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McCain Proposes Medicare Drug Benefit Changes

By Michael D. Shear and Jonathan Weisman
Sen. John McCain will propose that affluent seniors pay more for government provided drug benefits as a way to control health-care spending, aides said during a preview of a major economic speech the senator will deliver in Pittsburgh on Tuesday.

The proposal is similar to a controversial one put forth by President Bush last fall, in which married retirees who make more than $160,000 a year would pay increasingly higher costs for the newly established Medicare prescription drug plans.

"When we added the prescription drug benefit ... we included a lot of people that can well afford to pay for their own prescription drugs," said Carly Fiorina, the former Hewlett-Packard CEO and a top McCain adviser, boasting "that reform alone saves billions of dollars."

Fiorina said seniors would still be able to choose whether to participate in Medicare "Part D," which provides subsidized drug benefits. Under McCain's proposal, affluent seniors would pay higher premiums than retirees who are less well off when they join.

That idea has been part of President Bush's budget submissions for the past two years, and has been greeted coldly by both Congress and the AARP, which complains that it erodes the delicate deal that Republicans brokered in creating the popular prescription drug benefit in 2003.

Last October, Bush signaled he would try again, working with Sen. John Ensign (R-Nev.), who has been a champion of the idea.

"I will be looking constantly for ways to put this before the Senate," Ensign said at the time.

McCain aides said tonight that the drug benefit changes were part of a desire on the part of the all-but-certain GOP nominee to control government spending. They said the specifics of exactly who would pay more, and how much, would be worked out later.

"You could make this as aggressive as you want to get more savings," said Doug Holtz-Eakin, McCain's top policy adviser.

Democrats accused McCain of offering "nothing new" in the way of cures for an ailing economy.
"His answer for people struggling with skyrocketing drug prices is to make some people pay more?" asked Damien LaVera, a spokesman for the Democratic National Committee, after the aides finished a conference call with reporters Monday evening.

Earlier, the DNC issued a statement saying that McCain's health-care plan "copies ... President Bush's, won't reduce the ranks of the uninsured, and would leave people with preexisting conditions uninsured."

McCain's drug proposal is one part of a broader speech that aides described as "big and ambitious." He will deliver it at Carnegie Mellon University this morning.

In it, aides said McCain will also call for "a pause" in discretionary spending increases to allow for a "top-down review" of all government programs and agencies except veterans benefits and military spending. That proposal also mirrors the freeze in discretionary spending that Bush has had in place for the past several years.

Fiorina and Holz-Eakin said McCain will propose greater transparency in government by posting the results of the reviews in "plain and simple English" on the Internet. And he will again call for a freeze in adding to the nation's strategic petroleum reserves to ease pressure on gas prices.
He will also reiterate his plan to help struggling homeowners by allowing some access to federal mortgage assistance, they said.

Posted at 8:21 PM ET on Apr 14, 2008
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I think that I am a pretty average senior, and I see very little benefit from the Current Medicare Part D plan. I take 6 prescription drugs, only one is not a generic, and I find that by time my annual period is completed I have not spent enough on these medications to qualify for the full benefit. For seniors who require expensive or many drugs this program must be a real boon. But I still face a considerable expense that I can ill afford. Thus I think instead of fiddling with saving a little money by instituting income tests, McCain should realize that health care is a human right and our government should be more, not less, generous.. Drugs are an important component keeping seniors healthier than in the recent past, and thus should be provided with more generous assistance from Medicare Part D.

Posted by: Janet Nevins | April 17, 2008 5:45 PM

Having wealthier people pay more for their part D insurance has no relevance to the cost of drugs. To then bankruptcy of Medicare yes but not to the cost of drugs.

Some method of recapturing the tax money spent on basic drug research which is now done primarily by academic and government supported labs which provides the drug companies their new products must be found. This is despite the pharmaceutical industries outrageous squealing about socialism.

