White House officials are still working out the details. But President Bush's objective is to stir competition between the original fee-for-service Medicare program and private health plans in an attempt to force down costs. An administration official discussed the policy considerations Friday only on grounds of anonymity.
Bush will press for the changes later this month, perhaps in connection with the State of the Union message, when he urges members of Congress to provide prescription drug benefits for the elderly.
The changes ultimately could make Medicare look more like private insurance, The New York Times reported in Friday's editions.
Under several proposals being considered by the administration, Medicare beneficiaries would be encouraged to enroll in an HMO or in a new version of the fee-for-service program to obtain prescription drug benefits.
The new option would offer more extensive coverage of preventive services, like mammograms and colon cancer tests, and would provide greater protection against the high costs of serious illnesses.
But for such protection, Medicare beneficiaries might be required to pay higher premiums and co-payments, along with any new charge for drug coverage, the Times said, citing unnamed sources.
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