Bioterrorism Funding Allocation Could Reach $10 Billion, CQ’s Goldreich Says

Congress is likely to consider a bill this week that could allocate as much as $10 billion to fight bioterrorism, in the wake of anthrax scares that have temporarily closed the Capitol and House and Senate office buildings, Congressional Quarterly senior reporter Samuel Goldreich says in this week's "Congressional Quarterly Audio Report." Though President Bush asked for just $1.6 billion to fight bioterrorism, to be used primarily to expand drug stockpiles and speed vaccine development, Sens. Ted Kennedy (D-Mass.) and Bill Frist (R-Tenn.) hope to introduce a bill that would cover "everything Bush asked for and more, particularly block grants to help coordinate state, local and hospital responses." The measure would also "fold in" other legislation to "protect children" and improve fertilizer, crop and livestock safety. As of Oct. 19, congressional staff members were still negotiating the bill, but the measure could be tacked on to a broader antiterrorism bill likely to see floor debate in both houses this week.

Debate on Economic Stimulus
Meanwhile, debate over how much health insurance assistance to include in an economic stimulus package has helped "shatter the commitment to bipartisanship" in place since the Sept. 11 attacks on the World Trade Center and Pentagon. The House is expected to vote this week on a $100 billion bill that includes $3 billion in state block grants for health insurance. But debate in the Senate may "drag on for at least another week." Senate Democrats are displeased that the House bill provides "no federal guarantees" to help the unemployed with health coverage, while Republicans in the Senate Finance Committee -- where the package is under consideration -- "object to Democrats' push for a 50% subsidy of health insurance premiums" under federal COBRA law, an expansion they say would cost more than $15 billion in one year. Sending "confusing signals," the White House says the existing unemployment system is "flexible enough to respond" to the current economic situation, but also "wants a bipartisan deal." Goldreich says a compromise package is likely but not without "a couple more weeks of gridlock."

Medicare
Finally, Goldreich notes that there have been "a couple of nibbles" on the Medicare reform front. In the House Ways and Means Committee, Republicans are "floating" a plan to provide a small funding increase to Medicare+Choice plans and rural hospitals. Money for the increase would come from "shutting down the average wholesale price system" used by Medicare to pay for some medicines, which investigators say has lead to $1.9 billion in annual overpayments due to inflated price claims by drug makers. In addition, "centrist" Senate Finance Committee members are again considering a long term Medicare reform package and hope to introduce a bill outlining their position before Congress adjourns in November, though no action on such a measure will likely occur this year. Goldreich's full report can be heard online ("Congressional Quarterly Audio Report," 10/22).