THE WHITE HOUSE
Office of the Press Secretary
Side-by-side Comparison of President's Medicare Prescription Drug
Benefit Versus Republicans' Private Insurance Plan
June 29, 2000
Clinton/Gore & Democrats House Republicans
Who's Covered All seniors and people with Less than half of seniors
disabilities who lack drug and people with disabilities
coverage today would gain who lack drug coverage today
coverage under this plan. would join the plan.
"Of those who purchase Part
B but do not have drug
coverage, CBO assumes that
46 percent purchase a
qualified drug plan."
[Congressional Budget Office
analysis of H.R. 4680,
6/28/00]
Does the Plan Yes. All Medicare No. Assumes private
Provide an beneficiaries would have the insurers will volunteer to
Affordable, option of a reliable offer coverage and collect
Workable benefit, including those in premiums, which the
Prescription rural and underserved areas. insurance industry itself Drug Benefit Seniors with retiree health says won't work:
coverage could keep it.
"Private, stand-alone
The proposal ""sets the prescription drug coverage
nation on exactly the will not work. To pass
correct course to guarantee legislation to provide
that Medicare will continue access to such coverage
to provide first-class would constitute an empty
medical care." [National promise to Medicare
Council of Senior Citizens, beneficiaries." [The Blue
5/10/00] Cross / Blue Shield
Association Letter to
"We applaud the President's Senator Roth, 4/24/00] In
strong leadership on this addition, HIAA says that
issue. His proposed coverage anticipated by the
prescription drug benefit is Republican proposal is
voluntary, affordable, and 'virtually impossible for
covers all seniors through insurers to offer to seniors
the Medicare program." at an affordable premium."
Martha McSteen, National [HIAA Release, 6/13/00]
Committee to Preserve Social
Security and Medicare "HR 4680 - provides no
[6/29/00] assurance to a Medicare
beneficiary that her
"The President's plan will prescription drug needs will
provide consistency and be met." [Consortium for
stability in premiums Citizens with Disabilities,
regardless of region, and 6/27/00]
predictability in terms of
coverage." [Older Women's "This legislation would not
League, 6/29/00] guarantee universal and
affordable access to seniors
(and is) at odds with the"
principles of any meaningful
prescription drug bill."
[Leadership Council of Aging
Organizations 6/21/00]
What Do No deductible, 50 percent Benefits would vary from
You Get coinsurance up to $5,000 in plan to plan. "Standard"
costs when phased in. option has a deductible of
Out-of-pocket spending $250, a 50 percent copayment
limited to $4,000 up to $2,100 in costs.
Out-of-pocket spending
limited to $6,000
How Much Does $26 per month in 2003 for Premiums would vary from
it Cost all participants plan to plan. Average of
$39 in 2003 -- 50 percent
higher than the President's
plan.
What is the Value of coverage in 2003: Value of coverage in 2003:
Value of $835 $670
Coverage Seniors would pay more 50
percent more for a benefit
that is 20 percent less
valuable.
Do Seniors Plans: Yes. In Plans: Yes, but only if
Have Choice fee-for-service, managed private insurers participate
care, or retiree plans if
eligible Drugs: No. Beneficiaries
Drugs: Yes. would only be able to access
Doctor-prescribed drugs are certain drugs through an
guaranteed without going appeals process
through insurer or managed
care plan Pharmacies: No. Insurers
Pharmacies: Yes. All could restrict participating
local, qualified pharmacies pharmacies
would be accessible
Start-Date 2002 2003
Takes Yes. No.
Medicare
Off-Budget,
Improves
Solvency &
Efficiency
Who Supports Virtually all major Drug companies and their
representatives of seniors allies
and people with disabilities
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