Republicans on Medicare:

• The Bush administration is planning to tie any prescription drug benefit to an overall reform of the program.
• Proposed reforms Republicans have backed in the past include a proposal made by Senate Majority Leader Bill Frist of Tennessee and Democrat John Breaux of Louisiana in 2000 that would have established a competitive system through which private health plans would compete based on price and benefits for Medicare recipients, with seniors who enroll in cheaper plans keeping some of the savings.
• In 2001, President Bush used the Federal Employees Health Benefits Program as an example of how Medicare could work. Under that program, the government negotiates premium and benefit packages with private health plans and then contributes a set amount of money for each person enrolled. Those covered by the plan are then able to choose among a number of options, with those who want more expensive plans paying more for their coverage.
• In 2002, House Republicans passed a $320 billion plan to offer prescription drug coverage to seniors through subsidies to private insurance companies. The Democratic-led Senate rejected that plan.
• The Bush administration and Congress have tentatively agreed to halt a 4.4 percent cut in the fees doctors are paid for treating Medicare patients that is scheduled for March 1, 2003. Doctors, whose fees were decreased 5.4 percent in 2002, should now be able to avoid another cut. Payments to nursing homes, home care agencies and hospitals may not receive the same protection from the White House and Congress.

Online NewsHour Special Report:
Prescription Drug Coverage

July 22, 2002:
Susan Dentzer investigates efforts to control health care costs.

June 7, 2002:
Tom Bearden reports on many doctors' growing reluctance to treat Medicare patients.

Aug. 22, 2002:
Paul Solman looks at the rising amount spent on health care and weighs the pros and cons of new medical technologies.

• About Us
• Feedback
• Subscriptions/Feeds
• Privacy