Whatever merits one may ascribe to the recently enacted Medicarelaw, it has aggravated, not controlled, rapidly rising Medicarecosts. Its major feature is a massive entitlement expansion, but italso embodies some bad health care policy: There is no need for thefederal government to displace existing drug coverage, pre-empt newprivate-sector options, or accelerate the loss of employer-baseddrug coverage.
Congress should design a new system that incorporates personalchoice and market competition, as the FEHBP does. Medicare patientsshould have the means to choose a plan that best meets their needsand secure the drug coverage that their doctors think is best forthem.