHBP.)”  

CAGW has long argued that seniors should have more options in health insurance, a drug benefit as part of an overall package of health insurance, better management of traditional Medicare, updated and sensible regulations, better coverage for preventative and technically advanced care, and assurance that the program is financially sound.  “Medicare’s current structure is heavily regulated, cumbersome, bureaucratic, wasteful, and in need of complete overhaul.  Many physicians and other healthcare providers find it difficult — if not to impossible — to comply with Medicare’s 110,000 pages of rules, regulations, and related paperwork.  Modernizing can’t come soon enough,” Wright added.

“We are particularly pleased the Bush Administration advocates drug coverage if the beneficiary wants it and will make a drug benefit part of the overall health insurance plan,” continued Wright.  “The best way to provide drug coverage is through the private sector, where market forces will give seniors discounts on pharmaceuticals.”

CAGW also supports the administration efforts to bring quick relief to seniors who need discounts on drugs by proposing a pharmacy discount card.  “CAGW is anxiously waiting to see the details on the proposed card.  As long as it uses real market principles, not price controls, to keep prices down, we think it may be a good way to provide quick relief for seniors lacking pharmaceutical coverage while a more comprehensive Medicare modernization package is debated in Congress,” concluded Wright.

CAGW is a nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, and abuse in government.