Clinton condemns drug industry ''scorched-earth'' ad campaign

WASHINGTON - President Clinton accused the pharmaceutical industry Saturday of unleashing ''a shameless, scorched-earth campaign'' aimed at killing his prescription drug plan for older Americans.

Clinton urged Congress to act on his proposal, saying they should reject election-year maneuvering and the appeals of ''reckless special interests.''

In his weekly radio address, broadcast live, Clinton said his proposal to help senior citizens afford prescription drugs is bogging down in Congress despite what he said was great support for it.

''On reason for this is clear,'' Clinton said. ''The pharmaceutical industry has unleashed a shameless, scorched-earth campaign to thwart the will of the American people.''

Clinton said one ''industry-funded group calling itself Citizens for Better Medicare'' has saturated the airwaves with advertisements targeting the White House plan.

''Just this week we learned that drug companies have enlisted more than 300 hard-gun lobbyists - more than one for every two members of Congress - and paid them to do everything in their power to block all meaningful reforms,'' the president said.

He said the drug industry has already spent a combined $236 million on the advertising and lobbying effort.

Clinton said the pharmaceutical industry is pushing a private insurance program to deal with prescription needs but that the insurance industry says such a plan won't work and they won't take part.

''You have to give it to the insurance companies; they have been honest here,'' Clinton said. ''They have said the Republican plan won't work. It's a plan designed for those who make the drugs, not for the seniors who need to take them.''

''So today I call on Congress to reject that approach and the reckless campaign of narrow special interests and act together in the public interest,'' Clinton said.

Clinton also renewed a standing offer made last month.

''I said that if Congress will agree to pass a plan that offers affordable Medicare prescription drug coverage to all seniors and people with disabilities, while protecting our hard-won fiscal discipline, then I will sign a marriage penalty (tax) relief law of equal size,'' he said.

Republican legislation passed by the House in late June would extend drug coverage through government-subsidized policies sold by private insurers. An alternative proposed by Clinton and supported by most congressional Democrats would establish a standard, government-run Medicare benefit.

In a statement responding to Clinton's radio address, Alan F. Holmer, president of the Pharmaceutical Research and Manufacturers of America, said Clinton's plan ''will inevitably lead to government bureaucrats deciding which medicines will be available.

''We think those decisions should be made by doctors and patients,'' Holmer said.

Citizens for Better Medicare, on its website, said Clinton's plan would force millions of seniors out of their private prescription drug plans and into the government program.

Prospects for compromise this year are uncertain, but polls show the issue is likely to be a priority for older voters in this fall's elections.

At the outset, Clinton's plan would cost retirees about $312 a year in premiums to get 50 percent off the cost of their prescriptions covered until they collected a maximum of $1,000 in basic benefits.

In contrast, typical drug coverage under the GOP plan would cost beneficiaries around $720 per year in premiums and deductibles to get 50 percent of their prescriptions paid for until they collected a maximum of $1,050 in basic benefits.

Catastrophic coverage to pay all drug costs would kick in if, in a single year, a retiree's drug spending topped $4,000 under Clinton's plan and $6,000 under the GOP plan.

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On the Net:

Pharmaceutical Research and Manufacturers of America: http://www.phrma.org

Health Care Financing Administration: http://www.hcfa.gov

Citizens for Better Medicare: http://www.bettermedicare.org