Bush Renews Pitch for Medicare Prescription Drug Benefit Plan

WASHINGTON —  President Bush on Saturday renewed his effort to rally support for giving seniors a prescription drug benefit under a reformed Medicare system, an issue likely to figure prominently in his reelection bid next year.

In his weekly radio address, Bush touted “a growing consensus” in Congress for a strengthened Medicare system that, for the first time, would include coverage of prescription drugs.

“We have a tremendous opportunity to reform Medicare and help our seniors,” he said. “The time is right to make pro- gress.”

In a bid to quicken congressional action on the issue, Bush this week is scheduled to spotlight his proposals Wednesday in Chicago and Thursday in New Britain, Conn. Bush and his allies believe enacting reform would bolster his domestic record ahead of the 2004 election.

On Friday, Senate Finance Committee Chairman Charles E. Grassley (R-Iowa) and the panel’s ranking Democrat, Max Baucus of Montana, agreed on a proposal that would give all seniors equal prescription drug benefits, whether they stay in traditional Medicare or join managed-care plans.

The committee proposal offers inducements, such as preventive care, to seniors who join private health plans, but it does not attempt to provide different levels of prescription coverage to foster reduced use of Medicare.

That differs from Bush’s approach, which would use differing benefits as an incentive to switch to managed-care plans.

At a Finance Committee hearing Friday, Thomas A. Scully, the administration’s top Medicare official, called the proposal “a step in the right direction.”

But he also expressed concern that it might dissuade people from moving more quickly from the fee-for-service Medicare program into private plans, which the administration considers more efficient.

Medicare covers hospital care and doctor visits for more than 40 million senior and disabled Americans at an annual cost of about $255 billion. Sharply rising drug costs in recent years have stirred demand for including drug coverage in the program.

Medicare beneficiaries use an average of $2,440 a year worth of prescription medicines.

In his speech, Bush touted a system that would have three tiers of coverage.

He would preserve a traditional Medicare plan that would have some prescription drug benefits. People seeking more coverage for preventive care would have the choice of an “enhanced Medicare program,” similar to health-care coverage for federal employees, with monthly premiums and an annual deductible. Thirdly, his proposal envisions the option of choosing among several managed-care plans.

The president also promised “extra help” for low-income seniors. The idea, he said, is that “all seniors will have the ability to choose the Medicare option that serves them best -- and every senior will have the option of a prescription drug benefit.”

Bush has estimated that his overhaul would cost $400 billion over 10 years.

If Congress and Bush can come to terms on remaking Medicare, many analysts have said he probably would benefit politically.

Polls have shown that while the president has received high marks for his handling of national security issues, the public has been less impressed by his record on the domestic front.

The tax cuts Bush has pushed through Congress -- including a $350-billion package he recently signed into law -- have won him praise from conservatives. A health-care reform package could buttress his appeal to other voters, said Stuart Rothenberg, a Washington-based independent political analyst.

But he added: “If they fall short on Medicare and cannot deliver a prescription drug benefit, then there is a big issue out there that the Democrats can run with. The White House would love to take it away.”