Impact of Medicare Legislation Examined
CAL/AAEM News Service
pottsbri@yahoo.com
Sun, 30 Nov 2003 08:22:49 -0800 (PST)
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-----Original Message-----
From: California Healthline [mailto:CALIFORNIAHEALTHLINE@ADVISORY.COM]
Impact of Medicare Legislation Examined
11/25/2003
The Medicare legislation (HR 1 <http://thomas.loc.gov/cgi-bin/query/z?c108:h.r.1:> ) approved by the House and Senate this week will have an impact on beneficiaries, the drug industry and the 2004 campaigns of Democrats and Republicans, http://www.usatoday.com/money/industries/health/2003-11-25-medicare-side2_x.htm USA Today reports. The following summarizes media coverage analyzing the impact of the legislation.
Beneficiaries
Analysts say the bill would "aid millions of seniors nationwide" in paying for prescription drugs, but the "degree to which it would help varies from one person to another," the http://www.orlandosentinel.com/news/nationworld/orl-asecmedicareimpact25112503nov25,1,1130317.story Orlando Sentinel reports (Suriano/Kunerth, Orlando Sentinel, 11/25). Under the legislation, relatively healthy seniors "could actually find their drug expenses increase," but "many seniors, especially those who are seriously ill or suffer chronic conditions," would see their expenses drop, according to the Wall Street Journal. However, the plan would "require seniors to become much more savvy consumers," the Journal reports (Lueck, Wall Street Journal, 11/25). Some seniors say they do not understand all the provisions in the bill and whether they would benefit under the legislation (Mondics, <http://www.philly.com/mld/philly/news/7342794.htm> Philadelphia Inquirer, 11/25). According to an AARP
<http://www.aarp.org/> survey released last week, 75% of its members supported the measure, but polls performed by other groups found that about 50% of seniors opposed the plan after learning its details (Martelle/Goldman, http://www.latimes.com/news/nationworld/nation/la-na-seniors25nov25,1,1661746.story Los Angeles Times, 11/25).
Drug Industry
With the passage of the Medicare legislation, the drug industry appears "on the cusp of an enormous victory, gained in part by millions in political donations and an expensive lobbying campaign," the <http://www.nytimes.com/2003/11/25/politics/25DRUG.html> New York Times reports (Harris, New York Times, 11/25). Under the plan, the industry would "reap a multibillion bonanza in the form of millions of new customers and limits on foreign competition," according to Long Island http://www.newsday.com/business/local/newyork/ny-bzmedi253558654nov25,0,7056167.story Newsday. Of the 40 million Medicare beneficiaries, 10 million currently have no drug coverage; by offering a drug benefit, consumption would increase. The bill is also favorable to the drug industry because it would require a safety certification from HHS before allowing the reimportation of U.S.-made prescription drugs from Canada by U.S residents. HHS Secretary Tommy Thompson has said he is not likely to do so. The bil!
l also
would prohibit price controls on the drugs, a move that the industry supports (Toedtman, Long Island Newsday, 11/25). However, "some investors already are starting to fret" about the bill's long-term side effects, including the possibility that the drug industry could become "very subject to the whims of Congress," the Wall Street Journal reports (Hensley et al., Wall Street Journal, 11/25). In addition, drug makers still face pressure to reduce the prices of their treatments, and some drug executives predict the additional sales volume will be balanced by discounts they will have to provide to health plans and insurers that negotiate prices (Harris, New York Times, 11/25).
Political Campaigns
President Bush's "bid to break the historic political alliance between Democrats and senior citizens" could affect the 2004 elections and "perhaps long-term partisan patterns in this country," the <http://www.washingtonpost.com/wp-dyn/articles/A11573-2003Nov24.html> Washington Post reports. However, the effect of the legislation remains "difficult to predict," according to the Post (Broder/Connolly, Washington Post, 11/25). Officials from both parties have said they will use the Medicare bill to "clobber the opposition" during 2004 congressional races, the <http://www.hillnews.com/campaign/112503_medicare.aspx> The Hill reports (Savodnik, The Hill, 11/25). Republican strategists are "convinced" that they have reached a "transformational moment in American politics, creating a historic improvement for a constituency that Democrats had long claimed as their own," the <http://www.nytimes.com/2003/11/25/politics/25ASSE.html> New York Times reports (Toner, New York Times, 11/25).!
