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DETAILS OF DRUG PLAN
November 17,2003

Annual premium: $420
Annual deductible: $275

Coverage: 75% of costs up to $2,200; About 95% of costs above $3,600

Negotiators hope to vote on the bill before Congress leaves for Thanksgiving. The package, estimated to cost $400 billion over 10 years, would:

Create a Medicare prescription-drug benefit in 2006. It could be offered by drug-only private plans or by HMOs and other private insurers.
Give seniors drug discount cards that could reduce their costs by 15%-25% in April 2004.
Make seniors with annual incomes above $80,000 pay higher premiums for doctor visits.
Allow price competition between private insurers and traditional Medicare in up to six metropolitan areas, beginning in 2010.
Provide financial incentives to dissuade employers from dropping retiree drug benefits.
Require Congress to consider, for the first time, limiting spending on Medicare. That could lead to reduced benefits or higher Medicare payroll taxes.
The bill doesn't include a popular but controversial provision to make it easier to import cheaper drugs from Canada.

AARP, the nation's largest senior citizens lobby, says it will review final details of the legislation before deciding whether to endorse it.

Excerpt From USA Today, November 17, 2003

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