Like the "Son of Dracula" or the "Bride of Frankenstein," the
attempt by Washington lawmakers to offer prescription drugs to all
Medicare patients is beginning to look like an old horror movie:
It's the universal entitlement that will not die.
In 1999, President Clinton proposed adding prescription drugs to
Medicare as a universal entitlement and ran into the exact same
problems lawmakers face today, notes Heritage Foundation
health-care expert Derek Hunter in an Oct. 28 online memo.
One problem is that, if a universal entitlement becomes law,
corporations face powerful incentives to dump millions of retirees
from their privately-funded drug plans. And, just like some
Republicans on the Senate Finance Committee today, Clinton proposed
subsidies to companies with retiree drug coverage to keep them from
dropping their retirees, Hunter writes.
Also under the Clinton plan, Hunter writes, companies would have
received a subsidy that "is up to the level of one-third of the
cost of the Clinton plan proposal for everyone who is enrolled in
an employer-sponsored plan." Now, a Capitol Hill committee that is
working on the 2003 Medicare drug provisions is considering paying
"companies 28 percent of drug costs incurred by their retirees" as
one way to discourage dumping.
Just call this bill "Son of Clinton Plan." We know the plot-and
it's scary.
But how it ends is up to lawmakers.
For more information or to receive an e-mail version of "Medicare Maladies," contact [email protected] or call Heritage Media Services at (202) 675-1761.