Presumptive GOP Presidential Nominee McCain Proposes Means Testing For Medicare Prescription Drug Benefit

Main Category: Medicare / Medicaid / SCHIP
Article Date: 17 Apr 2008 - 9:00 PDT

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Presumptive Republican nominee Sen. John McCain (Ariz.) on Tuesday during a speech at Carnegie Mellon University announced, as part of an economic package, a proposal that would require higher-income Medicare beneficiaries to pay higher monthly premiums for the prescription drug benefit, the Wall Street Journal reports (Meckler, Wall Street Journal, 4/16). Higher-income Medicare beneficiaries currently pay higher premiums for Part B, which covers physician visits and outpatient hospital care, but all beneficiaries pay the same premiums for the prescription drug benefit (Kaiser Daily Health Policy Report, 4/15).

Under the proposal, individual Medicare beneficiaries with annual incomes that exceed $82,000 and couples with annual incomes that exceed $164,000 would pay higher premiums. The proposal would affect about 5% of Medicare beneficiaries and save an estimated $2 billion a year, according to the McCain campaign (Cooper, New York Times, 4/16).

According to McClatchy/Seattle Times, the proposal "brings up the specter of means testing for federal benefit programs, anathema to the politically powerful seniors lobby" (Hall/Stearns, McClatchy/Seattle Times, 4/16).

McCain Comments
McCain said, "People like Bill Gates and Warren Buffett don't need their prescriptions underwritten by taxpayers" (New York Times, 4/16). He added, "Those who can afford to buy their own prescriptions should be expected to do so. This reform alone will save billions of dollars that could be returned to the taxpayers or put to better use."

In addition, McCain said, "As president, I will propose and relentlessly advocate changes that will bring down health care costs, make health care more affordable and accessible, help individuals and families buy their health insurance with generous tax credits and enable you to keep your insurance when you change jobs" (CQ HealthBeat, 4/15).

Reprinted with kind permission from http://www.kaisernetwork.org. You can view the entire Kaiser Daily Health Policy Report, search the archives, or sign up for email delivery at http://www.kaisernetwork.org/dailyreports/healthpolicy. The Kaiser Daily Health Policy Report is published for kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation© 2005 Advisory Board Company and Kaiser Family Foundation. All rights reserved.

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