| Comparison of Presidential Candidates' Medicare Plans |
| MEDICARE CHANGES |
BUSH MEDICARE PLAN |
GORE MEDICARE PLAN |
| BBA RELIEF |
$40 billion over 10 years |
$40 billion over 10 years |
MEDICARE
REFORM |
Establishes Unified Trust Fund, combining Medicare Parts A and B, as a measure of Medicare solvency. Creates the White House Task Force on Bipartisan Medicare Modernization. Promotes competition between private insurers and traditional Medicare, but makes greater use of the private industry including insurers and HMOs. |
Moves Medicare off budget, creating a Medicare Lock Box to prevent the use of Medicare savings for spending or tax cuts. Extends Medicare solvency by five years through 2030. Promotes competition between managed care and traditional Medicare. Reinstates 20% copay and Part B deductible for clinical lab services. Reforms Medigap. |
| PRESCRIPTION DRUGS
Cost
|
$158 billion over 10 years. |
$253 billion over 10 years. |
| Implementation |
$48 billion available to states in 2001; Congress to allocate remaining under modernization program. |
Phased in beginning in 2002 with full implementation in 2008. |
| Benefits for seniors up to 135% of poverty |
No premium, copays, or deductibles. |
No premium, copays, or deductibles. |
| Benefits for seniors above 135% of poverty |
Subsidizes premium for prescription drug coverage for seniors with incomes between 135% and 175% of poverty. Medicare covers at least 25% of premium costs for prescription drug coverage for all seniors. Copays and deductibles depend on the plan chosen. |
Subsidizes premium for prescription drug coverage for seniors with incomes between 135% and 150% of poverty. For all seniors, voluntary drug coverage capped at 50% of expenses up to $2,000 in 2002, phased up to $5,000 in 2008. |
| Beneficiary expense caps |
$6,000 total out-of-pocket for all Medicare expenses. |
$4,000 out-of-pocket for prescription drugs only. |
| Premiums |
Premiums vary depending on the health plan chosen. |
In addition to Medicare premiums, beneficiaries initially pay $25 per month, phasing up to $50 per month with implementation. |
| Insurance providers |
Private insurers compete with the Medicare program to provide prescription drug coverage. |
Directs more money to the Medicare program to add a new fee-for-service prescription drug benefit and to subsidize prescription drug benefits under Medicare+ Choice plans. |
| Enrollment |
Medicare beneficiaries can enroll at any time. |
Medicare beneficiaries can enroll only at the time of initial Medicare enrollment. |
| Choice of plans |
Beneficiaries can change plans similar to the way Federal workers do now, during an open enrollment period. |
Everyone in a given region must be covered by the same plan run by a single pharmacy-benefits manager under contract with Medicare. |