Frist and Hastert Seek to
Move Medicare Conference Forward
November 14, 2003 - In an effort to break the log-jam
in negotiations between the House and Senate Medicare conferees,
House Speaker Dennis Hastert (R-Ill.) and Senate Majority
Leader Bill Frist (R-Tenn.) Nov. 11 proposed a scaled-back
plan for competition between traditional, fee-for-service
Medicare and private health plans. However, many lawmakers
continue to criticize the proposal, saying it would weaken
the program.
The House and Senate Republican leaders called in the only
two Democrats who have been included in the Medicare negotiations
- Sens. Max Baucus (D-Mont.) and John Breaux (D-La.) - to
present the compromise on premium support. The proposal would
allow private health plans to compete against Medicare fee-for-service
in one unspecified region of the country and four large metropolitan
areas. The competition would occur in areas where Medicare
beneficiaries were enrolled in a certain percentage of private
plans.
Despite Breaux and Baucus's somewhat positive reaction to
the compromise, Senate Minority Leader Tom Daschle (D-S.D.),
Sen. Edward Kennedy (D-Mass.) and House Minority Leader Nancy
Pelosi (D-Calif.) asserted their opposition to the proposal.
"A Medicare prescription drug deal that leaves millions
of seniors at the mercy of HMOs, increases costs for many
seniors, and forces millions of seniors to lose coverage from
their employers is not a good plan," stated Mrs. Pelosi.
Rep. Bill Thomas (R-Calif.), chair of the Medicare conference,
was not included in the initial Hastert/Frist/Breaux/Baucus
discussions.
The conferees have also reportedly agreed to language on
tax deferred health savings accounts and financial incentives
to private employers to continue providing retiree drug benefits
once the Medicare drug benefit begins. The conferees are also
reportedly considering an 18-month moratorium on physician
investment in niche hospitals.
Once an agreement is reached, the conferees will ask the
Congressional Budget Office to score the overall proposal
before taking an agreement to the House and Senate floor for
debate. The conferees continue to seek completion on an agreement
early the week of Nov. 17 so that the bill can be considered
before Congress's scheduled adjournment date of Nov. 21.
Information:
Lynne Davis Boyle, Assistant Vice President
AAMC Office of Governmental Relations
ldavisboyle@aamc.org
(202) 828-0526
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