FOR RELEASE: September 18, 2001

EVANS CRITICAL OF VA PLAN TO BOOST VETERANS’ PRESCRIPTION DRUG COSTS:

REJECTS PROPOSED 250% INCREASE FOR 30-DAY PRESCRIPTION

Washington, DC - Lane Evans, the senior Democratic member of the House Veterans Affairs Committee expressed his views to VA Secretary Anthony Principi about the Department of Veterans Affairs plan to impose a higher copayment on prescription drug benefits for veterans.  In a letter to Secretary Principi, the Congressman acknowledged that a cost increase was “justified” after a decade of no prescription copayment increase.  However, Evans questioned the dramatic cost increase proposed by VA. 

In November of 1999, President Clinton signed the Veterans Millennium Health Care and Benefits Act.  Within the Act, Congress mandated the Secretary to prescribe regulations to establish veterans’ copayments for a 30-day supply of prescription drugs.  In addition, the law explicitly authorized the establishment of monthly and annual maximum payments for veterans who have multiple prescriptions.

Since 1990, any veteran with even marginal income pays $2 for each 30-day supply of medications prescribed for non-service-connected conditions.  The new plan proposes to raise the rate to $7 (a boost of 250%) for each 30-day prescription drug supply.  It also establishes a cap (of $840) on the amount that veterans would have to pay for prescription drugs annually.  Veterans would have to receive an average of more than 10 prescriptions for drugs each month to reach that cap.     

“The Millennium Bill took cognizance of the fact that…prescription drug costs were absorbing an increasingly large share of the veterans’ health care budget”, said Evans justifying the need for some increase in the current rate.  “The costs of collection for these drugs were making the VA’s effort less worthwhile.” 

Evans was critical, however, of the Secretary’s specific plan to increase veterans’ copayments.  In order to “recognize the unique contribution of veterans”, Evans suggested:

• Establishing prescription costs for veterans like those available to military retirees and that are discounted from the average out-of-pocket costs of insured senior Americans. 

• Differing copayment amounts for formulary and non-formulary drugs, generic and brand name and mail-order pharmaceutical drugs thereby allowing veterans to have some control over their out-of-pocket expenditures

• Gradually phasing in a copayment increase over a number of years and

• Limiting monthly expenditures for veterans as allowed by law. 

“We have a health care system committed to paying back society’s debt to the Nation’s veterans,” said Evans paraphrasing from his letter to Secretary Principi.  “The amount we ask veterans to pay for their prescription drugs should be reflected by our obligation to them”.

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