Vote on House GOP Medicare Reform Package Could Come Before July 4 Recess, CQ’s Carey Says

House Republicans are expected this week to unveil their Medicare reform package, which includes a prescription drug benefit, and they hope to move the bill "swiftly" through committee to a floor vote, possibly before the July 4 recess, Congressional Quarterly reporter Mary Agnes Carey says in this week's "Congressional Quarterly Audio Report" (Carey, "Congressional Quarterly Audio Report," 6/10). Under the proposed drug benefit, seniors would pay 20% of their annual drug costs up to $1,000 and 50% from $1,000 to $2,000, with a $250 deductible. They would pay 100% of costs from $2,000 to $4,500, after which a catastrophic benefit would begin (Kaiser Daily Health Policy Report, 6/5). Carey notes that Democrats likely will criticize the proposal because of its "so-called hole of coverage" -- seniors would be responsible for all drug costs between $2,000 and $4,500. Further, Democrats will "attack" the bill because it would rely on private insurance companies to negotiate prices; Democrats maintain HHS should negotiate lower drug prices for Medicare beneficiaries. Despite their criticisms, Democrats probably will not be able to defeat the package, Carey says. However, they might be able to "shape the bill in smaller ways, such as increasing" the amount of subsidies for lower-income seniors, Carey adds. Even if the package passes the House, it likely will not be approved by the Senate, where Democrats are developing their own plan and probably will not allow the House GOP plan on the floor, she notes.

Homeland Security Could Derail Action
President Bush's proposal to create a Cabinet-level Office of Homeland Security could be a "distraction" for senators and representatives working on Medicare reform, as well as mental health parity, patients' rights and cloning, Carey says. "Something as important and politicized as homeland security will command their time and attention," Carey adds, noting that "health care may have to wait a while longer in the sense of coming to the floor for votes" ("Congressional Quarterly Audio Report," 6/10). Carey's report is available online.