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CNN Live At Daybreak

AARP Endorses Medicare Prescription Drug Bill

Aired November 18, 2003 - 06:19   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


CAROL COSTELLO, CNN ANCHOR: Time now for a little 'Business Buzz' right now, though. President Bush and his Medicare drug plan get a nod of approval from one very influential group. I bet you can guess who that is.
Carrie Lee has more from the Nasdaq market site.

Good morning.

CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Good morning, Carol.

AARP is endorsing the Medicare bill. And this is a very large group representing 35 million Americans aged 50 and over. And it's, obviously, a major lobbying force in Washington. So President Bush and Republicans are kicking off a major lobbying blitz now for the Medicaid -- Medicare, excuse me, prescription drug bill and AARP endorsing it, certainly helping them do this.

Now let me go over some numbers to this plan. The cost of this bill is estimated at $400 billion over 10 years. The main drug benefit is that beginning in 2006 Medicare beneficiaries can sign up for a standalone drug plan or join a private health plan that offers drug coverage.

Now they would be charged premiums averaging about $35 a month or $420 a year. After the beneficiary pays a $275 deductible, then insurance would cover 75 percent of the drug costs, up to $2,200. Once you go over $2,200, the program pays nothing. But then once you hit $3,600 or more, then some advantages kick in again.

So those are the bottom line numbers, Carol. Continuing to be debated and hammering out the details as we speak. Back to you.

COSTELLO: All right. Carrie Lee live from the Nasdaq market site.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com






Aired November 18, 2003 - 06:19   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Time now for a little 'Business Buzz' right now, though. President Bush and his Medicare drug plan get a nod of approval from one very influential group. I bet you can guess who that is.
Carrie Lee has more from the Nasdaq market site.

Good morning.

CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Good morning, Carol.

AARP is endorsing the Medicare bill. And this is a very large group representing 35 million Americans aged 50 and over. And it's, obviously, a major lobbying force in Washington. So President Bush and Republicans are kicking off a major lobbying blitz now for the Medicaid -- Medicare, excuse me, prescription drug bill and AARP endorsing it, certainly helping them do this.

Now let me go over some numbers to this plan. The cost of this bill is estimated at $400 billion over 10 years. The main drug benefit is that beginning in 2006 Medicare beneficiaries can sign up for a standalone drug plan or join a private health plan that offers drug coverage.

Now they would be charged premiums averaging about $35 a month or $420 a year. After the beneficiary pays a $275 deductible, then insurance would cover 75 percent of the drug costs, up to $2,200. Once you go over $2,200, the program pays nothing. But then once you hit $3,600 or more, then some advantages kick in again.

So those are the bottom line numbers, Carol. Continuing to be debated and hammering out the details as we speak. Back to you.

COSTELLO: All right. Carrie Lee live from the Nasdaq market site.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com