Higher Medicare Premiums For US Wealthy Proposed

President Bill Clinton says he will think about agreeing to Republicanplans to raise Medicare premiums for wealthy recipients, an important shift in attempts to reach a compromise with the GOP on balanced-budget legislation.

Speaking at a news conference after the Northern Atlantic Treaty Organization meeting in Madrid, Spain, he said that means testing needs to be fair and workable. Aides noted that he will not accept the Senate plan if it puts the overall budget-cutting legislation in danger.

Opinion polls have found that increased premiums are very popular among the public. Until recently, Pres Clinton has said that they should be considered only as part of a broader attempt to overhaul health care programs. However, Republicans feel that Administration plans to have the Internal Revenue Service run the system, which will charge wealthier Medicare recipients higher premiums, is a "poison pill," as it will make the increased payments look like a tax increase.