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Kaiser Daily Health Policy Report


Thursday, February 06, 2003

Capitol Hill Watch

   Rep. Norwood Tries To Revive Debate Over Patients' Rights

   House Members Reach Compromise on Allowing States To Keep Unspent CHIP Funds

   Senate Committee Considers Association Health Plan Legislation

   Senators Introduce Legislation That Would Amend FMLA To Allow Six Weeks of Paid Leave

Medicare

   Bush Administration Official Says Government Will Consider Allowing Medicare To Cover Certain Self-Injected Drugs

Coverage & Access

   Federal Government, Los Angeles County Reportedly Reach an Agreement on Federal Bailout

Prescription Drugs

   Suit Challenging Validity of GlaxoSmithKline's Paxil Patent Begins

   New Labels on Antibiotics Will Warn Doctors Only To Prescribe Medicines for Bacterial Infections

   Kaiser Daily Health Policy Report Examines Coverage of Three States' Actions on Drug Costs

Health Care Marketplace

   Kansas Should Receive 20% of Proceeds from Health Midwest Sale, Judge Rules

People

   HHS Assistant Secretary for Health Slater Steps Down

Opinion

   Kaiser Daily Health Policy Report Rounds Up Coverage of Reactions to Bush Budget Proposal




Capitol Hill Watch
 

    Rep. Norwood Tries To Revive Debate Over Patients' Rights
    [Feb 06, 2003]

      Rep. Charlie Norwood (R-Ga.) is "reviv[ing]" the debate over patients' rights by proposing two new bills, but he acknowledged that passage of such legislation "could be difficult" because lawmakers recently have been focused on creating a Medicare drug benefit and addressing rising medical malpractice insurance rates, Associated Press reports (Abrams, Associated Press, 2/5). In the 107th Congress, the House and Senate each approved patients' rights legislation, but negotiations to reconcile the two separate bills stalled. The Senate bill would have allowed consumers to sue HMOs in state court for unlimited damages or in federal court, with any damages limited to $5 million. The House bill, supported by the Bush administration, would have permitted consumers to sue HMOs only in federal court, with a $1.5 million cap on noneconomic damages. Consumers also would have been permitted to receive up to $1.5 million in punitive damages under the House bill, but only if they had won complaints against the HMO before an outside appeals panel and the HMO still refused to cover the cost of care (Kaiser Daily Health Policy Report, 11/22/02). Norwood's first measure, the Patient Protection Act, would require that people enrolled in managed care programs have access to emergency and pediatric care, as well as prescription drugs. The act would also guarantee patients' access to information, "protect" the doctor-patient relationship and grant patients the right to an independent review when a doctor and an insurance company disagree on a treatment (Associated Press, 2/5). The measure has been modified to reflect the Supreme Court's ruling in Rush v. Moran and would allow states to have "more stringent" independent review provisions than the minimum established by federal law (Norwood release, 2/5). In that case, the high court upheld state laws allowing consumers the right to seek an independent review of denials of care by managed care companies (Kaiser Daily Health Policy Report, 6/21/02). Norwood's second measure, the ERISA Clarification Act, also clarifies the Supreme Court's Rush v. Moran decision, stating that the 1974 Employee Retirement Income Security Act does not block actions against health plans for denials of care from proceeding in state courts (Norwood release, 2/5).

