Final answer:
The group that has not benefited from prescription drug reform to the same extent as others is low-income elders earning less than $12,000 a year; whereas, private insurance companies, affluent elders, and older adults requiring a substantial amount of prescription drugs annually have gained benefits. The Medicare expansion provided assistance but may still pose a financial burden for very low-income seniors.
Step-by-step explanation:
The groups that have benefited from prescription drug reform, except for one, include private insurance companies, affluent elders, and older adults needing approximately $4,000 worth of prescription drugs per year. The one group that has potentially not benefited as much are low-income elders earning less than $12,000 a year. The Medicare Prescription Drug and Modernization Act of 2003 provided a substantial expansion of Medicare, particularly benefiting the elderly in affording prescription drugs. With an annual premium and deductible, the federal government would pay 75 percent of their prescription drug costs up to $2,250. However, those with very low incomes, possibly below $12,000, may still find the associated costs of the plan burdensome, despite the intended financial assistance programs.
The Medicare system predicted a significant rise in the cost of the prescription drug benefit, from about $40 billion in 2006 to an estimated $121 billion by 2016. This reveals the financial magnitude of providing prescription drug assistance to Medicare beneficiaries. Nevertheless, the American Association for Retired People (AARP), a powerful lobbying group for seniors, was a strong advocate for the prescription drug benefit, influencing its passage. On the other hand, those without health insurance, numbering around 40 million, did not have a similar umbrella organization to advocate for their needs, reflecting a discrepancy in political pressure and resulting benefits for different segments of the population.