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Medicare: Prescription Drug Proposals (CRS Report for Congress)

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Release Date June 8, 2000
Report Number RL30250
Report Type Report
Authors Jennifer O'Sullivan, Domestic Social Policy Division
Source Agency Congressional Research Service
Summary:

The Medicare program provides significant health insurance coverage for its 39 million aged and disabled beneficiaries. However, the program fails to offer protection against the costs of most outpatient prescription drugs. On July 29, 1999, President Clinton announced the Administration's Medicare reform plan. A key component of this proposal is the establishment of an optional prescription drug benefit for all beneficiaries. A number of other Medicare prescription drug proposals have been offered. Senator Breaux and Congressman Thomas (co-Chairmen of The National Bipartisan Commission on the Future of Medicare) have outlined a plan which would provide a drug benefit for persons with incomes below 135 percent of the poverty level. Several Medicare prescription drug bills have already been introduced in the 106th Congress. This report provides an overview of the President's plan, the Breaux-Thomas proposal, and Medicare prescription drug legislation introduced to date in the 106th Congress.