'Little Support' for Measures
"I know others will say that with health care costs on the rise, now is not the time for patient protections; but from my perspective, now is precisely the time for patient protections. When insurers and employers are concerned about the cost of health care, the quality of patient care can be jeopardized for the bottom line," Norwood said (Norwood release, 2/5). His measures have "attracted little support" so far, in part because they do not include a provision for suing managed care plans for medical decisions, CongressDaily/AM reports (Rovner, CongressDaily/AM, 2/6). Norwood said, "I am no longer trying to help forge a compromise on liability. I tried that for years and, in the end, all I got was a few hundred beatings and no law." However, Rep. John Dingell (D-Mich.), who previously cosponsored a patients' rights bill with Norwood, said that trying to pass a patients' rights measure without addressing the liability issue is "like trying to move a car forward without an engine" (Associated Press, 2/5). Sen. John McCain (R-Ariz.) said that a liability provision "has to be part of any [patients' rights] package." Sen. John Edwards (D-N.C.) added, "Without enforcement, it's a patients' bill of suggestions." Dingell, McCain, Edwards and Sen. Edward Kennedy (D-Mass.) are expected to propose their "latest version" of a patients' rights bill "in the next few weeks," CongressDaily/AM reports (CongressDaily/AM, 2/6). Dr. Donald Young, president of the Health Insurance Association of America, said Norwood's "legislation ... would further drive up health care costs, exacerbating the nation's uninsured crisis at a time when health care costs already are escalating rapidly" (Associated Press, 2/5).

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    House Members Reach Compromise on Allowing States To Keep Unspent CHIP Funds
    [Feb 06, 2003]

      Two "key" House lawmakers on Feb. 5 introduced legislation that would allow states to keep approximately $2.7 billion in unspent CHIP funds that otherwise would be sent back to the federal government, Reuters/Detroit Free Press reports (Reuters/Detroit Free Press, 2/6). The joint proposal by Reps. Billy Tauzin (R-La.) and John Dingell (D-Mich.) would extend through fiscal year 2004 the availability of $1.2 billion in unused CHIP funds from FY 1998 and FY 1999 that expired Oct. 1. The bill would also extend for one more year the availability of $1.5 billion in expiring funds from FY 2000 and FY 2001. The $1.5 billion would be evenly distributed between states that have already used their CHIP allotments and states that have not. If the money is not made available to the states, approximately 900,000 children could lose their health coverage, CongressDaily/AM reports. A companion bill sponsored by Sens. John Rockefeller (D-W.V.) and Olympia Snowe (R-Maine) is being introduced in the Senate. The Bush administration's FY 2004 budget proposal would make the unused CHIP funds available, but only for one additional year (CongressDaily/AM, 2/6).

CHIP Enrollment Up
In related news, HHS Secretary Tommy Thompson on Feb. 5 announced that the number of children enrolled in CHIP at some point in FY 2002 in all fifty states and the District of Columbia grew 15% from FY 2001, from 4.6 million children to 5.3 million. "The strategy is working for children across America, but we must and will do more," Thompson said (HHS release, 2/5).

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    Senate Committee Considers Association Health Plan Legislation
    [Feb 06, 2003]

      The Senate Small Business Committee on Feb. 5 debated a proposal that would permit association health plans, allowing small businesses to purchase health insurance for their employees through national trade associations, the St. Louis Post-Dispatch reports. Testifying on Feb. 5, Labor Secretary Elaine Chao said that AHPs are part of the Bush administration's "multi-pronged strategy ... to reduce health care costs" (Livermore, St. Louis Post-Dispatch, 2/5). She added, "AHPs will break down many of the barriers small employers face in trying to offer health coverage." Small Business Committee Chair Olympia Snowe (R-Maine) said, "Let there be no doubt, there would be cost savings" for small businesses under AHPs (Rovner, CongressDaily, 2/5). Sen. Jim Talent (R-Mo.) added that the proposal would "dramatically expand coverage" to some of the 40 million uninsured people in the United States, the Post-Dispatch reports (St. Louis Post-Dispatch, 2/5).

