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Jewish World Review Feb. 6, 2001 / 13 Shevat, 5761

BILL STRAUB

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White House optimistic on Medicare reform

http://www.jewishworldreview.com -- THE BUSH administration is becoming increasingly optimistic over the prospects for a bipartisan overhaul of the Medicare system later this year. Discussions with congressional leaders have led President Bush to the conclusion that both parties are willing to look at a modernization of the 35-year-old health care system for seniors that would include a prescription drug benefit.

Bush offered a hint about his expectations earlier this week after meeting with House and Senate committee chairmen whose panels maintain jurisdiction over Medicare.

"I was pleased to hear there's some sentiment on the hill for quick action for Medicare reform, a reform package which would include prescription drugs,'' he told reporters.

Ari Fleischer, the president's press secretary, followed that up by saying that the president "believes in what he's hearing that it can get done this year.''

Bush isn't alone in his thinking. Senate Republican leader Trent Lott of Mississippi predicted that Medicare reform will take "well into probably the fall or early next year.'' And Democrats, led by Sen. John Breaux of Louisiana, leader of a blue-ribbon panel whose proposals were rejected by former President Bill Clinton in 1999, have expressed a desire to get persistent problems within the system resolved.

How the sides will go about doing that remains unclear, although it's likely that yet another bipartisan commission might be impaneled to make recommendations. Fleischer said Bush can be expected to stick to his guns and offer a prescription proposal similar to the one he issued during last year's campaign. But he wouldn't say whether the administration will dispatch legislation up to Capitol Hill or let the parties fight it out on the floor before weighing in.

Fleischer said Wednesday that the president is convinced that appropriate steps can be taken without busting the budget.

"... this can be done in a manner that is a modern reform and update of the Medicare structure that doesn't come at a substantial price tag, even with granting prescription drug coverage,'' Fleischer said.

Bush has criticized Medicare as a "one-size-fits-all'' benefits package that should be expanded to provide senior citizens with additional health care options. Since the system doesn't cover prescription drugs, preventive care or many treatments developed as the result of modern technological breakthroughs, Medicare covers only 53 percent of the average senior's medical expenses.

Medicare also is facing a financial crunch. With 77 million baby boomers preparing to take advantage of the benefits, the system is projected to begin running cash flow deficits beginning in 2010 and become insolvent by 2025.

The Clinton administration talked about Medicare reform during its eight-year run but consistently failed to pull the trigger. Bush considers Medicare reform an opportunity to display his determination to get things done in Washington.

Fleischer said the Bush approach will reflect what he said during the campaign and build on the proposal of the Bipartisan Commission on the Future of Medicare, a report that Clinton rejected.

The Bush proposal offered during the campaign would pump an additional $110 billion into the system and:

Permit senior citizens to select from a variety of plans offering expanded benefits, including prescription drug coverage. Seniors could change their health plan annually.

Cover the full cost of health coverage including prescription drug coverage for seniors with incomes at or below 135 percent of poverty (currently $11,300 for individual seniors and $15,200 for couples).

Cover some of the cost of prescription drug coverage for individual seniors with incomes between 135 percent of poverty and 175 percent of poverty (currently $14,600 for individual seniors and $19,700 for couples).

Pay at least 25 percent of the premium costs for prescription drug coverage for all seniors.

Cover any catastrophic Medicare expenses in excess of $6,000 annually for all seniors.

Bush expressed an intention during the campaign to create a White House Task Force on Bipartisan Medicare Modernizing to look at the various proposals, including his, and come up with a legislative package by Sept. 1.

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