The Nation : Medicare Drug Plan Gains

A House Ways and Means subcommittee approved a plan to expand Medicare to cover prescription drugs for an estimated 1.8 million elderly, ignoring a warning that President Reagan may veto the legislation. Subcommittee Chairman Pete Stark (D-Oakland) said the proposal was approved along a 7-4 party line vote after nearly five hours of debate. The measure would be added to the catastrophic health insurance bill approved by the full Ways and Means Committee in May. Among the key provisions of the amendment, Medicare would pay for drugs for the elderly and disabled after a beneficiary’s out-of-pocket cost exceeds $800 a year. There also would be a 20% co-payment.