Copyright 2002 Times Publishing Company St.
Petersburg Times
July 27, 2002 Saturday 0 South Pinellas
Edition
SECTION: NATIONAL; Pg. 1A
LENGTH: 844 words
HEADLINE:
Graham crafts a new drug plan
BYLINE: SARA
FRITZ
DATELINE: WASHINGTON
BODY: Sen. Bob Graham, who failed to persuade Senate
Republicans to embrace his generous Medicare prescription drug plan, has drafted
a much less expensive proposal he hopes will serve as a compromise.
Graham was not the only Florida Democrat proposing a
compromise, however.
Rep. Jim Davis, D-Tampa, was one
of several "new Democrats" in the House who unveiled similar legislation,
estimated to cost about $400-billion over 10 years. That bill is mostly an
expression of support for the Graham-sponsored compromise, since the House has
already passed a Republican plan supported by President Bush.
Co-written by Sen. Gordon Smith, R-Ore., Graham's plan would provide
comprehensive coverage for seniors with incomes up to 150 percent of the poverty
level and "catastrophic" coverage for all seniors once their out-of-pocket
spending reaches $4,000.
"This new bipartisan plan will
help all seniors buy prescription drugs, but it will give the greatest help to
the most vulnerable older Americans: those with the lowest incomes and
those with the most serious health problems," he said. "It is affordable and
reliable, and we think it is a proposal that a majority of senators can rally
around."
The nation's largest lobbying group for the
elderly backs the plan.
"We're going to support it,"
said William Novelli, executive director and chief executive officer for AARP.
"We think this is the best we can get for our members. It's a framework to go
back and work on."
Democrats are trying to take the
lead on a Medicare drug compromise in part because they think it will help them
win back control of the House and expand their majority in the Senate in the
November election. Florida Democrats are out in front because they think it
might also help the Democratic nominee for governor of Florida.
But to forge a compromise, the Democrats have given up much of what
they set out to accomplish. It provides only a modest discount for anyone but
the lowest income recipients until they reach the $4,000 level in annual
expenditures on drugs each year. Some members of Congress are afraid that a
proposal that does not provide generous benefits for middle class seniors might
suffer the fate of the catastrophic health care bill that was repealed during
the 1990s because of angry response from seniors.
Republicans, meanwhile, seemed stunned by the Democratic movement
toward a smaller program that could be supported by more lawmakers. Most had no
immediate comment. Rep. Michael Bilirakis, R-Tarpon Springs, who chairs the
House Energy and Commerce Health subcommittee, did not respond to a request for
an interview.
Unlike the Democratic plan, the
House-passed GOP measure would put the administration of the program in the
hands of insurance companies. It is estimated to cost about $370-billion over 10
years.
Under the GOP plan, costs for low income people
would be heavily subsidized while others would pay a monthly premium of roughly
$33 and an annual deductible of about $250. The government would pay 80 percent
of the next $1,000 of drug costs and 50 percent of the subsequent $1,000.
All beneficiaries, including low-income seniors, would
have to pick up the tab beyond that, until they reached $3,700 in out-of-pocket
expenses, at which time all additional costs would be covered. The Republican
measure also provides billions of dollars in increased Medicare payments to
hospitals, doctors and nursing homes.
Graham's new
plan, which would take effect on Jan. 1, 2005, would be available to all
Medicare recipients who pay an annual $25 enrollment fee. There would be no
monthly premium. Seniors whose spending on drugs reached $4,000 would receive
100 percent catastrophic coverage with a small copayment.
People with incomes up to 150 percent of the poverty level would
receive comprehensive coverage from the first dollar spent on drugs. All others
would get a discount of 20 to 35 percent, including a 5 percent federal
subsidy.
On the Senate floor, meanwhile, members spent
Friday debating a medical malpractice amendment supported by the president.
Scheduled for a vote Tuesday, it would limit punitive damages to twice
compensatory damages and curtail lawyers' fees.
-
Information from the Associated Press was used in this report.
One more time
Highlights of the Medicare prescription drug plan being worked out by
Sens. Bob Graham and Gordon Smith:
Costs $400-billion
to $450-billion over 10 years.
Covers about half of the
40-million senior citizens on Medicare.
Seniors with
incomes below 150 percent of the poverty level would get full coverage with
nominal copayments.
For others, the government would
pay 5 percent of the cost of each prescription drug.
Once a senior reached $4,000 in drug costs, he or she would pay a $10
copayment on each prescription and the government would pick up the remaining
cost.
All but low-income beneficiaries would pay a $25
annual enrollment fee but there would be no monthly premiums or deductibles.
