Rx DRUG BENEFIT: HMO Withdrawals Show Pitfalls of GOP Plan
The flood of Medicare HMO withdrawals is evidence that a prescription drug benefit relying solely on private insurance will not work, according to House Democrats. Rep. Rosa Delauro (D-Conn.) said, "Private insurance companies simply cannot and will not provide a reliable drug benefit for all of America's seniors." Republicans contend, however, that their plan, passed last month by the House, is not based on the "same flawed formula by which private HMOS are paid," and therefore is not comparable. Furthermore, they charge that HMOs are fleeing Medicare because HCFA officials have "mismanaged" the program. The GOP's drug plan would create an agency separate from HCFA to administer the benefit (CongressDaily/A.M., 7/21).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.