Pass Medicare Prescription Drug Benefit This Year Before Cost Estimates Increase, Graham Says

With hope "dimming" for markup on a Medicare reform bill before the August recess, Sen. Bob Graham (D-Fla.) warned on July 18 that if Congress failed to pass a prescription drug benefit this year, lawmakers would not likely address the issue again until 2003, CongressDaily reports. He said that the "problem [of passing a drug benefit for Medicare] is [then] not just political, but budgetary." As Graham explained to reporters at a breakfast news briefing, the Congressional Budget Office next year will make 10-year cost estimates that include the year 2012, when the Medicare rolls will likely have increased from the previous year (Rovner, CongressDaily, 7/18). Current CBO 10-year cost estimates look at 2002 to 2011. However, next year, the 10-year window will be from 2003 to 2012 (CBO Web site, 7/18). Graham stated that eight million additional Medicare beneficiaries are expected to enter the program in 2012. As a result, any cost estimates for drug benefits for Medicare from 2003 to 2012 will be "more expensive" than those for 2002 to 2011. He added that the shift would boost the estimated cost of a prescription drug benefit "well in excess" of the $300 billion provided in the FY 2002 budget resolution that Congress passed earlier this year, a figure that he said would fund "acceptable, but not lush" drug coverage for seniors. In addition, although Republicans and some Democrats hope to "merge" the $792 deductible for Medicare Part A -- which covers primarily hospital, home health, skilled nursing facility and hospice care -- and the $100 deductible for Part B -- which covers primarily doctors' bills and other outpatient expenses -- Graham said that the proposal represents a "poison pill," pointing out that 80% of Medicare beneficiaries use no hospital services each year. Therefore by creating a combined $400-$500 deductible, Graham said that many beneficiaries would pay much more for the care they receive without an increase in the level of services. Senate Finance Committee members plan to meet today and hope to present a Medicare reform proposal for a committee markup next week or the following week (CongressDaily, 7/18). Additional information concerning Medicare premiums and deductibles is available online at the CMS Web site.