Ensign unveils plan for drugs, Medicare

Benjamin Grove

Monday, July 15, 2002 | 10:43 a.m.

WASHINGTON -- Sen. John Ensign, R-Nev., and three fellow Republicans today were scheduled to unveil a two-pronged plan to lower the cost of prescription drugs for seniors.

Ensign hopes to be in the thick of the debate as the Senate this week grapples with how to make medications more affordable for the elderly.

The plan would create a national prescription drug card that relies on the private sector and market forces to ultimately lower drug prices through a bulk-rate pooling program. Medicare would endorse and promote, but not manage, the drug card program.

President Bush, who advocates the drug card plan, first presented it last year at a White House ceremony with Ensign and other GOP lawmakers, who were expected to shepherd the plan through Congress.

The second focus of the legislation creates a payment plan. Medicaid currently covers drug costs for many of the nation's poorest seniors. But some low-income seniors who live just above the poverty level, $8,860 a year, do not qualify for Medicaid coverage.

Under the Ensign plan, a senior whose income is less than $17,720, would never pay more than $1,500 a year for drugs. Those with incomes between $17,721 and $35,440 would pay a maximum $3,500. Those between $35,441 and $53,160 would pay a maximum $5,500. Those making more than that would pay no more than 20 percent of their income.

Ensign, an original co-sponsor of the bill, was expected to introduce it today, with co-sponsors Chuck Hagel, R-Neb.; Phil Gramm, R-Texas; and Richard Lugar, R-Ind. The bill would cost about $150 billion over 10 years, less than Democratic alternatives, Ensign aides said.

The House passed a Republican drug plan last month, setting up a showdown with the Democrat-controlled Senate.

As political campaigns heat up, lawmakers are eager to make good on old promises to fix the drug-cost problem. Many had pledged to change the system so that Medicare pays the cost of prescription drugs.

Majority Leader Tom Daschle, D-S.D., said he expected debate to take two weeks.

Ensign and his allies have a difficult road: several competing Senate bills are in the mix, including a Democratic alternative. Sen. Harry Reid, D-Nev., is trumpeting the plan in which Medicare beneficiaries would pay a monthly premium of $25 and a flat fee of $10 for each generic drug, $40 for non-generic. Seniors would never pay more than $4,000 a year.

People with an income of $11,961 (135 percent of poverty) would pay no flat fees and no premium under the Democratic plan. Those with incomes between $11,962 and $13,290 would pay reduced premiums on a sliding scale.

The Associated Press contributed to this report.