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GOP unveils Medicare prescription drug plan
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6-19-2000 Washington. House Republicans, joined by a pair of Democrats, revealed June 13 more details about their plan to provide prescription drug coverage to Medicare beneficiaries. But key details of the legislation – which has yet to be drafted – remain unclear, although the bill is tentatively scheduled for a floor vote this week. The Republican proposal calls for private plans to offer "drug only" coverage to Medicare beneficiaries. The federal government would subsidize premiums for those with incomes under 150 percent of the poverty level, and would subsidize coverage for all beneficiaries by helping insurers cover those with the highest drug costs. The program, as well as the existing Medicare+Choice program that offers managed care and other private plan options to Medicare beneficiaries, would be overseen by a new Medicare Benefits Administration, which would be part of the Department of Health and Human Services, but apart from the Health Care Financing Administration, which oversees the rest of Medicare. The measure also includes a federal "fallback" provision, so if private plans opt not to participate in certain areas, the government would ensure that a drug plan is available. "This may require a significant effort on the part of the federal government to make sure the benefit is available in every corner of the United States," said Rep. Bill Thomas, R-Calif. Democrats were quick to complain about the proposed schedule for the yet-to-be drafted bill. "One wouldn’t draft this in the dark of night, have a hearing one day, mark it up two days later, and vote on it the next week. That’s not how you get a bipartisan consensus," said a senior White House official last week. Democrats at a House Ways and Means Committee June 13 asked for more time to examine and debate the proposal. The insurance industry also has expressed doubts about the plan. "Private drug-only coverage would have to clear insurmountable financial, regulatory, and administrative hurdles simply to get to market," said Chip Kahn, president of the Health Insurance Association of America. Even if such coverage was offered, he said, "the likelihood that the people most likely to purchase this coverage will be the people anticipating the highest drug claims would make drug-only coverage virtually impossible for insurers to offer to seniors at an affordable premium."
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