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Senior Citizen Politics

Medicare is Target for Change by Democrats and Republicans in Weeks Ahead

Republicans may revoke physician pay cut, Democrats HMO subsidy

November 10, 2006 – A flurry of activity impacting Medicare is expected in the remaining days of the lame duck Republican Congress and the early days of the new Democratic Congress. A major battle is already shaping up over a powerful Democrat’s proposal that Medicare stop subsidy payments to HMOs. The pay cut for physicians in 2007 that Medicare has declared looks likely to face a move by Republicans to eliminate the cut or modify it, which may have Democratic support.

Click here to the Daily Health Policy Report - KaiserNetwork.orgCapitol Hill Watch: House Democrats Likely To Focus on Medicare HMO Payments

The "most immediate effect" of the Democrats' takeover of the House might be a cut in payments to Medicare HMO plans, the Boston Globe reports.

Rep. Pete Stark (D-Calif.), who is expected to become chair of the House Ways and Means Subcommittee on Health, has said he wants to roll back the portion of the 2003 Medicare law that boosts payments to Medicare HMOs offered by private insurance companies (Rowland, Boston Globe, 11/9).

 

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Senior Citizens Certain to See Lower Priced Drugs with Democrat Wins

Other than Iraq War, senior issues may have been most important to voters

By Tucker Sutherland, editor

November 8, 2006 – The results from yesterday's election showing Democrats gaining control of the House of Representatives and close to control of the Senate signals major changes ahead that directly impact senior citizens. First, the price of prescription drugs is going to go down. And this was the final nail in the coffin that contains the private accounts proposed by President Bush for Social Security. "Tonight we have made history; now let us make progress," said House Democratic leader Nancy Pelosi. Read more...

Privatizing Medicare: The Train has Already Left the Station

By The Center for Medicare Advocacy

October 25, 2006 - While the country debates the merits and concerns about Social Security privatization, Medicare has been morphed into a set of private plans with little attention or discussion. The private Medicare train is already out of the station. Read more...

Medicare Drug Program News

Pharmaceuticals Pour Millions into GOP Races to Avoid Negotiating Prices with Medicare

Democrats promising negotiated drug prices in Medicare like VA

October 25, 2006 – It is not talked about much in the Congressional campaigns but an issue that is having a major impact on the cash contributions in key races is the question of allowing Medicare to negotiate better prices on drugs with the pharmaceutical companies, as is done by the Veterans Administration. Read more...


Read more on Politics for Senior Citizens

 

House Minority Leader Nancy Pelosi (D-Calif.), who is expected to become House speaker, has said that within the first 100 hours after the House convenes, she will seek to pass legislation to allow Medicare to negotiate directly with pharmaceutical companies for discounts on prescription drugs.

Democrats also are "likely to propose changes to Medicare price formulations for expensive injectible cancer drugs" and might "revive debate over the issue of importing cheaper prescription medicines from Canada and other countries," the Newark Star-Ledger reports (Todd, Newark Star-Ledger, 11/10).

According to CongressDaily, legislation by Rep. Henry Waxman (D-Calif.) that "sets up a process for the FDA to approve generic versions of so-called biologic drugs now stands a stronger chance of seeing House action."

Waxman also might "spotlight issues such as drug safety and off-label marketing," according to CongressDaily (Vaughan, CongressDaily, 11/10).

Industry Reaction
Charles Baker, CEO of Harvard Pilgrim Health Care, said that Medicare HMO payments approved in 2003 have bipartisan support. Baker said, "I wouldn't assume right out of the gate there is going to be a dramatic change in status" (Boston Globe, 11/9).

Catherine Bennett, a partner for Venable and a pharmaceutical industry lobbyist, said that allowing the federal government to directly negotiate Medicare drug prices "would just be chilling."

Bennett said, "If the federal government is suddenly setting the cost of your product, you might get short-term savings in the Medicare program, but where do you get the money for the next generation of innovative drugs?" (Vaughan, CongressDaily, 11/10).

Pharmaceutical Research and Manufacturers of America spokesperson Ken Johnson said, "Throughout the history of our country, price controls have led to shortages and fewer choices by consumers. We don't believe conservative or moderate Democrats want that to happen."

Johnson added, "We're going to be in a challenging environment, but we're convinced our arguments will resonate with many common-sense Democrats."

James Greenwood, president of the Biotechnology Industry Organization, said drug makers could benefit from Democratic control in such areas as stem cell research.

Ira Loss, senior health care analyst at Washington Analysis, said, "For investors in drug stocks, you better tighten your seat belts. It's going to be a bumpy ride." Loss added that Democratic senators from states with high concentrations of pharmaceutical and biotech companies -- such as New Jersey and Massachusetts -- "are very attuned to the fact of the jobs created by these industries."

Loss said, "Any legislation that might imperil the companies might be watered down" (Newark Star-Ledger, 11/10).

Lame-Duck Session – Physician Pay Cut by Medicare

 

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Medicare Final Rule Cuts Physician Pay Five Percent for 2007

CMS says rule encourages more physician-patient communication

November 3, 2006 – The 5.1 percent cut in pay for physicians in 2007 proposed by Medicare has been reduced to something closer to 5 percent, according to the final rule issued by the Centers for Medicare & Medicaid Services this week. The war may not be over, however, since the American Medical Association was still pressing Congress to override the pay cut when they took their election recess. (See AMA reaction in sidebar.) Read more...


Read more on Politics for Senior Citizens

 

In related news, the 109th Congress in its lame-duck session beginning next week might consider legislation to revoke a cut to physician Medicare reimbursements scheduled to go into effect in January 2007, according to an aide to Senate Majority Leader Bill Frist (R-Tenn.), CongressDaily reports (Wodele et al., CongressDaily, 11/10).

One possibility is combining legislation addressing Medicare reimbursements with tax relief legislation that is supported by both parties (Abrams, Washington Examiner, 11/10).

Frist and Senate Minority Leader Harry Reid (D-Nev.) are working to "finish up as many spending measures as possible next week," CongressDaily reports (Wodele et al., CongressDaily, 11/10).

Congress so far has passed only two of 11 appropriations bills -- defense and homeland security -- for fiscal year 2007, which began Oct. 1. Congress still must address all other domestic programs, which have a combined budget of $460 billion.

Republican leaders in the House are "leaning toward" passing a continuing resolution, which would fund federal programs at 2006 budget levels into January 2007, the AP/Examiner reports.

The Democrat-led 110th Congress then would have to address those appropriations "at a time when they are ... trying to launch action on their agenda," the AP/Examiner reports (AP/Washington Examiner, 11/10).

President Bush on Thursday said he wants the 109th Congress to finish FY 2007 appropriations instead of passing a long-term continuing resolution. Reid on Thursday in a letter to Frist said Democrats would cooperate with Republicans on appropriations and tax cut legislation (Wodele et al., CongressDaily, 11/10).

 

"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.”

 

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