"The Republican bill is not a drug benefit at all. It is yet another promise of 'bribes' to private insurers" to try to coax them to offer drug insurance policies, said the ranking Democrat, Rep. John D. Dingell (Mich.). His alternative, costing an extra $500 billion, was defeated along party lines, 27 to 25.
The committee made a concession to five rebellious Republicans who said that the government should subsidize drug costs mainly for Medicare patients with low incomes, and that private companies may prove unwilling to sell drug insurance policies to elderly people.
Under a compromise with Chairman W.J. "Billy" Tauzin (R-La.), the committee adopted an amendment, by Rep. Richard Burr (R-N.C.), that would create a drug discount card next year. The "value card" would include larger subsidies for low-income people and tax deductions for employers, relatives or friends who chip in.
Yesterday's Senate vote went to the heart of tension between the parties over how far to go in expanding the role of private health plans within Medicare. Under the bill, seniors could obtain the new drug benefit through a private health plan or they could buy a drugs-only policy from a private insurer if they elected to stay in traditional fee-for-service Medicare. Medicare would provide "fall-back" coverage only if two competing plans were not available in the patient's region.
It ain't Medicare, its the HMO, insurance and drug company profit enhancement act.
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