Ensign reintroduces his plan for Medicare reform

Benjamin Grove

Thursday, June 26, 2003 | 9:43 a.m.

WASHINGTON -- Sen. John Ensign, R-Nev., dusted off his own plan for Medicare reform and jumped into the heated congressional debate over prescription drugs on Wednesday.

The Ensign plan, co-sponsored with Sen. Chuck Hagel, R-Neb., is $65 billion cheaper than the pending Senate Medicare reform bill that could cost $400 billion over the next decade, Ensign said. Ensign and Hagel first floated their legislation last year and reintroduced it Wednesday.

The voluntary plan would allow seniors to keep their current private or state plan if they chose and would not replace state Medicare drug plans, as the current legislation would, Ensign said.

The plan would cost $25 a year, with that fee waived for low-income seniors. The legislation aims to cap annual drug costs for seniors according to income.

Under the Hagel-Ensign legislation, a senior whose income is less than $17,720 ($23,880 for couples) would never pay more than $1,500 a year for drugs. After that, the federal government would pay 90 percent of drug costs.

Seniors with incomes between $17,721 and $35,440 ($23,881 and $47,760 for couples) would pay a maximum $3,500. Those between $35,441 and $53,160 ($47,761 and $71,640 for couples) would pay a maximum $5,500. Those earning more than that would pay no more than 20 percent of their incomes.

Ensign also introduced another amendment that would eliminate a $1,590 cap on Medicare payments for post-surgery rehabilitation therapy.

Ensign's drug legislation failed to win enough votes for passage last year, and the same fate is expected for both Ensign provisions in the current debate. Ensign on Wednesday lobbied Senate Majority Leader Bill Frist, R-Tenn., to support the amendments, but Senate leaders are discouraging amendments.

Ensign's bill would help mid- to low-income seniors more than the pending Senate plan, Ensign said.

"We're trying to help the seniors who need help most," Ensign said.

The Senate and House today or Friday are expected to approve their first overhauls of Medicare in four decades.