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First is the prescription plan, which will feature a drug discount card for all Medicare participants, as well as a catastrophic care provision, which would give Medicare seniors a greater amount of underwriting for care and drugs when a patient's health reaches critical mass.

"They had to do this because the general receptivity among interest groups and Democrats was that the first plan wasn't going to make it out of committee. It was just dead," says a Republican staffer on the Finance Committee.

Under the original plan, if Medicare patients wanted discounts on drugs, they would have to jump to an HMO.

Under the revised plan, Medicare patients who do jump to one of five to seven HMO options will receive a greater drug discount plan than those who stay in Medicare.

"But Democrats can't say we aren't offering everyone a greater number of options, while we're lgiving everyone a drug discount," says the staffer. "That was important. This new plan will give us something to start building on."

Republican staffers were briefed on the new plan late last week. And indications were that the Bush Administration might be looking to revise other proposals before they reach Congress.

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