The largest development in the Medicare plan since its inception during the 1960s could become a reality soon. The Republican-controlled Senate passed legislation to remake Medicare, offering prescription drug coverage to seniors while giving private insurance companies a broad new role in the program.
Ready to sign Medicare reform legislation and hand it to voters, President Bush asked lawmakers to quickly resolve their differences and offer America's seniors prescription drug coverage for the first time in the program's 38-year history. Congress has agreed to spend $400 billion on a prescription drug benefit for America's seniors allowing them to sign up for a prescription plan in which the government would help pay their drug costs.
The President has proposed a framework to modernize and improve Medicare that builds on principles he outlined in July 2001 and looks forward to working with Congress on legislation this year to bring more choices and better benefits to Medicare. President Bush has committed up to $400 billion over the next ten years in his FY 2004 budget to pay for modernizing and improving Medicare.
The President's framework will give all Medicare beneficiaries access to prescription drug coverage that enables seniors to get the medicines they need, without the government dictating their drug choices; choice of an individual health care plan that best fits their needs-just like Members of Congress and other federal employees enjoy today; choice of the doctor, hospital, or place they want for the treatment and care they need and full coverage for disease prevention such as screenings for cancer, diabetes and osteoporosis.
In July 2001, the President had outlined the following principles for Medicare reform:
1. All seniors should have the option of a subsidized prescription drug benefit as part of modernized Medicare.
2. Modernized Medicare should provide better coverage for preventive care and serious illness.
3. Beneficiaries should have the option of keeping the traditional plan with no changes.
4. Medicare should provide better health insurance options, like those available to all federal employees.
5. Medicare legislation should strengthen the program's long-term financial security.
6. The management of the government Medicare plan should be strengthened so that it can provide better care for seniors.
7. Medicare's regulations and administrative procedures should be updated and streamlined, while the instances of fraud and abuse should be reduced.
8. Medicare should encourage high-quality health care for seniors.
This will make sure that low-income seniors receive additional financial assistance so they will not have to pay more to receive better benefits than they currently do under Medicare.