Some Skeptical
However, Kansas Insurance Commissioner Sandy Praeger, testifying on behalf of the National Association of Insurance Commissioners, said that AHP legislation "would put consumers at significant risk and disrupt the health insurance market." She added, "The fragmentation of the small group market will leave many small businesses with higher premiums, or no coverage options at all." But Jack Faris, president of the National Federation of Independent Businesses, which supports the bill, said that the insurance industry "vehemently opposes" AHPs because it is "not fond of the competition that AHPs would bring to bear." Len Nichols, vice president of the Center for Studying Health System Change, said that AHPs could lead to adverse risk selection, meaning that younger, healthier workers would find other coverage and drop out of AHPs, leaving sicker workers behind. He added that three years ago, the Congressional Budget Office estimated that as healthy workers left the broader small business risk pool, health plan premiums would rise for about 20 million workers (CongressDaily, 2/6). Consumer groups, such as Consumers Union, also testified that the proposal could allow AHPs to avoid meeting state-mandated coverage requirements (St. Louis Post-Dispatch, 2/5). Indiana Gov. Frank O'Bannon (D) and North Dakota Gov. John Hoeven (R) told Snowe in a letter that the AHP legislation "would only tie our hands and exacerbate the task before us" (CongressDaily, 2/6).

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    Senators Introduce Legislation That Would Amend FMLA To Allow Six Weeks of Paid Leave
    [Feb 06, 2003]

      Sens. Christopher Dodd (D-Conn.) and Edward Kennedy (D-Mass.) on Feb. 5 -- the 10th anniversary of the enactment of the 1993 Family and Medical Leave Act -- introduced a bill that would allow states to provide as many as six weeks of paid leave for employees with a serious illness or to care for a newborn or family member with a serious illness, CongressDaily reports (Rovner, CongressDaily, 2/5). The Family and Medical Leave Expansion Act would establish a $400 million pilot program to allow states to provide six weeks of paid leave as part of the 12 weeks of unpaid leave available under FMLA (Dodd release, 2/5). In addition, the bill would expand FMLA, which applies to companies with 50 or more employees, to include those with 25 or more employees. The legislation also would allow leave for "victims of domestic violence, or to care for victims of domestic violence," CongressDaily reports (CongressDaily, 2/5). About 78% of the 3.5 million workers eligible for leave under FMLA did not take leave in 2000 because of financial concerns, according to the Department of Labor. "This measure can help ... by ensuring that more families are able to access the critically important benefits of family and medical leave," Dodd said (Dodd release, 2/5).

Republican Legislation
Two separate bills, the Family Time and Workplace Flexibility Act, introduced by Sen. Judd Gregg (R-N.H.), and the Family Time Flexibility Act, introduced by Rep. Judy Biggert (R-Ill.), also would expand access to leave. The bills would allow employees to take paid leave rather than overtime pay, provided that employers agree. "By providing workers with more options and more flexibility, we improve the quality of life for everyone in America who gets up and goes to work every day," Gregg said (CongressDaily, 2/5).

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Medicare
 

    Bush Administration Official Says Government Will Consider Allowing Medicare To Cover Certain Self-Injected Drugs
    [Feb 06, 2003]

      Federal officials may revise a rule to expand Medicare prescription drug coverage to include certain self-injected treatments, the Chicago Tribune reports. Medicare officials did not comment on when they may move to revise the rule but said that they would likely delay the decision until Congress approves a prescription drug benefit for the program. Under the current rule, Medicare covers only a small number of outpatient treatments administered in a physician's office, such as chemotherapy and other cancer treatments. However, pharmaceutical companies maintain that Medicare also should cover self-injected treatments, which have become a "growing and important class of drugs," the Tribune reports. Ruben King-Shaw, deputy administrator for CMS, said, "A number of new and powerful biotech agents are self-injectable. There's a great opportunity to increase outcomes for patients." According to a Medicare spokesperson, Medicare coverage for self-injected treatments would require congressional approval. Medicare coverage for self-injected treatments would provide a financial boost for pharmaceutical companies such as Abbott Laboratories and Amgen, the Tribune reports. Medicare does not cover those companies' self-administered rheumatoid arthritis treatments, Humira and Enbrel, but does cover Remicade, a rival medication manufactured by Johnson and Johnson that is not self-injected (Japsen, Chicago Tribune, 2/6).

