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Medicare Maneuvering Resumes Next Week

January 12, 2004

The New Medicare • Battle Resumes in 2004 • New bill restricts some choices • Medicare chief jumps to "consulting" world • What it means for consumers • AARP puts Medicare bill over the top

When Congress reconvenes January 20, the recently enacted Medicare law will still be a hot issue. Democrats are vowing to rewrite the law to reduce the role of private health plans, to increase drug benefits and to authorize the government to negotiate drug prices.

Senate Democratic Leader Thomas Daschle (D-SD) and Sen. Edward M. Kennedy (D-MA) have already introduced bills to amend the new law to allow Americans to import prescription drugs from Canada; fill the prescription drug "doughnut hole" coverage gap and abolish the demonstration project which will require traditional Medicare to compete directly with private plans beginning in 2010.

Democratic House members convened five dozen town hall meetings around the country last month to spread their objections to the law and Senate Democrats are planning a similar effort.

Families USA is producing a film, narrated by Walter Cronkite, that it will use as part of a springtime campaign to stir up opposition to the measure.

Several states with prescription drug assistance programs have also weighed in on the new Medicare law, saying it remains unclear how it will affect prescription drug costs for their elderly residents.

In the Democratic weekly radio address Saturday, Wisconsin Gov. Jim Doyle said, "Instead of using Medicare's enormous bargaining power to get the best discounts for our seniors, American taxpayers and seniors will be forced to foot the bill for greater drug company profits."

Meanwhile, the Bush Administration and Republican Congressional leaders are ramping up a massive nationwide public relations campaign aimed at convincing older Americans that the new law is good news for them. Republicans are hoping to use it as a key weapon in this year's elections.

There was intense lobbying last year when the bill was being considered in Congress, which is hardly surprising. What's unusual -- and alarming to some Republican operatives -- is that the law's opponents have continued the campaign even after the measure has been signed into law.

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