Cheney Breaks Tie to Pass Medicare Prescription Drug Funding Measure as Senate Reviews Bush’s Budget

Vice President Dick Cheney yesterday broke the first tie in the evenly divided Senate to pass a GOP-sponsored amendment to President Bush's proposed budget package that would allow Congress to spend up to $300 billion over 10 years for a Medicare prescription drug benefit, but only as part of an "overhaul" of the program, the Philadelphia Inquirer reports. Bush's $1.9 trillion FY 2002 budget plan proposes to cut taxes, limit spending and outline policy priorities over the next 10 years (Kuhnhenn/Koszczuk, Philadelphia Inquirer, 4/4). The amendment, sponsored by Senate Finance Committee Chair Charles Grassley (R-Iowa), did not "spell out the details" for a drug benefit or "specify what would constitute" Medicare reform, the Atlanta Journal-Constitution reports. Grassley called the measure "the right approach because nobody's got a crystal ball to know exactly how much money legislation to reform Medicare and add a prescription drug benefit will cost" (Lipman, Atlanta Journal-Constitution, 4/4). According to Grassley, part of the additional funding could come from the "projected" Medicare Part A surplus without "negatively affecting" the trust fund's solvency. He said that the Senate Finance Committee would propose Medicare reform legislation by "late July" (Rovner, CongressDaily, 4/3). The plan would almost double the $153 billion that Bush has proposed for Medicare reform, including a drug benefit (AP/Richmond Times-Dispatch, 4/4). According to the Journal-Constitution, the vote "clearly showed that lawmakers agree" that Bush's prescription drug benefit proposal "does not go far enough" to help seniors with prescription costs (Atlanta Journal-Constitution, 4/4). USA Today reports that the vote also put some Republicans, who campaigned last year for a drug benefit, "on the spot" (Welch, USA Today, 4/4).

'Shell Game' or 'Commitment'?
Meanwhile, Democrats criticized the Republican measure, warning that the "amendment does not do what Republicans say it does" and, by "taking money" from Medicare Part A, would "deplete that fund even sooner" than projected. Sen. John Kerry (D-Mass.) said, "What you are seeing is a shell game where they're robbing Peter to pay Paul, but they won't pay Paul because there is no money there." Sen. Kent Conrad (D-N.D.) said, "We ought to call it the 'Grassley raid the trust fund amendment.'" However, Grassley said, "This amendment represents Senate Republicans following through on their commitment ... to strengthen and improve Medicare" (Rovner, CongressDaily/A.M., 4/4). Democrats and some Republicans have "charged" that using Medicare Part A funds to finance a prescription drug benefit would "only deepen the program's long-term financial problems," but Grassley and House Ways and Means Committee Chair Bill Thomas (R-Calif.) said that "represents a misunderstanding of the way the funds are accounted for." Thomas said, "I can assure you the Part A trust funds are not in a sock. They're not in a coffee can," adding that "the obligations that are going to have to be met (for Medicare) when there's no longer a surplus are going to have to be met, regardless" (CongressDaily, 4/3).

Democratic Rx Proposal Nixed
In addition to passing the GOP measure, the Senate yesterday also rejected, on a 50-50 vote, a Democratic amendment that would have shifted about $158 billion from Bush's 10-year, $1.6 trillion tax cut to provide a larger prescription drug benefit under Medicare than Bush has proposed. The measure, sponsored by Sens. Max Baucus (D-Mont.) and Bob Graham (D-Fla.), would have allocated $311 billion over 10 years for a drug benefit and "trim[med]" Bush's tax cut package. "A large tax cut is an important priority, but so is the health and welfare of our senior citizens," Baucus said (AP/Investor's Business Daily, 4/4). While Bush's plan would "only go" to low-income seniors, Democrats want to "widen" the proposal to cover all seniors and "cut the size of Bush's tax cut to pay for it," USA Today reports (USA Today, 4/4). Baucus and Graham said the amendment would have required reducing Bush's tax cut by "less than 10%" (CongressDaily, 4/3). The Wall Street Journal reports that the Senate votes yesterday "appeared to solidify" support for Bush's budget plan, with the White House and Republican supporters "increasingly confident" that the proposal will pass (Hitt, Wall Street Journal, 4/4).

'Razor's Edge Margin'
However, the AP/Richmond Times-Dispatch reports that the votes "underlined the razor's edge margin" held by Republicans and "highlighted the partisan divide" in the budget battle, with only Sens. Lincoln Chafee (R-R.I.) and Zell Miller (D-Ga.) "defect[ing]" from their parties. In addition, leaders from both parties said they hope to "nail down" votes from moderates (AP/Richmond Times-Dispatch, 4/4). The Wall Street Journal reports, for example, that GOP leaders have "edge[d] closer" to "cementing support" from Sen. Jim Jeffords (R-Vt.), a vote "considered crucial" to passing the budget (Wall Street Journal, 4/4). They have also targeted Sen. Ben Nelson (D-Neb.). According to USA Today, "both men had their price," with Jeffords asking Bush to "pledge" an additional $180 billion over 10 years for a program to help disabled students and Nelson lobbying for additional agricultural spending (USA Today, 4/4). Meanwhile, "maverick" Sen. John McCain (R-Ariz.) has remained "uncharacteristically mum" about Bush's budget package. He said, "I would lean towards giving the president his budget," but added, "I'm going to keep my powder dry ... until I see what's shaping up" (Earle, CongressDaily/A.M., 4/4).