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Coverage & Access
 

    Federal Government, Los Angeles County Reportedly Reach an Agreement on Federal Bailout
    [Feb 06, 2003]

      The Los Angeles County Department of Health Services will receive an additional $150 million in federal funds over the next two years under an agreement reached Feb. 4, "effectively ending the health department's immediate funding crisis," the Los Angeles Times reports (Ornstein, Los Angeles Times, 2/5). The county health system faces an estimated $750 million budget deficit by 2005. The county received a $1.2 billion federal bailout in 1995 and an extension of the funds in 2000, but the bailout funds expire in 2005 (Kaiser Daily Health Policy Report, 10/2/02). According to Dr. Thomas Garthwaite, director of the health services department, the new federal funds -- combined with the approval of a ballot measure last November that will raise property taxes to fund the county's trauma care centers and emergency rooms, the decision last year to close of 16 health centers and the planned closure of two public hospitals -- will allow the health services department to avoid additional reductions for at least two years. The new federal funds will allow Olive View-UCLA Medical Center, Harbor-UCLA Medical Center, the county's network of private health clinics that treat uninsured patients and the Edward R. Roybal Comprehensive Health Center to remain open. However, the planned closure of High Desert Hospital and Rancho Los Amigos National Rehabilitation Center will proceed, the Times reports. A legal settlement over reimbursement rates for outpatient care at public hospitals will account for one-third of the new federal funds; the renewal of the federal Disproportionate Share Hospital program, which provides additional funds to state hospitals that care for a large percentage of low-income patients, will account for two-thirds of the funds, the Times reports.

'Far Short' of Request
The $150 million agreement "falls far short" of the $1.4 billion that the county requested from the federal government last year, but Bush administration officials said a third large bailout "was too much to ask," the Times reports. Garthwaite said, "In and of itself, this doesn't get us completely fixed. It doesn't make us stable, but it significantly helps." A CMS spokesperson said that the agency could announce details of the agreement later this week, when HHS Secretary Tommy Thompson plans to visit Los Angeles (Los Angeles Times, 2/5).

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Prescription Drugs
 

    Suit Challenging Validity of GlaxoSmithKline's Paxil Patent Begins
    [Feb 06, 2003]

      A trial in federal district court to determine the validity of a patent on GlaxoSmithKline's antidepressant Paxil began Feb. 5 in Chicago, the New York Times reports. GSK claims it has exclusive rights to Paxil, which it introduced in 1993, until 2006. However, Canadian generic drug maker Apotex will argue that its version of Paxil, known generically as paroxetine hydrochloride, does not violate that patent because the company is "producing the medicine in a different form." Apotex CEO Bernard Sherman said GSK has "repatented every conceivable form" of Paxil in an effort to block competition. The outcome of the trial is "extremely critical to Glaxo," industry analyst Hemant Shah said. Paxil accounts for approximately $3 billion in worldwide sales, about 10% of GSK's total revenue, the Times reports. The trial is expected to last several weeks, but because of the likelihood of further litigation it is not clear how quickly Apotex would be able to market a generic version of Paxil even if it were to win, the Times reports. Apotex is also challenging other Paxil secondary patents in a case that is expected to go to trial later this year in federal district court in Philadelphia (Abelson, New York Times, 2/5).

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    New Labels on Antibiotics Will Warn Doctors Only To Prescribe Medicines for Bacterial Infections
    [Feb 06, 2003]

      The FDA on Feb. 5 announced a final rule that will require new labels on antibiotics to warn physicians to prescribe the treatments only for bacterial infections to help prevent overuse, a practice that can lead to growth of antibiotic-resistant bacteria, AP/USA Today reports. According to the FDA, physicians often prescribe antibiotics for children and adults with viral infections, although antibiotics have no effect on viruses (AP/USA Today, 2/6). The FDA estimates that half of the 100 million prescriptions that physicians write for antibiotics each year are unnecessary because they are used to treat viral infections (Dow Jones/Wall Street Journal, 2/6). The FDA also will require the labels to warn physicians to inform patients to take antibiotics as directed, not to share the treatments with others and to continue to take the medications for the full course of treatment (AP/USA Today, 2/6). Bacteria have become more resistant to antibiotics as a result of overuse, and as a result, "old standbys" such as penicillin no longer treat many common bacterial infections, the AP/USA Today reports (AP/USA Today, 2/6). "Antibacterial resistance is a serious and growing public health problem in the United States and worldwide," FDA Commissioner Mark McClellan said, adding, "Without effective antibiotic drugs, common infections, that were once easily treated, can create a serious health threat to children and adults alike" (FDA release, 2/5). The new rule, which the FDA proposed in 2001, will require the new labels on antibiotics by Feb. 6, 2004 (AP/USA Today, 2/6).

