(Washington, D.C.) – With a warning about “Clintons bearing gifts,” the Council for Citizens Against Government Waste (CCAGW) cautioned America’s seniors to greet the President’s Medicare reform measure with a great deal of skepticism.  In particular, CCAGW noted that the Administration’s prescription drug benefit will be costly and likely to desert seniors when they  need help the most.

“Medicare is already in financial trouble, but the President’s plan makes matters worse,” said CCAGW President Thomas Schatz.  Schatz mentioned that although the White House claims the drug benefit plan will cost $118 million over 10 years, the Congressional Budget Office says it will cost far more – $168.2 billion.  “Most of this cost will be born by the children and grandchildren of Medicare beneficiaries.”

“President Clinton is proposing a huge new bureaucracy for what is really a relatively small problem,” remarked Schatz.  Schatz stated that about two-thirds of Medicare recipients already have prescription drug coverage through private insurance or Medicaid.  “While we need to help the one-third of seniors who don't have prescription drug coverage, there is no need for a new universal entitlement program.”

The President’s plan is indeed a Siren’s Song.  It would offer a drug benefit with no deductible starting at $25.20 per person per month in 2002, slowly rising to $52.90 per person per month six years later.  The initial low price will encourage a majority of seniors to leave their private plan and sign up for the government-run plan.  This will eventually destroy private insurance coverage for seniors’ drugs.

“There's no reason to bring more red tape into a system that already works for most Americans,” Schatz concluded.  “Let's help the few people who can’t afford coverage, and let the vast majority of Americans continue to enjoy their private prescription coverage.”

CCAGW is a nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, mismanagement and abuse in government.