By Lisa Seachrist

Washington Editor

WASHINGTON - Last fall, President Clinton lambasted the pharmaceutical industry for "distorting" the debate over a prescription drug benefit, in response to a series of industry-sponsored television ads opposing the Clinton plan and featuring a senior citizen who doesn't want "big government in my medicine cabinet."

Just last week, Clinton said the industry and officials in his administration had met and the pharmaceutical industry was dropping its opposition to the Clinton proposal.

Well, not exactly. Alan Holmer, president and CEO of the Pharmaceutical Research and Manufacturers of America (PhRMA), confirmed the two parties had met and were to meet again on Thursday; however, PhRMA hadn't changed its view of the Clinton plan.

"The meeting Thursday presents us with an important opportunity to educate White House officials regarding our views on this issue," Holmer said. "However, we haven't changed our position. We think it's very important for prescription drugs to be covered under Medicare and that any program be administered through the private sector."

Holmer said the two meetings with administration officials were predicated on statements made to the press and to PhRMA indicating the administration would consider a program that wasn't under the aegis of the Health Care Financing Administration (HCFA), the agency that administers the Medicare program. In late December, the New York Times quoted associate director of the Office of Management and Budget Dan Mendelsohn as saying proposals to provide drug coverage to Medicare beneficiaries through competing private health plans "deserve full consideration."

"There have been other public statements from administration officials indicating they aren't wedded to a plan run by HCFA," Holmer said. "We support expanded drug coverage for Medicare beneficiaries delivered through choice and competition in the private sector. We believe the best way to do that is through comprehensive modernization of the Medicare program."

Sens. John Breaux (D-La.), Bill Frist (R-Tenn.), Robert Kerrey (D-Neb.) and Chuck Hagel (R-Neb.) have proposed a bill that includes a drug benefit in a comprehensive overhaul of the Medicare program along the lines of Federal Employees Benefits Program. Seniors would have a choice of health-care providers and could pick based on the costs of the programs and the benefits they offer. Low-income seniors would receive premiums supports.

Sens. Ron Wyden (D-Ore.) and Olympia Snowe (R-Maine) introduced a plan covering only drug benefits, but it, too, relies on the Federal Employees Benefits Program as a model for administering such a benefit.

Holmer said PhRMA would take these two plans to the meeting with White House Chief of Staff John Podesta on Thursday.

PhRMA has backed down on its keeping big government out of the country's medicine cabinet advertisements, moving instead to television and magazine ads calling for government and industry to work for a "breakthrough in the Medicare debate."