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Prescription Drug Benefit Analysis

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The passage of prescription drug benefits under George W. Bush, although less than predictable, was largely due to the coupling of Kingdon’s three streams—problems, politics, and policies—resulting in the formation of a “window of opportunity” to push this important policy initiative forward. There were many culminating events leading up to prescription drug benefits becoming a reality. In the policy stream, the Balanced Budget Act (BBA) of 1997 induced the formation of the National Bipartisan Commission on the Future of Medicare, which proposed both “premium support” and later, prescription drug benefits. The proposal of prescription drug benefits for the elderly was advanced by Clinton, who suggested that prescription drug benefits be bundled …show more content…

Passing a less market-driven version of the bill was not an issue in the Senate, but the House proved to be more difficult. The House’s contention with the bill stemmed from one of the anticipated constraints previously mentioned—the federal budget. There was no longer a budget surplus to quell Republicans’ fears about a potential federal-entitlement program that would skyrocket spending (KSG, 16). Nonetheless, two separate versions of the bill passed in both the House and Senate. The major hurdle was ironing out differences between the House and Senate bills in the conference committee, especially in regard to the issue of premium support.
With Republicans on the committee insisting on introducing private competition with traditional government-run Medicare, and Democrats vehemently opposed to premium support, it appeared as though the bill would not make it out alive (KSG 17-18). However, Speaker of the House Hastert and Majority Leader Frist introduced a compromise to committee Chairman Thomas. This eventually was the bill that was signed into law (KSG, …show more content…

The plan would require a premium, deductible, and catastrophic coverage with a “donut-hole” in place. Prescription benefits could be purchased as a stand-alone plan offered by private insurers or as part of a private health plan (KSG, 18). The premium support issue was resolved with what would be viewed by Republicans largely as concession more than compromise. Up to six metropolitan regions in the United States would roll out demonstration programs over six years, beginning in 2010. Other concessions included a switch from higher out-of-pocket caps for high-income beneficiaries to an increase in premiums in Medicare Part B, as well as cuts in health savings accounts. However, as Kingdon would predict, the key stakeholders in Medicare reform were not willing to lose the entire policy over disputes over premium support and other wrinkles in the bill. As he notes, “one fears that failure to join would result in exclusion from the benefits of participation” (JK, 160-161). Delivering on a private market policy would please the Republican base, and Bush would claim credit for following through on a campaign

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