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Medicare Drug Plan Gains Support Proposals to add prescription drug benefits for all Medicare recipients are gaining support in Congress although difficult negotiations lay ahead. Senators John Breaux (D-LA) and Bill Frist (R-TN) recently introduced a pair of bills to add prescription drug benefits. One would subsidize prescription drug costs under traditional Medicare coverage. The second, broader bill would restructure Medicare along the `premium support` model that would offer various levels of insurance including prescription drug coverage. Traditional fee-for-service Medicare would compete with private plans to offer coverage to Medicare recipients. At a minimum, the drug benefit would consist of a standard prescription drug package with a $250 deductible and would pay 50% of the cost of the prescriptions up to $2,100. The coverage would also offer catastrophic protection of drug costs above $6,000. Seniors with incomes below $15,200 for couples or $11,300 for individuals would pay no premiums. Seniors would pay less for drugs because insurers would negotiate prices. The Congressional Budget Office has estimated that the plan would cost $163 billion over 10 years. The first prescription drug bill that President Bush sent to Congress, a proposal for block grants to states to help seniors with low-incomes or `catastrophic` drug costs, met a cool reception in Congress and with state governors. The chairman of the Senate Finance Committee, Charles Grassley (R-IA) said that drug benefits should be `part of Medicare,` not a freestanding supplement, and should be available and affordable to every older American. Sources: `Bush Drug Plan Stalls; Senate Eyes Broader Reform,` Adam Entous, Reuters, February 14, 2001. `Panel Won`t Take Up Bush`s Medicare Plan,` Robert Pear, The New York Times, February 14, 2001.
This article first appeared in Volume 6, Issue 6 of "The Social Security and Medicare Advisor" newsletter (May/2001). To receive future editions of "The Advisor" in its special, free e-mail version, please click here. | ||||||||
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