Dems race to stop Medicare fee hike
By: David Rogers
September 24, 2009 05:08 AM EST
House Democrats proposed Wednesday to freeze Medicare Part B premiums for the coming year rather than risk what would be an October surprise for health care reform — threatened cuts in Social Security checks for millions of elderly.
Wrangling among House chairmen derailed efforts to wrap the legislation into a must-pass stopgap spending bill for the new fiscal year that begins Oct. 1. But Democrats are encouraged by Republican reaction thus far, and House Ways and Means Committee Chairman Charles Rangel (D-N.Y.) said a free-standing bill could be voted on as early as Thursday and sent to the Senate.
The origins of the crisis have little to do with the current health care reform debate, but the timing could not be worse.
Without some intervention by Congress, Medicare is slated to announce next month increased Part B premiums, which are typically deducted from a retiree's Social Security check to help pay for physician services. This would be a routine event but for an unusual combination of circumstances this year that could result in some seniors being asked to pay as much as 14 percent more than their current premiums.
For those impacted, that increase could mean a real cut in their Social Security checks next year, since retirees aren't expected to get a cost-of-living increase in January given the drop in the consumer price index this year.
For Democrats, who hope to be on the House and Senate floors with health care legislation next month, this would be a political nightmare. And in the rush to find some solution, the party leadership opted to protect even upper-income households, who represent about a fifth of those most affected.
"We're helping everybody. Democrats have a broad tent," said Rep. Pete Stark (D-Calif.), one of the principal authors.
The Medicare scramble comes as two other year-end issues have surfaced: aid for the beleaguered Postal Service and an extension of the current federal highway program due to expire at the end of the month.
The House Appropriations Committee refused official comment Wednesday evening, but people familiar with the draft stop-gap bill being circulated by Chairman Dave Obey (D-Wis.) said it included bailout language to assist the Postal Service in dealing with its financial problems.
Proponents argue that a majority of the House has already endorsed similar provisions as part of earlier bills approved this year. But the potential cost has been estimated as high as $4 billion, and it's unclear if the language will ultimately survive.
"We don't know if it will be in there at the end of the day," said Rep. Jose Serrano (D-N.Y.), who oversees the Postal Service's appropriations. "I hope it stays in there, it's needed. The Postal Service is in very bad shape, and anything we can do to help is important."
In the case of the highway program, Democrats could at least sit back and watch the fighting among Republicans.
At issue was whether the House would back the bipartisan leadership of the Transportation and Infrastructure Committee, which is battling both the Senate and the White House over writing a new, long-term reauthorization of road and transit programs.
Many in the House believe President Barack Obama's administration should seize this opportunity to make long-term infrastructure investments to further stimulate the economy. But the White House and Senate prefer to put off this debate until after the 2010 elections, when there will be an opportunity to address the issue of new revenues to support such expenditures.
The bill Wednesday simply extended the current program for three months as this debate continues, but, playing to his political right, Minority Leader Eric Cantor (R-Va.) sought to derail the effort by denying proponents the two-thirds majority required under the procedures used.
Whip notices sent out argued that Republicans should hold firm until Democrats pledged that any long-term bill will not include an increased gasoline tax. But Cantor failed badly as his party split open — 86-85 for the bill which passed easily 335-85.
Most striking was the silence of Minority Leader John Boehner (R-Ohio). He voted with Cantor but earlier walked away without comment when a reporter asked if Republicans were opposing the bill.
Republican Rep. Steve LaTourette — from Boehner's home state of Ohio — tore into the leadership for deserting what he said was a long history of Republican support for transportation projects going back to Lincoln and the transcontinental railroad, Eisenhower and interstate highways and a gas tax increase under President Ronald Reagan.
"It's just wrong, it's just wrong," LaTourette said. "The Republican Party, despite some members of our leadership, needs to stand up and say, 'You know what ... Republicans believe in infrastructure.'"
Dems race to stop Medicare fee hike - Politico.com Print View (23 September 2009)
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