Finally, "catastrophic coverage" would kick in, with Medicare paying 100 percent.

"People should buy insurance that gives them catastrophic and comprehensive coverage, not to address dark fears they may have about particular diseases."

Such "catastrophic coverage" would be available to people who spend more than $6,000 a year of their own money on prescriptions.

At that point, Medicare's catastrophic coverage kicks in, generally paying 95 percent of further costs.

By contrast, under President Clinton's plan, basic drug benefits would begin in 2003, with catastrophic coverage to follow three years later.

The second part of it is, above the $3,000 level, they have full 100 percent catastrophic coverage.

"The issue of catastrophic coverage has been with us a long, long time," he said.

For people with higher incomes, Medicare would provide "catastrophic coverage," paying any drug costs above $3,500 or $4,000 a year.

The catastrophic coverage kicks in after beneficiaries have spent $3,600 of their own money.

The current debate about catastrophic medical coverage for the elderly provides an interesting example.