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Prescription Drug Coverage
Current Law
Gore-Lieberman
Bush-Cheney
Cost of Prescription
Drugs
$7,320
$6,588
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$7,320
Paid by Beneficiary
$7,320
$4,000
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$7,320
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Paid by Medicare
$0
$2,588
$0
Premium for Drug
Benefit
$0
$300 per year
$25 per month
$0
Premium for Medicare
Part B
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$654 per year
$54.50 per month
$654 per year
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$54.50 per month
$772 per month
$64.30
TOTAL SAVINGS
+$2,288
-$118
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Assumes a conservative 10 percent price discount, which is consistent with CBO estimates.
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The Gore-Lieberman plan has a catastrophic benefit that limits expenses to $4,000.
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Based on CBO analysis, half of seniors without coverage will not get coverage from the Bush-Cheney plan. This example
assumes that this family is not covered.
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The projected premiums in 2002 are $54.50 per month. For the Gore-Lieberman plan, there will be lower premiums as
the reforms make the program more efficient. For the Bush-Cheney plan, the Medicare actuaries estimated that the failed
Medicare Commission plan would raise premiums by 18 percent to 30 percent. This estimate assumes a $118 increase.
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