President Bush reviews "Enhanced Medicare" plan

President Bush, earlier this week, reviewed his plans to revise Medicare in a speech to the American Medical Association. His plan entails that the government would add benefits to encourage seniors into HMO's and private plans as well as a discount drug card. Bush promised comprehensive benefits for those who moved into such plans. "Enhanced Medicare" according to the president is an arrangement in which seniors would join a health plan and get unspecified prescription drug benefits in return for paying a monthly premium and an annual deductible. A new government agency to oversee the plan, the Medicare Center for Beneficiary Choices, was also proposed.

Under the President's plan, elderly and disabled Americans enrolled in Medicare would have a choice of three programs with different levels of coverage.

1. Remain in the traditional fee-for-service program. The government would provide a subsidy for prescription drug costs above a certain high level.
2. Join a new "Enhanced Medicare" program, which would allow beneficiaries to enroll in a variety of competing health plans. Including a fee-for-service plan. The plans would offer expanded coverage, including comprehensive prescription drug benefits, expanded preventive care and limits on out-of-pocket hospital expenses.
3. Join managed care plans under an expanded Medicare Advantage, in which prescription drug coverage is provided by health maintenance organizations or similar groups that provide care through a network of doctors and hospitals.

Bush intends to ask Congress to immediately provide all seniors with a drug discount card that the White House projects will save an estimated 10-25% on prescription drugs. He will also request a $600 annual subsidy for low-income seniors, to continue under this vision of a revamped Medicare.