Medicare Benefits Likely Not as Extensive

The anticipated Medicare prescription drug benefit would not be as extensive as the current FEHB benefit under the two bills (HR-1 and S-1) and various other plans being considered by negotiators. For example, there might be income limitations, higher co-payments and other restrictions on the Medicare benefit. However, concern has arisen that the government, and other employers, would use the existence of a benefit under the Medicare program to reduce or cancel prescription drug benefits under employer-provided programs. In response to that concern, the House in July passed a bill (HR-2631) to guarantee that federal retirees get the same prescription drug benefits as active employees. The Senate has not addressed that promise, which might be incorporated into any Medicare reform bill to emerge.