Ensign introduces drug bill for seniors

Thursday, July 26, 2001 | 10:23 a.m.

WASHINGTON -- The amount of money seniors pay for prescription drugs each year would be capped under a bill introduced Wednesday by Sen. John Ensign, R-Nev.

The legislation also calls for a drug discount card system that would make drugs an estimated 25 to 40 percent cheaper.

"We are providing a prescription for a stronger and improved Medicare system," said Ensign, who introduced the legislation with Sen. Chuck Hagel, R-Neb.

President Bush backs the plan as part of his effort to reform Medicare, which he unveiled earlier this month.

Bush and the senators envision a plan in which health plan companies that offer drug benefits would negotiate reduced drug prices with drug manufacturers and pass along lower prices to the consumers. Drug manufacturers would agree to lower prices because of the volume of card-carrying consumers.

In addition, the cards would entitle seniors with incomes less than $17,179, and couples making less than $23,219, to pay no more than $1,200 a year for prescription drugs, according to Ensign's bill. Seniors with incomes between $17,180 and $34,359, or couples making up to $46,439, would pay no more than $2,500.

The federal government would pay for the drugs once consumers reached their caps, at an estimated cost to government of $45 billion over five years. Enrolling in the discount card plan would cost $25.