AFP to Michigan Delegation: Oppose Medicare Part D Rebate Proposals

LANSING, MI—The Michigan chapter of Americans for Prosperity (AFP-MI), the nation’s premier free market grassroots organization, sent a letter to the Michigan delegation of the U.S. Congress opposing Medicaid Part D rebate proposals. AFP-MI urges federal lawmakers from Michigan to oppose President Obama’s attempt to raid Medicare Part D in order to pay for higher levels of federal stimulus spending.

The letter to Congress is available online here.

“Instead of outright supporting a tax on drug companies, like he has with medical device makers, President Obama hides his real agenda in harmless-sounding language of ending unfair subsidies.” said AFP-MI Director Scott Hagerstrom. “But this is far from the truth. This so-called rebate proposal from the President is more accurately described as a tax hike for seniors in the form of higher Part D premiums.”

Created in 2006, Medicare Part D provides prescription drug coverage for Medicare beneficiaries. The program has successfully used market mechanisms, such as competition and choice, to improve access and control costs, making it an anomaly among government programs. Beginning with his State of the Union in January, President Obama is promoting a proposal that taxes the Medicare Part D programs in order to pay for higher levels of spending in other areas of government.

“This is yet another example of President Obama’s attempt to consolidate power in the hands of unelected, unaccountable Washington bureaucrats,” continued Hagerstrom. “Over 85,000 AFP activists live in Michigan. They did not send their federal lawmakers to Washington so they may raise health care costs and spend recklessly.”

Currently, there is legislation sitting in Congress that carries out the President’s proposal, the Medicare Drug Savings Act of 2013 (S. 740, H.R.1588), sponsored by Senator Jay Rockefeller (D-WV) and Representative Henry Waxman (D-CA).

 

Read the whole letter to Congress here.


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