ABSTRACT
The Act's new drug benefit, however, was not fashioned on an empty canvas. Medicare existed for thirty-eight years before the Act was enacted, so this chapter begins by examining how Medicare beneficiaries have obtained prescription drugs prior to the Act's enactment. The role of prescription medications in the treatment of diseases and chronic conditions has expanded enormously since Medicare was first created. Whole new classes of drugs have been developed and new treatment regimens are now prescribed as these creations come to market. The largest group of Medicare beneficiaries with pre-Act drug coverage receive their coverage through retiree health benefit plans that are sponsored by the beneficiaries' former employers. These plans come in a wide array of variations, with differing levels of monthly premiums, co-payment levels for individual prescriptions, and included pharmaceuticals. Persons with such coverage, however, are concerned that they might lose their benefits or that the existing coverage will be curtailed in the future.
