JAMES ROGAN: Rx Drug Benefit Plan Gives Seniors a Choice

The Republican-backed Medicare Rx 2000 Act would provide prescription drug coverage for seniors by providing a choice between their current plan or "public-private coverage," Rep. James Rogan (R) writes in a Los Angeles Times column. Under the bill, the government would subsidize the provision of drug benefits through private insurers. According to Rogan, the private coverage option would guarantee the following:

A standard benefit that would cover 50% of a beneficiary's drug costs up to $2,350 annually for a $250 deductible;
Full coverage if a recipient spends more than $6,000 a year, at a monthly premium of $39;
Full coverage for seniors at or below 135% of the poverty level, a provision that "will provide a vital safety net for thousands of seniors on fixed incomes."

A co-sponsor of the measure, Rogan asserts that the bill will work because it offers "seniors purchasing power to obtain the lowest-possible price for prescription drugs, using the same market forces that HMOs use to obtain low-cost drug benefits -- the benefits that most families now rely on for drug coverage." Rogan notes that the measure also will create a "nonpartisan office" to oversee Medicare and the public-private program to "ensure that consumers are treated fairly." In addition, the Rx 2000 plan includes prescription coverage for disabled Americans. The most important component of the plan, Rogan maintains, is that it gives "seniors the added benefit of choice." The plan "empowers seniors to choose the coverage that best suits their prescription drug needs," Rogan asserts, adding, "No one should be forced into a government program if they want to keep their present coverage, and [the] bill will prevent that from happening." Rogan notes that the plan is "especially important for teachers, public employees, many union members and most employees of large corporations" who receive coverage through private insurance and pension plans, because it "will not force any senior to abandon their current coverage just to obtain drug coverage." Rogan concludes: "Congress is working to provide prescription drug coverage for the millions of Americans who need it most: seniors and the disabled. If President Clinton will work with Congress and sign this bill we will have a historic opportunity to modernize our nation's health care system. It's time to give every senior access to affordable prescription drug coverage that meets their needs" (8/19). This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.