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Copyright 2000 The New York Times Company  
The New York Times

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November 1, 2000, Wednesday, Late Edition - Final

SECTION: Section A; Page 22; Column 1; National Desk 

LENGTH: 894 words

HEADLINE: Clinton Raises Stakes in the Battle Over a Bigger Medicare Pot

BYLINE:  By ROBERT PEAR 

DATELINE: WASHINGTON, Oct. 31

BODY:
President Clinton escalated the fight over Medicare spending today, demanding that Congress shift money to health programs for poor people, disabled children and legal immigrants.

But Republicans rebuffed White House pleas to negotiate on the issue and said they felt they had the upper hand. The two sides are in broad agreement that the Medicare program should receive more money -- about $30 billion, or 2.3 percent more over five years. But the fight over how to distribute the money threatens to sink the plan, jeopardizing the expected increase in payments to health care providers.

A Republican tax bill passed last week by the House would authorize new Medicare benefits, for preventive care, and would increase Medicare payments to health care providers, including health maintenance organizations, hospitals, nursing homes, hospices and home health agencies.

The health care industry strongly supports the Medicare provisions of the bill. But President Clinton has threatened to veto it, saying it includes huge tax breaks for the wealthy and "an unjustifiable spending increase for H.M.O.'s."

Most Republicans and some Democrats say the increase is needed to prevent wholesale defections of private health plans from the Medicare program.

Representative Bill Thomas of California, the Republican spokesman on health care issues, said, "The president sees imperfections in this bill for political reasons."

Republicans from the House and the Senate have agreed on the Medicare legislation. Asked if he would negotiate with the president, Mr. Thomas said: "This measure is done. All the president has to do is sign it. We don't need another version."

Chris Jennings, the health policy coordinator at the White House, said tonight, "We've tried to reach out to the Republicans, but have not had any negotiations."

Representative Collin C. Peterson of Minnesota, a conservative Democrat, said: "If this bill is vetoed, I'm not sure you'll get another bill. We'll be a long way into next year before we get more money out to hospitals, nursing homes and home health agencies."

Congress cut payments to health care providers in the Balanced Budget Act of 1997, but the savings have far surpassed what it expected.

Thomas A. Scully, president of the Federation of American Hospitals, which represents 1,700 hospitals, said: "There has been an assumption all year, a 99 percent certainty, that Congress would fix the Balanced Budget Act. But if Congress goes into a lame duck session, there's no certainty. I'm very worried that we would lose the momentum for this legislation in a lame duck session."

The prospect of a delay has alarmed hospitals, which say they need immediate financial relief.

About 6.2 million elderly and disabled people -- 16 percent of the 39 million Medicare beneficiaries -- are in H.M.O.'s. But White House officials say that H.M.O.'s would get 34 percent of the new Medicare spending.

Mr. Clinton will be president for only 12 more weeks, but he is not acting like a lame duck. He is trying to force Congress to accept his priorities on a wide range of second-tier issues, even as he acknowledges that two of his biggest hopes, for Medicare drug benefits and a federal law defining patients' rights, will probably go unfulfilled.

In documents circulated today on Capitol Hill, Mr. Clinton set forth his demands. He insisted that Congress allow Medicaid coverage for pregnant women and children who are legal immigrants, let working parents buy Medicaid coverage for children with disabilities and make it easier for children to enroll in Medicaid, at schools and homeless shelters across the country. (Under the 1996 welfare law, new immigrants generally cannot receive Medicaid until they have lived in the United States for five years.)

The dispute over Medicare payments to H.M.O.'s crystallizes several years of frustration. White House officials say it is simply unacceptable to increase payments to health plans that have blocked bipartisan efforts to define patients' rights.

For their part, H.M.O.'s say Mr. Clinton's latest proposals show that he has little comprehension of how health care markets work: he would lock them into Medicare for three years at a time, even though their contracts with doctors and hospitals often last no more than a year.

Diana C. Dennett, executive vice president of the American Association of Health Plans, a trade group for H.M.O.'s, said: "No responsible party would get into such an arrangement. Health plans would be locked into Medicare for three years, with no concept of how much they would be paid by the government in the second or third year."

Mr. Jennings, the White House official, said: "We are not rejecting all H.M.O. payment increases. The president simply wants accountability and a more equitable distribution of resources to beneficiaries and health care providers."

Republicans say the president should sign the bill because of the new benefits it would provide Medicare recipients.

The bill would, for example, expand coverage of mammography, Pap smears and pelvic examinations for women, broaden coverage of colonoscopies to detect colon cancer and pay for eye examinations to detect glaucoma, a major cause of blindness.

The bill also promises to reduce the cost of outpatient hospital care for Medicare beneficiaries.        http://www.nytimes.com

LOAD-DATE: November 1, 2000




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