Prescription Drug Benefit Bill Unlikely To Meet Memorial Day Deadline, CQ’s Carey Says

Although House Speaker Dennis Hastert (R-Ill.) earlier this month predicted that the House would act on a Medicare drug benefit proposal before the Memorial Day recess, House Republicans have objected to the proposal "on a variety of fronts," announcing last week they would not bring the bill to the floor before the break, Congressional Quarterly reporter Mary Agnes Carey says in this week's "Congressional Quarterly Audio Report." According to Carey, some House Republicans are "worried" that the portion of the package that would increase payments to Medicare providers is "not generous enough." Other Republicans have objected to the drug benefit proposal's structure (Carey, "Congressional Quarterly Audio Report," 5/13). Under the proposal, Medicare beneficiaries would pay monthly premiums of $35 to $40, with a $250 annual deductible. Beneficiaries would receive coverage for 70% to 80% of the first $1,000 of their annual prescription drug costs and coverage for 50% of their annual costs between $1,000 and $2,250. Seniors would have to cover 100% of their annual prescription drug costs between $2,250 and $5,000, with the federal government covering 100% of annual costs beyond $5,000. The bill also would cover all drug costs for beneficiaries with annual incomes less than 135% of the federal poverty level, and seniors with annual incomes slightly more than that level would receive aid on a sliding scale (Kaiser Daily Health Policy Report, 5/6). Although some Republicans still hope the proposal will reach the House floor before Memorial Day, Carey says it might not be addressed until June. However, she added that the timing of the proposal "really isn't an issue" because Republicans' "overall goal" is to pass a Medicare drug benefit so they can "campaign on it [in] the fall elections." Meanwhile, Democrats are "launching a full-scale attack" on the drug industry. Democratic proposals include bills that would allow Americans to reimport U.S.-made drugs from Canada, "tighten" laws governing patent extensions for brand-name drugs and limit the tax deductions pharmaceutical companies can claim for marketing expenses, Carey says.

CMS Hearing
Carey predicts that during a House Small Business Committee hearing scheduled for this week, Democratic and Republican legislators will target CMS, which they believe does not operate the way "Congress intended" and "overstep[s] its bounds." The panel is likely to target the way CMS deals with small businesses, including medical equipment firms, Carey says. CMS Administrator Tom Scully probably will attempt to "make amends" at the hearing after refusing to testify in front of the panel last month, Carey adds ("Congressional Quarterly Audio Report," 5/13). Carey's report is available online.