GOP Offers Rx Plan For Elderly

House Republicans are calling for a prescription drug benefit that is two-thirds more than what President Bush proposed but less than half of what Democrats want.

The long-awaited proposal was being unveiled Monday. Its movement through the House sets in motion what is expected to be a lively debate for the fall elections.

The bill, which would cost $350 billion over 10 years, would spend the bulk of the money - at least $300 billion - on a prescription drug proposal, House aides said. President Bush had proposed spending $190 billion. House Democrats last week unveiled a plan expected to cost at least $800 billion over 10 years.

Under the House GOP plan, all but low-income seniors would be required to pay a monthly premium of $35 and meet a $250 yearly deductible.

The government would pay 80 percent of costs on the first $1,000 of drug costs and 50 percent on the next $1,000. Patients would then be responsible for costs of any drugs thereafter, although there would be a $4,500 cap on out-of-pocket costs.

The House Ways and Means and Energy and Commerce Committees - the two committees with jurisdiction over the issue - are expected to pass the bill this week, setting it up for debate on the House floor. Lawmakers have said they hope to have the bill passed before the July 4 holiday.

Still, while passage in the GOP-controlled House is expected, sharp differences between Democrats and Republicans may make it harder for a bill to actually make it out of Congress this year.

Senate Democrats, backed by Senate Majority Leader Tom Daschle, D-S.D., last week offered their own $500 billion, 10-year plan. Under that plan, seniors would pay no deductible, but would have a $25 a month premium. It would require a flat co-payment of $10 for generic drugs and $40 for brand name drugs.

The poorest would not have any co-payments or premiums, or would have reduced rates, depending on their income level. There would also be a $4,000 cap on out-of-pocket expenses, under the Senate Democratic plan.

Senators Charles Grassley, R-Iowa, James Jeffords, I-Vt., and John Breaux, D-La., are finalizing work on a competing proposal.

Last week, Rep. Bill Thomas, R-Calif., and a chief architect of the Republican plan, responded by saying the GOP proposal was "responsible legislation" and accused Democrats of offering "a political document for an election year."

Republicans have also criticized the Senate Democratic plan because it expires in 10 years. The GOP proposal is permanent.

The remainder of the House GOP bill's money would be spent giving more money to health care providers that service Medicare patients and have complained about rising health care costs. Other provisions in the bill implement changes to ease Medicare's regulatory and paperwork burdens on providers.

The bill also includes a provision for congressional investigators to study the effects of drug company advertising aimed at consumers. Critics have complained the ads, which tripled between 1996 and 2000, appeal to patients' emotions and encourage them to seek expensive, sometimes unnecessary drugs. The pharmaceutical industry says the ads inform and empower consumers.

By Janelle Carter