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Clinton set to debut Medicare rescue plan
June 28, 1999 WASHINGTON (ALLPOLITICS, June 28) -- With his focus back on the domestic agenda and his State of the Union promise to save Medicare, President Bill Clinton plans to unveil Tuesday the details of his strategy to extend the life of the ailing health insurance program. While details of the plan are currently being kept under wraps, Clinton layed the ground work for his proposal Monday by announcing a larger-than-expected federal budget surplus. 
Clinton claims the new projections, which show an increase of $1 trillion in the combined surpluses over the next 15 years, will allow the government to "strengthen and modernize Medicare while providing a prescription drug benefit." The president hopes to invest $794 billion over the next 15 years to strengthen Medicare -- that's a more than $100 billion increase since Clinton submitted his budget to Congress in February. During his State of the Union address earlier this year, Clinton proposed using one out of every six dollars in the surplus over the next 15 years to guarantee the soundness of Medicare until 2020. Political leaders and economists agree the system, which helps America's older citizens and the disabled maintain their health, won't survive in its current form when the Baby Boom generation reaches retirement age. Medicare currently sucks up nearly 13 percent of the entire federal budget and unless the system is reformed, experts project Medicare will be bankruptcy by 2008. Today, nearly four Americans are working -- and paying -- for every one receiving Medicare. However in 12 years, when millions of babies born after World War II start turning 65 and become eligible for the program, that ratio will drop sharply. In 21 years, fewer than three workers will be paying taxes for each person on Medicare. In 31 years, that will drop to 2.3. But many wonder how the president's new plan can maintain the system's solvency and at the same time add new benefits. Clinton 's proposal would extend prescription drug coverage to all 39 million Medicare beneficiaries. More than 60 percent of the recipients have prescription drug coverage through Medicaid or private "Medigap" policies, while 15 million beneficiaries have no drug coverage. But the administration argues that many of the private "Medigap" programs are not feasible for elderly Americans with modest incomes. The average cost of the added insurance is about $90 a month and many of the policies have large deductibles. The elderly and disabled in the Medicare program who want the prescription coverage will have to pay for it, said Donna Shalala, secretary of the Department of Health and Human Services. The poor would receive assistance in purchasing the drugs. "This will not be as generous as people think," Shalala told CBS' "Face the Nation," adding the new program would be voluntary and people will share the costs. But Republicans still complain a broad reaching prescription plan is a fiscal mistake. Many in the GOP prefer a plan offering government-subsidized drug benefits only for those living near the poverty level. Democratic Sen. Robert Torricelli of New Jersey predicted Sunday that a bipartisan compromise may end up linking prescription coverage for some with tax cuts. "I suspect by the time this has been negotiated, we'll have a prescription drug benefit for those 15 million Americans who are not now covered, do so at a reasonable cost, and allow us to see how the program progresses before it ever considers to fully expand it," Torricelli said on CNN's "Late Edition," adding "but it will become part of a package of responsible tax cuts." The Associated Press contributed to this report. |
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MORE STORIES:Monday, June 28, 1999
• Poll: Bush bandwagon getting crowded • Poll: Increased skepticism over Kosovo peace agreement • Hubbell to plead guilty in deal with Starr • Bush tops Iowa GOP presidential preference poll • Clinton announces bigger surpluses, pushes Social Security plan • Transcript: Clinton announces bigger surpluses; plan for extra money • Report of President Clinton bid for Senate dismissed as 'crazy' • Iowa UAW endorses Gore • Starr ordered to give Tripp-Lewinsky tapes to state prosecutors • A monument's stony road to 'pure radiance' • Ark. state police ticket Paula Jones • New laws deal with everything from hula dancing to chili sauce | ||||||||||||||||||||||||||||
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