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Medicare News

President Praises Resigning Head of Medicare, Medicaid

Wide range of opinions on aftermath of McClellan departure

Mark McClellanSeptember 6, 2006 – President Bush issued a statement late yesterday saying Mark McClellan, who is resigning as administration of the Centers for Medicare & Medicaid Services "was critical in the successful implementation of the Medicare prescription drug benefit -- the most important health care reform in 40 years." KaiserNet.org tracked down other reaction and speculation, too, in the daily report today. (See Bush statement below news report.)

Click here to the Daily Health Policy Report - KaiserNetwork.orgExperts React, Speculate on CMS Administrator McClellan's Departure

The resignation of CMS Administrator Mark McClellan -- who announced on Tuesday that he will leave the agency in about five weeks -- "creates a critical vacancy as the Bush administration enters its final two years, a time when skilled political appointees typically think of leaving the government rather than joining it," the Washington Post reports (Lee, Washington Post, 9/6).

 

Related Stories

 
 

McClellan Says He is Leaving Post at Centers for Medicare and Medicaid Services

CMS Deputy Leslie Norwalk 'obvious candidate' for acting administrator

September 5, 2006 - Rumors were rampant over the weekend that Mark McClellan would resign soon as head of the Centers for Medicare and Medicaid Services. Although there has been no official announcement, he has confirmed to the Associated Press he will leave the office within five weeks, according to a report in KaiserNet.org. Read more...


Read more on Medicare or Medicare Drug Program

 

McClellan, a medical doctor and economist, said he wants to spend more time with his family and probably will join a think tank or take a position in academia (Rockoff, Baltimore Sun, 9/6).

A replacement for McClellan has not been named, but potential nominees include CMS Deputy Administrator Leslie Norwalk; Herb Kuhn, director of the Center for Medicare Management at CMS; and Julie Goon, a special assistant to President Bush and former director of Medicare outreach at HHS, the Post reports (Washington Post, 9/6).

According to the Sun, McClellan's successor "will face an unwieldy, highly political job" that includes oversight of Medicaid and Medicare -- which together provide health benefits for about 90 million U.S. residents -- and management of a $600 billion federal budget (Baltimore Sun, 9/6).

In addition, the Post reports, "if the Democrats regain control of the House in the November elections, the next administrator can expect to be grilled repeatedly at congressional hearings designed to spotlight Bush policies that Democrats oppose" (Washington Post, 9/6).

Potential Issues
McClellan's successor faces two "huge" political challenges: "how to reverse increases in the number of people without health insurance and how to pay for Medicare and Medicaid, whose costs are expected to soar as millions of baby boomers age," the New York Times reports (Pear, New York Times, 9/6).

Another "immediate task" facing the next administrator will be addressing issues with the Medicare prescription drug benefit, the Sun reports. The next administrator also will have to address a scheduled cut in Medicare reimbursements to physicians, which is opposed by some members of Congress (Baltimore Sun, 9/6).

Later this year, a special Medicaid commission is scheduled to issue a report that is expected to recommend "big cost cuts in the program," while Congress next year will debate whether to reauthorize the SCHIP program, according to the Post (Washington Post, 9/6).

Comments
Bush in a statement said, "Mark has been a trusted adviser, and he leaves behind a strong record of accomplishment" (Baltimore Sun, 9/6). Bush added, "He played an instrumental role in transforming the nation's health care system, and his efforts will continue to make a difference for generations" (Freking, AP/Miami Herald, 9/6).

Senate Finance Committee Chair Chuck Grassley (R-Iowa) said, "It takes a skilled administrator to juggle the agency's competing interests of offering the highest possible service to beneficiaries while keeping down costs to preserve the programs for future beneficiaries" (Washington Post, 9/6). Grassley added, "I hope his departure doesn't cause delays in getting Part D snags fixed for beneficiaries, and that he'll correct all known problems before he leaves" (Baltimore Sun, 9/6).

Rep. Pete Stark (D-Calif.), said McClellan was "smart to step down before at least seven million Medicare beneficiaries hit the prescription drug program's 'doughnut hole'" (Reichard, CQ HealthBeat, 9/5).

More Comments
John Rother, director of policy at AARP, said that McClellan is "a star, and certainly when you lose a star there is an effect, but I think (Medicare) has changed and will not fall back automatically to what it was before" (Alonzo-Zaldivar, Los Angeles Times, 9/6).

 

"Reprinted with permission from kaisernetwork.org You can view the entire Kaiser Daily Health Policy Report, search the archives, and sign up for email delivery at www.kaisernetwork.org/dailyreports/healthpolicy. The Kaiser Daily Health Policy Report is published for kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation. © 2006 Advisory Board Company and Kaiser Family Foundation. All rights reserved.”

 

Ken Johnson, senior vice president for the Pharmaceutical Research and Manufacturers of America, said, "He never panicked, he made important midcourse corrections, and, frankly, he's a big reason why the new prescription drug program is viewed as a success."

Ron Pollack, executive director of Families USA, said, "In the context of an administration that doesn't make health care a high priority and that has made a series of harmful proposals that will exacerbate the health care crisis, Mark McClellan served in an admirable way to try to implement the administration's policies in the best way possible" (Washington Post, 9/6).


President's Statement on Dr. Mark McClellan Resignation as CMS Administrator

"Mark McClellan has served my Administration in a number of pivotal positions, and in doing so has bettered the lives of millions of Americans. He played an instrumental role in transforming the Nation's health care system, and his efforts will continue to make a difference for generations.

"Mark first served as a member of my Council of Economic Advisors, focusing on health care and related economic issues. He then became head of the Food and Drug Administration, where he provided steady leadership to empower consumers and to ensure rapid access to products that are safe and effective. For the last two and a half years, Mark has run the Center for Medicare and Medicaid Services in the Department of Health and Human Services. As CMS Administrator, Mark was critical in the successful implementation of the Medicare prescription drug benefit -- the most important health care reform in 40 years. He has also worked to ensure that price and quality information are available to consumers, and led reforms that brought principles of private sector competition to government programs, thereby moving the country toward a system in which Americans will receive better care at lower overall prices.

"Mark has been a trusted advisor and he leaves behind a strong record of accomplishment. I wish all the best to Mark, his wife Stephanie, and their children.

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