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Tough Questions To Ask When The Campaign Comes To Town With the entire House of Representatives, one-third of the Senate, and the White House up for grabs this election season, senior votes will be especially sought after as incumbents try to maintain control of the House and Senate. How do you sort through the claims, excuses, finger-pointing, and promises? Here are some tough questions to ask on the issues: How Should Prescription Drug Coverage Be Structured? What to ask: Should the coverage be offered under the current Medicare system whereby beneficiaries who choose the coverage pay a certain percentage of the monthly premium and co-payments and Medicare pays certain amounts? Or should the coverage be offered through private insurance companies who collect the premiums and co-payments while Medicare would pay a portion of costs for only low-income seniors and those who have higher than normal drug costs. Both Republicans and Democrats agree that prescription coverage is needed but they are divided on how it should structured. Under President Clinton's drug plan the government would directly subsidize premiums for everyone who signed up for benefits. Monthly premiums would be $25, the government would pay half the annual cost of prescriptions up to $2,000 ($1,000 paid by beneficiary, $1,000 paid by government). Premiums and coverage would rise gradually until fully phased in. Medicare beneficiaries with incomes below 150% of poverty ($12,500 single, $16,875 couple) would qualify for up to 100% of their costs fully covered by Medicare. Under the House Republican plan the main subsidy would be indirect: the government would pay most of the costs for a small number of low-income beneficiaries and those with very high drug expenses, directly to insurance companies in order to encourage insurers to charge lower premiums to everyone else. Under their plan, Medicare beneficiaries below 150% of poverty would also receive assistance with premiums and other costs. The Republican plan, which is supported by drug manufacturers, has drawn opposition from insurance companies who aren't interested in selling prescription drug-only policies. They say that the policies would be impossible to price affordably. Costs to Medicare recipients may be higher because drug companies would not have to negotiate prices with HCFA, but with hundreds of smaller insurers across the nation instead. Source:; "G.O.P. Drug Coverage Plan Is To Include Private Insurers," Robert Pear, The New York Times, April 12, 2000. | ||||||||
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