Economic Slowdown Could Jeopardize Medicare Drug Benefit Plan, Wall Street Journal Says

A slowing economy and both parties' current focus on tax cut legislation have decreased the chances of Congress passing a Medicare prescription drug benefit this year, the Wall Street Journal reports. The issue played a "starring role" in last year's elections, but the rising prices of prescription drugs have inflated the cost of the various plans proposed by President Bush, Democrats and Republicans. Furthermore, no "political consensus" exists on the best way to administer a benefit, and the Journal reports that the "broad idea" of a benefit is still a "long way from legislative reality."

'Hell to Pay'?
Both Sen. Charles Grassley (R-Iowa), chair of the Senate Finance Committee, and Rep. Nancy Johnson (R-Conn.), chair of the House Ways and Means Subcommittee on Health, have said that they want to move a Medicare reform package, including a drug benefit, through their panels by August. However, Senate Majority Leader Trent Lott (R-Miss.) has indicated that he does not anticipate the full Senate debating any such legislation until next year, according to Grassley. And while the Bush administration last month said it would issue a list of Medicare "principles" to Congress by the end of March, the Journal reports that "indications now are that such principles won't be forthcoming anytime soon," as the "White House is loath to detract any attention from its No. 1 priority of tax cuts." Even if the president did offer guidelines, the parties remain divided over the proper role for a prescription drug benefit in Medicare, with Republicans backing a benefit accompanied by broad reform, while Democrats support only "modest changes in the traditional program." The potential inaction on a drug benefit has some lawmakers already looking towards the 2002 congressional elections, with Congress members from both parties suggesting that Democrats could attempt to blame Republicans if nothing is accomplished. Sen. Jon Corzine (D-N.J.) said, "I think there will be hell to pay if there isn't a prescription drug benefit by the time Congress faces voters in 2002" (Lueck/McGinley, Wall Street Journal, 4/5).