Senate Finance Committee Again Approves Tax Cut Bill; Senators Work on $20B for States

The Senate Finance Committee on May 13 voted 12-9 to approve a 10-year, $350 billion tax cut bill that is "nearly identical" to the package the committee passed last week, CongressDaily reports. The committee had to vote on the package again after the Senate Parliamentarian on May 12 ruled the panel improperly filed the bill it approved last week (MacFarland, CongressDaily, 5/13). The bill includes $20 billion in funds for states, some of which reportedly would go toward Medicaid (Kaiser Daily Health Policy Report, 5/9). Sen. Susan Collins (R-Maine) said that she and her staff, as well as Sens. Jay Rockefeller (D-W.Va.), Gordon Smith (R-Ore.) and Ben Nelson (D-Neb.), are working on final language for the $20 billion allocation to states. Collins said she will offer an amendment that would grant states $10 billion for their Medicaid programs and $10 billion to use at their discretion. Senate aides said the amendment "should pass comfortably," CongressDaily/AM reports. However, Sen. Trent Lott (R-Miss.) said he would "do my dead-level best to kill" the amendment (Vaughan/Fulton, CongressDaily/AM, 5/14). In addition, Sens. Edward Kennedy (D-Mass.) and Bob Graham (D-Fla.) are expected to propose an amendment that would provide $115 billion in additional funding for a Medicare prescription drug benefit. Further, Sen. Debbie Stabenow (D-Mich.) reportedly is working on a provision that would cancel a portion of the tax cut until Congress approves a drug benefit for Medicare beneficiaries similar to what federal employees receive (Vaughan/Fulton, CongressDaily, 5/13). Senate floor debate on the package is scheduled to start May 14, CongressDaily/AM reports (CongressDaily/AM, 5/14). A final vote is expected either May 15 or May 16, the New York Times reports (Firestone, New York Times, 5/14).

Medicare Developments
In related news, four out of five Medicare beneficiaries believe it is "important" for seniors to have a choice of health coverage other than traditional fee-for-service offering, such as Medicare+Choice, according to a poll released yesterday, the Washington Times reports. Republican pollsters Ayres, McHenry and Associates surveyed 800 Medicare beneficiaries, half of whom are in traditional Medicare and half of whom have coverage through Medicare+Choice, between May 4 and May 6. Karen Ignagni, president and CEO of the American Association of Health Plans, which commissioned the poll, said, "As Congress considers legislation to modernize Medicare and add prescription drug coverage, it should listen to seniors and offer more choices" (Pierce, Washington Times, 5/14). Meanwhile, Dr. Cristina Beato, HHS principal deputy assistant secretary for health, and Reps. Jim Gibbons (R-Nev.) and Jon Porter (R-Nev.) on May 12 met with a group of Medicare beneficiaries in Henderson, Nev., to discuss the Bush administration's proposed Medicare reform framework, the Las Vegas Sun reports (Pratt, Las Vegas Sun, 5/13).