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A Prescription Drug Benefit For Medicare? House and Senate Democrats joined with President Clinton to offer prescription drug benefits as part of Medicare recently. under the plan similar to one offered by President Clinton the proposal would offer voluntary drug coverage to all Medicare beneficiaries. Those choosing the coverage would pay an additional premium of about $25 a month. Medicare would cover half the drug costs up to an initial annual limit of $1,000 on the first $2,000 of drug expenses. The premium would rise to about $44 a month by the year 2008 and so would the benefit: to an annual maximum of $2,500 or half of drug expenses up to $5,000. Medicare beneficiaries with low income, of 135% of poverty, or $11,000 for individuals, or $17,000 for couples, would not have to pay the drug premium or the beneficiary's share of the drug costs. Those with incomes between 135% and 150% of poverty would receive premium assistance on a sliding scale. Another legislative proposal that has generated significant attention is H.R. 664 and S.731 "The Prescription Drug Fairness For Seniors Act," introduced in the House by Representative Tom Allen, and in the Senate by Senators Edward Kennedy and Tim Johnson. "The Prescription Drug Fairness for Seniors Act" would put the buying power of the Federal government behind Medicare recipients, helping them purchase prescription drugs at the same discounts offered to volume buyers. Studies indicate that seniors would receive discounts of about 40% on their prescription drugs. The most appealing aspect of the legislation is that it adds no significant costs to the taxpayers. The big-spending drug industry however has mounted a lobbying blitz to kill the bill. Source: "Clinton Details Overhaul Plan For Medicare," Amy Goldstein, The Washington Post, June 30, 1999. This article first appeared in Volume 4, Issue 10 of "The Social Security and Medicare Advisor" newsletter (October/1999). To receive future editions of "The Advisor" in its special, free e-mail version, please click here. | ||||||||
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