Yes, the Republicans create a new universal entitlement. But it entitles seniors not to all the drugs they can consume at taxpayer expense, but to participation in a private, voluntary program. That's a step away from the entitlement programs of the past. Insurance companies have criticized the GOP approach, with many saying that the plan won't work because routine drug expenses are simply not insurable events. They argue, as do most people who have studied the teetering Medicare program, that drug coverage must be incorporated into overall reform.
Seniors deserve no less.
Republicans and Democrats on the Bipartisan Medicare Commission agreed that this is the right approach. House Republicans offer a first step. Whoever wins control of the Congress and the White House this fall will be able to write the drug-benefit law passed next year and it would take the shape of the approach they are advocating during the debate this year. If those who push for government control win, it will inevitably lead to price controls. This, in turn, will mean the research base for pharmaceutical advances will begin to wither, just as it has in every country with socialized systems.