House GOP presents Medicare plan
House Republicans described a plan on Tuesday for legislation that would provide Medicare recipients with prescription drug coverage and promised to provide a detailed legislative proposal later in the week. Rep. Bill Thomas (R-Calif.), the plan's chief architect, told the House Ways and Means Committee that under the plan the federal government would give private insurance companies a subsidy of 30-35 percent to provide a prescription drug benefit that meets or exceeds specific criteria. Under the plan, the drug benefit also could be delivered through Medicare+Choice.
The Republican plan calls for the drug benefit and the Medicare+Choice program to be administered by a new government agency, the Medicare Benefits Administration (MBA). The MBA also would serve as an insurer of last resort, providing a drug benefit in areas of the country where drug benefits are not available to Medicare recipients from two or more private sector entities. ...