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    Kaiser Daily Health Policy Report Examines Coverage of Three States' Actions on Drug Costs
    [Feb 06, 2003]

      The following summarizes media coverage of recent legislative action in three states on prescription drug costs:

  • Florida: The Florida House is considering a bipartisan bill that would give discounts of 38% to 50% on prescription drugs to around 250,000 seniors who have annual incomes less than 200% of the federal poverty level, or $17,720 for an individual and $23,880 for a couple, the St. Petersburg Times reports (Sandler, St. Petersburg Times, 2/4). Sponsored by House Speaker Johnnie Byrd (R), the bill would give a 38% discount on prescription drugs to single Florida residents 65 and older with incomes at 200% of the poverty level and discounts of up to 50% for seniors with incomes lower than 200% of poverty. The plan would cost the state $30 million (AP/St. Petersburg Times, 2/3). Senate President Jim King (R) is backing a different proposal, sponsored by state Sen. Debbie Wasserman Schultz (D), that would provide 30% drug discounts to nearly two million seniors and cost the state about $24 million (St. Petersburg Times, 2/4). In other prescription drug news, state Sen. David Aronberg (D) and state Rep. Shelley Vana (D) have proposed a bill that would require drug companies every six months to release their wholesale prices for the 200 most-used treatments to the state Agency for Health Care Administration, which will post them on its Web site, the Fort Lauderdale Sun-Sentinel reports. The bill would amend the 2000 Florida Drug Affordability Act, which requires pharmacies to offer Medicare beneficiaries prescription drugs for a total cost of 9% less than the average wholesale retail price plus a $4.50 per prescription dispensing fee (Lade/Singer, Fort Lauderdale Sun-Sentinel, 1/31).
  • Washington: State legislators are considering a bill (HB 1214) that would create a drug-purchasing consortium that would use its "bulk buying power" to secure lower prices for prescription drugs, the Spokane Spokesman-Review reports. Under the consortium proposal, seniors with annual incomes up to 200% of the federal poverty level would pay an administrative fee of around $29 to join the consortium. The Spokesman-Review does not indicate the discounts such a consortium would be able to obtain. The bill would also create a board to oversee the consortium and to develop a preferred drug list for state health programs. Pharmacists would substitute less-expensive drugs for medicines not on the list unless the prescription read "dispense as written." In addition, the bill would establish an information clearinghouse to help seniors find other public and private drug-discount programs. The bill, which was requested by Gov. Gary Locke (D), has an emergency clause, meaning it would take effect immediately if passed and signed by Locke (Roesler, Spokane Spokesman-Review, 1/28).
  • Illinois: Gov. Rod Blagojevich (D) and House Democrats on Feb. 3 began a summit focusing on reducing prescription drug prices for seniors, the Chicago Sun-Times reports. At the summit, Rep. Jack Franks (D) proposed creating a state-run co-op that would buy prescription drugs for seniors. Under the proposal, the state would negotiate prices with drug companies on behalf of "thousands of seniors," who would pay a "small fee" to join in the program. Franks contends that the prices of some treatments could be reduced by as much as 50% (McKinney, Chicago Sun-Times, 2/4).

