so bush backing off making people CHOOSE BETWEEN DRUGS or FOOD!...how BIG OF THEM FAT CATZ
U.S. to Drop Benefit Cuts Linked to Drug Discounts
June 13, 2004
By ROBERT PEAR
WASHINGTON, June 12 - The Bush administration said Saturday
that it would rescind a federal policy that threatened to
cut food stamp benefits for several million low-income
elderly and disabled people who save money on their
medicines by using the new Medicare drug discount cards.
The administration's reversal came two days before
President Bush was scheduled to visit Missouri to promote
use of the cards, which have received a tepid reaction from
many Medicare beneficiaries.
In interviews this week, state officials across the country
said low-income people who used the cards could find their
food stamp benefits reduced as a result. The cuts, they
said, were a direct result of federal regulations and a
policy statement issued by the Agriculture Department on
March 10.
The purpose of the discount cards is to reduce
out-of-pocket drug costs. But when a person's drug expenses
go down, state officials said, the food stamp program
assumes that the person has more money available to spend
on other needs, including food. So the person may receive a
smaller food stamp allotment, they said.
Judy K. Toelle, the food stamp director in South Dakota,
confirmed that such cuts would occur under the federal
rules. For example, she said, a woman with monthly income
of $1,060, shelter expenses of $555 and drug costs of $325
now receives $51 a month in food stamps. But, she said, if
the card reduced her out-of-pocket drug costs by $100, the
woman would get $41 less in food stamps, so the net saving
would be $59.
Food stamp officials in California, Colorado, Missouri ,
New Mexico and Washington State said they were simply
following federal rules in reducing food stamp benefits to
take account of the fact that people with discount cards
spent less on prescription drugs. Those regulations have
not been changed.
But after inquiries from The New York Times, Eric M. Bost,
an under secretary of agriculture, said, "We will
immediately be clarifying policy guidance to ensure that
food stamp applicants or recipients who use the new
Medicare discount card will experience no impact on their
eligibility or benefits."
The abrupt shift highlights the confusion between federal
and state officials, and between the two federal agencies
that administer Medicare and food stamps.
Medicare officials said on Tuesday that they were unaware
of the Agriculture Department policy.
Dr. Mark B. McClellan, administrator of the federal Centers
for Medicare and Medicaid Services, said the drug card,
which carries a $600 subsidy for low-income people, was not
supposed to "take away any existing federal benefits."
The Senate Democratic leader, Tom Daschle of South Dakota,
welcomed the promise to avoid any cuts in benefits. "This
reversal in policy by the administration means that seniors
will no longer have to worry about making a painful
decision between their food stamp assistance and getting
this help with their prescriptions," he said. Still, Mr.
Daschle said, the discount card "is hopelessly confusing
and does not meaningfully lower drug costs," a view
expressed by substantial numbers of the elderly.
Senator Charles E. Grassley, Republican of Iowa, said, "The
drug discount card program has been the target of a
deliberate campaign to discredit it and confuse seniors."
Medicare beneficiaries began signing up for the cards on
May 3 and have used them since June 1. Dr. McClellan said 3
million of the 41 million Medicare beneficiaries had cards.
Federal officials said the cards would reduce retail drug
prices by 10 percent to 25 percent, with savings as high as
65 percent on some generic drugs. In addition, individuals
with annual incomes of $12,569 or less and couples with
incomes of $16,862 or less are eligible for the credit of
$600 a year in 2004 and 2005.
Sharon Regensberg, the food stamp policy chief at the New
Mexico Department of Human Services, said it was clear that
the $600 subsidy should not be counted as income in
determining eligibility for food stamps. But she added:
"Will the discount card affect food stamp benefits? Yes, it
could. It could reduce the client's out-of-pocket medical
expenses, the medical deduction and the amount of
benefits."
Bush administration officials said they had not decided how
to avert such cuts. The government may have to allow
Medicare beneficiaries to take a deduction for medical
expenses they do not actually incur.
nytimes.com |
