Accidental drug war: Medicare benefits that bankrupt.

• Author: Howley, Kerry
• Position: Citings

"DRUG COVERAGE under Medicare will save our seniors from a lot of worry," President Bush proclaimed in November 2003, just before signing the drug benefit into law. As younger generations worry about how to pay for $30 trillion in unfunded Medicare obligations during the next 75 years, it would be nice to think at least one demographic could rest easy. But drug makers say the bipartisan drive for public largesse is forcing them to end charitable patient assistance programs, leaving even seniors worse off.

In January drug maker GlaxoSmithKline announced on its Web site that "any patient who is Medicare-eligible" in otherwords, 65 or older--would be dropped from its "Bridges to Access" program, which offers free and discounted drugs to low-income seniors. "We are disappointed by the guidance of the Office of the Inspector General," the letter sighed, explaining that the company had been advised to cut off Medicare beneficiaries lest it run afoul of fraud and anti-kickback laws. Citing the same issue, TAP Pharmaceuticals announced that it would drop beneficiaries from a similar program in March.

A November bulletin from the Department of Health and Human Services (HHS)...