Essentially putting an end to Senate action on a Medicare prescription drug benefit this year, the Senate on July 31 defeated a fourth proposal by Sens. Bob Graham (D-FL) and Gordon Smith (R-OR). The amendment was defeated, 50-49, when it failed to garner the 60 votes necessary to defeat a budgetary point of order. Last week, the Senate turned back three other proposals (see The Source, 7/26/02).
The Graham-Smith amendment would have cost $400 billion over ten years. The plan would have provided a prescription drug benefit for low-income Medicare beneficiaries. Enrollees with incomes up to 200 percent of the poverty level would have received full coverage, with a $2 copayment for generic drugs and a $5 copayment for brand-name drugs. Under the benefit, all beneficiaries would have been required to pay a $25 annual enrollment fee with no monthly premium. The plan would have included a catastrophic limit of $3,300 for all beneficiaries; however, beneficiaries with incomes above 200 percent of poverty would have been required to pay a $10 copay. Additionally, enrollees with incomes above 200 percent of poverty would have received drug discount cards that would have allowed for discounts of up to 30 percent on their prescription drugs.
“This is our best and perhaps our last opportunity to come together and actually pass a meaningful prescription drug benefit in the Senate this year,” implored Sen. Smith.
Sen. Graham agreed, “There is no basis for delay. Whatever we do, the time to act is now.”
However, with the defeat of the amendment, it is unlikely that the Senate will consider another Medicare prescription drug proposal this year.