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Health Care Marketplace
 

    Kansas Should Receive 20% of Proceeds from Health Midwest Sale, Judge Rules
    [Feb 06, 2003]

      Johnson County, Kan., District Judge Thomas Foster on Feb. 4 ruled unconstitutional a bill (SB 44) passed by the Kansas Legislature to establish a state foundation to distribute the state's share from the sale of not-for-profit Health Midwest to for-profit HCA, the Wichita Eagle reports (Stafford, Wichita Eagle, 2/5). The Kansas Legislature on Jan. 23 approved the bill after Missouri Attorney General Jay Nixon (D) announced on Jan. 22 that his office and Health Midwest had agreed to create a single $700 million foundation from the sale. Health Midwest had proposed creating one foundation to serve the entire metropolitan Kansas City area, which includes both Kansas and Missouri, but former Kansas Attorney General Carla Stovall (R) "insisted" that Kansas have a foundation separate from Missouri's. Health Midwest sued both attorneys general, saying that neither had authority over the sale or creation of a foundation (Kaiser Daily Health Policy Report, 1/28). Foster determined that the sale of Health Midwest to HCA is "legitimate and should be finalized" and that 20% of the estimated $700 million to $800 million in proceeds from the sale should remain in a Kansas corporation "separate" from Missouri's share, according to the Eagle. The Eagle does not report on why Foster ruled the Kansas bill unconstitutional. His ruling "left confusion" about how the money will be distributed between Kansas and Missouri, the Eagle reports. Kansas Attorney General Phill Kline (R), who has argued that Kansas should receive 15% to 25% of proceeds from the for-profit conversion, said the ruling is a "significant victory," the Eagle reports. Health Midwest spokesperson Chris Whitley declined to comment on the ruling (Wichita Eagle, 2/5).

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People
 

    HHS Assistant Secretary for Health Slater Steps Down
    [Feb 06, 2003]

      Dr. Eve Slater on Feb. 5 stepped down as HHS assistant secretary for health to "pursue other opportunities," according to an HHS release. President Bush nominated Slater in October 2001, when she was senior vice president for clinical and regulatory development at Merck Research Laboratories. Slater, who served as the HHS secretary's primary adviser on public health, was "a relentless advocate for the health and well-being of all Americans" and focused on women's health, HIV/AIDS, health disparities, vaccinations, patient safety, health care quality and information technology, HHS Secretary Tommy Thompson said. Surgeon General Richard Carmona will serve as acting assistant director while the department seeks a new assistant secretary (HHS release, 2/5).

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Opinion
 

    Kaiser Daily Health Policy Report Rounds Up Coverage of Reactions to Bush Budget Proposal
    [Feb 06, 2003]

      Newspapers and advocacy groups nationwide in recent days have addressed provisions in President Bush's fiscal year 2004 budget proposal. Bush on Feb. 3 sent Congress a $2.23 trillion budget proposal for fiscal year 2004 that would create a $307 billion deficit in the next budget year and a deficit of more than $1 trillion over the next five years. Bush's FY 2004 proposal calls for a $6 billion "downpayment" on a 10-year, $400 billion Medicare reform plan that the president mentioned in his State of the Union address and in a speech in Michigan last week. The plan also includes a proposal that would reform Medicaid to allow states more flexibility in administering the program and would give states fixed allotments of federal funds. In addition, Bush's budget proposal includes $15 billion over five years to combat HIV/AIDS in African and Caribbean nations and $600 million over three years for a new substance abuse treatment program, which would provide vouchers that could be used at "faith-based" or secular drug treatment centers. The plan would raise NIH funding by 2% after several years of larger increases (Kaiser Daily Health Policy Report, 2/4). The following are summaries of several reactions:

