Democrats Criticize House GOP Medicare Drug Plan During Weekly Radio Address

Delivering the weekly Democratic radio address on June 1, Oregon Secretary of State Bill Bradbury (D) said that Republicans are "so beholden to the pharmaceutical industry they're ignoring the problem of soaring prescription drug costs," the AP/Las Vegas Sun reports. He said that the GOP's prescription drug plan "depends on the goodwill of private insurance companies" (AP/Las Vegas Sun, 6/1). The drug benefit component of the House Republicans' Medicare reform plan would require Medicare beneficiaries to pay $35 to $40 monthly premiums and a $250 annual deductible. Beneficiaries would receive coverage for 70% to 80% of the first $1,000 of their annual prescription drug costs and coverage for 50% of their annual costs between $1,000 and $2,250. Seniors would have to cover 100% of their annual prescription drug costs between $2,250 and $5,000; the proposed benefit would cover 100% of annual costs higher than $5,000. The benefit also would cover all drug costs for beneficiaries with annual incomes less than 135% of the federal poverty level, and seniors with annual incomes slightly higher than that would receive aid on a sliding scale (Kaiser Daily Health Policy Report, 5/20). Bradbury, who is running for the Senate against Sen. Gordon Smith (R), said Democrats support a "comprehensive, affordable" prescription drug benefit for Medicare recipients (AP/Las Vegas Sun, 6/1). Sens. Bob Graham (D-Fla.) and Zell Miller (D-Ga.) have proposed a plan under which beneficiaries would pay a $25 monthly premium with no annual deductible and would receive coverage for 50% of their annual prescription drug costs less than $4,000 and coverage for 100% of annual costs higher than $4,000 (Kaiser Daily Health Policy Report, 5/20).

House Work
House Republican aides "work[ed] furiously" over the Memorial Day recess last week to write a prescription drug benefit bill but still must "work out some potentially controversial pieces," CongressDaily reports. One potential "stickin[g] point" is the average wholesale price schedule, which the government uses to prescription drug reimbursements. Another key issue is "reaching agreement" between members of the House Ways and Means and House Energy and Commerce committees, which both have jurisdiction over Medicare and will both mark up any bill, CongressDaily reports. Other issues, including "how generous" a Medicare drug benefit should be and the structure of a home health copayment package, must also be worked out (Fulton, CongressDaily, 5/31).