Medicare reform legislation introduced

Sens. John Breaux (D-La.) and Bill Frist (R-Tenn.) on Thursday introduced two separate bills to reform Medicare and provide prescription drug coverage for senior citizens. One of the bills would comprehensively restructure Medicare while the other would institute incremental reforms. Both are similar to legislation the two introduced in the last congressional session. Breaux and Frist told reporters that they have received positive comments from the White House and key members of the House and Senate.

Frist said there is a good chance that the narrower Medicare Prescription Drug and Modernization Act could be enacted this year and it could be incorporated later into the more extensive reforms he and Breaux advocate. Frist said the approach, which would cost $163 billion over 10 years, has more support in Congress than President Bush's proposal to provide block grants to help states provide drug benefits. Speaking at a Senate Budget Committee hearing Thursday, Sen. Pete Domenici (R-N.M.) criticized the block grant plan, arguing that it "simply postpones, once again, the day of reckoning for Medicare." Senate Finance Committee Chairman Charles Grassley (R-Iowa) predicted Thursday that Congress will enact a Medicare reform package that includes a drug benefit. ...