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Copyright 2002 Times Publishing Company  
St. Petersburg Times

June 29, 2002 Saturday 0 South Pinellas Edition

SECTION: NATIONAL; Pg. 1A

LENGTH: 1135 words

HEADLINE: House bill still has long way to go

BYLINE: SARA FRITZ

DATELINE: WASHINGTON

BODY:
Lawmakers were exhausted at 2:30 a.m. Friday when a bill to create a prescription drug benefit for seniors finally squeaked through the House on a narrow 221-208 vote. It was the culmination of months of tedious cajoling and compromise by House GOP leaders.

Now, the hard part begins.

While the House action generates some momentum for the long-promised prescription drug coverage, there is even less of a consensus for a bill in the Senate, which is narrowly controlled by the Democrats.

And it is hard to imagine how the two chambers could reconcile their differences in the unlikely event the Senate acts.

"The chances are obviously slim," said Lee Goldberg, spokesman for a liberal advocacy group known as the National Committee to Preserve Social Security and Medicare. "From our point of view, we're starting from scratch in the Senate."

Yet the ever-optimistic Sen. Bob Graham, D-Fla., author of the bill endorsed by the Democratic leadership in the Senate, refuses to be discouraged.

"I think there are some responsible ways to approach a compromise," he said, "and I look forward to doing so and seeing the best bill possible signed into law."

Both parties have long been on record favoring creation of a drug benefit under Medicare, but Republicans are strongly opposed to spending more than $350-billion over the next 10 years. Graham's proposal would cost an estimated $425-billion.

Election-year politics dominate the legislative strategy of both parties. Neither side wants to be seen as obstructing legislation favorable to politically active senior citizens, but most lawmakers are not eager enough for a bill that they would compromise their ideological principles.

In the House, compromise between Republicans and Democrats was not necessary to pass the bill. The GOP leaders relied primarily on members of their own party to prevail. Even so, they were surprised by the level of opposition they encountered in their own ranks. Some Republican conservatives wanted no bill at all; moderates wanted to make the benefits more generous.

President Bush seemed timid about embracing the House GOP bill. The White House did not endorse it until Thursday night, when it was clear the measure would pass. And the president's statement was quick to note that there are some parts of the bill he does not like.

Republican leaders refused to allow the House to vote on a competing Medicare drug benefit plan drafted by the Democrats because they feared it might pass. That, of course, made the Democrats very angry.

Democrats accused the Republicans of designing their bill to help prescription drug companies, not Medicare beneficiaries.

"Watch out, grandma," shouted Rep. Edward Markey, D-Mass., before the vote. "GOP now stands for Get Old People."

Rep. Billy Tauzin, R-La., co-author of the bill, took offense at Markey's comment.

"We all love our mothers and our fathers," he said. "We all love our grandparents. How dare you suggest otherwise."

In the Senate, most Republicans and a few Democrats seem to be opposed to the Graham bill. Because only one-third of the Senate's members are up for re-election this year, the looming election exerts much less pressure for action there than it did in the House, where every seat is up.

The first hurdle in the Senate is the Finance Committee, which will begin consideration of the issue as soon as Congress returns from the Independence Day recess. Graham will not be the only member of that committee to offer a proposal for prescription drug coverage.

A few Republicans have joined with Democratic Sen. John Breaux of Louisiana and Independent Sen. Jim Jeffords of Vermont to draft an alternative that is likely to have broader support in the committee than the Graham bill.

Even though the prospects for getting a bill out of committee are bleak, Senate Majority Leader Tom Daschle of South Dakota has said he expects the full Senate to pass a bill before the August recess.

"I am quite comfortable letting seniors decide between the House-passed bill and our Senate proposal, which is based on a tried and true delivery system - giving our seniors consistent coverage, reliable copays and no deductibles," said Graham. He added that the House plan is based on "gimmicks, gaps and gotchas."

Under Graham's bill, prescription benefit managers would be reimbursed by the government for each expenditure on behalf of a Medicare beneficiary, the same way that doctors, hospitals and other providers are currently compensated.

Under the House-passed plan, however, the drug benefit program would be managed entirely by private insurance companies in competition for Medicare subscribers.

Currently, there are no private insurers that offer drugs-only coverage. And former Rep. Bill Gradison, a Republican who until recently headed the Health Insurance Association of America, created a sensation recently when he questioned whether insurers would be interested in writing drugs-only policies.

In order to muster enough support for the bill in the House, Republicans added money to increase reimbursements under the existing Medicare program for doctors and hospitals. But the White House statement suggested Bush would rather put that money into benefits. Without the support of doctors and hospitals, none of the bills under consideration are likely to pass.

- Information from the Associated Press was used in this report.
 
How Florida voted
 
Democrats - Boyd, N; Brown, N; Davis, N; Deutsch, N; Hastings, N; Meek, N; Thurman, N; Wexler, N.
 
Republicans - Bilirakis, Y; Crenshaw, Y; Diaz-Balart, Y; Foley, Y; Goss, Y; Keller, Y; Mica, Y; Dan Miller, Y; Jeff Miller, Y; Putnam, Y; Ros-Lehtinen, Y; Shaw, Y; Stearns, Y; Weldon, Y; Young, Y.
 
Comparing the plans

Here is a comparison of the House-passed Medicare prescription drug bill and the one proposed by Sen. Bob Graham, D-Fla.:
 
HOUSE BILL                   GRAHAM'S BILL
 
Premiums of $32 a month      Premiums of $25 a month
 
$250 deductible              No deductible
 
After deductible,            50 percent copayment on drug

Medicare pays 80             costs up to $4,000, and 100

percent of drug costs        percent after that.

from $251 to $1,000 a

year, and 50 percent

of drug costs from $1,001

to $2,000, nothing

between $2,001 and

$3,700 and 100 percent

thereafter.
 
Plan would cost up to        Plan would cost $425-billion and run

$350-billion over the next   between 2004 and 2010. It would not

10 years and would continue  continue beyond that unless Congress

indefinitely                 reauthorized it.
 
Program would be             Program would be administered

administered by private      by the government.

companies in competition

with one another.

- Source: American Health Line

LOAD-DATE: June 30, 2002




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