Medicare Drug Proposals Comparison By The Associated Press,

House Republicans and the Clinton administration, joined by congressional Democrats, are pushing competing proposals to add prescription drug coverage to Medicare.
Under both plans, participation by senior citizens would be optional. The Republican legislation would make benefits available starting in 2003, as would congressional Democrats.
Clinton is calling for an earlier start, in 2002. Republicans say the cost to the government of their plan would be $155 billion over 10 years; Democrats have budgeted $253 billion.

GOP PLAN:

Medicare would oversee enrollment of senior citizens in government-subsidized and approved prescription drug plans sold by private insurance companies. HMOs participating in Medicare would also have to offer drug coverage.
Deductibles, co-payments and other out-of-pocket charges could vary, but benefits would have to be at least as generous as under a standard policy, set by law.
The standard policy includes:
- Monthly premiums around $35 to $40.
- $250 annual deductible.
- 50 percent co-payments for each prescription.
- An end to coverage for the year at $2,100 in total drug spending after deductible. That means insurance would pay an annual maximum of $1,050 in prescription costs. However, if out-of-pocket spending by a beneficiary for one year tops $6,000, insurance kicks back in with so-called catastrophic coverage, paying all costs for the rest of the year.
Senior citizens with annual incomes below 135 percent of the federal poverty level - about $11,200 for an individual and $15,200 for a couple - would not have to pay monthly premiums or deductibles and their co-payments would be lower, around $2 to $5 per prescription.
Those with incomes between 135 percent and 150 percent of poverty - about $12,600 for an individual and $16,900 for a couple - would have their monthly premiums subsidized on a sliding scale.

DEMOCRATS' PLAN:

Medicare would operate a standard prescription drug benefit, the same for everyone, with some help from benefit management companies that many private health plans use. HMOs participating in Medicare would have to offer the same benefit. It would have:
- Monthly premiums starting at $25 and gradually rising to $50 over several years.
- No deductible.
- 50 percent co-payments for each prescription.
- An end to coverage for the year at $2,000 in total drug spending, gradually rising to $5,000 as premiums increase. That means Medicare would pay an annual maximum of $1,000 in prescription costs at first, rising to $2,500.
- Catastrophic coverage paying all costs would kick in after $4,000 in annual out-of-pocket spending by a beneficiary.
Senior citizens with incomes below 135 percent of poverty would not have to pay monthly premiums, deductibles or co-payments. Those with incomes between 135 percent and 150 percent of poverty would have their monthly premiums subsidized on a sliding scale.