Categories: Fedweek

Structure of Benefit at Issue

Key questions arising as Congress considers the Medicare prescription drug benefit issue will be whether participation in a Medicare prescription drug plan would be voluntary or mandatory, and if participation is made mandatory, whether there would be offsets for those such as FEHB-covered retirees who already have prescription drug coverage. Various plans under discussion would charge premiums for Medicare prescription drug coverage in addition to the Medicare “Part B” coverage (primarily physician services) premium of $54 a month. Sponsors of the leading House plan say their plan would impose premiums starting at $34 a month, but opponents say the costs could go much higher. All sides agree that there is much work ahead before any type of Medicare prescription drug benefit is created.

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