Perspective
President Bush Unveils Modified Medicare "Reform" Plan
President Bush unveiled a new "framework" for Medicare reform early in March, outlining changes that would fundamentally alter the way Medicare works and would likely cost Americans more money for less health care. In answer to criticisms of President Bush's earlier plan from both Republicans and Democrats in Congress, which proposed prescription drug coverage solely through private health plans, the President claims his latest proposal includes prescription drug options for all Medicare enrollees.
Under his new plan, the most comprehensive drug benefit would be offered through private health plans, such as HMOs. While health plan costs would vary, this option would have to meet a federal benefit standard. A second option, called "Medicare Advantage," would be similar to the current system of Medicare HMOs, in that there is no guaranteed drug benefit. Those who wish to remain in Original Medicare would receive a drug discount card, which President Bush claims would save them 10 to 25 percent on their prescriptions. Low-income older and disabled adults would receive $600 annually to offset medication costs. Reportedly, Medicare would also offer catastrophic drug coverage to people after they spend as much as $7,000 a year on prescription drugs.
A number of consumer advocates consider Bush's plan an inadequate alternative to creating a comprehensive drug benefit within Original Medicare. People with Medicare can already get discounts on their prescription drugs of 50 percent and more if they buy them on the Internet and through Canadian pharmacies. These discounts are not enough. And, given that older adults spent an average of $1,205 on prescription drugs in 2000, the savings offered to people in Original Medicare under Bush's plan will be minimal. Consumer advocates contend that leaving older and disabled adults with scant drug coverage under Original Medicare would force them to decide between having access to the doctors and hospitals of their choice or getting their life-saving medications.