In Last Days Before Memorial Day Recess, Congress Leaves Many Health Issues Unresolved, CQ’s Goldreich Says

As Congress prepares to adjourn for a weeklong recess beginning May 24, several health care issues remain unresolved, including action on a Medicare drug benefit and the uninsured, Congressional Quarterly senior reporter Samuel Goldreich says in this week's "Congressional Quarterly Audio Report." Although lawmakers began 2002 with a large health agenda, they have accomplished "next to nothing," Goldreich says, except for a provision in the trade bill that would allocate $10 billion over 10 years to assist trade-displaced workers purchase health coverage. Goldreich predicts that the trade bill will pass the Senate this week (Goldreich, "Congressional Quarterly Audio Report," 5/20). The provision, part of legislation that would renew "fast-track" trade negotiating authority for the president, would provide uninsured trade-displaced workers with advanceable tax credits to cover up to 70% of the cost of their health insurance premiums. Workers could use the tax credits to purchase health insurance through COBRA -- the 1986 Consolidated Omnibus Budget Reconciliation Act, which allows unemployed workers to retain employer-sponsored health coverage by paying 102% of the premiums -- or through group health insurance pools established by states (Kaiser Daily Health Policy Report, 5/10). Goldreich says the tax credit provision indicates Democrats and Republicans "seem capable of a deal" on the uninsured that would combine tax credits with public health programs, such as Medicaid, the CHIP program or another "pooled-risk system."

Medicare Reform
The deadline House Republicans have set to approve a Medicare drug benefit is this week, but House Speaker Dennis Hastert (R-Ill.) has been unable to secure enough votes for the plan, meaning that action will be delayed until June, Goldreich says. He adds that the November election, rather than reaching a deal on a drug benefit, seems to be where "everyone's minds" are ("Congressional Quarterly Audio Report," 5/20). Under Republicans' $350 billion, 10-year Medicare drug benefit proposal, beneficiaries would pay monthly premiums of $35 to $40, with a $250 annual deductible to 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, but the legislation would cover 100% of annual costs of more than $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 above that level would receive aid on a sliding scale (Kaiser Daily Health Policy Report, 5/6). Although President Bush in his weekly radio address urged Congress to approve a prescription drug benefit, he offered no "advice on how to pay for anything," which is preventing House Republicans from moving forward, Goldreich says. He adds that Sen. Bob Graham (D-Fla.) will likely introduce the Senate Democrats' $425 billion Medicare proposal next month ("Congressional Quarterly Audio Report," 5/20). That proposal would give seniors coverage for 50% of their annual prescription drug costs less than $4,000 and coverage for 100% of annual costs more than $4,000. Seniors would pay a $25 monthly premium and no annual deductible (Kaiser Daily Health Policy Report, 5/6). The full report is available online.