Few new antibiotics are coming on line because they are by nature used in a limited fashion. The patient either gets well quickly or dies. Few take antibiotics for long periods. This reduces profitability. The drug companies now want drugs that are used to treat chronic illness such as high blood pressure, arthritis, mental disease. Even these are based on basic research by academicians.

Biotechnologic drugs are no exception.

Big Pharma is in part a parasitic industry getting fat on the backs of the tax payer on the front end of the drug scene and on the retail end.

The policy of Mc Cain is simply a sop to the political center and will do nothing to help the common citizen or reduce cost to anyone. But, it won't hurt Big Pharma either so his campaign finance manager can go to them with his head held up high.

Posted by: rsauer | April 15, 2008 3:12 PM

I think a better Idea is to crack down on medical establishments and insurance co. That over charges the poor and needy. I think it's sick and if The medical establishments made health care more affordable then many people won't be in the mess they are in financially. It's sick for people to give up nessessites Just so they can get prescriptiions. I know they are working on it. But The medical establisments over charge their patients and that needs to be stopped!

Posted by: Cindy Murphy | April 15, 2008 11:18 AM

Yes I guess if someone has a retirement of $160,000 a year it is alright but why not add the senators and government officials to it. It just seems like it is like penalizing just one group that was successful. Let us do everyone. We are to be a fair country but we constantly penalize people for being successful. You also hit the seniors often. Take the tax off of the social security and let people breathe and not have to look at the back of a greeting card to see what it costs before they buy it. I watched my Mother do this and it is very disturbing. Let everyone live out their last years with some dignity. Some of us do not nor have we ever made $160,000 but not everyone can. I think the government needs to feel a little of the pain in their pocketbooks.

Posted by: edfrienz | April 15, 2008 9:12 AM

His other economic proposal today is pure Bush: eliminate the gasoline tax this summer. Think of all the folks that will benefit!!! Except, of course, all the folks who drive on roadds and bridges that are in terrible shape or work in the construction industry, which is "fueled" by that tax.

His economic policy: the bigger the debt grows, the larger the deficit spending gain, the better.

Does he think that at some point the US can just declare bankruptcy and "wipe the slate clean"?

Posted by: steve boyington | April 15, 2008 8:46 AM

McCain supported GWBush's corrupt Medicare drug plan enthusiastically, but now he wants some changes, but the changes are cosmetic. How many Americans make $160K a year or more? Very few. But, McCain, being a Republican knows the fat cats are out there, so he wants to tax them a bit more, but not very much so the rest of us will pay through the nose. Remember, McCain strongly opposed the Clinton health care plans proposed in the early 1990s. If they had passed, we'd all be a lot better off, but McCain and his corrupt Republican buddies opposed them so they died. John McCain cares about as much about our health as Adolph Hitler did about the health of the German people in the early 1940s. That's why he says he perfectly content to leave our sons, daughters and grandchildren in Iraq for the next 50 to 100 years.

Posted by: David S. Robins | April 15, 2008 1:34 AM

McCain/Finegold Law that regulates campaign financing may have been violated by the McCain Campaign. The DNC has filed a law suit with the RNC compel McCain to disclose bank loan documents that violated campaign rules. Ironically the Law is the primary reason for dislike of McCain by conservatives. Any proposes by McCain may not latter be adhered to by McCain and may not be taken seriously.

Posted by: Fareed | April 14, 2008 11:12 PM

What about drug companies selling their drugs in the usa as the same price they sell to mexico or other countries that have low wages.
It's the drug companies the reason drugs are so high..

Posted by: merry grant | April 14, 2008 11:01 PM

So why not just, you know, tax those seniors making more than 160,000 a year and provide real health insurance benefits.

I mean, will the old folks need to take their certified copy of their 1040 to the hospital to get drugs at the lowest rate?

Savings could be even higher if we just denied the drugs to the old folks altogether.

What a plan!

Those Botox injections are killing off more than just the nerves in McCain's now baby-bottom smooth forehead...Talk about out of touch.

Posted by: spinme | April 14, 2008 10:34 PM

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