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Drug Costs May Rise For High-Income Seniors

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By JONATHAN WEISMAN, The Washington Post

Published: October 5, 2007

WASHINGTON - The Bush administration is advancing a proposal to levy higher premiums and deductibles on upper-income seniors enrolled in Medicare's new prescription drug benefit, raising fees on beneficiaries with more than $80,000 in income a year, administration officials said Thursday.

The administration is working with Sen. John Ensign, R-Nev., to attach to upcoming legislation a 'means testing' provision that would save the government billions of dollars. In the past, however, similar proposals have been blocked by the furious response of seniors.

'You say it saves money and these people can afford it, but it also eats away at the incomes of seniors. It erodes their sense of the reliability on these federal programs, and it certainly erodes political support,' said John Rother, policy director for AARP, the powerful senior lobby.

The plan was originally drafted as part of President Bush's fiscal 2008 budget, but it died this spring with little notice. Now, at Ensign's request, the Centers for Medicare and Medicaid Services, which administers the federal health plan for the elderly, has revived the measure.

The timing of the effort could not be worse, some Republicans said. The proposal is surfacing when Bush's approval ratings are at record lows, his war policies are embattled and his veto this week of a children's health insurance bill has drawn fresh fire.

Ensign put a similar proposal to a Senate vote in March. It was rejected 52-44.

But Ensign, who chairs the campaign committee responsible for electing Republicans to the Senate, is undaunted, vowing to add means testing to any Medicare measure that comes before the chamber.

'Working couples with incomes over $160,000 should not be subsidized by retired firefighters or schoolteachers,' he said.

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