Editorials

  • Baltimore Sun: President Bush's budget proposal "shamelessly provid[es] ... many tax breaks for the wealthy," making it "more likely younger Americans will later bear much greater tax burdens" to continue to provide Medicare to "aging baby boomers," a Sun editorial states. The editorial concludes that Bush's proposals "mainly serve the economic interests of those with the very highest incomes -- for which the vast majority of us could be paying for generations" (Baltimore Sun, 2/5).
  • Bangor Daily News: Bush "took several important steps" toward reforming Medicare last week: he made it part of his agenda, he recognized the need for a drug benefit and he conceded that such a benefit would require a large amount of money, according to a Daily News editorial. President Bush is "right" to recognize that Medicare is "growing unaffordable" and needs a prescription drug benefit, but his plan to offer a drug benefit to seniors who switch to HMOs is flawed because "there are good reasons" why many Medicare beneficiaries have not already switched to managed care plans, a Daily News editorial states. The editorial concludes, "The risks that [Bush's plan] will add a layer of corporate bureaucracy and allow the government to define its contributions instead of Medicare's benefits are too great" (Bangor Daily News, 2/4).
  • Los Angeles Times: President's Bush's decision to discuss Medicare reform in a speech last week in Grand Rapids, Mich., was the "right choice" politically because "[s]eniors vote," but the true "national crisis" is that 41 million people "lack any kind of health coverage," a Times editorial states. The editorial concludes, "With his party controlling both houses of Congress, Bush cannot afford a continuously growing tide of working people with no health care coverage at all in what is still the wealthiest of industrial democracies" (Los Angeles Times, 2/4).
  • Macon Telegraph: Although President Bush "seemed to propose" a Medicare reform plan that would offer a drug benefit in return for joining an HMO, even the lawmakers who support Bush "don't have a clue" on the details in the president's actual plan, a Telegraph editorial states. According to the editorial, House Majority Leader Tom DeLay (R-Texas) said critics of Bush's apparent plan "were wrong to suggest" that Medicare beneficiaries would be required to join an HMO to receive drug coverage. However, the editorial concludes, "If DeLay is right and [Bush's plan] is not an either or proposition, what is the plan? Privatizing Medicare -- or parts of it -- is not the answer" (Macon Telegraph, 2/5).
  • Memphis Commercial Appeal: Although President Bush's budget proposal has "appealing elements," such as his proposal to provide $15 billion to fight HIV/AIDS worldwide, the plan would "mortgage the nation's future fiscal stability" and "distort the tax system today," a Commercial Appeal editorial states. The editorial concludes, "Congress needs to address -- and revise -- the White House budget accordingly" (Memphis Commercial Appeal, 2/5).
  • Philadelphia Daily News: The Bush administration's plans for Medicare reform that discuss "choice" are "code for the ultimate privatization: the dismantling of Medicare," a Daily News editorial states. The editorial continues that it is "unfair" to attempt to "entice" seniors to join managed care programs by providing prescription drug benefits in return because more than 80% have elected to remain in the traditional fee-for-service program. According to the Daily News, in the short term, the Bush plan would result in a "two-tiered" system; in the long run, it would "end ... Medicare as we know it." The editorial concludes, "Medicare has worked well over four decades. ... Like anything else, it can be improved. But the best way to provide the prescription drugs that seniors need is to provide them as a benefit in Medicare" (Philadelphia Daily News, 2/4).
  • Springfield Union-News: It is a "step forward" for the Bush administration to "acknowledg[e] the importance" of drug treatment by providing funding for treatment programs, but it "can't be lauded," because the funds could be used for treatment programs run by religious groups, a Union-News editorial states. The editorial asserts that "virtually everyone in the medical community" views religious groups' methods of drug treatment, including prayer, as "without merit." While a person's faith could mean "the difference between success and failure" in treatment programs, the use of faith in drug treatment is a decision for the person undergoing treatment, their counselor and a member of the clergy, "if desired." According to the Union-News, it is "most decidedly not a matter for the government to support, ... especially not with taxpayer money." The editorial concludes, "Having made that all important leap" to provide funds for drug treatment, the Bush administration "should stand firmly on that ground, seeing the afflicted and the addicted as fellow citizens who need help, who need treatment -- not as the enemy in some metaphorically dubious war, and not as people who need nothing more than a good dose of someone else's religion" (Springfield Union-News, 2/4).

