Copyright 2002 Globe Newspaper Company  
The Boston Globe
June 13, 2002, Thursday ,THIRD EDITION
SECTION: BUSINESS; Pg. E4

LENGTH: 683 words

HEADLINE: ROBERT A. JORDAN;
ISSUING THE CHALLENGE ON SENIOR HEALTH CARE

BYLINE: BY ROBERT A. JORDAN

BODY:
In a major effort to make prescription drugs affordable under Medicare, Democrats led by Senator Edward M. Kennedy yesterday unveiled a package that would mend what he described as a "broken promise" by government to its citizens.

The only potential roadblock to the passage of this important bill, which senior-citizen activists have been seeking for years, will come from House Republicans who are ready to introduce a bill "that is not only inadequate but takes us backward in important respects," Kennedy said.

    But Kennedy, working closely with Senate Majority Leader Tom Daschle, also is forming an alliance with the Senate Finance Committee in a behind-the-scenes move to forge a compromise on the bill between Democrats and Republicans.

Based on his message at yesterday's news conference, part of Kennedy's strategy is to directly challenge Republicans, if not embarrass them, to agree to a Medicare Outpatient Prescription Drug Act. The act would more closely resemble the bill filed by Kennedy and fellow senators Zell Miller of Georgia, Bob Graham of Florida, and Jay Rockefeller of West Virginia than the forthcoming GOP version, which the Democratic senators know is much weaker.

This is why Kennedy raised the question, "Will Congress pass a placebo that does nothing for seniors, or will we provide the real assistance that our senior citizens need and deserve?"

Stating that "our bill offers real benefits at a price the elderly can afford," Kennedy said it is affordable because the monthly premium would be only $25, there is no deductible, no coverage limit, and "reasonable" copayments: $10 for generic drugs, $40 for preferred brands, and $60 for nonpreferred brands.

If a drug costs less than the copayment under the bill, beneficiaries would get the lower price. Moreover, no beneficiary would pay more than $4,000 out of pocket, and premiums and co-insurance would be covered for low-income beneficiaries.

A 65-year-old woman with rheumatoid arthritis now pays a total of more than $1,600 a month for her prescription drugs; under the Graham-Miller-Kennedy bill, she would pay only $120 - an annual savings of more than $17,760.

In sharp contrast, the House Republican bill, as the Democrats see it, is not affordable, comprehensive, or reliable.

For example, the Democrats note, the for-profit insurance companies could set premiums at any level they want, and beneficiaries could end up with a different benefit virtually every month. At times, they argue, co-insurance costs could jump from 20 percent to 50 percent.

Worse, seniors under the GOP bill would have to cover costs between $2,000 and $5,600 - a wide gap that Democrats describe as seniors getting "more doughnut holes than doughnut." And with a wide coverage gap, many of the benefits for seniors under the GOP bill would run out midyear.

Of all these problems with the GOP bill, perhaps the most serious is that, unlike the Democratic bill's reliance on Medicare, it relies on private insurers, many of whom have stated that they will not participate in the program because they don't want to spend money toward it.

In addition, the Democrats add, the GOP bill would force many seniors into HMOs in order to get prescription drugs.

"It is time," Kennedy said, "to pass a Medicare prescription drug benefit that truly meets the needs of the elderly."

With every delay of the bill's passage, Kennedy stressed, prescription drug costs are escalating "at double-digit rates. One-third of all senior citizens don't have a dime of prescription drug coverage, and those who do have it are in danger of losing it."

This issue is important for all seniors; it is important also to me personally, as this is my last column before heading into retirement. Perhaps, with the backing of the nation's populace and the hard work of key backers in Congress, this measure will be ready in time for me and others in retirement to finally reap what we have sown all these many years in the workplace.

Robert A. Jordan can be reached at bjordan@globe.com.

LOAD-DATE: June 14, 2002