Senate Rejects Medicare Drug Benefits for Elderly
By: Unknown Author
NY Times, July 31, 2002
WASHINGTON (AP) -- Senators rejected yet another
Medicare prescription drug proposal Wednesday, all but assuring lawmakers
will fail to pass a plan before leaving this week for a summer recess.
By a 50-49 vote, the Senate rejected a scaled back,
last-ditch proposal by Democrats -- who control the Senate -- to get an
agreement. Sixty votes were needed to keep the proposal alive -- and
Democrats could must only 49.
Lawmakers were poised, however, to pass a bill that
would ease access to generic drugs and allow importers to buy U.S.-made
drugs in Canada, where they are cheaper, and resell them here. The measure
also contains an amendment that would send $9 billion to help states'
shrinking Medicaid budgets. The House has not acted on any of those
proposals.
The Senate was expected to move on to other business
after the prescription drug votes, taking up several spending bills and a
measure giving trade negotiating authority to the president.
The Senate rejected three other Medicare drug
proposals last week.
The latest plan, offered as an amendment to the
generic drug bill, would have spent $390 billion over 10 years to provide
help to poor seniors and those with high drug bills. Senate rules required
60 votes for passage because the plan costs more than the $300 billion
allotted by the budget Congress passed last year.
The gridlock is almost certain to spill over into the
midterm elections, which attracts a disproportionate number of older
voters. It's also likely it raise the ire of the AARP, the nation's
largest lobbying group for senior citizens, which had pushed aggressively
for passage of the latest proposal.
``This is a debate about the next election. This is
hardly a debate about Medicare,'' said Sen. Phil Gramm, R-Texas. ``The
sooner this charade ends, the better off America will be.''
Senate Majority Leader Tom Daschle, D-S.D., had tried
to sway opponents. ``We can walk away from this effort and give each other
hell, blame each other for failure. Or we can accept this good-faith
compromise and give American people hope,'' Daschle said.
Democrats had initially backed a 10-year, $594
billion plan, administered by the government, that would have offered
benefits to all seniors enrolled in Medicare. Republicans wanted a $370
billion plan, supported by the Bush administration, which would have been
administered by private insurers and would have offered limited benefits
to all seniors.
Both were rejected last week along with a second
Republican plan that would have offered drug help to the neediest seniors
for $170 billion over 10 years.
The debate came down to an ideological divide.
Republicans wanted a plan that would rely on private
insurers, saying it would promote competition and drive down costs.
Democrats wanted a program that would be administered by Medicare, saying
it's too risky to hand the program over to private industry.
The Republican-controlled House has already passed a
$320 billion Medicare bill that would also be administered by private
insurers.
Under the Medicare proposal, low-income seniors --
individuals with annual incomes of no more than $17,720 or couples with an
income of no more than $23,880 -- would have gotten full drug coverage and
would have paid nominal copayments of $2 for generic drugs and $5 for
brand-name drugs.
Other seniors would have received government help of
at least 5 percent of the cost of each prescription drug, with more
government help available once a patient reached $3,300 in drug costs. At
that point, the person would have paid only a $10 copayment on each
prescription drug.
There would have been a $25 annual enrollment fee for
the plan, and the program would have been administered by Medicare.
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