Healthy Skepticism Library item: 17960

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

Publication type: news

Espo D
Medicare Bills Exceed Bush Spending Limit
Yahoo News 2003 July 22

Full text:

The rival Medicare prescription drug bills that cleared the two houses of Congress last month both exceeded President Bush spending limits, officials said Tuesday in disclosures likely to complicate efforts to reach a compromise.

The Congressional Budget Office tentatively calculated the Senate-passed measure at $462 billion over 10 years, including $40 billion for one provision now likely to be jettisoned, according to several sources who spoke on condition of anonymity. The cost of the House-passed bill was pegged at $408 billion.

Bush has placed a $400 billion, 10-year limit on legislation to add prescription drug benefits and modernize the 38-year-old health care program for seniors.

The new cost estimates came as negotiators for the two houses reported progress toward agreement on a technical, relatively uncontroversial section of the legislation dealing with Medicare contracting, patient appeals and other regulatory matters. Senior lawmakers hope to be able to announce a tentative agreement on that portion of the legislation within a day or two, as part of an effort to demonstrate tangible progress before Congress begins a long summer vacation.

Additionally, Bush has invited key lawmakers to the White House for a meeting on Wednesday to underscore his determination to sign Medicare legislation this year.

Both houses approved legislation earlier this year to add a prescription drug benefit to the program and, at the same time, to provide for greater competition. Private companies would be invited to set up health care plans to compete with traditional Medicare, part of an effort the administration and Republicans say is essential to give seniors better choices as well as improve the financial condition of the program.

The two bills vary greatly in their details, and the way to a final compromise is compounded by political differences that have produced gridlock for several years.

In the House, both parties are already maneuvering for political advantage on the issue. Democratic lawmakers held an estimated 75 town hall meetings in their districts last weekend, designed to point out flaws in the Republican-passed measure and tout a more costly alternative with a richer drug benefit.

House Majority Leader Tom DeLay, R-Texas, told reporters during the day that Republicans would be holding 80 town hall meetings of their own during Congress’ August vacation, aimed at building support for the GOP measure.

The new spending estimates will form the basis for the final negotiations between the House and Senate. They mean that spending will have to be reduced to bring any final bill under Bush’s budget limits or offsetting savings will have to be found.

Officials said one provision in the Senate-passed measure alone accounted for $40 billion over 10 years in the CBO calculation. It would require pharmacy benefit managers, the companies that administer drug coverage programs and negotiate for discount prices, to provide information about the prices they pay to the Justice Departmentand Department of Health and Human Services inspector general’s office. The same provision bars public release of the information.

The provision was sponsored by Sen. Maria Cantwell D-Wash., whose office could not be reached immediately for comment.