"The Medicare bill passed by Congress is the first major improvement in Medicare benefits since the program was enacted in 1965. This legislation will help many Medicare beneficiaries who have inadequate prescription drug coverage, especially those with low incomes and those with high out-of-pocket expenses for drugs.

"However, the benefit is unnecessarily limited and complex. Many beneficiaries with very modest incomes will receive limited help from this bill. And many near-poor beneficiaries will still face high out-of-pocket costs for drugs and will continue to pay a significant share of their income for medications.

"Medicare could achieve greater value for its beneficiaries by providing an integrated benefits option offered through traditional Medicare rather than private insurers. Medicare's experience to date with private plans has been marked by instability on the part of plans and providers, and plans have attracted healthier beneficiaries.

"Congress's work is unfinished. Efforts to provide a better option for Medicare beneficiaries--prescription drug coverage that is uncomplicated, equitable, cost-effective, and comprehensive and protects against high costs--must be a continued priority for the future."

The Commonwealth Fund has available a host of resources related to Medicare reform. Some of the publications look at how issues addressed in the just-passed legislation would affect Medicare beneficiaries, particularly those with chronic illnesses or low incomes. Others examine trends in the Medicare program to date, including experiences with private plans and beneficiaries' prescription drug costs. The Fund will continue to provide analyses of these critical issues in the future.