The
legislation could hurt Democrats, who have previously "slammed Republicans for failing to produce a prescription drug benefit," and could "inoculate[e]" the GOP from "accusations that it doesn't care about seniors," according to The Hill (The Hill, 11/25). However, Democrats expect that seniors will be "sorely disappointed when they realized the limits of the new coverage and the complexity of the system," according to the Times (New York Times, 11/25). Because the House vote is "likely to affect congressional races across the country next year," incumbent Democrats in the House who won their seats by slim margins in the last election "weighed their options carefully before voting yea or nay" and conservatives who were "torn between politics and principle" tried to demonstrate that they had "extracted concessions" from Republican leaders, according to The Hill (The Hill, 11/25).
Brian Potts
Managing Editor, CAL/AAEM News Service
MS-IV, UC-Irvine
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<DIV><FONT size=2>
<P>-----Original Message-----</P>
<P>From: California Healthline [</FONT><A href="mailto:CALIFORNIAHEALTHLINE@ADVISORY.COM"><U><FONT color=#0000ff size=2>mailto:CALIFORNIAHEALTHLINE@ADVISORY.COM</U></FONT></A><FONT size=2>] </P>
<P></P>
<P> </P>
<P>Impact of Medicare Legislation Examined </P>
<P>11/25/2003 </P>
<P>The Medicare legislation (HR 1 <</FONT><A href="http://thomas.loc.gov/cgi-bin/query/z?c108:h.r.1:"><U><FONT color=#0000ff size=2>http://thomas.loc.gov/cgi-bin/query/z?c108:h.r.1:</U></FONT></A><FONT size=2>> ) approved by the House and Senate this week will have an impact on beneficiaries, the drug industry and the 2004 campaigns of Democrats and Republicans, </FONT><A href="http://www.usatoday.com/money/industries/health/2003-11-25-medicare-sid"><U><FONT color=#0000ff size=2><A href="http://www.usatoday.com/money/industries/health/2003-11-25-medicare-side2_x.htm">http://www.usatoday.com/money/industries/health/2003-11-25-medicare-sid</U></FONT></A><FONT size=2>e2_x.htm</A> USA Today reports. The following summarizes media coverage analyzing the impact of the legislation. </P>
<P></P>
<P></P>
<P> </P>
<P>Beneficiaries </P>
<P>Analysts say the bill would "aid millions of seniors nationwide" in paying for prescription drugs, but the "degree to which it would help varies from one person to another," the </FONT><A href="http://www.orlandosentinel.com/news/nationworld/orl-asecmedicareimpact2"><U><FONT color=#0000ff size=2><A href="http://www.orlandosentinel.com/news/nationworld/orl-asecmedicareimpact25112503nov25,1,1130317.story">http://www.orlandosentinel.com/news/nationworld/orl-asecmedicareimpact2</U></FONT></A><FONT size=2>5112503nov25,1,1130317.story</A> Orlando Sentinel reports (Suriano/Kunerth, Orlando Sentinel, 11/25). Under the legislation, relatively healthy seniors "could actually find their drug expenses increase," but "many seniors, especially those who are seriously ill or suffer chronic conditions," would see their expenses drop, according to the Wall Street Journal. However, the plan would "require seniors to become much more savvy consumers," the Journal reports (Lueck, Wall Street!
