Republicans and Democrats have both come up with plans to make expensive prescription drugs more available to seniors. But both plans have their drawbacks -- such as adding yet another entitlement that subsidizes the wealthy as well as the poor to the already financially-strapped Medicare system.

But the real solution may lie in a program similar to the high-risk insurance pools established by some states.

• Currently, 28 states have such insurance pools -- allowing the market to work for 98 percent of the people while providing a safety net for those who can't get health insurance because of a medical condition.

• Congress could create a catastrophic drug benefit plan managed by the states that would kick in when a senior spends about $3,000 per year for prescription drugs -- about five times what the average senior spends per year.

• Once the senior reaches the $3,000 threshold -- 6 percent of them spend at least that much -- the program would begin paying most or all of the additional costs.

Two-thirds of seniors already have a prescription drug benefit through private insurers or managed care plans. Since private insurers offering drug coverage wouldn't have to meet catastrophic costs any more -- only those up to $3,000 -- they could lower their premiums, making standard coverage more affordable and more available.

Such a solution would create a safety net, not an expensive new federal entitlement.

Source: Merrill Matthews Jr. (American Conservative Network), "Prescribe Freedom: The Government Shouldn't Touch Pill Chest of Elderly," Investor's Business Daily, August 2, 2000.