New drug plan for elderly draws lukewarm response

? The Bush administration on Thursday offered a revised proposal to promote private drug discount cards as a way for cash-strapped senior citizens to save money on prescriptions.

Critics said it was a rehash of last year’s plan. Representatives of the chain drug stores and community pharmacists, both party to a federal lawsuit over the plan, said they remained opposed.

The plan still encourages all older Americans to buy the cards from private companies, by giving some cards what amounts to a government seal of approval. After paying a one-time enrollment fee not more than $25 senior citizens could get discounts of about 10 percent on some medicines, company officials say. The White House said it would net seniors 15 percent on average.

The revised proposal has more details on the classes of drugs that can be discounted. There are now rules about what the agency will look for from a company before it gives its seal of approval. Details are also offered about the type of information senior citizens will get.

But the plan refers to “substantial savings” without being more specific, say critics.

Government officials also tried to address the issue of whether the Centers for Medicare and Medicaid Services have the legal authority to put such a plan into practice. They cite several statutes, including one that allows Medicare to educate beneficiaries.

The issue is critical because of the fight in federal court.

Drugstore chains sued after President Bush announced the plan in July, contending it did not clearly outline who must subsidize the lower prices. They also questioned whether federal officials had the power to promote the cards without congressional approval.

U.S. District Judge Paul L. Friedman granted an injunction that prevented the program from starting because of the likelihood that the government did not have that authority. In November, he issued a stay to allow the government to submit a new proposal.

“It’s the same basic argument they made unsuccessfully,” said John Rector, a senior vice president for the National Community Pharmacists Assn. “They can add as many bells and whistles as they like, but the underlying authority that’s necessary is lacking.”

The benefit of drug cards themselves also is in dispute.

A federal report in July found that the cards offer only meager savings. Democrats repeatedly have said they are skeptical about the proposal.

One-third of the 40 million senior citizens and disabled people pay full price for medicines because they lack prescription drug coverage.

Bush has said the discount card program is a stopgap measure until Congress can pass a prescription drug benefit.