Opinion Pieces

  • Steven Findlay, USA Today: While a drug benefit for Medicare is "unquestionably needed," the expense of such a benefit "threatens to sideline" efforts to expand health insurance coverage to the uninsured, which is "unacceptable," Findlay, a health policy analyst, writes in a USA Today opinion article. According to Findlay, there are "significant ... obstacles" to enacting a Medicare prescription drug benefit and expanding coverage to the uninsured, because both are "expensive and complex reforms." However, Findlay recommends undertaking reform efforts for both issues this year -- "before the 2004 elections bog things down." Findlay proposes that Congress and the Bush administration commit to cutting the number of uninsured people in half by 2010 through a "phased-in expansion" of public health programs and tax credits to help families and small business purchase insurance. Further, Congress should enact a phased-in requirement for all Americans to have health insurance. Meanwhile, Findlay proposes Congress enact a Medicare drug benefit targeted at low- and middle-income seniors and seniors with high drug expenses that will eventually expand to all Medicare beneficiaries over time. Findlay concludes, "Bush and Congress should get started this year on creating such a future -- and not just for the country's seniors" (Findlay, USA Today, 2/6).
  • D.J. Tice, St. Paul Pioneer Press: By announcing a "vague" plan to reform Medicare and add a prescription drug benefit, the Bush administration perhaps is being "coy" and attempting to foster debate on the subject, Tice, a Pioneer Press editorial writer, states in opinion piece. Tice notes that the subject of changing Medicare is "politically explosive," but that Medicare drug coverage is the "only train leaving the station." Tice concludes that a "frank debate over how to best control Medicare spending is necessary. Bush is wise to use the political appeal of prescription drug coverage to lure the country into one" (Tice, St. Paul Pioneer Press, 2/5).

Advocacy Groups

  • American Cancer Society: Daniel Smith, national vice president for federal and state government relations with the ACS, said, "The budget ... is a grave disappointment to millions of people whose lives have been touched by cancer. After several years of strong and consistent growth in cancer and other medical research funding, the administration's proposed 2% increase for the NIH is effectively slamming the brakes on future progress" (ACS release, 2/3).
  • American Heart Association: Bush's budget proposal "comes up short" in the fight against cardiovascular diseases, according to the AHA. "The President's 2% recommendation for NIH next year is essentially a no-growth budget, especially when you consider inflation and other demands on the agency's budget that can pull funding from much-needed chronic disease research, such as heart disease and stroke," AHA Chair Craig Beam said (AHA release, 2/5).
  • American Legislative Exchange Council: The ALEC "welcomes" Bush's proposal to reform Medicaid. "Governors, state legislatures, taxpayers -- but most importantly patients -- are winners under the Administration's Medicaid proposal. States that choose this option will be afforded the opportunity to design patient-friendly programs," Duane Parde, executive director of ALEC, said (ALEC release, 2/5).
  • American Public Health Association: Dr. Georges Benjamin, executive director of the American Public Health Association, said, "We fully support several initiatives the president outlined in his budget that will improve the health of people," adding, "Sustained support for public health preparedness, increases to reduce chronic diseases, expanded funding for community health centers and a new U.S. commitment to fight global AIDS represent some of the good news." Benjamin concludes, "But the budget also includes missed opportunities, and the good news should not come at the expense of other vital health programs" (APHA release, 2/3).
  • FamiliesUSA: Ron Pollack, executive director of FamiliesUSA, said that Bush's budget "does not add up to the health care promises he made to the American people in his State of the Union address." He adds, "Unfortunately, $400 billion only covers a very meager share of seniors' prescription drug costs, which are projected to total $2 trillion over the same 10-year period." Pollack concludes, "The President's new proposal ... pressures seniors into choosing between the drug coverage they so desperately need and the doctors they have come to depend on" (FamiliesUSA release, 2/3).
  • National Mental Health Association: Michael Faenza, NMHA president and CEO, said, "The NMHA is deeply concerned that the administration's budget for FY 2004 encourages states to cut benefits provided by Medicaid, while proposing virtually no increase in overall funding for community mental health programs under the Substance Abuse Mental Health Services Administration" (NMHA release, 2/4).

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