Wednesday, February 09, 2005

The Big Pill for Taxpayers to Swallow Keeps Getting Bigger

The White House now predicts their Medicare prescription benefit plan passed in 2003 will cost $1.2 trillion dollars over 10 years. The Bush administration has won GOP support for the plan largely with the promise that it would cost only $400 billion.

Medicaid's bean counters caught wind of the higher prices early on. But their top actuary, Richard Foster, said Medicare's top brass threatened to fire him if he went public with his belief the cost would top $600 billion.

The new numbers also show seniors will have to pay more for their share of prescriptions each year under the plan.

Part of the rising costs may be linked to a provision in the plan that prevents Medicare negotiating with drug companies for lower prices. (WashPost)

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