Medicare Bill Stirs to Life

After sitting largely dormant in a House-Senate conference for several months, a plan to overhaul the Medicare program and in particular to add a prescription drug benefit to it has stirred to life, with leaders hoping that an agreement will emerge over the next several weeks. The main issue at stake for federal employees is to what extent any Medicare prescription drug benefit will affect the existing benefit under the Federal Employees Health Benefits program. On reaching age 65 and becoming eligible for Medicare, most employees and retirees take it and keep their FEHB coverage as well, with Medicare acting as the first payer and FEHB stepping in to fill the gaps-most notably, Medicare’s current lack of prescription drug coverage. The push for prompt action is largely premised on the notion that Congress will adjourn for the year in about a month; leaders want members to be able to return home saying they had passed a Medicare prescription drug benefit. However, Congress is under no firm deadline to wrap up work for the year anytime soon.