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Letter to the Honorable Frank R. Lautenberg [i] (September 2000)

handle is hein.congrec/cbo9231 and id is 1 raw text is: CONGRESSIONAL BUDGET OFFICE Dan L. Crippen U.S. CONGRESS Director WASHINGTON, DC 20515 September 1, 2000 Honorable Frank R. Lautenberg Ranking Member Committee on the Budget United States Senate Washington, DC 20510 Dear Senator: This letter responds to your request for information on assumptions underlying CBO's estimates of several proposals to establish a Medicare prescription drug benefit. Those proposals are the President's Mid-Session Review plan (MSR); the Medicare Outpatient Drug Act sponsored by Senator Robb, as printed in the Congressional Record on June 22, 2000 (S. 2758); the Medicare Rx 2000 Act as reported by the House Committee on Ways and Means (H.R. 4680); and the Medicare Prescription Drug and Modernization Act as modified by the sponsors, Senators Breaux and Frist (S. 2807). Number of Uninsured. You asked several questions about insurance status under current law and the number and percentage of Medicare beneficiaries who would participate in 2003 in the federally subsidized prescription drug benefit offered under each proposal. CBO's estimates of those participation rates are summarized in the attached table. CBO estimates that there will be 38.4 million enrollees in Part B of Medicare in 2003. CBO estimates that, under current law, about 60 percent of Part B enrollees (22 million people) will have prescription drug coverage and 40 percent (16 million people) will not. CBO estimates that an additional 2.6 million people will be enrolled in Part A but not in Part B. CBO has not estimated how many of those individuals will have prescription drug coverage in 2003. However, CBO expects that a substantial number of those enrollees will have drug coverage through employer-sponsored plans or Medicaid.

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