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Means testing proposed for Medicare
Prescription Drug Plan
The Bush Administration and
Sen. John Ensign
(R-NV) are proposing a means-test for the
Medicare prescription drug benefit,
increasing premiums and deductibles on
beneficiaries with higher incomes, according
to
The Washington Post.
Originally part of President Bush' FY2008
budget and rejected 52 to 44 by the Senate
in March as a similar proposal, the measure
has been brought up again at Sen. Ensign's
request.
The plan calls for higher payments for
individuals with incomes exceeding $82,000
and couples making more than $164,000, but
does not allow for an annual inflation
adjustment of the threshold.
This move guarantees more and more
beneficiaries would be hit with higher
payments over time, with the plan costing
seniors $3.2 billion the first five years
alone.
Ensign has promised to add means-testing to
any Medicare bill that comes before the
Senate and his proposal is likely to be
heard by the Finance Committee, of which he
is a member, within weeks.
“Some wealthy people could be driven to
leave Medicare by means-testing, undermining
the stability of the program,” said
Ruben Burks,
Secretary-Treasurer of the Alliance. “Costs
for middle and lower-income seniors who
depend on it would rise as a consequence of
the program not being universal.”
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