MEDICARE
The $913 Billion Boondoggle
According to the administration's new budget, the president's Medicare
prescription drug bill will cost $913 billion
(http://www.kintera.org/TR.asp?ID=M67076604624383711595665) from 2006 to 2015.
It's a far cry from the initial estimate -- in his 2003 State of the Union,
remember, President Bush assured the nation his plan would cost just $400
billion (http://www.kintera.org/TR.asp?ID=M67076614624383711595665) .
Immediately after his legislation was rammed through a reluctant Congress, in a
classic bait-and-switch, the administration admitted the cost would be closer to
$534 billion from 2005 to 2014, although it " never offered a detailed breakdown
of that estimate (http://www.kintera.org/TR.asp?ID=M67076624624383711595665) ."
Here's a look back at the history of this misguided legislation.
THE PROBLEMS: The first stage of the law -- the introduction of prescription
drug cards -- has been a bust with seniors. Why? The system is confusing, with
73 different cards all covering different medications. And once seniors have
signed up for a specific card, they are locked into it, even though the drug
companies are allowed to change prices as often as once a week
(http://www.kintera.org/TR.asp?ID=M67076634624383711595665) . And the discount
isn't guaranteed. In fact, to offset the potential loss in profit, drug
companies jacked up the price of medicines over the past year an average of 7.4
percent (http://www.kintera.org/TR.asp?ID=M67076644624383711595665) , "or more
than three times the 2.3 percent rate of general inflation in that period."
Finally, studies have shown seniors can find cheaper drugs
(http://www.kintera.org/TR.asp?ID=M67076654624383711595665) without using the
cards.
THE COSTS: The Medicare bill may not have been good for seniors, but it was huge
boost for the pharmaceutical industry and corporate interests. The White House,
for example, blocked efforts to allow Medicare to use bulk purchasing power to
negotiate (http://www.kintera.org/TR.asp?ID=M67076664624383711595665) cheaper
drug prices. On top of that, the Medicare program will give corporations $89
billion (http://www.kintera.org/TR.asp?ID=M67076674624383711595665) to
"discourage" employers from dropping retirees from their plans. The loophole:
corporations receive the subsidy even if
(http://www.kintera.org/TR.asp?ID=M67076684624383711595665) they cut support
for pensioners...and many are taking
(http://www.kintera.org/TR.asp?ID=M67076694624383711595665) the money and
running. (The AARP recently sued the administration
(http://www.kintera.org/TR.asp?ID=M67076704624383711595665) over this
provision.) Also, the nonpartisan CBO said billions have been added to the cost
of the bill because of excessive payments to private insurers and HMOs
(http://www.kintera.org/TR.asp?ID=M67076714624383711595665) .
THE THREATS: Before the Medicare legislation passed in 2003, the chief Medicare
actuary, Richard Foster, knew it was going to cost a lot more than the White
House was promising. But the administration, desperate to hide the true cost of
the bill, threatened to fire him
(http://www.kintera.org/TR.asp?ID=M67077064624383711595665) if he told the
truth to any key lawmakers on the Hill. Foster alerted the White House five
months before the vote that the Medicare drug bill was likely to carry a hefty
price tag of $551 billion
(http://www.kintera.org/TR.asp?ID=M67077074624383711595665) . But 13
conservatives in Congress had promised to block any bill over $400 billion.
Thus, the White House told Foster he would be fired if he did not keep quiet,
bury the estimates, and publicly assert the bill would not cost more than $400
billion until after the legislation passed.
THE TRICKS: Conservatives relied on a whole bag of dirty tricks to ram the
Medicare legislation through Congress. The vote on the bill was scheduled to
last the typical 15 minutes; when conservatives realized they didn't have the
necessary support, House Speaker Dennis Hastert (R-IL) kept the vote open for
an unprecedented three hours
(http://www.kintera.org/TR.asp?ID=M67076744624383711595665) , from 3 to 6 a.m.
Majority Leader Tom Delay (R-TX) used that time to strong-arm bleary-eyed
Republicans who had voted against the bill, demanding they switch their votes.
THE BRIBES: Last year, the House Ethics Committee publicly criticized Rep. DeLay
for trying to bribe a House member reluctant to endorse the Medicare bill for
his vote. DeLay offered to endorse the son of Rep. Nick Smith, who was running
to replace his father after he retired, in exchange for Smith's vote on the
Medicare Reform Act. According to the committee, DeLay told Smith that if he
voted for it, " I will personally endorse your son. That's my final offer
(http://www.kintera.org/TR.asp?ID=M67076754624383711595665) ." Smith did not
vote for the Medicare bill and his son lost his bid for the Republican
nomination to succeed him. The Republican in charge of the Ethics Committee that
voted to censure DeLay, Rep. Joel Hefley (R., CO) was subsequently removed from
the committee and replaced with a DeLay-friendlier face. |