Journal,
11/25). Some seniors say they do not understand all the provisions in the bill and whether they would benefit under the legislation (Mondics, <</FONT><A href="http://www.philly.com/mld/philly/news/7342794.htm"><U><FONT color=#0000ff size=2>http://www.philly.com/mld/philly/news/7342794.htm</U></FONT></A><FONT size=2>> Philadelphia Inquirer, 11/25). According to an AARP <</FONT><A href="http://www.aarp.org/"><U><FONT color=#0000ff size=2>http://www.aarp.org/</U></FONT></A><FONT size=2>> survey released last week, 75% of its members supported the measure, but polls performed by other groups found that about 50% of seniors opposed the plan after learning its details (Martelle/Goldman, </FONT><A href="http://www.latimes.com/news/nationworld/nation/la-na-seniors25nov25,1,1"><U><FONT color=#0000ff size=2><A
href="http://www.latimes.com/news/nationworld/nation/la-na-seniors25nov25,1,1661746.story">http://www.latimes.com/news/nationworld/nation/la-na-seniors25nov25,1,1</U></FONT></A><FONT size=2>661746.story</A> Los Angeles Times, 11/25). </P>
<P></P>
<P></P>
<P> </P>
<P>Drug Industry </P>
<P>With the passage of the Medicare legislation, the drug industry appears "on the cusp of an enormous victory, gained in part by millions in political donations and an expensive lobbying campaign," the <</FONT><A href="http://www.nytimes.com/2003/11/25/politics/25DRUG.html"><U><FONT color=#0000ff size=2>http://www.nytimes.com/2003/11/25/politics/25DRUG.html</U></FONT></A><FONT size=2>> New York Times reports (Harris, New York Times, 11/25). Under the plan, the industry would "reap a multibillion bonanza in the form of millions of new customers and limits on foreign competition," according to Long Island </FONT><A href="http://www.newsday.com/business/local/newyork/ny-bzmedi253558654nov25,0"><U><FONT color=#0000ff size=2><A href="http://www.newsday.com/business/local/newyork/ny-bzmedi253558654nov25,0,7056167.story">http://www.newsday.com/business/local/newyork/ny-bzmedi253558654nov25,0</U></FONT></A><FONT size=2>,7056167.story</A> Newsday. Of the 40 million Medicare
beneficiaries, 10 million currently have no drug coverage; by offering a drug benefit, consumption would increase. The bill is also favorable to the drug industry because it would require a safety certification from HHS before allowing the reimportation of U.S.-made prescription drugs from Canada by U.S residents. HHS Secretary Tommy Thompson has said he is not likely to do so. The bill also would prohibit price controls on the drugs, a move that the industry supports (Toedtman, Long Island Newsday, 11/25). However, "some investors already are starting to fret" about the bill's long-term side effects, including the possibility that the drug industry could become "very subject to the whims of Congress," the Wall Street Journal reports (Hensley et al., Wall Street Journal, 11/25). In addition, drug makers still face pressure to reduce the prices of their treatments, and some drug executives predict the additional sales volume will be balanced by discounts they will have to pr!
ovide to
health plans and insurers that negotiate prices (Harris, New York Times, 11/25). </P>
<P></P>
<P></P>
<P> </P>
<P>Political Campaigns </P>
<P>President Bush's "bid to break the historic political alliance between Democrats and senior citizens" could affect the 2004 elections and "perhaps long-term partisan patterns in this country," the <</FONT><A href="http://www.washingtonpost.com/wp-dyn/articles/A11573-2003Nov24.html"><U><FONT color=#0000ff size=2>http://www.washingtonpost.com/wp-dyn/articles/A11573-2003Nov24.html</U></FONT></A><FONT size=2>> Washington Post reports. However, the effect of the legislation remains "difficult to predict," according to the Post (Broder/Connolly, Washington Post, 11/25). Officials from both parties have said they will use the Medicare bill to "clobber the opposition" during 2004 congressional races, the <</FONT><A href="http://www.hillnews.com/campaign/112503_medicare.aspx"><U><FONT color=#0000ff size=2>http://www.hillnews.com/campaign/112503_medicare.aspx</U></FONT></A><FONT size=2>> The Hill reports (Savodnik, The Hill, 11/25). Republican strategists are "convinced!
" that
they have reached a "transformational moment in American politics, creating a historic improvement for a constituency that Democrats had long claimed as their own," the <</FONT><A href="http://www.nytimes.com/2003/11/25/politics/25ASSE.html"><U><FONT color=#0000ff size=2>http://www.nytimes.com/2003/11/25/politics/25ASSE.html</U></FONT></A><FONT size=2>> New York Times reports (Toner, New York Times, 11/25). The legislation could hurt Democrats, who have previously "slammed Republicans for failing to produce a prescription drug benefit," and could "inoculate[e]" the GOP from "accusations that it doesn't care about seniors," according to The Hill (The Hill, 11/25). However, Democrats expect that seniors will be "sorely disappointed when they realized the limits of the new coverage and the complexity of the system," according to the Times (New York Times, 11/25). Because the House vote is "likely to affect congressional races across the country next year," incumbent Demo!
crats in
the House who won their seats by slim margins in the last election "weighed their options carefully before voting yea or nay" and conservatives who were "torn between politics and principle" tried to demonstrate that they had "extracted concessions" from Republican leaders, according to The Hill (The Hill, 11/25). </P></FONT></DIV><BR><BR><STRONG>Brian Potts <BR>Managing Editor, CAL/AAEM News Service</STRONG> <BR>MS-IV, UC-Irvine<p><hr SIZE=1>
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