House GOP readies prescription drug bill

WASHINGTON -- House Republicans are drafting election-year Medicare prescription drug legislation to include a full federal subsidy for the low-income elderly as well as protection against catastrophic costs for all seniors, officials said Tuesday.

The legislation envisions a voluntary system of insurance in which older Americans would receive coverage from private companies in a market overseen by Medicare, the officials said. The bill carries a 10-year price tag of $350 billion.

The measure also will incorporate President Bush's proposal for government-issued prescription drug discount cards designed to reduce the cost of medicine for Medicare beneficiaries.

GOP leaders hope to have the measure on the House floor by Memorial Day, part of an effort to blunt anticipated campaign-season attacks from Democrats. Polls taken for both political parties in recent months show that older people, expected to be an important portion of the electorate this fall, favor Democrats over Republicans by double-digit margins for their handling of the prescription drug issue.

The $350 billion that House Republicans have set aside over the next decade for prescription drug coverage contrasts with the $190 billion that President Bush proposed, and is well in excess of the $160 billion earmarked for a prescription drug bill that the GOP pushed through the House two years ago. The result is a more robust federal benefit than Republicans endorsed in 2000.

Several sources said outlines of the legislation were discussed Tuesday at a meeting of House party leaders. They stressed the final details remain to be worked out, and costs could vary.

For all but low income people, officials said seniors would pay a monthly premium, likely in the range of $37 a month. Additionally, they would pay a deductible, possibly the first $250 of drug costs annually. After that, the federal government would pick up approximately 75 or 80 percent of the cost of drugs up to $1,000, and perhaps 50 percent of the next $1,000 in costs.

More than $2,000, people could be required to pay the full cost of additional drugs out of pocket, to an amount to be determined, likely $5,000. After that, insurance would pay the rest.